Handling Client’s Money

Question 1

What should you do when a client asks you to hold their money and provides cash?

Answer 1

Cash payments are to be avoided, politely decline a client’s offer of payment in cash as:
- no auditable trail
- do not know where it came from

Question 2

What should be in place before setting up an account?

Answer 2

Client must agree to the account handling in writing with signatories from both parities
There must be an agreed drawdown schedule

Question 3

How should the account be used?

Answer 3

The account should named ‘client’ and the name of my firm
Only client money should be deposited
Any client money sent to me should be deposited within 3 working days
Monday should be available on the client’s demand
Interest to be paid to the client unless otherwise agreed
Procedures put in place in the event of insolvency or death