Client Money Handling Flashcards
What is the full name and dates of the Client Money Handling document
Client Money Handling, RICS Professional Standard, 1st edition, October 2019
Effective from 1st Janunary 2020
What is RICS Professional Standard
An RICS Professional Standard is a document issued by the RICS that sets out best practices, principles, and mandatory requirements for RICS members and firms.
What is the purpose of the CLient Money Handling professional standard
To ensure client funds are protected and managed transparently by setting out mandatory requirements for RICS regulated firms to prevent misuse, fraud or mismanagement of client money
Which of the Rules of Conduct most relates to Client Money Handling
Rule 1 - ‘Members and firms must be honest, act with integrity and comply with their professional obligations, including obligations to RICS.’
Example behaviours are listed within this rule specifically relating to keeping client money safe
What are the 6 mandatory requirement for RICS firms as set out in the Client money handling professional standard 2019?
- holding client money
- receipts of client money
- information to clients
- payments from client accounts
- accounting records and controls
- compliance
What is Client Money defined as?
Client money is defined as any cash, cheque, draft or electronic transfer which a ‘RICS-regulated firm holds for or receives on behalf of another person, including money held by a regulated firm as stakeholder and is not immediately due and payable on demand to the RICS-regulated firm for its own account’.
This excludes ‘fees paid in advance for professional work agreed to be performed, and clearly identifiable as such, unless the fees are for work undertaken as a property agent as defined by the Rules of the RICS Client Money Protection Scheme for Property Agents’.
