A solicitor has been rebuked and fined £300 by the Solicitors Regulation Authority (SRA) after more than £70,000 of client money was retained for 16 years longer than necessary. Geraint James, a solicitor and director of Beaufort Montague Harris, admitted breaching professional standards by failing to account to beneficiaries of a trust.
A balance of £71,394.65 of client money had been dormant for up to 16 years, relating to a trust where the original trustees had passed away.
One of the trustees died in November 2009 at which point James, and his associate at the time, handled the estate and collected assets relating to the trust.
The funds lay dormant, with no action taken to distribute funds or appoint a replacement trustee, even after the second trustee passed away in 2023.
Since being contacted by the SRA, James has taken steps to be appointed as a trustee and has liaised with the beneficiaries to distribute the funds.
The SRA said there is no evidence to suggest dishonesty or misuse of client money and notes that James has a clean regulatory history and has cooperated fully with the investigation. “Prompt action was taken once the issue came to light and all appropriate interest was accounted for and distributed, along with the funds,” the decision notes.
However, the regulator said a written rebuke is an appropriate outcome as the conduct involves “a significant amount” of client money and requires a sanction to be applied to uphold public confidence in the delivery of legal services. “Mr James, an experienced solicitor, was directly responsible for his conduct, being aware of the obligation to return client funds in a timely manner,” the SRA said. “Whilst the beneficiaries have not indicated any discontent, there has still been a significant delay in them receiving the funds.”
The delay in distributing the funds was due to a breakdown in communication with the second trustee, James said.
He has agreed to pay £300 to cover the costs of the SRA’s investigation.
