Client Accounting Service Providers

Some companies whose Principal, Partner or Director is a member entrust the accounting functions of their clients' money to a Client Accounting Service Provider (CASP). The consumer’s contract is still with the member's firm however the CASP, which is a separate legal entity, manages all client money on their behalf. This does not refer to rental deposits held by a custodial tenancy deposit protection scheme.

Unless your company is regulated by RICS, the Law Society or the Law Society of Scotland the following requirements apply if you use a CASP:

  • You must belong to the Propertymark Client Money Protection (CMP) scheme.
  • Your CASP must regulated by Propertymark or RICS.
  • You must submit an accountant’s report if the CASP is not clearly identified in your landlord and tenant agreements.

New companies and new Principals, Partners or Directors using an unnamed CASP

Companies which have not had an accounting year end since starting to use a CASP will need to submit an accountant's report immediately. The report needs to cover the period from when the firm started to use the CASP up until now (interim report). Your accountant should complete as many of the Tests For Propertymark Accounting Requirements (pages 2-4) as possible and complete at least one reconciliation.

New Principal, Partner or Director (PPD) applicants and current PPD members whose newly acquired company has already had an accounting year end will need to submit a report immediately for the company's most recent financial year.

Is the CASP clearly named in your agreements?

YES

If the legal name of your CASP is clearly identified as handling all client money in both your landlord and tenant agreements, then you do not have to provide an accountant’s report. This is because your clients know they are paying the money directly to the CASP so liability for the funds will not fall back to your company.

However, if your company handles any client money then it will be subject to our standard client account reporting requirements. More info…

NO

You must provide an accountant’s report if your company's CASP is not clearly identified as managing your firm's client money in your landlord and tenant agreements. The report will evidence how the CASP handles your client money and if it were to be misappropriated, then the liability would fall back to your company.

However, if your company handles any client money then it will also be subject to our standard client account reporting requirements. More info…

Accountant's Report

ACCOUNTANT'S REPORT

You must provide a report for client money entrusted to an unnamed CASP annually and within six months of your company’s financial year end.

Download

Accountant’s reports must be completed by a chartered or certified accountant who is a member of one of the Financial Reporting Council's Recognised Supervisory Bodies (RSBs). More info…

Where client funds are held 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 a connected contract. A registered auditor is not required should the agent only hold client funds in connection with lettings. For more information see the Estate Agents Act 1979 and rule 1.25 of our Conduct and Membership Rules.

SUBMITTING YOUR REPORT

Email your report to accountantsreport@propertymark.co.uk. You should receive an acknowledgement receipt within 30 minutes. Your accountant can also send the report but please remember it is your responsibility to ensure we receive it.

You can also post the report to us at the following address. Please allow a week for the post to arrive and then call us on 01926 417 365 to confirm we have received your report.

Propertymark, Membership Documents, Arbon House, 6 Tournament Court, Edgehill Drive, Warwick CV34 6LG

 

MORE INFO

See rule 1.3 of the Conduct and Membership Rules