CLIENT MONEY PROTECTION
Rules of the RICS Client Money Protection Scheme for Surveying Services
This Appendix sets out the rules (the Rules”) of the generally applicable RICS Client Money Protection Scheme for Surveying Services (“the Scheme”).
Participation by RICS Registered Firms
Membership of this Scheme forms part of the package of provisions which apply to RICS Registered Firms.Each RICS Registered Firm which is a Property Agent which holds Client Money must, as part of its RICS registration, become a Member of the Scheme. Each RICS Registered Firm is subject to the general rules applicable to RICS Registered Firms and in addition, in respect of Client Money (as defined in Rule 1.1) held as a property Agent, the specific provisions set out in these Rules which form the Property Agents Client Money Protection Scheme offered by RICS. When seeking to become an RICS Registered Firm and thereafter on each RICS Registration Renewal Date, the Scheme Administrator shall review the RICS. Registered Firm’s eligibility to be a Member of the Scheme and its continued membership of the Scheme.
Handling of Client Money
Client Money must be held in a Client Money Account with a bank or building society authorised by the Prudential Regulatory Authority (PRA), the Bank of England and the Financial Conduct Authority (the FCA).
A Scheme Member must:
- maintain one or more Client Money Accounts into which all Client Money of the Member is paid;
b. a Client Money Account must be designated as such and easily distinguished from other accounts of the Member;
c. all clients of the Member must be advised that Client Money will be held in a Client Money Account and be notified of the details of that account;
d. confirm in writing with the bank with which it holds a Client Money Account that the bank acknowledges that monies in the Client Money Account must not be combined with, or transferred to, any other account maintained by the Member, and the bank shall not be entitled to exercise any right of set up or counterclaim against money in that Client Money Account in respect of any sum owed to it in respect of any other account of the Member firm;
e. keep records and accounts which show all dealings with Client Money, and demonstrate that all Client Money held by the firm is held in a Client Money Account.
As regards handling Client Money, a Scheme Member must:
a.have and comply with written procedures for handling Client Money, which must comply with any RICS requirement to which Rule 7.4 refers;
b. publish their procedures for handling Client Money on their website (if any);
c. provide a copy of their procedures for handling Client Money to any person who may reasonably require a copy, free of charge;
d. keep records and accounts that show all dealings with Client Money;
e. repay any Client Money, including where feasible any interest earned, without delay if there is no longer any requirement to retain that money or the relevant client requests it; and f hold and maintain professional indemnity insurance cover that is appropriate for the Member’s size, income, type of work and the amount of Client Money held.
In addition to the specific provisions set out in Rules 7.1, 7.2 and 7.3, the Scheme Administrator may from time to time issue advice and guidance as to how RICS Registered Firms should best comply with RICS Rules of Conduct, which may include guidance to, or prescription of additional required procedures for, RICS Client Money Protection 22 Effective from 1 April 2019 Registered Firms which are members of the Scheme relating to key aspects of best practice as to the handling of Client Money.
To view our RICS Client Money Protection Certificate please click here.
To view the full RICS rules please visit the RICS website or click here.
To view the full Sibley Pares Client Money Handling Procedures click here.