HOME   SALES   LETTINGS   MANAGEMENT   FREEHOLD ENFRANCHISEMENT   LEASE EXTENSIONS  

 

John G Dean & Co

Handling of Client Money

Under the RICS Client Money Protection Scheme for Property Agents, Client Money must be held in a Client Money Account with a bank or building society authorised by the Prudential Regulatory Authority (PRA), the Bank of England and the Financial Conduct Authority (the FCA).

A Scheme Member must:

maintain one or more Client Money Accounts into which all Client Money of the Member is paid

a Client Money Account must be designated as such and easily distinguished from other accounts of the Member

all clients of the Member must be advised that Client Money will be held in a Client Money Account and be notified of the details of that account

confirm in writing with the bank with which it holds a Client Money Account that the bank acknowledges that monies in the Client Money Account must not be combined with, or transferred to, any other account maintained by the Member, and the bank shall not be entitled to exercise any right of set up or counterclaim against money in that Client Money Account in respect of any sum owed to it in respect of any other account of the Member firm

keep records and accounts which show all dealings with Client Money, and demonstrate that all Client Money held by the firm is held in a Client Money Account.

As regards handling Client Money, a Scheme Member must:

have and comply with written procedures for handling Client Money, which must comply with any RICS requirement to which Rule 7.4 refers;

publish their procedures for handling Client Money on their website;

provide a copy of their procedures for handling Client Money to any person who may reasonably require a copy, free of charge;

keep records and accounts that show all dealings with Client Money;

repay any Client Money, including where feasible any interest earned, without delay if there is no longer any requirement to retain that money or the relevant client requests it;

hold and maintain professional indemnity insurance cover that is appropriate for the Member's size, income, type of work and the amount of Client Money held.

For full information on the Scheme please refer to the RICS website