Interest Policy

Payments in Lieu of Interest on Client Funds

Cornish Venning Ltd (the “Company”) has a policy of paying an amount in lieu of interest (“interest”) to clients where the Company holds money in general client account on their behalf in the course of providing legal services.

Rate and Calculation of Interest Paid

The rate of interest paid to clients on the sum of money held for them (“the Sum”) in the general client account will be not less than what is paid from time to time on the Sum by Lloyds Bank plc on a business instant access deposit account.  Clients are unlikely to receive as much interest as might have been obtained had they held and invested the money themselves.

Interest due to a client on a matter accrues once client funds have been received and cleared into the general client bank account of the Company and is calculated on a daily compounded basis.  Cheques require a minimum of three working days to clear.

Interest is normally calculated and applied on a half yearly basis on 31st January and 31st July.  Where client requirements so demand, the calculation and application will be made on agreed dates (eg: closure of the matter).  Interest will be paid gross, without any deduction of tax and clients are responsible for notifying the tax authorities of any interest received.

In the event that the calculated total interest accruing to a client is less then £20 per annum then no interest will be paid to the client on the basis that it is a de-minimis amount.

Trust Money will be held in the general client account.

Interest is paid by the Company’s bankers to the Company on the pooled amounts of client money for all clients and matters dealt with by the Company and, subject to any interest paid to clients in accordance with this Policy, is for the benefit of the Company.

Protection of Client Money

The Company has an active policy of considering the potential exposure of client funds to commercial risks and regularly reviews the choice of banking institutions where the Company holds client funds.

The Company is not, in this capacity, acting as financial advisers and whilst the Company will take reasonable steps to protect client funds, such actions will only ever be based on information available in the public domain.

Clients should note that the protections from the Financial Services Compensation Scheme do not provide individual clients with any significant degree of protection for sums held in a solicitor’s client account in the same way that might exist if the client held the funds personally.  In accordance with Law Society Guidance, if the bank in which the Company holds funds should fail, then we reserve the right to disclose to the FSC the names and other details of clients whose money is held there in order for those clients to claim compensation up to the applicable limit.

We will not be liable to you or any third party for any loss or damage suffered as a result of any act, omission, fraud, delay, negligence, insolvency or default of any bank, financial institution, clearing or payments system nor that of the directors, officers, employees, agents or representatives of any of the foregoing.

Alternative Arrangements

Clients have the right to seek alternative arrangements to hold their funds privately during the course of a transaction.

This Policy will be reviewed from time to time to ensure the over-riding objectives are met.

Updated February 2021