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Answers for law firms
What is the Legal Transaction Sort Code?
04-10-26 is the Legal Transaction Sort Code, the first sort code dedicated to legal transactions. It is held by Kord Pay Limited, and every matter opened on it gets its own unique account number. Money paid to a matter account goes to that matter and nowhere else.
| Question | Answer |
|---|---|
| The sort code | 04-10-26 |
| Who holds it | Kord Pay Limited, registered with the FCA as a small payment institution (FRN 929773) |
| What it carries | Money in SRA- and CLC-regulated legal transactions, and the platform’s own fees |
| Account structure | Every matter has its own unique account number |
| Where the money sits | In accounts safeguarded by ClearBank and other banking partners |
| Payments | Faster Payments and CHAPS |
| Rule basis | Matter accounts are third-party managed accounts under Rule 11 of the SRA Accounts Rules |
Why does a dedicated sort code matter?
- One purpose. 04-10-26 is reserved for legal-transaction money and the platform’s own fees. Unrelated payment traffic does not share it.
- A clear signal to the sender. The sort code is the first thing a paying bank or lender sees. Keeping it for legal transactions gives them one consistent picture of where completion money goes.
- One matter, one account. Each matter has its own account number, so a receipt identifies its matter by where it lands, not by a reference someone typed.
- Less to reconcile. A matter account holds one matter’s money by construction, so there is no pooled balance to prove against a ledger. Statements come per matter and per period, with every movement on the audit trail.
How does it fit the SRA Accounts Rules?
Rule 11 of the SRA Accounts Rules lets a firm use a third-party managed account where doing so does not result in the firm receiving or holding the client’s money. Money in a matter account on 04-10-26 is not the firm’s “client money”, because the firm never holds or receives it.
Rule 11 leaves the firm three duties. The account must not result in the firm holding the money. The firm makes sure the client understands the terms before it accepts instructions. And the firm obtains regular statements and checks they reflect every transaction. The SRA definition of a third-party managed account names a small payment institution with safeguarding arrangements as one of the providers that qualify. A firm can check Kord Pay on the FCA register under FRN 929773 and keep the evidence on file. For the wider rulebook, see What do the SRA Accounts Rules require?
What firms typically do when they move
- Verify the firm once, and set up signatories, roles and approval rules to mirror how the accounts team already works, including maker and checker on every payment.
- Run the next new matter on 04-10-26 while everything else stays where it is.
- Make new matters open on 04-10-26 by default once the team is ready.
- Let live matters close out where they started. The move is a change of defaults, not a transfer of balances.
Common mistakes
- Giving a lender or buyer the old client account details out of habit, for a matter that now has its own account.
- Reusing one matter’s account details on another matter.
- Trying to move balances on live matters instead of letting them close out.
- Starting work before the client has seen the account terms, which Rule 11 requires first.
A worked example
For illustration. A conveyancer opens a purchase on 04-10-26 and the matter gets its own account number. The firm gives that number to the lender and the buyer. The mortgage advance and the buyer’s balance land on the matter’s own account, so both show on that matter’s statement without anyone allocating them. On completion a fee earner raises the payment to the seller’s solicitor and a second person approves it. The statement then shows every movement on the matter, ready for the file and for the firm’s regular check under Rule 11.
To see how a move would look for your firm, visit 04-10-26. For how third-party managed accounts work, see What is a third-party managed account (TPMA)?
Questions firms ask
What does 04-10-26 mean?
It is a sort code. 04-10-26 is the Legal Transaction Sort Code, the first sort code dedicated to legal transactions.
Who holds the Legal Transaction Sort Code?
Kord Pay Limited, registered with the FCA as a small payment institution (FRN 929773).
Is a matter account on 04-10-26 the firm’s client account?
No. It is a third-party managed account under Rule 11 of the SRA Accounts Rules. The firm never holds or receives the money.
Does each matter get its own account number?
Yes. Every matter has its own unique account number on 04-10-26.
Where is the money held?
In accounts safeguarded by ClearBank and other banking partners.
Do live matters have to move?
No. Live matters close out where they started, and new matters open on 04-10-26.