Question: "There have been no breaches in respect of the operation of the client account other than the fact that it does not include the word client.
They also put the monies on short term treasury deposits. Most are overnight or over weekend so they are available on demand.
Is this a problem?"
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Question: "The Statutory Trust Account (client account) is normally well under the £30,000 figure above which a client account audit is required. There was however one transaction which pushed it over that limit.
What happened was:
The client of our client took out health insurance for their staff. They were supposed to pay the premium direct to the insurer. However they paid it to our client instead by sending them a cheque. Our client paid it into the Statutory Trust Account and then paid the insurer as soon as the cheque cleared. It meant that for a number of days the balance was at least theoretically over the limit although the cheque had not cleared.
Our client was paid the commission separately and this was not part the cheque received.
The question is do we need to do a client account audit as both I and my client thinks that this would be a somewhat unfair result."
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Question: "For Insurance Brokers what is the current capital resource requirement?
I believe it was £5k or £50k but wonder whether it has changed to £10k."
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Question: "This year a client has paid a balloon payment at the end of a lease so that they now own the vehicle. In previous years we have treated the lease payments as an operating lease rather than a finance lease.
Is it ok to capitalise the vehicle at the balloon payment amount? Or will we need to capitalise the asset at its full amount and adjust the accounts regarding the previous payments charged to the P&L?"
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Question: "The firm have picked up a new SAR engagement. The solicitor had financial worries and committed suicide. The firm are doing the SAR work in these circumstances. The remaining partner will continue to run the practice. What sample sizes should be used? Those from Client Money Programmes seem a little high".
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