Client Money Handling

Question 1

Describe the latest RICS document for Client Money Handling

Answer 1

RICS PS Client Money Handling Eff Jan 2020

Question 2

CAR

What are the three areas of good practise?

Answer 2

1) Obligation to keep client account
2) Obligation to keep accurate records
3) Reporting obligations

Question 3

CCI, DRA

What are recommended procedures for keeping client money safe?

Answer 3

1. 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
   
   2. Cash receipts to settle transactions
   3. Interest must be disclosed
   4. Discrete account is for a single named client account only
   5. Reconciliation least monthly. Also, accurate records are kept of the running balance available
   6. 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

Question 4

Tell me about client money protection schemes?

Answer 4

Since 2019 all firms/agent must be part of one

1) Client Money Protection for Surveying Services

2) Client Money Protection for Residential Agents

Question 5

How can you ensure client money is kept safe

Answer 5

1. CDD, EDD
2. CMP
3. ALM
4. Follow RICS guidance on client money

Question 6

What should you do with surplus money in your client account?

Answer 6

1. Hold money in suspense account
2. Trace rightful owner
3. hold surplus funds for 3 years
4. After 3 years must be donated to charity