Client Money Protection

Handling of Client Money

We adhere to Client Money Protect Rules and any other regulations as necessary by adhering to the following procedures:

• All client money is held and paid into a separate Client Money Account with Lloyds Bank. Details of the account are as follows:
  • Sort Code: 30-85-45
  • Account Number: 44860368
• Any client money paid into a different account is transferred within 3 business days of us receiving it into the above-mentioned Client Money Account.
• We pay any mixed payments (such as payments for rents or deposits or money for some other service or goods) into the above-mentioned Client Money Account.
• We check that any money received by automated transfer is clearly recorded.
• We have confirmed in writing from Lloyds Bank that the bank shall not be entitled to exercise any right of set off or counterclaim against the money in that Client Money Account in respect of any sum owed to it in respect of any other account of held by City Properties.
• We keep records and accounts that show all dealings with client money and demonstrate that all Client Money held by City Properties is held in a Client Money Account.
• We repay any client money without delay if there is no longer any requirement to retain that money or the relevant client requests it.
• We hold and maintain Professional Indemnity insurance cover that is appropriate for City Properties’ size, income, type of work and the amount of client money held.
• We treat any unidentifiable transactions as client money until we can identify them.

Systems and Controls

We make sure that:

• All procedures for handling client money are clearly written down and publish our procedures for handling Client Money on our website.
• We provide a copy of our procedures for handling client money to any person who may reasonably require a copy, free of charge.
• All system and controls are maintained to a high standard in order to monitor and manage client money transactions and any arising credit risk.
• Our systems are able to identify all payments and receipts relating to a particular client i.e. clients’ name and property address.
• We keep a clear audit trail of client accounting records, including all copies of reconciliations for a minimum of six years plus the current year.
• We ensure a Principal or appropriately qualified individual oversees the client accounting function.
• We employ competent and knowledgeable staff who are responsible for processing clients’ money and who are familiar with Client Accounting rules.
• Accounting systems and client data are securely controlled and protected.
• Computer systems are adequately protected for access, firewalls, back-ups and disaster recovery.
• There is adequate cover for holiday and long-term absence.
• Principals cannot and do not override controls surrounding the accounting system.
• All areas of the business apply the same level of controls in relation to the client accounting function.
• Any security deposit received from tenants, where required, is protected with MyDeposits, a government authorised tenancy deposit protection scheme, and the tenant is correctly sent the prescribed information.
• 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.
• 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.
• All ledgers have the client’s name and an appropriate description, e.g. the property address.
• 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 client should be located and reimbursed as soon as possible. Such funds held for more than six years may be donated to a registered charity.
• A reconciliation is completed at least once every month where clients’ money is held in a general client account. This is produced as a formal statement, and any unresolved differences or adjustments are fully investigated and explained. Any errors identified in the reconciliation process are promptly rectified.
• Reconciliations are reviewed and signed off by a Principal or an appropriate independent senior member of staff.

Our Current Client Money Protect Certificate