Procedure for the Handling of Client Money
1. Purpose
This procedure sets out how Arkasian Property Management Limited (“the Company”) will handle, protect, and account for client money in accordance with:
The Client Money Protection Schemes for Property Agents Regulations 2019,
Applicable RICS / ARLA Propertymark / Property Ombudsman codes, and
The Company’s commitment to maintaining the highest standards of integrity and transparency.
2. Definition of Client Money
Client money is any money held or received by the Company that does not wholly belong to the Company. This includes, but is not limited to:
Rent received from tenants on behalf of landlords
Property deposits
Maintenance floats or service charge funds
Advance payments for repairs or services
Funds due to third parties such as contractors
3. Client Bank Accounts
The Company shall maintain one or more designated client bank accounts with a UK-authorised bank.
All such accounts shall:
Include the word “Client” in the account name.
Be separate from the Company’s own trading accounts.
Be operated only for the purpose of holding client money.
The bank shall be notified in writing that all funds held in the client account are held as trustee and do not belong to the Company.
Interest earned (if any) shall be handled in accordance with the Company’s terms of business with clients.
4. Receipt of Client Money
All receipts must be recorded on the day of receipt in the Company’s accounting system.
Cash payments must be banked within 3 working days of receipt.
Payments received electronically shall be verified and allocated promptly to the relevant client ledger
Receipts must be supported by documentation such as tenancy agreements, invoices, or remittance advices.
5. Payments from Client Account
Payments shall only be made for authorised purposes, such as:
Transferring rent to landlords
Paying approved contractor invoices
Transferring management fees (in accordance with a signed agreement)
All disbursements must be supported by an invoice or instruction from the client or in accordance with the management agreement.
6. Transfers of Fees
The Company may transfer its management fees or commissions from the client account only when they become due and payable, as specified in the management agreement.
Transfers must be supported by an internal statement or invoice showing the calculation of fees.
7. Reconciliation and Record Keeping
Bank reconciliations shall be carried out at least once every calendar month.
Each reconciliation shall include:
Bank statement balance
Client ledger balances
Explanation of any differences
All reconciliations shall be reviewed and signed off by the Finance Manager.
All records relating to client money shall be retained for a minimum of six years.
8. Client Money Protection
Arkasian Property Management Limited shall maintain membership of an approved Client Money Protection (CMP) scheme, and display:
The CMP certificate on the Company website and in the office, and
The CMP scheme details in client communications.
9. Reporting and Auditing
The Company’s client money handling shall be subject to annual independent audit or accountant’s report, as required by regulation or scheme membership.
Any discrepancies identified must be investigated and corrected immediately, with a written report.
10. Breaches and Reporting
Any actual or suspected breach of this procedure must be reported to the Compliance Officer immediately.
The Company will report material breaches to its CMP provider and relevant professional body as required.
Disciplinary action may be taken against staff who fail to follow this procedure.
11. Staff Training
All staff involved in handling client money must receive:
Initial training on this procedure and legal requirements, and
Annual refresher training to ensure continued compliance.
12. Review
This procedure shall be reviewed annually or following any significant regulatory or operational change.
Approved by:
Name: Kara Lockett, Director
Date: 7 November 2025
