Barristers instructed under the public or licensed access regime are subject to a strict prohibition against holding client money (with limited exceptions). Under Rule rC73 of the BSB Handbook, a barrister must “not receive, control or handle client money apart from what the client pays you for your services.”
Even when holding payments “on account,” a barrister may not exercise de facto control over funds intended for future work unless exceptions apply.
Thus, for direct-access barristers seeking to offer clients the option of prepaid fees or staged funding, a TPMA offers a compelling and regulation‑friendly alternative. The funds are held by a regulated third party (us) rather than by the barrister, hence avoiding the regulatory pitfalls of client account ownership.
Within the TPMA framework tailored to barristers, two broad models are viable:
In practice, a barrister using TPMA for fees on account arranges for clients to deposit funds into the TPMA, which remain under third‑party custody until drawn down under the agreed terms.
Given the BSB prohibition on holding client money, a direct-access barrister cannot lawfully maintain a client account for advances. The TPMA model aligns with rC73 by placing funds outside the barrister’s control and into a third party’s hands. Moreover, the Bar Council’s “Client Money and Payments in Advance” guidance confirms that the prohibition on handling client money still applies to self‑employed barristers undertaking public access work.
In addition, under the BSB Handbook, entities (including chambers or BSB entities) may use third‑party payment services provided they comply with Rules C74 and rC75 and related guidance (gC103–gC112). This offers a structured route for more complex chambers arrangements, but the same principle supports an individual barrister’s use of a TPMA.
By removing direct custody of client funds, a barrister eliminates exposure to misapplication or regulatory breaches.
Cyber risk, human error, or internal accounting failings reside with the TPMA provider, not the barrister (so long as the interface and authorisation protocols are robust). This arrangement preserves professional reputation and reduces the risk of regulatory sanction.
Clients gain confidence when funds are held independently by a regulated third party. Clear reporting, audit trails, periodic statements, and draw‑downs consistent with the scope of work help maintain trust. Moreover, a TPMA removes ambiguity about when and how funds are released, helping mitigate disputes.
In the context of public or licensed access, the following variants are useful:
For shorter or lower-value matters, a security TPMA suffices. The barrister may require the client to pre-fund a reasonable block of work (for example, a month or two’s anticipated fees). The funds are held in the TPMA until the work is billed, but the barrister does not control the funds directly. At the conclusion, residual funds may be returned or drawn down under schedule.
For longer engagements or clients with slower payment histories, a pay-through TPMA may be preferable. Under this model, the client funds the TPMA up front (perhaps even the entire fee). Monthly billing is effected by releasing funds from the TPMA to the barrister, subject to agreed draw‑down procedures. The client must maintain a minimum balance. Importantly, the barrister still never holds the funds - disbursements are made by the TPMA.
One of the primary advantages of using a Third-Party Managed Account for direct access barristers is the enhanced security it provides.
FCA-regulated payment institutions implement state-of-the-art cybersecurity protocols, including encryption, multi-factor authentication, and fraud monitoring, while comprehensive transaction logs and regular statements provide a transparent and verifiable record of all activity.
By using a TPMA, barristers can offer their clients this added peace of mind. Clients receive real-time updates on the status of their funds and any transactions made.
As funds are managed by a specialist, regulated payment service provider, clients can rest assured that their money is being handled in line with strict regulatory standards.
The drawdown process for legal fees held by payment service providers is both efficient and transparent. In keeping with the BSB rules, clients retain control over the authorisation of payments so that funds are disbursed in accordance with their agreements with the barrister. Before any funds are drawn down, clients must authorise the release of payments - generally, this will be agreed as part of your client care letter.
This step satisfies the BSB requirement to keep clients fully informed and in control of their funds. Once approved, payments are processed automatically, ensuring speed and accuracy. Detailed statements provide a clear record of all transactions, making it easy to reconcile accounts and track activity.
Clients may have questions about the drawdown process, particularly if they are unfamiliar with TPMAs. Barristers should provide clear explanations of how the TPMA operates, including the safeguards in place to protect their funds, and we are able to assist you in providing the information clearly and concisely.
The compliance for the TPMA is largely complete by the time it is opened. While we are required to carry out ongoing transaction monitoring, there is very little burden for us if you agree with the client to increase the amount of fees held. The client can then top up the TPMA to the agreed level at any time.
Using a Third‑Party Managed Account (TPMA) complies with Bar Standards Board rules because the barrister does not at any stage receive, handle, or control client money. Funds are paid directly into a segregated account managed by a regulated third party, which releases them only under agreed conditions.
This structure ensures full compliance with Rule rC73 of the BSB Handbook, which prohibits barristers from handling client funds, and aligns with the Bar Council’s guidance on payments in advance under the public access scheme.
We offer TPMA's for fees on account to chambers and direct-access barristers with a minimum opening balance of £100,000 per TPMA. Compliance is charged in line with our pricing scheme.
Our service represents a secure, efficient, and compliant solution for managing client funds. By leveraging the benefits of TPMAs, barristers can reduce risks, enhance client trust, and streamline their operations. With robust regulatory oversight, advanced security features, and transparent processes, TPMAs enable barristers to focus on delivering exceptional legal advice without the administrative burdens of managing client accounts.
To experience the benefits firsthand, consider trialling a TPMA for your next matter that might see you holding client funds on account- we'll be happy to work with you on a proof of concept with a live client - this trial will demonstrate how TPMAs can transform the way your firm handles client funds, delivering security, compliance, and efficiency.
.png)
.png)
dospay is a trading name of DOS & Co. Ltd, a company registered in England and Wales with company number 08294966.
DOS & Co. Ltd. is registered with the Financial Conduct Authority under the Payment Services Regulations 2017 (FRN: 833374) for the provision of payment services.
All of our GBP escrow and third-party managed accounts are segregated and safeguarded at the Bank of England.
.jpeg)
.jpeg)
.jpeg)
