Client money handling is receiving closer scrutiny, and interest in third-party managed accounts (TPMAs) is growing as a result. But many firms remain unclear on the basics of what a TPMA really does, and how it compares to a traditional client account.
New reporting rules for pooled client accounts are reshaping what the SRA expects, and TPMAs have been permitted since 2017 but the appetite to adopt this form of client money management could be accurately described as ‘timid’, until recently.
What is a TPMA?
A TPMA is an account held with a bank or building society, operated as an escrow payment service by a third party rather than the firm itself. The money in that account never belongs to the firm, and is never considered client money under the SRA Accounts Rules.
What isn’t changing
What this doesn’t mean is the firm hands over control. In practice, the firm still sets the rules for how money moves and authorises every payment out; the provider carries out those instructions. Firms also carry responsibilities under Rule 11 of the SRA Accounts Rules, including making sure clients understand how their money is held, obtaining regular statements, and keeping oversight of the provider’s regulatory standing.
Choosing a provider authorised by the Financial Conduct Authority (FCA) is a mandatory check.
The big picture
Third-party regulated providers, including Kord, have built TPMA infrastructure to close that client money gap, combining custody with identity checks and payments on one platform.
For firms wanting a clearer picture of what changes and what doesn’t, Kord is hosting a live webinar, ‘Client money on trial: TPMAs are coming for law firms’, on Tuesday 8 September 2026 at 2:00pm BST.
The 45-minute session covers how TPMAs work in practice and what firms remain responsible for.
Register for free.
