The SRA Handbook is no longer in effect. It was replaced by the SRA Standards and Regulations on 25 November 2019.

SRA Handbook

Restrictions on transfers between clients

Version 21 of the Handbook was published on 06/12/2018. For more information, please click 'History' Above

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.