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Flashcards in Money Handling Deck (13)
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1

What is the ‘Clients’ Money Protection Scheme’?

A scheme which will protect clients against mishandling of money

RICS Regulated firms can't pay back clients money, up to a limit set out in the scheme

£50k / firm
£10.3m in a year MAX

2

How do Client’s accounts operate?

Separate account completely
Only drawn down against with permission
Only certain people given access
Inform client

3

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

Prevent misappropriation
Insolvency
Death

4

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

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

5

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

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Reconcile any funds withdrawn

6

What does the money handling guidance note say?

Professional Statement on:

Holding client money
Information to clients
Receipt of client money
Payments from client account
Accounting records and controls
Compliance

7

What are the requirements for holding clients money?

- In a named client money account (incl the word client)
- authorised person to manage
- insure
- only contains the sum paid into it
- readily available to the client
- clear process of instruction
- acknowledgement from bank that monies will not be combined or transferred

8

Regarding information to clients, what must RICS firms do? (Money handling)

- confirm client money held in client account and the RICS regulated firm has control of it
- copy of firms written policy for handling money

9

Regarding receipt of client money, what must RICS firms do? (Money handling)

- ensure client money is paid into the account promptly
- receipts are kept of client money
- account for interest gained

10

Regarding payment from a client account, what must RICS firms do? (Money handling)

- only use clients money for client's matters
- ensure money returned when no need to retain
- all payments made are written in clients name
- written permission from client

11

What must RICS members do with regard to client money?

Comply with anti-money laundering legislation
Comply with professional statement on bribery and corruption
Follow all internal procedures
Inform immediately of any misappropriation

12

What Professional Statement is mandatory in relation to money laundering / bribery?

Bribery, corruption, money laundering and terrorist financing

13

Your client offers to pay you in cash, what would you do?

I am aware in the Bribery Act maximum cash payments are around £8.8k. However,

I would decline and request they make payment through a cheque or bank transfer