Client Money Protection

MK2 Real Estate Limited (referred to as “MK2”) – Client Money Handling Procedures

MK2 have prepared the statements below to ensure our Clients understand the procedures it follows when handling client money.

Client Money is any money of any currency (whether in the form of cash, cheque, draft or electronic transfer) that:

• MK2 as an RICS-regulated firm and a member of the RICS Client Money Protection Scheme, holds for or receives on behalf of another person, including money held by a regulated firm as stakeholder and
• is not immediately due and payable on demand to MK2 for its own account, excluding fees paid in advance for professional work agreed to be performed, and clearly identifiable as such, unless the fees are for work undertaken as a property agent as defined by the Rules of the RICS Client Money Protection Scheme for Property Agents

• All Client Money is held in Client Bank Accounts with banks that are authorised and regulated by the Financial Conduct Authority. MK2 currently holds Client Money with Barclays Bank Plc
• All Client Accounts are exclusively controlled by MK2.
• All bank charges are paid by MK2.
• Client Bank Accounts are solely for the use of Clients Money and does not include any of MK2’s office money.
• Access to Client money is restricted to principals and specific senior employees involved in the processes of dealing with Client Money and the appropriate level of segregation and approval processes have been put in place.
• All payments can only be approved by a Director of MK2 and only those on the banking mandate can approve payments.
• We do not accept Cash receipts as a method of payment, and our bank has been informed not to accept cash payments into our client bank accounts.
• Receipt by cheques are banked on the day or the next working day.
• Client Accounts are reviewed daily and at various times throughout the day.
• All bank accounts are reconciled on at least a monthly basis and reconciling items investigated and cleared as appropriate within a timely manner.
• Interest earned on client bank accounts are either paid to the clients or retained by MK2 as agreed with the Client as part of the management agreement terms.
• All clients are made aware of the Client Bank Account being used when issued with the management agreement and our banking charter.
• All clients are provided with details about monies held on their behalf on at least a quarterly basis via the issue of client statements or on a client request basis.

Unidentified client money is defined in the RICS client money handling professional statement as:

Client money where the beneficiary is unknown or cannot be traced, preventing payment to the client.

• Review all bank accounts daily and investigate each receipt.
• Keep a listing of unidentified funds which will include records of the investigation into each receipt.
• Investigate each receipt by checking accounting records, engaging with clients and tenants and where appropriate by trying to repay unidentified funds through the banking system.
• If after three years MK2 has not been able to identify client funds, they will be paid to a registered charity and an indemnity will be obtained.

Updated 7th April 2025