What counts as client money

Topic preview

1. 01

   Purpose defines client money

   A client pays a lump sum into the firm’s account. What two questions do you ask first to decide whether it is client money or office money?

2. 02

   Third-party money held

   If the firm is holding money for a third party in connection with regulated work, how should that money be treated in the accounts?

3. 03

   Stakeholder money counts

   How do you classify money held as stakeholder or trustee money, and why?

4. 04

   Advance fees treatment

   A client pays fees in advance. When might that money still need client account treatment rather than being posted straight to office money?

5. 05

   Unpaid disbursement money

   A client pays money for a disbursement that has not yet been paid out. What accounting treatment should you consider?

6. 06

   Segregation breach risk

   If money that should be client money is treated as office money, what is the immediate accounts risk you would flag?

7. 1 more building block

   The full topic unlocks with FLK2 Playbook, including the remaining prompts and answer-key marking.