Discover IOLTA insider overview for the European’s

IOLTA accounts 

Interest on Lawyers Trust Accounts – otherwise known as an IOLTA. 

IOLTA accounts are gaining attention for Small Cap Trading. Especially important for clients for Small Cap/Micro Cap Programmes, who would essentially prefer the safety of not having to transfer their trade funds. Therefore any Lawyer that offers such via major banks such as Bank of America & Wells Fargo overcomes this obstacle. Whereas, while a new account must be still be set up for the actual trade. Setting up the same, fully protects any small cap investor.

As the IOLTA account is still set up in the name of the client, this allows the separation from trading funds and withdrawal of profits. In addition, IOLTA accounts are very quick to setup, typically, 10 days from start to finish. This is as opposed to Micro-Cap/Small Cap Programs, which can take over a month to organise a similar option. It can also be of benefit to clients who don’t have accounts in the top 50 banks. The Trade Programmes will always insist the line of credit has a solid audit history with NO liens or charges on the capital.

How your funds are protected in a Lawyers IOLTA trust account?

All Lawyers that have such a trust account for clients, by virtue of legislation protect their client funds. The funds also enjoy certain protection through the Loyalty Insurance Fund. Which would be relevant in the unlikely event of any misappropriation of funds. As the IOLTA was established as a statutory body and is regulated by the Legal Practice Act, no. 28 or 2014, they include professional indemnity insurance.

Exactly for this reason, many clients use the lawyer trust accounts. In addition to deposit money during business transactions, where client money can essentially remain separate from the regular business or operating account funds. IOLTA’s enjoys safekeeping until the transaction completes too. The client therefore has complete peace of mind from the additional account protection. The Trader also takes comfort in knowing that funds are in trust and therefore in safekeeping.

For more information on IOLTA or Micro-Cap or Small Cap Programmes, or to discuss your specific Project Funding Requirements, please CLICK here to e-mail Us to complete our form. Alternatively to contact me on Skype or linkedIn, simply click on either of the footer icons below.