Law Society delivers robust response to client account interest recruitment ad
Summary
The Law Society has criticised the Ministry of Justice after a job advertisement suggested work is already underway on the proposed Interest on Lawyers’ Client Accounts (ILCA) scheme. The proposal would divert a portion of interest earned on legal client accounts in England and Wales to fund justice services, despite strong opposition from the legal profession and the consultation outcome still being awaited.
Why it matters
While this is primarily a legal-sector issue, it could affect conveyancing and other residential property transactions where client money is held in solicitors’ accounts. Surveyors should be aware of potential downstream impacts on transaction processes, professional costs and the wider regulatory environment.
Key points
- MoJ recruitment advert suggests progress on the ILCA scheme before consultation outcome is published.
- ILCA would redirect some interest from client accounts in England and Wales to fund access to justice and legal aid.
- The Law Society says the proposal is flawed, lacks evidence and sets a damaging precedent.
- The scheme could affect firms holding client money, including third party managed accounts.
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