Client Money Handling Procedures

Client Money Handling
Member Guidance

Members of UKALA are required to handle client money in
accordance with Appendix iii(4) of the UKALA scheme rules, and
with the UKALA Accounting Standard, which assists members’
compliance with industry best practice for holding and
accounting for client’s money. Links to these documents can be
found at the end of this factsheet.
Members are required by law to have their client money
handling procedures published on their business website.
Please be aware that UKALA reserve the right to reject any
membership application that we believe does not comply
with the principles below for holding client monies within the
businesses segregated client account(s).

What is
Client Money

Client’s money is money that your business holds or has received
on behalf of a client, this can be deposited into a segregated client
account via Cash, Cheque, draft or electronic transfer. Please see
below examples of client’s money:
Tenants Deposits
Tenants Rent
Interest
Arbitration Fees
Service Charges
Fee money taken in advance
Client money held due to be paid by contractors
Sales proceeds
Money held by member appointed as receiver
UKALA require all members to hold client’s money in a segregated
ring-fenced client account that is authorised by the Financial
Conduct Authority (FCA). UKALA reserve the right to reject or cancel
a member’s application or renewal if the agent does not hold client’s
money in a segregated ring-fenced client account.

Member Guidance

info@ukala.org.uk
020 7820 7900

The UKALA scheme rules can be found at:
https://www.ukala.org.uk/terms-and-conditions/
The UKALA Accounting Standard can be found at:

https://www.ukala.org.uk/wp-content/uploads/2019/03/UKALA-
Accounting-Standard-March-2019.pdf

Client money
handling
procedures

To comply with the law, agents taking client money must;
• Get a certificate confirming membership of the scheme you
join, and provide it to anyone who asks, free of charge.
You’ll need to display the certificate:
• In any office where you deal with the public
• On your website
To comply with requirements set by UKALA for handling of client
money an agent must:
1. Have set up a separate bank account for clients’ money;
2. Have the title of their Clients’ money bank account easily
distinguished from other accounts of their business;
3. Have in writing from their bank confirmation that all money is held
by the business as an agent;
4. Have the banks written confirmation that the bank is not entitled
to combine the clients’ money account(s) with any other account
or to exercise right of set-off or counterclaim against money in
that accounting respect of any sum owed to it or any other
account of the business;
5. Have and maintain systems and controls which enable you to
monitor and manage clients’ money transactions and any credit
risk arising;
6. Have accounting systems and client data securely controlled and
protected;
7. Obtain client’s written approval to make payments from their
account;
8. Bank all clients’ money at the earliest reasonable opportunity;
9. Nominate authorised staff to handle money
10. Ensure that records show any and all cash transactions
11. Reconcile client accounts together with bank and cash balances at
regular intervals in order to demonstrate control over the
accuracy and completeness of accounting records;
12. Ensure there are always sufficient funds in the account to pay all
amounts owing to clients; and
13. To pay amounts owing to clients as they fall due without delay.

The UKALA scheme rules can be found at:
https://www.ukala.org.uk/terms-and-conditions/
The UKALA Accounting Standard can be found at:

https://www.ukala.org.uk/wp-content/uploads/2019/03/UKALA-
Accounting-Standard-March-2019.pdf