Client Money

Question 1

What are the requirements for money holding for firms?

Answer 1

Signed up to CMPS
1. Hold in a client money account which the firm has exclusive control over.
2. Client money account only contains the clients money.
3. Don’t hold office money in the account unless it is a receipt of mixed money awaiting transfer.
4. Account includes “Client” and the name of the firm in the title. Discrete accounts should include an indicator of the Client.
5. Money is always immediately available even at the sacrifice of interest unless the Client has given express written consent.
6. If instructed to place in a high interest account with penalties, penalties are only paid out of the Clients money if they have provided informed consent.
7. Confirm the bank operating conditions in writing with the bank - ensuring the bank can not counter claim against the Clients money.
8. If money is held in a joint account, then it must be set up by the Client.

Question 2

Requirements for RICS members in relation to Client Money handling?

Answer 2

1. Ensure compliance with all anti money laundering regulations.
2. Ensure compliance with RICS standard - countering bribery and corruption, money laundering and terrorist financing.
3. Follow forms procedures.
4. Not override controls in place to protect Client money.
5. Make disclosures to senior members of staff if you become aware of any risks or misappropriation to Client money.

Question 3

What is the Client money protection scheme?

Answer 3

RICS scheme which compensates clients when their money is misappropriated

Question 4

What are the requirements of the Client Money Protection Scheme?

Answer 4

1. Client money handling procedure needs to be published on website.
2. Claim limit 12 months.
3. £50k per claim.
4. Aggregate annual claim £10.3 million.