
The Solicitors Regulation Authority (SRA) consultation on consumer protection is intensifying scrutiny on how client funds are managed. One proposal gaining traction is the use of Third Party Managed Accounts (TPMAs) as an alternative to traditional client accounts.
The Current Landscape
TPMAs are already permitted under the SRA Accounts Rules (Rule 11) and the CLC Accounts Code (Rule 7), yet their adoption remains low. This could reflect limited awareness or a reluctance to adopt the product. However, with the SRA's consultation signalling a shift, the potential for TPMAs to become a mandatory requirement is increasing.
Why Are TPMAs Gaining Attention?
Regulatory bodies are advocating for TPMAs as a way to mitigate risks linked to holding client money. This push comes in response to issues caused by a minority of unethical practitioners. Beyond consumer protection, TPMAs offer a potential solution to reduce reliance on the SRA Compensation Fund, transferring oversight to the Financial Conduct Authority (FCA).
What Are the Implications for Your Firm?
Enhanced Security: TPMAs provide an added layer of protection, reducing the risk of misappropriation and safeguarding client money in line with regulatory priorities.
Operational Considerations: While the benefits are clear, implementing TPMAs involves understanding potential complexities.
Learn More Through TPMA 101
To help your firm navigate this evolving landscape, we are offering TPMA 101, a series of focused, 45-minute online sessions. These sessions will feature insights from leading TPMA providers, insurers, and risk specialists to help you:
Understand the regulatory and operational implications.
Evaluate the benefits for your firm.
Prepare for potential changes in the regulatory framework.
Be proactive in preparing your firm for the future.
Don’t wait for regulatory changes to catch you off guard—equip your firm with the knowledge to stay ahead.
To be advised of the session dates: Register your interest now https://tpma101.scoreapp.com.
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