Client Money Handling

Question 1

Has RICS published anything on handling clients money

Answer 1

Issued in October 2023 as a professional standard to reflect the new rules of conduct

Question 2

What are the objectives of the client money handling professional standard

Answer 2

Provides clear rules for RICS regulated firms and members to have the appropriate controls and procedures in place to keep client money safe

Question 3

What are some key requirements identified in the client money handling professional standard?

Answer 3

The professional standard provides clear requirements such as:

Client account requirements
Appropriate accounting controls
The information that firms must provide to clients
How to handle client money including rules for managing unidentified funds

Question 4

What is the definition of client money as noted in the professional standard

Answer 4

Money of any currency (whether in the form of cash, cheque, draft or e-transfer) that:

An RICS regulated firm holds for or recieves on behalf of another person, including money held by a regulated firm as stalkeholder and,
Is not immediately due or payable on demand to the RICS regulated firm for its own account

Question 5

What would you do if a long standing client asked you to carry out work that you weren’t personally competent to carry out?

Answer 5

Decline and if necessary define your scope of services within the limits of your competence and PII to the client.