SRA Handbook

Restrictions on transfers between clients

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Rule 27: Restrictions on transfers between clients

27.1

A paper transfer of money held in a general client account from the ledger of one client to the ledger of another client may only be made if:

(a)

it would have been permissible to withdraw that sum from the account under rule 20.1; and

(b)

it would have been permissible to pay that sum into the account under rule 14;

(but there is no requirement in the case of a paper transfer for a written authority under rule 21.1).

27.2

No sum in respect of a private loan from one client to another can be paid out of funds held for the lender either:

(a)

by a payment from one client account to another;

(b)

by a paper transfer from the ledger of the lender to that of the borrower; or

(c)

to the borrower directly,

except with the prior written authority of both clients.

27.3

If a private loan is to be made by (or to) joint clients, the consent of each client must be obtained.