Client money has rarely faced more scrutiny than it does right now, and firms across the legal sector are feeling that pressure directly.
Kord’s recent webinar, client money on trial: are you ready for TPMAs?, brought together the platform’s commercial and compliance specialists to explain why TPMAs are moving from a niche option to a mainstream consideration for firms handling client funds.
The session opened with a case in which many firms will recognise the risk: a fraudster intercepted email correspondence and redirected more than £400,000 into an account that was never the client’s.
It is the kind of incident that has pushed the SRA to look more closely at how firms hold pooled client money.
It’s also why the operational load of running a compliant firm keeps growing.
Losing control
A recurring theme was the misconception that moving to a TPMA means losing control.
Kord’s panel was clear that firms retain full authority over when funds move, who receives them, and how much, while the provider takes on the operational and custodial burden.
The panel also drew a distinction between two types of fraud risk: external push payment fraud, where a fraudster intercepts and alters payment details, and internal misuse, where someone with legitimate access moves funds incorrectly, and explained how Kord’s account architecture is designed to close down both routes.
The webinar also covered how Kord’s platform removes the account and sort code details that fraudsters typically intercept, replacing them with payment requests confirmed in app, with every payment out requiring separate approval from the person who raised it.
Growing expectations
The need to review client money processes has never been greater. Client account reporting rules are tightening, and the COFA and COLP split is due to take effect from April 2027.
To the panel, the real question for firms is not whether to review their client money process, but when.
The full recording, including feedback on audience polls and Q&A can be found below:
This article was submitted by Kord as part of an advertising agreement with Today’s Conveyancer. The views expressed in this article are those of the advertiser and not those of Today’s Conveyancer.
