SCHEDULES

SCHEDULE 16The Law Society, solicitors, recognised bodies and foreign lawyers

Part 1The Solicitors Act 1974 (c. 47)

I133

1

Section 33 (interest on clients' money) is amended as follows.

2

For subsection (1) substitute—

1

Rules under section 32 may require a solicitor to pay interest, or sums in lieu of and equivalent to interest, to a client, any other person or any trust, for whom the solicitor holds money.

3

In subsection (2), omit from “and the rules” to the end.

4

For subsection (3) substitute—

3

Except as provided by the rules, a solicitor is not liable to account to any client, other person or trust for interest received by the solicitor on money held at a bank or building society in an account which is for money received or held for, or on account of—

a

the solicitor's clients, other persons or trusts, generally, or

b

that client, person or trust, separately.

5

For subsection (4) substitute—

4

Rules under section 32 may—

a

prescribe the circumstances in which a solicitor may make arrangements to limit or exclude an obligation imposed on the solicitor by rules made by virtue of this section, and

b

prescribe the requirements to be met by and in relation to those arrangements.