14 - Handling Client Money Flashcards
1
Q
What is the new RICS Professional Statement on Clients Money called?
A
‘Client Money Handling’, published in October 2019
2
Q
What are the 6 main areas of good pratice as set out in the RICS Professional Standard: Client Money Handling, 2019?
A
- Holding client money
- Providing information to clients
- Receipts of client money
- Payments from client accounts
- Accounting records and controls
- Compliance
3
Q
What are the requirements for a client account?
A
- Client account must be kept separately & clearly identifyable with “client” in the name
- funds readily available for the client upon request
- all interest paid to the client
- only client monies held unless mixed monies are received
4
Q
What happens if you have surplus client’s money in a Client Account?
A
If after at least 6 years no claimant has come forward for the money and every effort has been made to identify that person, it can be donated to a registered charity, such as LionHeart.
5
Q
What are the Three Objectives of Client Money Handling (2019)?
A
- Keep Client’s Money Safe
- Ensure client accounts are used appropriately
- Ensure RICS-regulated firms have appropriate procedures for best practice.
