Law Society welcomes CHAPS extension

Law Society welcomes CHAPS extension

The Law Society has welcomed the decision by the Bank of England to extend the Clearing House Automated Payment System (CHAPS) settlement day from summer 2016.

The Bank of England has proposed that the time for customer payments and Interbank payments will be extended to align more closely with the typical business day.

By extending the settlement day in this way, those using the service will be able to make high-value transactions later in the day. For solicitors and home movers this means that the likelihood of money not arriving and clients being left on the doorstep is decreased.

The Bank of England makes clear in its announcement that banks should communicate the extension of CHAPS hours to their customers, and set later cut-off points accordingly.

We expect an announcement from the Bank of England later this summer to confirm the exact date of the extension.

President of the Law Society Jonathan Smithers said:

‘We welcome the decision to extend the CHAPS settlement day. We believe this is a useful and positive step that increases the likelihood of transactions being completed on the agreed date, and lessens the chances of home buyers not being able to move into their new property.’

Further information can be found on the Bank of England website.

Terms and Conditions | Site Map | Privacy and Cookies

Copyright © 2017 Richard Nelson LLP and Murdochs. All rights reserved.
The Lawyers Defence Group is operated by Richard Nelson LLP, a Limited Liability Partnership authorised and regulated by the Solicitors Regulation Authority and whose partnership number is OC357136 and Murdochs Solicitors, who are also authorised and regulated by the Solicitors Regulation Authority, and whose SRA number is 52683.
Please note that all advice, guidance, representation and assistance, legal or otherwise, is provided either by those firms or by appropriate referral to other suitably qualified persons. No advice, guidance, assistance, representation or other support is provided by or in the name of the Lawyers Defence Group.
For further details please refer to the terms and conditions for use of this web site and to the terms and conditions of the firms involved.
The professional rules governing our lawyers can be found at rules.sra.org.uk