Flashcards in Money Handling Deck (13)
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
How do Client’s accounts operate?
Separate account completely
Only drawn down against with permission
Only certain people given access
What are my requirements for money handling (as a firm and a member)?
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
What would you do to withdraw money from a clients account?
Understand how to withdraw
Inform client of withdrawals
Reconcile any funds withdrawn
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
What are the requirements for holding clients money?
- In a named client money account (incl the word client)
- authorised person to manage
- 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
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
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
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
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
What Professional Statement is mandatory in relation to money laundering / bribery?
Bribery, corruption, money laundering and terrorist financing