The Future of Client Money Management - Why Law Firms Must Adapt
The management of client money is under scrutiny. With the SRA considering major regulatory changes to prevent firms from holding client funds directly, law firms must ask themselves: Just because we can hold client money, should we?
The legal sector has long relied on traditional client accounts, but recent high-profile failures like Axiom Ince highlight the risks of mismanagement. At the same time, Third-Party Managed Accounts (TPMAs) and alternative payment solutions are offering a safer, transparent, and compliant way to manage funds.
This paper explores:
Why the SRA is pushing for change – and what it means for law firms.
How TPMAs enhance security, efficiency, and trust in legal transactions.
The risks of holding client money – from financial mismanagement to regulatory scrutiny.
How law firms can prepare now for regulatory shifts.
