The Bar Council's BARCO initiative, which will allow barristers to handle all client money for the first time, has been given the green light by the Financial Services Authority (FSA).

The FSA approval will now see the initiative enter an interim phase involving a number of chambers, ahead of a full rollout in spring this year.

Chambers across the UK taking part include 2 Bedford Row, 33 Chancery Lane, Erskine Chambers, 39 Essex Street, St Johns Buildings in Manchester, St Johns Chambers in Bristol, Outer Temple Chambers, 37 Park Square in Leeds and Birmingham's St Philips Chambers.

BARCO, a third-party escrow service held with Barclays Bank, will allow barristers and clients to handle client money without the help of solicitors or breaching rules of conduct.

Under the current Bar Standards Board code of conduct, barristers are not permitted to hold client money, instead relying on solicitors to handle the finances of a case and pay them their fees.

The move could lead to more direct instructions at the Bar, giving room for barristers to operate more independently.

BARCO chair Michael Todd QC said in a statement: "We believe that [BARCO] will offer an imaginative and unique solution for clients all over the world, making it easier than ever before to work with the Bar, whilst maintaining the Bar's high quality and cost-effective services.

"We look forward to sharing more details about the progress of the first phase in due course."