Pinsent Masons has scrapped paying out quarterly profit distributions to partners after having delayed payments three times in the last nine months.

The latest installment was supposed to happen at the end of June, but partners found out it was delayed a day before the deadline, according to a person with knowledge of the situation.

Asked about the change, senior partner Richard Foley said in a statement that financial prudence was a "guiding principle" of the firm. He added: "With this in mind, a few months ago we moved away from the old/traditional practice of quarterly distributions of undrawn profit from prior years.

"We will monitor economic conditions and make decisions about the distribution of undrawn profits as and when it's appropriate to do so."

The new measures apply to all partners both in the U.K. and internationally.

The firm also confirmed that it is set to pay out delayed profit distributions from March over three monthly instalments, rather than with the usual lump sum. The first of these smaller installments is expected at the end of July, they said.

Foley added that monthly payments on account of current year drawings will be paid on time and as usual.

He added: "It's fair and appropriate that partners continue to shoulder the principle burden of the economic consequences of CV-19 and the cashflow pressures this creates so, as would be expected, distributions to partners have been and will continue to be reduced and delayed for some time."

Pinsents first delayed its partner distributions in Autumn last year. At the time, one person said that this was due to the firm failing to hit billing and cash collection targets. 

The firm meanwhile said in October that the move was "not an unusual step in the context of our firm and is something we have done a number of times in previous years."

Pinsents later paid out its next distribution in December in full, along with half the sum owed from the previous quarter, two people with knowledge of the situation said.

Following the onset of the coronavirus pandemic, the firm then announced that it would defer its usual March distributions, as well as implement other financial measures including furloughing of non-legal staff.

Later in the same month, the firm implemented a reduced hours and pay scheme, whereby staff in certain parts of the business saw hours cut by 20%, while salary reductions are taking place on a "sliding scale".

Various other top law firms have deferred partner distributions, with the measure being one of the favoured approached by top U.K. firms in light of the pandemic.