Handling client money is a critical responsibility for RICS members, requiring strict adherence to ethical and professional standards. Here's an overview of key aspects to consider:
Client Money Handling Guidance Note: Provides detailed instructions on managing client funds, including account requirements, recordkeeping, payment procedures, and conflict resolution.
Key Principles:
Segregated accounts: Client money must be kept separate from firm funds in designated client money accounts with reputable banks.
Transparency and communication: Keep clients informed about how their money is being used and provide clear statements regularly.
Robust systems and controls: Implement internal systems and controls to ensure accurate recordkeeping, prevent unauthorised access, and minimise risk of errors or fraud.
Conflict of interest avoidance: Avoid situations where your personal interests might conflict with the safekeeping of client funds.
Identify client money: Clearly identify and distinguish client money from firm funds at every stage of the transaction.
Promptly deposit client funds: Deposit all received client money into the designated client money account without delay.
Only use for intended purpose: Use client money only for the agreed-upon purpose with the client's explicit authorisation.