How would a case of client funds mismanagement impact your firm?
Summary
The article discusses the risks of client funds mismanagement in conveyancing, using the PM Law collapse as an example of how poor handling of completion money can disrupt client matters. It also outlines the SRA’s move toward third-party managed accounts (TPMAs), which are presented as a safer alternative to traditional client accounts and are expected to become more common across legal services.
Why it matters
Residential property surveyors are often involved in transactions that depend on timely and secure completion processes, so failures in client money handling can delay or derail property sales. The article is relevant as it highlights regulatory and operational changes in conveyancing that may affect transaction timelines and counterpart reliability.
Key points
- The SRA has introduced new reporting rules for pooled client accounts.
- TPMAs are described as an escrow-style alternative held by an FCA-regulated third party.
- Firms remain responsible for client disclosure, records, and suitability of the arrangement.
- The article cites the PM Law collapse as an example of the consequences of poor client money controls.
- A webinar is being promoted on the regulatory shift toward TPMAs.
This is an RPSA summary of a publicly available article. The full content remains with the original publisher.
