– Service supports new rules for handling client money
Insignis Cash Solutions, a leading cash management provider, has launched a new service enabling legal professionals to improve its advice to clients around all aspects of cash.
The new Insignis service allows legal professionals to facilitate suitable accounts that best meet their end clients’ individual cash needs. Insignis scans the market to identify the best available returns, while maintaining the most appropriate level of liquidity and security. Through one application, cash can be split among various institutions to maximise Financial Services Compensation Scheme (FSCS) protection, and funds are fully segregated on behalf of the end client.
The service can be tailored to different cash management client requirements in a wide variety of legal situations, ranging from divorce proceedings, major asset disposals such as selling a property, to power of attorney and trust management.
The service also helps maximise the flexibility of new client money rules to deliver better returns for their clients. Changes made to the Client Assets sourcebook (CASS) regulation in January 2018 mean client funds can now be held in bank accounts with unbreakable terms of longer than 30 days. Legal professionals often hold client money for days, weeks or months, depending on the situation, and under the new rules they can now consider a broader range of bank accounts to hold this cash.
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Giles Hutson, CEO of Insignis Cash Solutions, said: “It’s important that any cash held during or as a result of legal proceedings is not only kept safe but also actively managed in the best interest of the underlying client to generate the best return possible. Choosing where to invest the funds while keeping client interests at heart and meeting regulatory obligations can be challenging, and a manual approach to shopping around to identify the best returns, balanced with liquidity and security can be very time consuming.
“Our cash solutions service dramatically cuts the administrative burden for legal professionals, identifying the right account for each client and allowing them to fulfil their fiduciary duties in a time and cost-effective manner.”