How our clients will benefit from the Bar Council's escrow account
Outside the narrow realms of consumer technology, there’s often an inevitable trade-off between cost and quality. In other words, you can have something at lower cost, or better—but not both at the same time.
But here at The Legal Director, we’d like to highlight a recent development at the firm as an exception to that rule. Because following a waiver from the Solicitors Regulation Authority, we’ve become the first law firm to sign up to the Bar Council’s BARCO escrow account.
Which should be welcome news for those of our clients wanting us to act directly for them in corporate transactions.
Because it means a better service—and lower overall costs.
Bar Council approved
Gaining access to the BARCO escrow account is quite a coup, and we’re very excited about it.
At a stroke, it breaks a regulatory log-jam that for years has hindered our ability to offer transactional capabilities to those clients who request them.
Namely, we’ve never been able to justify the considerable administrative and regulatory burden of operating client monies accounts.
And access to the Bar Council’s BARCO escrow account means that now we don’t have to.
So what does it mean in practice?
The simple answer is that when clients ask us go beyond our usual advisory role, and undertake transactions for them, we can do so, directly.
Previously, it was necessary to undertake these through third-party law firms which did operate client monies accounts.
Which, of course, added to costs: partly through engaging another firm, and partly because client monies accounts are expensive to operate, and the charges levied by third-party law firms reflect that.
From now on, clients’ funds intended for transactions are held in the BARCO escrow account—in effect a risk-free, outsourced client account, for which a single flat fee is payable.
So how does it work?
Essentially, the account operates like any other escrow account: funds are deposited with a trusted third party, who will only release them under certain conditions.
A joint venture between the Bar Council and Barclays Bank, BARCO is that trusted third party.
So when we’re acting for you in a transaction capacity, you lodge the relevant funds with BARCO, knowing that the funds can only be withdrawn in connection with that transaction. And never, directly, by us.
At a stroke, it provides all of the security—and more—that a client monies account provides, without requiring The Legal Director to change its regulatory status.
The bottom line
If you’re interested, a press release on the Bar Council’s website has more details.
The Solicitors Regulation Authority is satisfied that it’s the right move, the Bar Council are happy, we’re happy—and we look forward to you, our clients, being happy, should you ever wish to engage us in a transaction capacity.
Better, and at lower cost. What’s not to like?
To find out more about what the The Legal Director can offer, please call James Mallender on 020 3755 5099 at any time.
Posted Thursday, July 7th, 2016 by Warren RylandTweet
Other Articles In This Category
- GDPR. The clock is ticking: a tough new take on data protection is fast approaching
With effect from 25 May 2018—in other words, less than a year away—your business is exposed to a new regulatory regime backed by hefty fines. And by... read more
6th of September 2017 by Warren Ryland
- Persons of Significant Control: important changes to reporting requirements
It’s barely a year since the introduction of the PSC regime - and already, the compliance requirement has been tightened. And at a time when many businesses... read more
23rd of June 2017 by Warren Ryland
- Avoiding conflict when forming a business: probing questions for potential partners
Every year, several hundred thousand new businesses are created. In 2015, according to the Office for National Statistics, the total was 383,000—the highest... read more
28th of April 2017 by Warren Ryland
- Is your business at risk from the Uber decision? Why your self-employed contractors could really be employees
Fuelled by companies such as ride-hailing business Uber and personal courier firm Deliveroo, the so-called ‘gig economy’ is on the rise. So much so,... read more
12th of January 2017 by Warren Ryland
- The Legal Director - Commended for Innovation in the FT Innovative European Lawyers awards
Law firm The Legal Director (TLD) has been commended in the FT Innovative European Lawyers awards, which were announced at the beginning of this month. TLD ranked... read more
28th of October 2016 by Warren Ryland
- Debt versus Equity - Financing for SMEs
The need for additional finance is often the price of success for small to medium-sized enterprises (SMEs) that are looking to grow. The question that faces the... read more
14th of October 2016 by Warren Ryland
- The deceptive complexity of the Modern Slavery Act
At the end of July, Prime Minister Theresa May launched a cabinet-level government taskforce to eradicate modern slavery in the UK. It was, she said, “one of... read more
31st of August 2016 by Warren Ryland
- As the net starts to close, the Bribery Act prosecutions begin
As we have written before, the Bribery Act 2010 is a law with undoubted teeth. Fines are potentially unlimited, and custodial sentences can be up to ten... read more
1st of May 2016 by Warren Ryland
- New rules on shareholder identification are now in force
New rules on shareholder identification are now in force - and yet many businesses aren’t aware of them. Does your business have corporate or nominee... read more
12th of April 2016 by Warren Ryland
- First SRA-regulated law firm signs up to Bar Council's escrow account
PRESS RELEASE: The Legal Director has become the first law firm regulated by the Solicitors Regulation Authority (SRA) to sign up to the Bar Council’s... read more
31st of March 2016 by Warren Ryland
- Trade marks: the 3 biggest mistakes to avoid
Wander around a supermarket, or browse the advertisements in newspapers and magazines, and you’ll see trade marks everywhere. And it’s likely, too, that... read more
29th of February 2016 by Warren Ryland
- Avoiding flexible working's hidden pitfalls
You don’t have to look too far to see that traditional modes of employment are increasingly giving way to more flexible working arrangements. Returnee... read more
9th of November 2015 by Warren Ryland
- Are you paying your workers the right amount of holiday pay?
A recent ruling by an Employment Appeal Tribunal is set to cause many businesses a headache. Quite an expensive headache, at that. Simply put, it means that... read more
15th of July 2015 by Warren Ryland
- The Bribery Act 2010: are you running a risk of breaking the law?
To see the difficulties that businesses can get into through bribery - or even allegations of bribery - look no further than the reputational damage suffered... read more
11th of June 2015 by Warren Ryland
- It's official: "Lawyers are not cost-effective"
Imagine, for a moment, that when faced with a serious illness, significant numbers of people took no action. And of those who did take action, around... read more
20th of January 2015 by Warren Ryland
- Could a Shareholder Agreement save your business?
Here at The Legal Director, we’ve recently come across a business where the two co-founders have fallen out -- one is now leaving, in order to set up on his... read more
1st of December 2014 by Warren Ryland
- The high-fee culture that's hobbling British business
Another week, and yet another critical item in the press on the cost of obtaining corporate legal advice. And to be sure, it’s certainly a fairly open goal at... read more
11th of November 2014 by Warren Ryland
- Is crowdfunding the answer to your business's financing challenge?
As the credit crunch and ensuing recession of 2008 began to bite, lending to businesses dried up. To their shock, even long-established, profitable businesses... read more
2nd of September 2014 by Warren Ryland
- Complying with the Data Protection Act: 3 business bear-traps awaiting the unwary
Visit the website of the Information Commissioner’s Office, and there’s an interesting section entitled ‘Enforcement’. In it, the... read more
1st of September 2014 by Warren Ryland
- What might a Legal Audit reveal about your business?
When we start working with a business we assess their existing legal arrangements to determine how these can be improved and aligned with commercial objectives. We... read more
9th of July 2014 by Warren Ryland