RICS - Handling Client's Money

Question 1

What is Client money?

Answer 1

• Money of any currency that:
  a) a RICS regulated firm holds for or received on behalf of another person and
  b) is not immediately due and payable on demand to the RICS regulated firm for its own account,

excluding fees paid in advance for professional work agreed to be performed.

Question 2

What are the two forms of client money accounts?

Answer 2

1) Discrete client money account - holds money for a single client
2) General client money account - more than one client of the firm.

Question 3

Who are the relevant banking regulatory body’s in the uk?

Answer 3

PRA = Prudential Regulatory Authority
FCA = Financial Conduct Authority

Question 4

What are the RICS Client Money Protection Scheme Rules?

Answer 4

This scheme provides protection, as a last resort, in instances where an RICS Regulated firm is unable to repay a client’s money, up to the limits and exceptions set out in the scheme rules.

Question 5

What are the Mandatory requirements for RICS firms holding client money?

Answer 5

• must hold all client money in an account over which the firm has exclusive control over and authorised by the relevant banking regulatory body.
• must ensure that the account does not contain any sums other than the whole or pat of the client money paid in.
• not hold office money in a client money account unless it is a receipt of mixed monies.
• must ensure that all client money accounts include the word ‘client’ and the name of the firm in the title account.
• ensure that money held in a client account is immediately available even at the sacrifice of interest.

Question 6

What are the mandatory requirements that RICS provide following information to clients in writing?

Answer 6

• confirm that client money will be held in a client money account including bank account details. that the RICS firm has exclusive control over.
• and what account the name is in, be it the firm, a subsidiary, or a third party provider.
• provide advice to clients who pay fees in advance for surveying services that this money is not covered by the client money protection scheme.
• how unidentified funds are dealt with

Question 7

What are the RICS requirements for members?

Answer 7

• ensure compliance with all anti-money laundering legislation, rules and regulations for all receipts of client money.
• ensure compliance with the mandatory requirements of the latest edition of RICS Professional Standards
• follow all procedures for handling client money at the firm they work.
• Not override any controls in place to protect client money
• disclose any potential risks to senior staff or regulator in relation to client money.