Calculator · SRA compliance
SRA Client Account Reserve
Indicative client money exposure and prudent operational reserve sizing. Includes Rule 12.2 de minimis exemption check.
Your client money profile
Indicative client money reserve
£65,625 – £140,625
Peak client money exposure: ~£3,750,000. Suggested mid-point reserve: £93,750.
Notes: The "reserve" here is not a regulatory requirement — the SRA Accounts Rules don't mandate a specific firm-side reserve. It's a prudent operational buffer to cover: shortfalls discovered at reconciliation that need to be funded from office account pending investigation, residual balances awaiting client return, and contingency for client money interest payments where the firm's policy applies.
Conveyancing-heavy firms typically maintain larger operational reserves than commercial or private-client firms, reflecting the higher value and frequency of client money movements.
This is a directional figure for risk-management planning. Actual reserve decisions should be discussed with your COFA and accountant based on the firm's specific risk profile.
Frequently asked
- Is a client account reserve required by the SRA?
- No specific reserve is mandated by the SRA Accounts Rules. The reserve here is a prudent operational buffer to cover shortfalls at reconciliation, residual balances awaiting client return, and contingency for client money interest. Conveyancing-heavy firms typically maintain larger reserves than commercial / private-client firms.
- What's the de minimis exemption?
- Rule 12.2: a firm exempted from the annual SRA Accountant's Report if it held no more than £10,000 client money at any time during the period AND average client money balance did not exceed £250. Both conditions must be met. Many small firms qualify but don't realise.
- How does client money interest work?
- SRA Accounts Rules require firms to pay client money interest when 'fair'. The test depends on amount held and length of time. Small amounts and short holding periods typically don't require interest. The firm must have a written policy, accessible to clients, and apply it consistently.