Client Account reporting

Introduction

This page describes the reporting requirements for ARLA, NAEA, ICBA and NAVA members who are either a principal, a partner or a director (PPD) of a company which handles its clients’ money, or outsources its back office functions to an unnamed client accounting service provider (CASP) to handle it.

Client money comprises deposits, rental or other payments, even if only held for a short period of time before it is forwarded on.

If you fall into this category of member, then for each company you must produce on application, and thereafter within 6 months of each financial year end, an accountant's report showing compliance with NFoPP rules.

If you handle client money

If your firm handles client money click here.

If you use a client accounting service provider (CASP)

From January 2016 there have been rule changes concerning how our PPD member firms can use a CASP. If your firm uses a client accounting service provider (CASP), (not a government approved deposit protection scheme) to handle its client money click here.

If your firm handles client money itself, and also uses an unnamed client accounting service provider (CASP), then you need to click on both the above links, and you might need to provide two accountant's reports.

Please note: For Regulated by RICS companies, or companies regulated by the Law Society or the Law Society of Scotland, the above requirements do not apply. We accept evidence that a company is regulated by one of those organisations in lieu of our own regulation.

We can only accept an accountant's report which has been completed and signed by a chartered or certified accountant who is a member of one of the supervisory bodies which are recognised by the Financial Reporting Council's Professional Oversight Board for Accountancy. These are:

In addition, where the client funds held are subject to the Estate Agents Act 1979 the report must be completed by a registered auditor as per section 1239 of the Companies Act 2006. This refers to pre-contract or contract deposits in connection with the purchase of landed property or with a connected contract. A registered auditor is not required should the agent only hold client funds in connection with lettings. Please see the Estate Agents Act 1979 and paragraph 1.25 of the NFoPP Conduct and Membership Rules for further details.

For Frequently Asked Questions, Please click here.

For more information please call 01926 417 365.