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 escrow account BARCO.
The Legal Director, which provides in-house lawyers to businesses on a contract basis, has become the first SRA-regulated firm to secure a waiver from the regulator to sign up to BARCO. This new service allows the firm’s clients to pay for legal services safely without their money needing to be held in a dedicated client account. Client funds are pooled into a ring-fenced Barclays account and not released to lawyers from the BARCO account until they have completed the work for their client. All interest on the funds is returned to the client.
James Mallender, Director at The Legal Director, said: “Using BARCO is a no-brainer for us because much of our work is in-house advisory. Our clients can now use us for their financial transactions and, as we’re not handling their money, they have the peace of mind that their funds are completely secure. BARCO is good for business too. It broadens our service offering and keeps our costs low because the regulatory burden of maintaining a dedicated client account was complicated and expensive. It is another factor that helps set The Legal Director apart from other law firms.”
Paul Mosson, Director of Services at the Bar Council and Director of BARCO, said: “BARCO was originally set up for barristers who do direct access work – those that are qualified to take instructions directly from clients. However, in recent months it has become clear there is an appetite for BARCO within solicitors’ firms too. The Legal Director is the first of those firms to see the benefits of BARCO, not only for them, but for their clients.”
There is a charge for lawyers to use the service, which starts at 2% of the total cost of legal fees, and not 2% of the amount held in the account, and it decreases on a sliding scale as the fees increase, dropping to 1.75%, 1.5%, 1.25%, 1.00% then 0.75%.
The SRA had previously agreed that it would waive requests from solicitors to use the BARCO service on a case-by-case basis, and so the Legal Director is the first firm to secure the waiver and sign up to BARCO.
Direct Access barristers have traditionally been BARCO’s customers. The escrow account allows clients to pay a barrister without breaching rules that prohibit barristers from handling client money. However, because BARCO is a third party, secure escrow account, it is at lower risk of misappropriation than traditional law firm client accounts.
To find out more about what the The Legal Director can offer, please call James Mallender at any time.
Posted Thursday, March 31st, 2016 by Warren RylandTweet
Other Articles In This Category
- 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
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
- 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... read more
7th of July 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
- 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 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