Ethics - Handling Clients Money Flashcards
1
Q
What are the six main areas of good practice in handling clients’ money according to the RICS Professional Standard: Client Money Handling, 2019?
A
- Holding client money
- Providing information to clients
- Receipts of client money
- Payments from client accounts
- Accounting records and controls
- Compliance
2
Q
What are some procedures that all Chartered Surveyors need to be aware of in handling client money?
A
- Client accounts must be kept separately & clearly identifiable
- The word ‘client’ is on the bank account and cheque book
- A client must be able to have their monies on demand
- Payment of interest is agreed with a client and accounts must be kept in credit
- Regular bank reconciliation checking that payments received are transferred to the bank account and expenditure records are checked at least monthly
- Accurate records are kept with a running balance available
- Annual audit and reporting obligations by certified accountant employed by the RICS are met
- Money can only be withdrawn from a client account if properly required
- If cash receipts are made to settle transactions, make sure your records show all cash transactions
- Signatories must be agreed with authorised staff and two signatures should be required
- A discrete account is for a single named client account only
- RICS Regulatory Review Visits of inspection can be undertaken by RICS usually on a routine 3 yearly basis by an accountant employed by the RICS
- All firms handling client money need to display their procedures document on their website (residential agencies handling client money also need to display their scheme membership certificate in their premises)
3
Q
What is the Clients’ Money Protection Scheme run by RICS?
A
It provides last resort protection in instances where an RICS Regulated firm is unable to repay a client’s money.
There are limits and exceptions set out in the scheme rules. The scheme is split into two parts for commercial and residential surveying firms.
