Third Party Managed Accounts

What is a Third Party Managed Account (TPMA)?

A TPMA is essentially an outsourced client account. Rather than holding client money in a law firm’s own bank account, a fully regulated third party holds it to the firm’s order. The SRA Accounts Rules do not apply to money held in a TPMA.

As part of the more flexible Standards and Regulations, the SRA has officially made TPMAs an option for law firms.

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De-risking a law firm

Holding client money comes with huge responsibility, administration costs and compliance burdens.

The Solicitor Disciplinary Tribunal deals with a conveyor belt of cases involving Accounts Rules breaches, handing out reprimands and fines to strike offs. If you transfer money to a scammer, that’s on you and your insurer. Client accounts need proper controls and systems in place to keep client money safe. You will probably need a dedicated cashier. And you will spend valuable time grappling with the SRA Accounts Rules. Client accounts also need to be audited annually.

That’s a lot of headache for very little gain.

By outsourcing this function to a third party, a law firm can concentrate on getting the transaction done for the client.

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How to outsource a solicitor’s client account

Quite simply instruct a TPMA provider. They will seamlessly onboard you onto their platform so that you are ready to provide details to your client.

Is a TPMA suitable for all types of law?

Yes. TPMAs can be used for all types of transactions (including conveyancing).

How much does a TPMA cost?

The cost varies depending on the platform, but it will be significantly less than a legal cashier salary.

And of course what you are really buying is the peace of mind knowing that you do not need to worry about client money.

Find out how to de-risk your business

Simply complete this form for your free consultation with our partner Shieldpay.



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