Client Money Handling Procedure

How and where client money is held

As part of the Royal Institute of Chartered Surveyors (RICS) professional statement Ref as below: https://www.rics.org/content/dam/ricsglobal/documents/standards/Client-money-handling_Oct22.pdf, and internal due diligence, client money held or received by McKibbin Commercial Property Consultants is either banked into a general clients’ bank account, Investment Share deposit account or Interest Accrued Deposit Account.

All landlord and tenant monies are kept separate and further details of where funds are held can be found within the Property Management Agreement (PMA) and Tenancy Agreement.
Client monies are held separately from McKibbin’s own monies, are easily identifiable and immediately available. Within the general clients’ bank account, each client’s money is recorded in individual client ledgers to maintain segregation of funds.
Client money is held in an appropriate banking institution, with a minimum rating of BBB+, regulated as follows:
• UK - Authorised by the Prudential Regulatory Authority (PRA), the Bank of England and the Financial Conduct Authority (FCA);

Access to funds
Signatories are Partners and Financial Controller Only. Only a Partner of the firm can authorise new signatories to client money accounts.

Timescales for payment of cash into a client account
All cash and cheques received by post are logged and banked on day of receipt, where possible, and allocated to the appropriate client money account.

All unidentified funds are reviewed as soon as possible and no later than one month from receipt at which time they will be allocated or returned except in the circumstances where we are waiting for the surveyor approval. In case of known tenants, the procedure is to wait a maximum period of 6 months for the required information to be received from the tenant if not the money will be returned immediately.

Controls for authorisation of payments from a client account
A withdrawal from a client account can only be made after a specific authority has been approved by a Partner/Associate Surveyor in accordance the firm’s procedures and systems.All payment requests must be accompanied by supporting evidence that has been checked and authorised by Financial Controller or Property Manager.

How interest Paid
The Client N01 Bank Account is not interest bearing. Deposit Interest held in the deposit account on behalf of the client. 

Reconciliation of accounts
Bank accounts are reconciled monthly, using a three-way reconciliation between the bank, general ledger and individual client ledgers, as required by the RICS.

Information provided to payments from a client account
Reporting and frequency requirements are agreed and documented with the client and provided in line with the agreement. All Payments from Client account preapproved by the Surveyor and Financial Controller before paid out of the Client Bank Account.

Approved by:
Michael Fitzell (Partner/Manager) on behalf of McKibbin Commercial Property Consultants Jan 2025