Question of ethics

Q When I am acting on a conveyancing purchase, I often arrange for the completion money to be sent to the seller's solicitor's client account by telegraphic transfer.

The transfer fee is always debited to my office account and subsequently reimbursed from client account.

My accountant has pointed out that as well as funding the payment myself, I am paying interest on the transfer fee pending reimbursement in addition to the charge the bank will make for the client-to-office transfer.

He suggests that where I am in funds, I could minimise the bank charges by instructing the bank to take the transfer fee directly from my client account.

Is that within the accounts rules?

A You can do this provided that you are in funds and you give the bank a separate authorisation for each transaction which specifies the amount of the telegraphic transfer fee to be debited to your client account.

These authorities could be contained in one document to avoid having to write several letters to the bank.

The transfers from client account would be in accordance with rule 22(1)(b) of the Solicitors Accounts Rules 1998, being client money properly required for payment of a disbursement on behalf of the client.

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Question of ethics is compiled by the Law Society's professional ethics guidance team.

Send questions for publication to Austin O'Malley, the Law Society, Ipsley Court, Berrington Close, Redditch B98 0TD; DX 19114 Redditch.