Third-Party Managed Accounts (TPMA)

Handle client money better

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Enhance operational efficiency, mitigate risk and reduce administrative costs by outsourcing your client account function, either fully or partially.

Shieldpay's fully-digital platform allows firms to reduce time spent on admin, reduces the risk of regulatory breaches, eliminates the need to deal with residual balances and enables better client experiences with full transparency over the management of funds.

Why TPMA?

Authorise payments and track funds with a digital platform
Receive real-time notifications when funds flow to assigned parties
Reclaim unbillable, valuable time with enhanced operational efficiencies
Maintain oversight and control over funds but access additional protections and systems
Control residual balances, enabling law firms to stay SRA Rule 2.5 compliant

What's a TPMA used for?

Fees on account
Property transactions
Fundraising and collective investment schemes
Family and probate
Litigation settlement
PI claims and managed
R&D tax credits
Complex corporate or commercial transactions
Distribution of lender funds

Enhance
client experience

Reduce
unbillable hours

Utilise a
fully digital platform

Regulated by the FCA and registered with HMRC*

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Get in touch for a platform demo and pricing information

Rules and regulations for law firms

The Solicitors Regulation Authority (SRA) Account Rules provide the right for firms to use TPMAs as an alternative to holding client monies. The CLC also explicitly permits the use of TPMAs.

CiLex has provided for the use of escrow accounts. BSB mandates that barristers cannot directly hold client funds.

SRA requirements to using TPMA:

The TPMA provider must be authorised by the FCA as a payment institution
You will need to inform your client of the arrangement and ensure they understand it
You must notify the SRA
You must obtain regular statements and ensure they reflect the transactions on account

Related resources

Download

Factsheet Escrow & TPMA

Shieldpay provides firms with an alternative to holding client money, a way to improve internal risk management, as well as increase transparency in transactions and provide better customer service

Download

Article A better way to handle R&D tax credits

With Shieldpay, the tax credit is paid directly into the TPMA by HMRC. The tax firm can then settle their fee immediately and send the funds to the claimant.

Case study The Legal Director

The Legal Director is a fully regulated law firm that provides businesses with highly qualified and experienced lawyers on a fully flexible basis.

Article Why should tax rebate specialists use TPMA?

TPMA can help tax rebate specialists to remove administrative burden, increase speed, reduce risk and facilitate payments.

“The Legal Director will never want to manage a client money account because of the costs involved and the need to statutory audit. A client account is expensive and it makes so much more sense to outsource handling of client funds using a TPMA provider. Such an obvious solution”

James Mallender Director, The Legal Director

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