Client money handling policy and procedure

Baileys and Partners Limited (Trading as Baileys and Partners) is a regulated firm of Chartered Surveyors and is committed to maintaining the highest standards of professionalism, transparency and client protection. In this notice, references to ‘The Firm’, ‘we’, ‘us’ or ‘our’ mean Baileys and Partners.

This Client Money Handling Policy sets out how we receive, hold, manage and account for client money in accordance with the Royal Institution of Chartered Surveyors (RICS) Global Professional and Ethical Standards and the RICS Client Money Handling Rules (1st Edition), together with associated guidance.

This policy is intended to provide assurance to clients, regulators and other stakeholders that client money is safeguarded at all times and handled in a robust, transparent and compliant manner.

Purpose of this policy

  • Protect client money entrusted to the Firm
  • Ensure full compliance with RICS Client Money Handling Rules
  • Set out clear procedures and internal controls for handling client money
  • Minimise the risk of loss, delay, misappropriation or misuse of client funds
  • Provide transparency to clients regarding how their money is handled

Scope

This policy applies to:

  • All directors, officers and employees of the Firm
  • Any consultants or contractors engaged by the Firm who may be involved in handling client money
  • All instances where the Firm holds or receives money on behalf of clients or third parties

Definition of Client Money

Client money is defined as money of any currency that:

  • Is held or received by the Firm on behalf of a client or third party; and is not immediately due and payable to the Firm for its own account.

Client money may include (but is not limited to):

  • Advance payments for professional fees or disbursements
  • Retentions or stakeholder funds
  • Deposits held pending completion of a transaction
  • Compensation, wayleave or option payments held temporarily
  • Funds held in connection with disputes or specific client instructions

Core Principles

  1. Client money is kept separate from the Firm’s own money at all times
  2. Client money is held on trust for the client
  3. Accurate, up-to-date records are maintained
  4. Client money is available for return to the client without delay
  5. Transparency and accountability underpin all procedures

Client money is held in a designated client account and will be kept separate from the firm’s own money at all times. The account is clearly designated to include the Firm’s name and the words “Client Account”. The client account is held with a UK-based, FCA-authorised bank. Where required, written confirmation will be obtained from the bank that the funds in the account are held to the client’s order. Client money does not form part of the Firm’s assets in the event of insolvency. Client money will never be used to fund the Firm’s operational activities.

Receiving Client Money

All client money will be banked promptly and in any event no later than three working days after receipt. Cash receipts are discouraged; where unavoidable, they are recorded immediately and deposited without delay. Upon receipt of funds, we will record in the client ledger account:

  • The date money is received
  • Amount
  • Client name and reference
  • Source of funds
  • Purpose for which the money is held

Internal Record Keeping

  • Separate ledgers will be held for clients. Ledgers clearly show all receipts, payments and balances.
  • Client account bank reconciliations are prepared monthly and reviewed and signed off by a Director. A Director will complete a reconciliation of the account comparing ledger balances, cash books and bank statements.

Retaining Records of Client Monies

Client money records are securely stored digitally and retained for a minimum of six years.

How We Make a Payment from the Client Account

Payments are made only in accordance with client instructions or contractual obligations. Payments are supported by appropriate documentation and authorised according to internal procedures. Where the firm’s own fees and expenses are due they may only be withdrawn from the client account where:

  • Fees are due and payable
  • The client has provided written authority for such fees to be paid from the monies held in the client account
  • An invoice has been issued

Any payments from the client account must not result in the client account becoming overdrawn.

Interest on Client Money

Client money is held in a general client account. Interest is not ordinarily paid on client money unless a significant sum is held for more than 30 days and this amount exceeds £1000.00 (one thousand pounds). Where interest is payable, the arrangements are agreed with the client in advance and confirmed in writing.

Controls, Access and Safeguards

  • Access to client accounts is restricted to authorized staff within the Firm
  • Online banking access is controlled, monitored and reviewed regularly
  • Segregation of duties is maintained where practicable
  • Staff handling client money receive appropriate training on this policy and RICS rules and regulations
  • An annual independent accountant’s report is obtained in accordance with RICS requirements
  • If any matters are raised with a Director which contravene this policy, they are reviewed promptly and addressed

Breaches, Errors and Reporting

Any actual or suspected breach of this policy must be reported immediately to a Director. Such reports are reviewed promptly and addressed. Material breaches must be reported to the RICS without delay (telephone: +44 (0) 20 7695 1670). Clients will be informed promptly where their money may be affected.

Complaints

Complaints relating to client money are handled in accordance with the Firm’s Complaints Handling Procedure. Please contact us to request a copy.

Policy Review

This policy is reviewed at least annually and updated as necessary to reflect changes in legislation, regulation or professional standards.