Client's Money Flashcards
1
Q
What are the RICS procedures for handling client’s money?
A
- Client’s money is held in a separate bank account.
- Separate bank account title to include the name of the firm and the word ‘client’.
- Client’s money available on demand.
The bank account details and terms and conditions should be issued to and agreed with the client. - Firm must obtain written consent from client if it is to retain interest.
2
Q
What actions would you take if there was deemed to be ‘surplus’ client money in a client account?
A
- Make all reasonable efforts to trace the clients or owners of the money.
- Hold the surplus money in a client suspense account for at least six years.
- Money can be donated to a registered charity (such as Lion Heart) if the client or owner of the money has not been found after six years.
- Request a receipt and an indemnity from the registered charity that the money will be returned if true claimant comes forward.
3
Q
Do regulated firms have to pay a fee to the RICS if they hold client’s money?
A
- Regulated firms holding client’s money need to pay a regulatory fee to the RICS on an annual basis which is based on the number of principals in the firm.
- The fee is used to fund RICS client money regulatory review visits.
- The fee is used to fund RICS Clients’ Money Protection Scheme.
4
Q
What is the RICS Clients’ Money Protection Scheme?
A
- RICS Clients’ Money Protection Scheme allows members of the public to be reimbursed any direct loss of money which was handled by an RICS regulated firm.
- Scheme is used as a last resort when the regulated firm is unable to reimburse the money.
