Limit on unclaimed client balances to be raised

The SRA has agreed to raise the amount law firms can donate to charity from unclaimed client account balances, from £50 to £500.

Under Rule 20.1(k) money may be withdrawn from individual client accounts and paid to a charity if all efforts to locate the client have failed. The charity must provide an indemnity against a claim being made later if, for example, the client remerges and demands the donated money.

Previously firms were able to donate up to £50 to their preferred charity in this way without prior SRA approval. This rule change is good news for charities, such as the Solicitors Benevolent Association (SBA), which gives financial assistance to solicitors who are in need.

Sue Ellis, marke...

Jean-Yves Gilg
Editor
Solicitors Journal

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