Client Money Handling

1. Client Account policy

Guide Point Properties Client Account is operated in the United Kingdom.

Client money is money that a registered organisation receives and holds for its clients. It can include, but is not limited to, payments made by a client in advance of agreed work being completed by the registered organisation or payments made for unpaid disbursements.

The purpose of a client account is to protect client money and prevent if from being mixed with monies related to the registered organisation’s general business activities.

A Client account is not necessary if the registered organisation invoices clients only after the work is completed and arranged for clients to make any necessary payments direct to the Home Office or other authorities. Further guidance for registered organisations unable to open client accounts can be found in 24-27 below.

2. The client account of:

Guide Point Properties policy related to the operation of this account.

Company directors are responsibility for the account and how withdrawals and transfers from the client account are made. Accounts department and administrators have access to register expenses and set up payment to clients within a password protected It system but only directors can approve and make payments from the client account. 

This policy might additionally include the following:

 

• The account’s purpose; is to separate client money with company expenses. 

 

• The bank details: 

 

Bank: HSBC

Account Name: Guide Point Properties Limited Client Account

Account No: 13000168

Sort Code: 40-06-41

IBAN: GB06HBUK40064113000168

BIC: HBUKGB4181L

 

• Payments into the client account are made upon receiving a tenant statement or expense invoice detailing what the monies is being requested for.
• Withdrawal and transfers from the client account are made when a landlord statement is due or when a property expense or bill is due to the client. 

 

• The accounting records for the client account is stored with in a 3rd party password protected IT system with fully transparent audit trail history available to view for each user. 

 

• Reconciliations and errors in the account will be addressed on an annual basis and any adjustment will be communicated in writing. 

 

Guide Point Properties pays client money received by the into their client account without delay. Only company directors can approve payment going out of the client account, accounts and administrators can set up expenses upload documents for accounts to set up payment and only directors to approve payments. 

 

Money held in a client account be immediately available to the client on demand.

 

Our client account must not become overdrawn at any time.

Any interest on a client account belongs to the client and not the registered organisations.

 

Guide Point Properties will solely use money in the client account for business purposes. Payments into, and transfers or withdrawals from, a client account must be in respect of instructions relating to a transaction or to service forming part of the registered organisation’s normal registered activities.

 

3. Use of the client account

Further to Code 26(e) and Code 64, if a client pays money into M&H Relocation client account in advance of work to be done, that such money remains the clients and will be deposited into the client account.

If the fee is paid into the client account, Guide Point Properties will inform the client when the agreed work has been completed and that they will be using money in the client account to pay the fee for that work. This is done by sending the client a written invoice stating what work has been done.

After the invoice has been issued the relevant fee is transferred into the business bank account. It is no longer client money.

If, at the conclusion of the client’s matter, there are any surplus funds remaining in the client account, those funds (including any interest accrued) this will be promptly returned to the client.

 

4. Withdrawals from a client account

There is no option to withdraw physical cash from the client account and only internal transfers or payment authorisations can be made by following company procedures and by directors’ approval before any monies can leave the account. 

 

Client money may only be withdrawn from a client account when it is:

 

a) properly required for a payment to, or on behalf of, the client.

b) properly required for payment of a disbursement on behalf of the client (see below).

c) properly required in full or partial reimbursement of money spent by the organisation on the client’s behalf.

d) transferred to another client account within the same organisation if appropriate and agreed in writing by the clients involved

e) withdrawn on the client’s instructions provided that these instructions are in writing; and

f) money which has been paid into an account in breach of the Code. Such money must be promptly withdrawn upon discovery

Money held for a client in a separate designated client account must not be used for payments for another client unless 17(d) above is satisfied.

Money withdrawn from a client account, which is required for payment for work completed, must only be paid directly into the registered organisations business account.

 

Disbursements are generally expenses that a registered organisation must pay on behalf of a client for services provided to the client or on the client’s behalf. These are payments that may be made from the client account.

 

Examples of disbursements might include office fees (such as special postage/ courier) or travel and accommodation costs, where such costs are not already included in the agreed client fee for the work to be undertaken.

 

As an alternative to clients paying fees to registered organisations that will subsequently need to be passed to authorities, clients should be encouraged to pay fees directly to the authorities. The Commissioner recognised that there may be exceptional instances where this is not possible, for example where the client does not have a bank account and in such circumstances these fees may be paid into the client account.

 

Organisations may be found to be in breach of Code 61 as overcharging the client where, for example, the standards of advice and service fall below what could reasonably be expected to have been delivered given the agreed instruction, or where the work agreed to be undertaken is not delivered because of a fault of the registered organisation.

 

If a registered organisation charges a fee at an hourly rate, they must maintain and retain detailed and accurate records evidencing the work completed and the time taken to justify the fee charged.

Guide Point Properties operate in a transparency in all dealings with clients’ monies.