BARCO, which was started almost three years ago, charges a commission for holding client monies in a secure account.
The scheme came under the spotlight this month after the Solicitors Regulation Authority proposed allowing solicitor firms to choose an alternative third-party provider to hold client money.
However, the Law Society said it would be ‘prohibitively expensive’ for firms to use third parties, with the costs of running client accounts still ‘significantly lower than those of the BARCO model’.
A spokesman for BARCO told the Gazette that it did not dispute that its current pricing strategy is likely to price out conveyancers.
But he said the Bar Council is now re-evaluating its pricing structure to make it ‘affordable and attractive’ to solicitors and their clients. New tariffs could be in place as early as September.
Read the full Law Gazette article here