Rule 8 - Clients Money

Question 1

What must a firm have if it holds clients money?

Answer 1

A designated clients account.

Question 2

What does a clients account do?

Answer 2

It preserves the security of clients money entrusted to its care in the course of practise or business.

Question 3

What is the reason of having as clients account?

Answer 3

In case of insolvency or misappropriation (Firm MUST inform RICS and Police).

Death of a sole practitioner - (Firm must have a Locum).

Question 4

What can the clients money be?

Answer 4

Cash

Cheque

Bankers draft

Electronic

Question 5

What must clients money be?

Answer 5

Kept safe.

Question 6

What must an RICS regulated firm have?

Answer 6

The appropriate controls and procedures to safeguard clients money.

Must hold all client money in a client account.

Must only contain client money sums paid in.

Not to hold office money in the client account.

Account name must have CLIENT (written in full) and CLIENT NAME.

Discrete client accounts to include an IDENTIFIER.

Ensure client money is immediately available.

Ensure the account does not go overdrawn.

Question 7

How must a firm manage fraud?

Answer 7

1) Have good fraud management practice.
2) A fraud response plan.
3) Detection, Investigation, Prevention, Securing evidence, Recovery and Reporting.
4) Document all potential risks.
5) Ensure employees are familiar with your process.
6) Never hand out confidential information.
7) If you suspect a problem make detailed records.
8) YOU MUST REPORT FRAUD TO POLICE AND INSURERS.