McConnell Property Limited Client Money Handling Procedure

Purpose and Scope

This procedure outlines how McConnell Property Limited handles client money in accordance with:

  • RICS Rules of Conduct
  • RICS Client Money Protection Scheme
  • Applicable UK regulations (e.g. Client Money Protection Schemes for Property Agents Regulations 2018)

It applies to all staff involved in receiving, managing, or disbursing client money.

Definition of Client Money

  • Money held or received on behalf of another person, including money held by a regulated firm as stakeholder.
  • Is not immediately due and payable on demand to McConnell Property Limited.


General Principles

  • Client monies are kept separate from firm money, are easily identifiable and immediately available.
  • Client monies are held in a designated client money account with a UK bank authorised by the FCA and PRA.
  • Within the general clients' bank account, individual client ledgers are used to maintain clear segregation of funds.


Receipts of Client Money

  • All client money is banked within three working days of receipt.
  • Mixed payments are initially deposited into the client account; the firm’s portion is transferred to the office account once
    cleared.
  • Cash and cheques are recorded immediately and stored securely until banked.


Payment of Client Money

  • Payments are only made when sufficient funds are available for the relevant client.
  • All payments require supporting documentation and prior authorisation.
  • Blank cheques are never signed; unused cheques are stored securely.
  • Cash payments are avoided.
  • Signatories on the client bank accounts are Director level, with amounts over £3,000 requiring dual authorisation.
  • Only a principle of the firm can authorise changes to signatories.


Accounting Controls

  • McConnell Property maintain accurate records showing all dealings with client money.
  • Client ledgers are used to track balances and transactions.
  • 3 way reconciliations between bank statements and internal records are completed monthly.
  • Reconciliations are reviewed and signed off by a director.
  • Records are retained for at least six years plus the current year.


Unidentified or Surplus Funds

  • Surplus funds are held in a suspense ledger.
  • Efforts are made to trace the rightful owner.
  • If unclaimed after three years, funds may be donated to a registered charity with indemnity provisions.


Staff Responsibilities and Controls

  • Segregation of duties is enforced.
  • Staff handling client money are trained and familiar with RICS requirements.
  • Systems are protected with appropriate IT security measures.
  • Procedures are in place for cover during absences.


Transparency and Communication

  • Interest earned on client money is handled per agreed terms.
  • A copy of this procedure is available to clients upon request.