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 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 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.
``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.
Want to learn more or you’re ready to start the engagement process?
Our Law Firm Escrow brochure
We have standardised escrow agreements that can be used in their entirety or as a starting point.
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.
Our electronic signature software ensures that each transaction can be completed swiftly and without recourse to hardcopy paper documentation.
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.
We hold assets to cover unforeseen costs or damages protected by a warranty or indemnity.
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.
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.
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.
Our Law Firm Escrow brochure
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.