Q1mcq
See model answer βA solicitor holds Β£200,000 in client account for Client A for a property purchase. The solicitor also holds Β£50,000 for Client B for an unrelated matter. The solicitor mistakenly sends Β£200,000 to a fraudster purporting to be the seller's solicitor in Client A's transaction. Which of the following best describes the position regarding Client B's money?
A) Client B's money is unaffected because client money is held on trust for each individual client
B) Client B's money may be at risk because the client account is now in deficit
C) Client B can only recover their money if the solicitor has professional indemnity insurance
D) The SRA Compensation Fund will automatically reimburse Client B