Countrywide accused of failing to secure £10m of client funds

by Property118.com News Team

11:19 AM, 29th October 2019
About A year ago

Countrywide accused of failing to secure £10m of client funds

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Countrywide accused of failing to secure £10m of client funds

Countrywide Residential Lettings Nottingham are due before a RICS Disciplinary Panel Hearing on the 30th October at 10am.

The formal charges are quoted on the RICS website:

“Between 2008 and 2018, the Firm transferred a sum of £10,093,866 of client funds, representing unclaimed and unidentified client balances that had not been claimed for six years or more, from the Firm’s client account into the Firm’s office account, when it was not permitted to do so. In doing so, the Firm failed to preserve the security of client funds”

Contrary to Rule 8 of the Rules of Conduct for Firms 2007: The Firm’s conduct above represented a serious and prolonged disregard towards the Firm’s professional obligations as set out in the RICS’ client money guidance document

Contrary to the third limb of Rule 3 of the Rules of Conduct for Firms 2007 the duty to: avoid any actions or situations that are inconsistent with its professional obligations. The Firm is therefore liable to disciplinary action in accordance with RICS Bye-Law 5.3.2(c)

Anyone wishing to attend should contact, Jae Berry, Regulatory Tribunal Manager
t 020 7695 1661
e jberry@rics.org


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Comments

Luke P

7:39 AM, 30th October 2019
About A year ago

Out of interest, what *is* meant to happen to unclaimed clients’ money?

Jo Ramkissoon

8:55 AM, 30th October 2019
About A year ago

Hi Luke P. When I spoke with the DPS earlier this year, they explained that landlords / agents can naturally use the Statutory Declaration to claim what they think they are owed, if tenants have not replied to the DPS request.

If landlords / agents have requested that deposits are returned to tenants and tenants don't respond, then these funds are just kept in the DPS, as tenants in future may realise they have money there and claim it (so I am told by the DPS).

Basically, it is in limbo. I would be interested to know if the DPS is accruing interest on unclaimed funds.

I hope that helps.

Luke P

15:14 PM, 30th October 2019
About A year ago

Reply to the comment left by Jo Ramkissoon at 30/10/2019 - 08:55
I don’t think this is DPS related though…this is money held by Countrywide.

Jo Ramkissoon

11:52 AM, 31st October 2019
About A year ago

Reply to the comment left by Luke P at 30/10/2019 - 15:14
Ah. I didn't realise that was your meaning, from your comment.


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