Client Money Rules for Barristers (BSB Handbook)

Under the Bar Standards Board (BSB) Handbook, self-employed barristers in England and Wales are generally not permitted to hold client money. This restriction reflects the barrister’s role as an advocate or legal adviser rather than a fiduciary intermediary.

Key Rules and Restrictions

• rC73 and rC74 of the BSB Handbook prohibit self-employed barristers from receiving, handling, or controlling client money.
• Barristers must direct clients to pay funds (e.g. settlement proceeds or court fees) directly to solicitors or appropriate third parties.
• The rules are designed to reduce financial risk and maintain clear boundaries in the barrister’s professional role.

When Exceptions Apply

A barrister may only handle client money if:

• They are authorised to do so under a BSB licensed entity, or
• They work within a BSB-authorised organisation that has permission to hold client money

In these cases, additional safeguards, reporting, and insurance requirements apply.

Why These Rules Exist

The prohibition protects both clients and the profession by:

• Preventing conflicts of interest
• Minimising the risk of fraud or financial mismanagement
• Simplifying regulation and professional oversight

Examples and Use Cases

• A public access barrister cannot accept a client’s settlement cheque. It must be sent to a solicitor.
• A barrister working in a BSB-regulated entity may handle client money only under specific regulatory conditions.

Mini-FAQ

Can a barrister ever hold client funds?
Only if working under a licensed or authorised BSB entity with proper permissions.

What happens if a barrister wrongly accepts client money?
They may face disciplinary action, including suspension or disbarment.

Where can I find the full rules?
In Part 2, Section C of the BSB Handbook, particularly rules rC73 and rC74.