In short
Under rule rC73 of the BSB Handbook, barristers must not receive, control or handle client money apart from what the client pays them for their services. A fixed fee paid in advance is allowed, but payments on account of future fees and settlement money are not. Barristers may use a third-party payment service under rC74 if it does not give them control of the money.
Key takeaways
- Rule rC73 of the BSB Handbook prohibits barristers from receiving, controlling or handling client money apart from what the client pays them for their services.
- The only exception in rC73 is where the barrister acts as a manager of a firm authorised by a regulator other than the BSB, such as an SRA-authorised firm.
- Guidance gC103 extends the prohibition to anyone acting on the barrister's behalf, including chambers and any company set up to procure work for members.
- A fixed fee paid in advance is not client money under guidance gC106, but any arrangement that lets a barrister move a client's money without consent is de facto control and is prohibited.
- A barrister may use a third-party payment service under rC74 only if it does not result in the barrister handling client money, is used only for payments for the client, and is consistent with the duty to act competently.
The rule: barristers must not hold client money
The Bar Standards Board (BSB) regulates barristers in England and Wales through the BSB Handbook, currently version 5.0, in force from 15 June 2026. Rule rC73 says that, except where acting as a manager of an authorised (non-BSB) body, a barrister must not receive, control or handle client money apart from what the client pays them for their services. Unlike solicitors, barristers have no client account and no accounts rules, because the Handbook does not let them hold client money in the first place.
The exception covers a barrister who is a manager of a firm authorised by another regulator, such as a firm regulated by the Solicitors Regulation Authority. In that role the barrister is subject to that firm's client money rules, explained in our guide to the SRA Accounts Rules. Firms authorised by the BSB itself are not covered by the exception, so the prohibition applies to them too.
What counts as client money for a barrister
The line falls between money that is already the barrister's because it pays for services, and money that still belongs to the client. Guidance gC106 says a fixed fee paid in advance is not client money. Money paid towards future fees that are not yet earned, settlement money, damages and money to pay third parties all still belong to the client, and the Bar Council's ethics guidance treats a payment on account of future fees as client money that a barrister cannot accept.
The table sets out the common fee arrangements and where each falls.
| Arrangement | Client money? | Basis |
|---|---|---|
| Fixed fee paid before work starts | No | gC106: a fixed fee paid in advance is not client money |
| Payment of a fee already earned and invoiced | No | rC73: payment for services |
| Fixed upfront fee with agreed refund of any difference from a lower time-based fee | No, if agreed in clear written terms before payment and not abused | gC107 |
| Payment on account of future hourly fees | Yes: not permitted | rC73; Bar Council guidance |
| Settlement money or damages for the client | Yes: not permitted | rC73 |
| Money to pay experts or other third parties | Yes: not permitted | rC73 |
De facto control: the arrangements that are caught
The prohibition cannot be avoided by having someone else hold the money. Guidance gC103 says rC73 applies to the barrister and to anyone acting on their behalf, including chambers and any ProcureCo, a company set up by members of chambers to win and manage work. Guidance gC104 says receiving, controlling or handling client money includes any arrangement that gives the barrister de facto control, meaning practical control even without legal ownership.
Guidance gC105 explains the test: a barrister has de facto control if they can cause money to be moved from a balance held for the client without the client's consent. Consent can be treated as given where the client agreed in advance to withdrawals after an invoice and has not objected within a reasonable period agreed beforehand, normally at least one week after the invoice. Large withdrawals should usually need the client's explicit consent.
Taking fixed fees in advance properly
Fixed fees in advance are the main way public access barristers, who take instructions directly from the public, secure payment before work starts. Guidance gC107 sets conditions. The barrister should estimate the work accurately and take payment only once satisfied the fee is reasonable for it, should consider staged fixed fees where the scope is unclear, and should never accept an upfront fee before deciding whether to take the case and whether it can be done in a reasonable time.
A barrister may agree to refund the difference between an upfront fee and a lower time-based fee, but only if that is agreed in clear written terms before payment. Using such an arrangement to hold more than a reasonable sum at the outset is treated as holding client money in breach of rC73. Rule rC22 separately requires written confirmation of acceptance of instructions and the basis of charging.
Third-party payment services under rC74 and rC75
Where money must be held for a client, such as funds for future fees, a barrister may use a third-party payment service, an independent payment firm that holds the client's money and pays it out on the client's authority. Rule rC74 sets three conditions: the service must not result in the barrister receiving, controlling or handling client money; it may be used only for payments to, from or on behalf of the client; and the barrister must take reasonable steps to check that using it is consistent with the duty to act competently and in the client's best interests.
Rule rC75 lets the BSB give notice that only services it has approved may be used. Guidance gC112 records that the BSB has not yet given such notice. Guidance gC110 sets out the checks a barrister should make, and gC111 says that unless reasonably satisfied the service is safe, the barrister should advise the client not to use it and should not use it.
| Check under gC110 | What to confirm |
|---|---|
| .1 Authorisation | The service is authorised or regulated by the Financial Conduct Authority as a payment service and is in good standing |
| .2 Small payment institutions | If it is a small payment institution, it safeguards client funds or has adequate insurance |
| .3 Separation | It keeps client money separate from its own funds |
| .4 Client consent | Money paid in can be paid out only with the client's consent |
| .5 Compensation | The client has been told the money is not covered by the Financial Services Compensation Scheme |
What chambers can and cannot do
Chambers administration, clerks and any chambers company act on behalf of members, so under gC103 they are bound by the same prohibition. Chambers may collect fees that members have earned and invoiced, because rC73 permits payment for services. They may not hold client money for members in a chambers bank account, run a pooled fund for payments on account, or hold settlement money pending distribution.
The table summarises the position for the arrangements chambers most often ask about.
| Activity | Permitted? | Basis |
|---|---|---|
| Collecting fees members have earned and invoiced | Yes | rC73: payment for services |
| Receiving fixed fees paid in advance for a member | Yes | gC106 |
| Holding payments on account of future fees in a chambers account | No | rC73, gC103 |
| A ProcureCo holding client funds for members | No | gC103 |
| Holding settlement money or damages | No | rC73 |
| Arranging for clients to use an FCA-authorised third-party payment service | Yes, if rC74 and the gC110 checks are met | rC74, gC110 |
| A member acting as manager of an SRA-authorised firm that holds client money | Yes, under that firm's rules | rC73 exception |
Worked example: a public access matter
A public access barrister is instructed by an individual in a contract dispute. The barrister agrees a fixed fee of £3,000.00 for advice and drafting, paid before work starts, which is the barrister's money on receipt. For the hearing that may follow, the client offers £5,000.00 on account of hourly fees. The barrister cannot accept it, so offers a second fixed fee for the hearing or, if the client prefers to set money aside, the use of an FCA-authorised third-party payment service.
The case settles for £12,000.00 payable to the client. The settlement money goes directly to the client or through the payment service, never through the barrister or chambers. The barrister checks the service against gC110 before recommending it and records the arrangement in the client care letter.
| Money | Amount (GBP) | Can the barrister or chambers receive it? | Correct route |
|---|---|---|---|
| Fixed fee for advice and drafting, paid in advance | 3,000.00 | Yes | Paid to the barrister |
| Payment on account of hourly hearing fees | 5,000.00 | No | A second fixed fee, or a third-party payment service |
| Fee invoiced after the hearing | 4,200.00 | Yes | Paid to the barrister or collected by chambers |
| Settlement payable to the client | 12,000.00 | No | Paid directly to the client or through the payment service |
Barristers and solicitors compared
The two professions take opposite approaches. Solicitors may hold client money, subject to detailed rules on client account reconciliation and an annual accountant's report. Barristers may not hold it at all, so their compliance work is about structuring fees and choosing a safe payment service, not about running a client account.
Safeheld reconciles client money every day for regulated firms, works every difference to its cause and keeps the record auditors ask for, and is extending that work to legal client money. If your chambers or practice arranges for client money to be held through a third-party payment service or an authorised firm, talk to us about legal client money.
| Barristers (BSB) | Solicitors (SRA) | |
|---|---|---|
| May hold client money | No, apart from payment for services | Yes, in a client account |
| Fees in advance | Fixed fees only | Payments on account held in client account until billed |
| Main rules | BSB Handbook rC73 to rC75 | SRA Accounts Rules 2019 |
| Reconciliation | Not applicable | At least every five weeks |
| Annual accountant's report | Not applicable | Required unless exempt |
| Holding money for clients when needed | Third-party payment service meeting rC74 | Client account, or a third party managed account under rule 11 |
Frequently asked questions
Can barristers hold client money?
No. Rule rC73 of the BSB Handbook prohibits barristers from receiving, controlling or handling client money apart from what the client pays them for their services.
Can a barrister take fees in advance?
Yes, a fixed fee paid in advance is not client money under guidance gC106. A payment on account of future hourly fees is not allowed.
Can chambers hold client money for barristers?
No. Guidance gC103 applies the prohibition to anyone acting on a barrister's behalf, including chambers and any ProcureCo.
Can barristers use an escrow or third-party payment service?
Yes, under rule rC74, if the service does not give the barrister control of the money, is used only for the client's payments, and the barrister has checked it is safe, including that it is FCA authorised.
Has the BSB approved any third-party payment services?
Rule rC75 allows the BSB to require use of approved services only, but guidance gC112 records that the BSB has not yet given notice under that rule.
Is there any exception to the ban for barristers?
Yes. Rule rC73 does not apply where a barrister acts as a manager of a firm authorised by a regulator other than the BSB, which applies its own client money rules.
References
- Bar Standards Board: The BSB Handbook
- BSB Handbook, Part 2: Code of Conduct (rules rC73 to rC75, guidance gC103 to gC112)
- Bar Council Ethics: Client money and payments in advance
- Bar Council Ethics: Third party payment (escrow) services
About Safeheld
Safeheld reconciles client money every day, resolves every difference and prepares every regulatory return for sign-off, for regulated firms in the United States, the United Kingdom, the European Union, Canada, Australia, Singapore and Hong Kong. To discuss your operations, contact us at safeheld.com/contact.
This article is for general information and does not constitute legal or regulatory advice.