Client Money Handling

Question 1

In what year was the RICS Professional Statement, Client Money Handling, 1st Edition, published?

Answer 1

2019

Question 2

What is the purpose of the RICS Professional Statement, Client Money Handling, 1st Edition, 2019?

Answer 2

The overall objective of this professional statement is that RICS members and RICS regulated firms understand their obligations to ensure:

• client money is kept safe
• client money accounts are used for appropriate purposes only
• RICS-regulated firms have the appropriate controls and procedures to safeguard client money

In accordance with the RICS Client Money Protection Scheme Rules

Question 3

What are the two RICS Client Money Protection Schemes, and who must join them?

Answer 3

1. RICS Client Money Protection Scheme for Surveying Services
2. RICS Client Money Protection Scheme for Property Agents

All RICS Regulated Firms must join the relevant scheme

Question 4

What must you consider when making payments from a client account?

(Client Money Handling 2019)

Answer 4

1. Use each client’s money only for that client
2. Return money as soon as no reason to hold it
3. ensure all payments are made by or on behalf of the client (reference management agreement)
4. Don’t just deduct fees - always invoice
5. Obtain written consent before doing anything
6. Keep records and accounts that show all dealings with the client money and demonstrate that all client money held by the firm is held in a client money account

Question 5

What are the RICS Requirements for Members in relation to Client Money Handling?

(Client Money Handling 2019)

Answer 5

1. Ensure compliance with all anti-money laundering legislation, rules and regulations
2. Ensure compliance with the mandatory requirements of Countering bribery and corruption, money laundering and terrorist financing 2019
3. Follow all procedures for handling client money at the firm where they work
4. Not override any controls in place to protect client money
5. Make appropriate disclosures to a senior member of the firm or a regulator immediately if they become aware of any risk

Question 6

What is the RICS Client Money Protection Scheme?

Answer 6

The scheme provides protection, as a last resort, in instances where an RICS Regulated firm is unable to repay a client’s money.

The Scheme is designed to give some protection to members of the public by making funds available for their reimbursement when all other avenues have been exhausted.