Page 270 - IOM Law Society Rules Book

ADVOCATES ACCOUNTS RULES 2008

PART C – INTEREST

Rule 24 – When interest must be paid

(1) When an advocate holds money in a separate designated client account for a client, or
for a person funding all or part of an advocate’s fees, an advocate must account to the client or
that person for all interest earned on the account.

(2) When an advocate holds money in a general client account for a client, or for a person
funding all or part of an advocate’s fees (or if money should have been held for a client or
such other person in a client account but was not) an advocate must account to the client or
that person for a sum in lieu of interest calculated in accordance with rule 25.

(3) An advocate is not required to pay a sum in lieu of interest under paragraph (2) above:

(a) if the amount calculated is £20 or less;

(b) (i) if an advocate holds a sum of money not exceeding the amount shown in
the left hand column below for a time not exceeding the period indicated
in the right hand column:

Amount Time
£1,000 8 weeks
£2,000 4 weeks
£10,000 2 weeks
£20,000 1 week

(ii) if an advocate holds a sum of money exceeding £20,000 for one week or
less, unless it is fair and reasonable to account for a sum in lieu of
interest having regard to all the circumstances;

(c) on money held for the payment of counsel’s fees, once counsel has requested a
delay in settlement;

(d) on money held for the Treasury;

(e) on an advance from an advocate under rule 15(2)(b) to fund a payment on
behalf of the client in excess of funds held for that client; or

(f) if there is an agreement to contract out of the provision of this rule under rule
27.

(4) If sums of money are held intermittently during the course of acting, and the sum in lieu
of interest calculated under rule 25 for any period is £20 or less, a sum in lieu of interest
should still be paid if it is fair and reasonable in the circumstances to aggregate the sums in
respect of the individual periods.

(5) If money is held for a continuous period, and for part of that period it is held in a
separate designated client account, the sum in lieu of interest for the rest of the period when

Rule 24 – When interest must be paid page 27