Managing Client Money in the Northwest: A Smarter Way Forward
Across the Northwest, law firms are facing increasing pressure when it comes to managing client money. Whether you’re a high street practice or a growing commercial firm, the challenges are mounting: tighter regulatory scrutiny, rising insurance premiums, growing fraud risk, and the time-consuming admin that distracts fee-earners from their core legal work.
The SRA continues to raise expectations around how firms handle client funds from reconciliation processes to residual balances. At the same time, insurers are pricing in the risk of traditional client accounts, and cyber threats are becoming more sophisticated.
In response, many firms are exploring Third-Party Managed Accounts (TPMAs) as a practical, compliant alternative.
A TPMA is a payment account operated by a regulated provider like Shieldpay. It allows firms to manage client money without holding it directly – reducing risk, streamlining operations, and easing the compliance burden. Crucially, the firm retains full control over payment instructions and timing.
TPMAs are particularly useful for:
- Reducing risk: No need for annual accountant’s reports or complex reconciliations.
- Saving time and costs: Automated verification, reconciliation and disbursement reduce manual effort.
- Meeting compliance expectations: FCA-regulated infrastructure and full audit trails.
- Enhanced cybersecurity – IO 27001 certification and multi bank safeguarding enhance data and fund security.
If you’re reviewing your client money processes, consider:
- Are your current controls scalable and secure?
- Could a TPMA reduce your operational and compliance burden?
- Are you spending more time managing money than practicing law?
At Shieldpay, we help firms modernise without compromise. If you’d like to explore how TPMAs could support your practice, we’d be happy to talk. Get in touch with John Donigan at [email protected]
