SME and high street lawyers alliance turns its attentions to client account proposals
Summary
The article reports that the SME and Boutique and Law Firm Alliance has urged the Ministry of Justice to reconsider proposals to divert a large share of interest earned on lawyers’ client accounts to fund access to justice. The group argues the scheme could disproportionately burden smaller firms, add administrative costs, and encourage work to move into the unregulated sector.
Why it matters
Although the proposals relate to the legal sector, they could affect conveyancing and other property-related transactions that rely on client accounts. Surveyors should be aware of potential knock-on effects on transaction costs, firm viability, and the regulatory environment around property work.
Key points
- The MoJ consultation considered taking 75% of interest from pooled client accounts, with alternatives up to 90% or 100%.
- The Alliance says the scheme would hit SME, high-street, rural and owner-managed firms hardest.
- Concerns were raised that the policy could push some legal work into the unregulated sector.
- The Law Society, Conveyancing Association and Society of Licensed Conveyancers also oppose the proposals.
- The Alliance says it may explore legal remedies if government proceeds.
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