Home  ›  Legal › Client Money Protection

Client Money Protection Scheme

KWB Property Management Limited (hereinafter referred to as “KWB”) – Client Money Handling Procedures

KWB would like to ensure that its Clients understand the procedures it follows when handling client money.

Definition of Client Money

Client Money is any money of any currency (whether in the form of cash, cheque, draft or electronic transfer) that:

  • KWB as an RICS-regulated firm and a member of the RICS Client Money Protection Scheme, holds for or receives on behalf of another person, including money held by a regulated firm as stakeholder and
  • is not immediately due and payable on demand to KWB for its own account, excluding fees paid in advance for professional work agreed to be performed, and clearly identifiable as such, unless the fees are for work undertaken as a property agent as defined by the Rules of the RICS Client Money Protection Scheme for Property Agents

In accordance with the RICS professional standard on Client Money Handling effective from 1st of January 2020

KWB ensures that:

  1. All Client Money is held in Client Bank Accounts with reputable high street banks that are authorised and regulated by the Financial Conduct Authority. KWB currently holds Client Money with HSBC UK Bank PLC
  2. All Client Accounts are exclusively controlled by KWB
  3. Client Bank Accounts are solely for the use of Clients money and does not include any of KWB’s office money.
  4. Access to Client money is restricted to principals and specific senior employees involved in the processes of dealing with Client Money and the appropriate level of segregation and approval processes have been put in place.
  5. All payments can only be approved by a Companies House Director of KWB and only those on the banking mandate can approve payments
  6. Client Accounts are reviewed daily and at numerous times throughout the day
  7. Receipt by cheques are banked on the day or the next working day of the
  8. Cash receipts are not accepted as a method of payment, and our bank has been informed not to accept cash payments into our client bank accounts
  9. All bank accounts are reconciled on at least a monthly basis and reconciling items investigated and cleared as appropriate within a timely manner
  10. Interest earned on client bank accounts are either paid to the clients or retained by KWB as agreed with the Client as part of the management agreement terms
  11. All bank charges are borne by
  12. All clients are made aware of the Client Bank Account being used when issued with the management agreement
  13. All clients are provided with details about monies held on their behalf on at least a quarterly basis via the issue of client statements or on a client request basis

How unidentified funds are dealt with

Unidentified client money is defined in the RICS client money handling professional statement as:

Client money where the beneficiary is unknown or cannot be traced, preventing payment to the client.

KWB will always:

  • Review all bank accounts daily and investigate each receipt
  • Keep a listing of unidentified funds which will include records of the investigation into each receipt.
  • Investigate each receipt by checking accounting records, engaging with clients and tenants and where appropriate by trying to repay unidentified funds through the banking system.
  • If after three years KWB has not been able to identify client funds, they will be paid to a registered charity and an indemnity will be obtained