Glossary:

Client Money Rules (SRA)

Explore the SRA’s Client Money Rules and how they regulate solicitors handling client funds in the UK, especially in probate and trust contexts.

TL;DR - Client Money Rules (SRA)

The SRA’s Client Money Rules govern how solicitors in England and Wales must handle, hold, and account for money received from or on behalf of clients.

The Client Money Rules, issued by the Solicitors Regulation Authority (SRA), set out how law firms and solicitors must manage client funds. These rules are designed to prevent misuse, ensure accountability, and uphold public trust in legal services.

Key Principles

Client money must be kept separate in a designated client account
It must not be used for firm expenses or mixed with business funds
Records must be clear, accurate, and reconciled regularly
Interest earned must be dealt with according to client agreements

Applicability

These rules apply to:

Probate solicitors managing estate funds
Trust and property lawyers handling transaction proceeds
Any situation where a solicitor temporarily holds money on behalf of a client

Example

A solicitor receives £100,000 from an estate sale. Under SRA rules, it must be deposited into the firm’s client account and only withdrawn for authorised payments.

Mini-FAQ

Can a solicitor hold client money in a personal account?
No. Doing so breaches SRA regulations and may result in disciplinary action.

What happens if client money is misused?
Misuse may lead to SRA investigation, suspension, or disbarment, and in some cases, criminal charges.

Related Words and Terms

Solicitors Regulation Authority (SRA)

Learn about the Solicitors Regulation Authority (SRA), the body that regulates solicitors in England and Wales, including its role and enforcement powers.

Probate

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