Bank Collapse

Protection for Client Accounts

It is unlikely that Spratt Endicott Limited will be liable in negligence if client money is lost following the collapse of a deposit-taking institution, as long as we have placed the money in accordance with the Solicitors' Accounts Rules (SARs). However, any final decision on this would be for the courts.

Our Client funds are held by our primary banker Handelsbanken, and also from time to time deposits are placed with other banks which currently include Santander, Lloyds Bank and Clydesdale Bank.

The Financial Securities Compensation Scheme (FSCS) deposit-protection scheme applies to client money in the same way as it applies to private/individual deposits. Therefore the FSCS protects the first £85,000 deposited, with an authorised deposit-taking institution, on behalf of a client. Note that the £85,000 FSCS limit applies to the individual client, and so if the Client holds other personal monies themselves in any of the same banks used by Spratt Endicott Limited,  the limit remains £85,000 in total for each bank.

Some deposit-taking institutions have several brands, i.e. where the same institution is trading under different names. Clients should check either with their deposit-taking institution, the FCA or a financial adviser for more information

Eligible claimants include individuals, small and large companies, and small local authorities (such as parish councils).

The FSCS also provides a £1m protection limit for temporary high balances held with a bank, building society or credit union if it fails. Cover is related to specific life events and limited to natural persons only.

Proceeds resulting from the following life events are categorised as temporary high balances:

Sums paid to the depositor in respect of:

·         Real estate transactions (property purchase, sale proceeds, equity release)  

·         Benefits payable under an insurance policy  

·         Personal injury compensation (unlimited amount)  

·         Disability or incapacity (state benefits)  

·         Claims for compensation for wrongful conviction  

·         Claim for compensation for unfair dismissal  

·         Redundancy (voluntary or compulsory)  

·         Marriage or civil partnership  

·         Divorce or dissolution of civil partnership  

·         Benefits payable on retirement  

·         Benefits payable on death  

·         A claim for compensation in respects of a person's death  

·         Inheritance  

·         Proceeds of a deceased's estate held by their Personal Representative

Read the full details of FSCS protection of temporary high balances.

Deposits over £85,000 are protected up to six months from when the amount was first credited or from the moment a qualifying deposit became legally transferrable. 'Temporary' means that the deposit must have been credited to the account (or become legally transferable if that is later), no more than six months before the Bank goes into default.

In the event of the collapse of any of the banks used by Spratt Endicott Limited, we would be required to contact the FSCS with details of all Clients whose money is held in an account with the collapsed deposit-taking institution, including their full name and address details. Since the FSCS will not compensate a Client who withholds their identity, Spratt Endicott Limited will assume your consent unless you specifically inform us that you want your name withheld.