01/09/2015

01/09/2015

Compliance with PSRA Regulations – Part 4

Dictionary definition of the word regulation. Since the enactment of the Property Services (Regulation) Act 2011, property service providers have had to abide by the new regulations. We have set out below some tips to help avoid common breaches to these regulations;

Accounting Records

The regulations require that the Property Service Provider maintains proper books of account and supporting documents which show the true financial position in relation to the client account transactions and which distinguish between client funds and non-client funds. The regulations also list the minimum accounting records that should be kept. Accounting records should be kept for at least 7 years for the purposes of compliance with the PSRA regulations.

Separate client ledger

The provider should keep a separate client ledger on their accounting system for all client funds. This should exclude any non-client account transactions (which need to be maintained separately). Furthermore, separate ledgers should be kept for individual client accounts.

Receipt of money relating to relevant accounts

Where a property service provider maintains a bank account on behalf of a Property Management Company and they receive funds directly into their office account, the amount involved should be paid into the relevant account without undue delay.

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