Client Money Handling
At Location Real Estates will ensure the security of
clients’ money entrusted to its care in the course of its practice or business. We are a member of UKALA TOTAL LOSS CMP
Our aim is to ensure that clients’ money can
be clearly linked to the clients to whom it belongs and is protected on their behalf at all times and in particular, in the following circumstances:
- Misappropriation by any party
- Transfer of client money to another organisation
At Location Real Estates will
- employees have clear segregation of duties and responsibilities and that a Principal or
appropriately qualified individual oversees the client accounting function.
- that we employ competent and knowledgeable staff who are responsible for processing
- that our accounting systems and client data are securely controlled and
- that our computer systems are adequately protected for access, firewalls, backups and
- there is adequate cover for holiday and long term absence.
- Principals cannot and do not override controls surrounding the accounting
- all departments and branches apply the same level of controls in relation to the client
Client bank accounts
- that our clients’ money is held in one or more client bank accounts separate from all
other monies and that client money is available on demand.
- any client bank accounts are correctly titled to distinguish the accounts from an office
or any other account.
- we have obtained written confirmation from the bank of the client account
- we advise clients in writing of the bank account details and agree the terms of the
account handling, including arrangements for interest and charges.
- we have obtained written consent from our clients regarding retention of
Client accounting systems and controls
- accounting records and systems are appropriate to the nature and volumes of client
account transactions. We use a suitable software package to manage client money effectively.
- our systems provide details of all money received into and paid from all client accounts
and show a running balance of all client money held in that account.
- our systems identify all receipts and payments to the client to which they relate; for
example by means of client ledgers showing cash balances held on behalf of clients at all times.
- accounting records are completed chronologically and promptly.
- the current balances at the total and client levels are always
- all ledgers have the client name and an appropriate description, e.g. the property
- overdrawn balances on client ledgers are prevented by the systems or controls in place
and where they do occur are investigated and rectified immediately.
- adequate controls are in place over unidentified client money to ensure that such funds
are kept securely. The clients are located and reimbursed as soon as possible. Such funds held for more than six years are donated to a registered charity.
- a central list of client bank accounts is maintained including dates of opening and
- we complete a ‘three way’ reconciliation at least once every month where clients’ money
is held in a general client account.
- reconciliations are reviewed and signed off by a Principal or an appropriate independent
senior member of staff.
- client accounting records, including copies of reconciliations, are securely kept for at
least six years plus the current year.
Controls over the receipt of client
- only a Principal or appropriate staff independent of accounting staff open incoming
- procedures exist to ensure all clients’ money is banked within three working
- all cash and cheques received by post or by hand are promptly
- a reconciliation is performed between money received by post and that day’s
- procedures exist to identify and distinguish between clients’ and office
- mixed monies are initially paid into the client account and the office element paid in
the office account when the receipt has cleared the bank.
- fees received in advance for professional work not yet billed are paid into a client
account pending completion of the work.
- duplicate receipts are issued for cash received and controls over the physical security
of cash are effective.
- unbanked client money receipts are kept secure.
Controls over the payment of client
- checks are made to ensure that sufficient funds are held on behalf of the relevant
client before payments are made.
- a copy of the bank mandate is held and is up to date.
- adequate authorisation and supervision procedures are in place for payments made by
cheque, bank transfer and electronic methods.
- insurance and adequate Principal supervision is in place where payments are made by
- all payment requests have supporting evidence and that documentation has been authorised
in advance by a Principal or other appropriate person.
- blank cheques are not signed, and unused cheques are kept
- effective controls are in place over the setting up of new supplier accounts on the
- cash payments are avoided.