What is the primary responsibility of a firm regarding clients’ money?
Preserve the security of clients’ money which does not belong wholly to the company.
Who must comply with client money regulations?
RICS regulated firms that operate a client account.
How should duties be managed among employees handling client money?
There should be clear segregation of duties.
Who oversees the client account function?
The principal of the firm.
Can principals override controls on client money?
No — principals cannot override controls.
What qualifications should staff have when handling client money?
Staff must be competent and knowledgeable, with cover arranged for long-term absence.
What requirements exist for accounting systems?
Systems and data must be secure and protected.
Can client accounts be overdrawn?
No — client accounts must never be overdrawn.
What is a general client account?
An account that holds money for more than one client.
What is a discrete client account?
An account for a single named client.
Who can open correspondence relating to client money?
Only accountants and principals.
How soon must money be deposited?
Within 3 days of receipt.
When can fees be banked?
Fees are banked only once completed.
How should cash be handled?
Receipts and physical security must be controlled; cash payments are avoided if possible.
How must client money be recorded?
Money must be recorded and reconciled accurately.
What documentation must be held for client payments?
A copy of the bank mandate.
How should payments be authorised?
Payments must have authorisation and supervision procedures in place.
What insurance requirements exist for client money payments?
Insurance must cover payments made by non-principals.
How should unused checks be handled?
Blank checks must not be signed and must be kept securely.
How should cash payments be recorded?
The source of all cash payments must always be recorded.
