Client Money Handling Flashcards
1
Q
Describe the latest RICS document for Client Money Handling
A
RICS PS Client Money Handling Eff Jan 2020
2
Q
What are the three areas of good practise?
A
1) Obligation to keep client account
2) Obligation to keep accurate records
3) Reporting obligations
3
Q
CCI, DRA
What are recommended procedures for keeping client money safe?
A
- Client accounts must be kept separate and clearly identifiable including the word ‘client’ is on the bank account and cheque book, Controls in place to keep funds secure, Client must be able to have their monies on demand, Signatories must be agreed, need 2 signatures
- Cash receipts to settle transactions
- Interest must be disclosed
- Discrete account is for a single named client account only
- Reconciliation least monthly. Also, accurate records are kept of the running balance available
- Annual audit and reporting obligations with RICS regulated accountant. RICS Regulatory Review visits every 3 years
Firms handling client money procedures need to be displayed on the website
4
Q
Tell me about client money protection schemes?
A
Since 2019 all firms/agent must be part of one
1) Client Money Protection for Surveying Services
2) Client Money Protection for Residential Agents
5
Q
How can you ensure client money is kept safe
A
- CDD, EDD
- CMP
- ALM
- Follow RICS guidance on client money