Client Money Protect

CLIENT MONEY HANDLING PROCEDURE

Sullivan Mitchell (London) Limited’s written procedures for Handling Client Money are set forth to ensure compliance with:
• The Property Ombudsman Code of Practice.
• The Client Money Protection Schemes for Property Agents (Approval and
Designation of Schemes) Regulations 2018.
• Any other regulations and statutory requirements as necessary, and to maintain best practice.

Handling of Client Money Written Procedures:

As a member of Client Money Protect and The Property Ombudsman, we adhere to the
Rules of Conduct and any other regulations as necessary by adhering to the following procedures:

  1. We have separate client bank accounts solely for the use of all client money.
  2. We only hold client monies in UK banking institutions authorised by the Financial Conduct Authority and that are covered by the Financial Services Compensation Scheme and ensure that funds are available within a maximum of 31 days.
  3. Each title of the client money bank account is easily distinguished from other accounts of the firm with the words ‘Client Account’ clearly stated.
  4. We obtain written confirmation annually from the bank(s) that all client money is held by the firm as an agent and that the bank is not entitled to combine the client money account(s) with any other account or to exercise any right of set-off or counterclaim against money in that account in respect of any sum owed to it on any other account by the firm.
  5. We have and maintain relevant systems and controls which enable us to monitor and manage client money transactions and any credit risk arising, including but not limited to regular internal account audits.
  6. We ensure our accounting systems and client data is securely controlled and protected.
  7. We have obtained clients’ written approval to make payments from their
    accounts.
  8. We pay all client monies into the firms designated client money bank account within three (3) business days of the money being received into the firm.
  9. There are nominated authorised staff to handle client money.
  10. We ensure our records show all dealings with client money.
  11. We publish our procedures for handling Client Money on our website.
  12. We ensure that all procedures for handling client money are complied with and clearly written down and provided free of charge to our clients, as and when requested.
  13. We reconcile client accounts together with bank balances at regular intervals in order to demonstrate control over the accuracy and completeness of accounting records.
  14. We ensure there are sufficient funds in the client account to pay amounts owing to clients as they fall due under the Members’ terms and conditions of engagement with the client.
  15. We hold and maintain professional indemnity insurance cover that is appropriate for the firm’s size, income, type of works and the amount of client money held.

General Controls:

Sullivan Mitchell (London) Limited ensure that:

  • Employees have clear segregation of duties and responsibilities and that a director or appropriately qualified individual oversees the client accounting function.
  • It employs competent and knowledgeable staff who are responsible for
    processing clients’ money.
  • Accounting systems and client data are securely controlled and protected.
  • Computer systems are adequately protected for access, firewalls, back-ups and disaster recovery.
  • All areas of the business apply the same level of controls in relation to the client accounting function.

Client Bank Accounts

Sullivan Mitchell (London) Limited ensure that:

  • We hold clients’ money in one or more client bank accounts separate from all other monies.
  • Client money is available on demand.
  • The bank account is correctly titled to include the name of the property and the words ‘client account’ to distinguish the account from an office or any other account.

Client Accounting Systems and Controls

Sullivan Mitchell (London) Limited ensure that:

  • Accounting records and systems are appropriate to the nature and volumes of client account transactions.
  • Overdrawn balances on client ledgers are prevented by the systems or controls in place and where they do occur are investigated and rectified immediately.
  • A central list of bank accounts is maintained.
  • A reconciliation is completed once a week for all clients’ accounts. Any
    differences or adjustments are fully investigated and promptly rectified.
  • Client accounting records are securely kept for at least 6 years plus the current year.

Controls over the receipt of Client Money

Sullivan Mitchell (London) Limited ensure that:

  • Only a principal or appropriate staff member independent of accounting staff open incoming post.
  • Procedures exist to ensure all clients’ money is banked within 3 working days.
  • All cheques received by post or by hand are promptly recorded. Cash is not accepted.

Controls over the payment of Client Money

Sullivan Mitchell (London) Limited ensure that:

  • Checks are made to ensure that sufficient funds are held on behalf of the relevant client before payments are made.
  • Adequate authorisation and supervision procedures are in place for payments made by cheque, bank transfer and electronic methods.
  •  All payment requests have supporting evidence and that documentation has been authorised in advance by a director or other appropriate person.
  • Cash payments are not accepted.