Law firm banking - a decade of change
Heraclitus, Greek philosopher and pioneer of wisdom, is quoted as saying "change is the only constant in life”. Never has this been more true than when considering client money banking arrangements for legal practices.
A decade ago many legal practices operated their transactional client money payments through their general client account, with funds expected to be held for longer periods being placed in a designated deposit account in the name of the firm’s client.
At the time banking was simple. Reconciliations were straightforward and the differentiation between banks focussed on their ability to operate these accounts complying with the Solicitors Account Rules. As long as a bank avoided causing a breach of the rules, firms generally were loyal to their banking provider.