Client Money Handling Procedures

Issued December 2024

General

Client money is protected through the RICS client money protection scheme and is held in accordance with the RICS client money protection scheme rules.

FHP Property Consultants follows RICS mandatory and best practice guidelines as set out in RICS, Client Money Handling, effective from 1 Jan 2020.

Procedures are reviewed on a regular basis but no less than annually. Detailed procedures are available from the Finance Director on request.

What is client money?

Client money relates to money of any currency, whether in the form of cash, cheque or electronic transfer, which is:

• Held or received on behalf of another person, including money held by a regulated firm as stakeholder.
• Is not immediately due and payable on demand.

Where do we hold client money?

Client money is held in a general client bank account with NatWest– a FHP Property Consultants held bank account holding client money on behalf of more than one client or a designated client account specific to a client with NatWest.

How do we hold client money?

We keep client monies separate from FHP Property Consultants own monies at all times

• We hold all client money in a client money account over which FHP Property Consultants has exclusive control
• Monies are identifiable and immediately available
• Within a general clients’ bank account, funds belonging to each client are recorded individually
• Monies are held in an appropriate UK banking institution, authorised by the relevant regulatory body

Access to funds

• Signatories are at Director level
• New signatories to client money accounts must be approved at Director level
• Electronic banking access is at senior accounting staff level as approved by Director level.

Payments into a client account

• FHP Property Consultants does not accept cash on behalf of clients
• Cheques are banked within 5 working days of receipt
• Cheques are allocated to the appropriate client money account

Payments from a client account

• Each client’s money is only used in relation to that client
• All payment requests must be accompanied by supporting evidence that has been checked and approved (this includes appropriately approved invoices and verified payee bank details)
• Segregation of duties in the client accounting function is in place to prevent unauthorised activity/data tampering within the payment process

Interest and bank charges

• Our client bank accounts are instant access accounts.
• FHP Property Consultants may charge the client transactional banking and account maintenance charges associated with the operation of a discrete client bank account
• Charges in respect of a general client account will be borne by FHP Property Consultants
• Interest earned on a discrete client bank account will be retained in that account
• Interest earned in respect of a general client account may be retained by FHP Property Consultants

Reconciliation of bank accounts

Bank accounts are reconciled on a weekly basis with segregation of duties in place.

Reconciling items are cleared as soon as possible but not more than 3 months from date of transaction. In the very unlikely outcome that unidentified funds are held for a period of over 3 years, FHP Property Consultants will arrange to donate these funds to charity.

General client accounts

• Bank statement, system generated bank balance and system generated individual client ledgers presented for review and sign off

Information provided to clients in respect of monies held on their account

Reporting is generally monthly but may follow a different timescale depending on the requirements agreed with the client.