Client Money Handling Procedures

South Wales Property Investors and Lettings preserves the security of clients’ money entrusted to its care in the course of its practice or business.

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:

• Insolvency
• Misappropriation by any party
• Transfer of client money to another organisation

General controls

We ensure that:

• employees have clear segregation of duties and responsibilities and that a Principal or appropriately qualified individual oversees the client accounting function.
• we employ competent and knowledgeable staff who are responsible for processing clients’ money.
• our accounting systems and client data are securely controlled and protected.
• our computer systems are adequately protected for access, firewalls, backups and disaster recovery.
• there is adequate cover for holiday and long term absence.
• Principals cannot and do not override controls surrounding the accounting systems.

Client bank account

We ensure that:

• our clients’ money is held in our client bank account separate from all other monies and that client money is available on demand.
• the client bank account is correctly titled to distinguish the account from any other account.
• we have obtained written confirmation from the bank of the client account conditions.
• we advise clients in writing of the bank account details.

Client accounting systems and controls

We ensure that:

• 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 our client account 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 available.
• all ledgers have the client name and an appropriate description, e.g. the property address.
• client accounting records are securely kept for at least six years.

Controls over the receipt of client money

We ensure that:

• only a Principal or appropriate staff independent of accounting staff open incoming post.
• procedures exist to ensure all clients’ money is banked within three working days.
• all cash and cheques received by post or by hand are promptly recorded.
• procedures exist to identify and distinguish between clients’ and office money.
• fees received in advance for professional work not yet billed are paid into a client account pending completion of the work.
• unbanked client money receipts are kept securely locked.

Controls over the payment of client money

We ensure that:

• 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 bank transfer and electronic methods.
• all payment requests have supporting evidence and that documentation has been authorised in advance by a Principal or other appropriate person.
• cash payments are avoided.