“Hi there, shall I hold on to that £250,000 for you? I know we have only just met, and we probably won’t ever again after this is finished, but you don’t mind me having it, do you?”
If you received that request then I think the majority of us would know what to say. Keep your money secure; that probably would be a very good decision.
However, when dealing with a legal matter, you may be asked to trust your legal services provider with some of your money. What you need to remember is that it is your money and the firm must look after it.
If it is one of CILEx Regulation’s authorised firms, they have to comply with specific rules governing how they manage your money. They must keep a record of how much they hold on your behalf and keep that money safe so it can be paid when required.
They must check monthly to make sure that the money in the account matches their records. They also will have indemnity insurance and contribute to a compensation scheme so you may be able to seek recompense if it is lost.
There are a lot of unregulated firms who will say they need to hold your money; for example, in sorting out a deceased’s estate.
So, before you get a firm to start any work for you, check:
This is not to say you should not use an unregulated firm, but don’t ignore the benefits that a regulated firm can provide when holding your money.
Go to our Firm Directory to find a regulated firm and see the protection they provide.