Information for Solicitors

Open for applications until the end of September 2020

The Future Fund is a new scheme to issue convertible loans to innovative companies, announced by the Government on April 20th. The scheme, alongside other Government support schemes, aims to support companies facing financing difficulties due to the Coronavirus outbreak.

This page provides information relevant to solicitors on how to support their client’s application for the scheme. Your client may be a private investor, or the investee company.

Please read our Future Fund FAQs for Solicitors

The role of Solicitors in the Future Fund

You may be asked by your client to assist in two aspects of their application:

  • Legal advice: you may be asked to advise on the scheme and its associated documents, by either a third party investor or the investee company (further information about the scheme and the application process can be found at the bottom of the page).
  • Settlement: if you act for the investee company it is a requirement of the scheme that you facilitate completion and you must therefore be a UK regulated solicitor permitted to receive and hold client money – this will involve receiving and holding the completion monies to order from the third party investor(s) (or their solicitors), to be released to the investee company on execution of the convertible loan agreement and upon confirmation from the Future Fund via the Future Fund portal. You will also receive the completion monies from the Future Fund post-completion, which you will send as soon as possible to the investee company. Please see the Future Fund FAQs for solicitors on Settlement and Regulatory Guidance for further information on settlement/completion and handling client money.

These roles, as envisaged in the proper administration of the scheme, have been examined by the professional and regulatory bodies in each UK jurisdiction and are considered as being compliant with their rules on professional conduct and with their accounts rules.

Solicitors in England & Wales asked to perform the settlement process only, and who are not providing any related regulated legal advice, should consult the SRA Q&As.

Please consult the website of your UK regulatory and/or professional body for further guidance:

The Solicitors Regulation Authority for England & Wales (the “SRA”)

The Law Society of Scotland (the “LSS”)

The Law Society of Northern Ireland (the “LSNI”)

Information is also available from the Law Society of England & Wales (the “LSEW”)*

Solicitor requirements

To be able to act for your client in respect of this scheme, the solicitor must meet the following requirements:

  • the solicitor must be a practising UK regulated solicitor – registered with the relevant UK regulatory body set out above; and
  • if your client requires you to handle any completion monies, you must be permitted to hold client money and have a client account in accordance with the rules of your relevant UK regulatory body.

Settlement – Handling client money

If you satisfy the above requirements and you have been asked to assist your client with regards to settlement, you should do so in accordance with the accounts rules and any relevant guidance issued by your relevant regulatory body.

Useful links

England & Wales: SRA Accounts Rules and relevant Q&A

Scotland: LSS Accounts Rules

Northern Ireland: LSNI Accounts Rules

Information we capture

As part of the application process we will ask your client to provide your name, your unique regulatory identifier, the name of your firm, contact details for you and your firm, and your firm’s client account details. This information will be used to verify that you hold valid rights of practice in one of the three jurisdictions of the UK.

We reserve the right to share all data for research purposes with other Government departments and agencies acting on our behalf. See our privacy notice for further information on how we protect and use your personal information