Complying with the Solicitiors Regulation Authority (SRA) guidance is critical when holding client money. But it’s easy to breach the rules when facilitating a transaction for your client. Instructing Elemental solves this problem. A Third Party Managed Account like Elemental’s, means funds are fully compliant with SRA rules but you do not need to comply with the Client Account rules. We will hold funds on your clients’ behalf so you don’t have to.

Elemental’s Law Firm Escrow service can help

Elemental is regulated by the Financial Conduct Authority as an Authorised Payment Institution under the Payment Services Regulations 2017. As lawyers ourselves, we understand your needs and can react appropriately to different transactions and requirements that can occur in any deal.

We will:

  • Ensure that you are operating within the boundaries of the SRA’s guidance and can be assured that your client’s money is safe.
  • Develop a relationship with you to ensure that you’re comfortable using our services for all your client transactions that require funds to be held by an independent third party.
  • Handle responsibility for the administration of the funds and payments so you can focus on delivering your clients goals.

The setting up process

  • Complete initial information form
  • Choose release conditions and terms and conditions
  • Escrow Agreement issued for digital completion
  • Funds deposited
  • Release conditions met

We use a clear and simple-to-complete initial information form that provides flexibility to choose the release conditions that suit your client and the requirements of the transaction.

Here’s what the Solicitors Regulation Authority (SRA) says:

``You must not provide banking facilities through a client account. Payments into, and transfers or withdrawals from, a client account must be in respect of instructions relating to an underlying transaction (and the funds arising therefrom) or to a service forming part of your normal regulated activities.`` Rule 14.5 of the Solicitors Regulation Authority (SRA) Accounts Rules 2011. You can see the full SRA Warning Notice on improper use of client accounts here.

MAKE AN ENQUIRY

Want to learn more or you’re ready to start the engagement process?

Get more information

Our Law Firm Escrow brochure

Elemental Solutions

1. Quick and easy to set up

We have standardised escrow agreements that can be used in their entirety or as a starting point.

2. Flexible solution

The service can be adapted to suit the individual needs of yourselves and your clients. You can draft your own bespoke release conditions for each transaction or rely on our standard terms. We will provide a variety of dispute resolution options and can act to resolve disputes.

3. Digital completion

Our electronic signature software ensures that each transaction can be completed swiftly and without recourse to hardcopy paper documentation.

4. Partnership

Elemental aims to develop a relationship with your firm to enable you to use our escrow service for all your client transactions that require funds to be held by an independent third party.

How We’ve Helped:

1. Corporate / M&A

We hold assets to cover unforeseen costs or damages protected by a warranty or indemnity.

2. Performance escrow or project accounts

We hold assets pending completion of certain deliverables by a supplier. Such an arrangement is often used in construction contracts, which tend to have a long delivery and rectification period.

3. Fundraising accounts

Our service is utilised in commercial fundraising, where investors deposit the funds with us, as a trusted third party, to be held until the investment has reached a specified threshold. At this point, all investor funds are released for the use of the investment.

4. Rent deposits

We provide standardised and low-cost Commercial Property Rent Deposit solutions that provide the landlord with the security and access to funds that they expect, whilst also protecting the tenant from any insolvency risk of the landlord.

Get more information

Our Law Firm Escrow brochure

Contact us

We’re here to keep things simple

If you would like to find out more about our services and how we can help support your business, please get in touch.

+44 (0)203 286 6229