Client Money Handling

Question 1

What is the ‘Clients’ Money Protection Scheme’?

Answer 1

A scheme which will protect clients against mishandling of money

Question 2

What are my requirements for money handling (as a firm and a member)?

Answer 2

Prevent misappropriation
Insolvency
Death

Question 3

How do Client’s accounts operate?

Answer 3

Separate account completely
Only drawn down against with permission(with receipt of drawdown)
Only certain people given access
Inform client

Question 4

What would you do if a client wanted to pay you up front for fees?

Answer 4

Hold in a client account and named
Establish process for withdrawals
Record and receipt all payments
Provide a cashflow for drawdowns

Question 5

What would you do to withdraw money from a clients account?

Answer 5

Understand how to withdraw
Bank confirmation
Inform client of withdrawals
Reconcile any funds withdrawn