Reason for this Policy:
Different Reasons for Holding Funds
Ben Holden Ltd (BHL) is occasionally asked to handle client funds, whether directly or through their representatives/solicitors or insurers.
This may be for several reasons including:
Finally, there are occasions where a fund holder overpays an invoice or pays twice. In that case the money is either refunded or kept as a credit on their account against further invoices, in accordance with their wishes.
How Arrangements are Initiated:
These arrangements are usually initiated via telephone conversation or email communication, typically from the instructing party to the Case Manager or to the Consultancy Manager and are administered by the Financial Controller.
In the case of short-term advances, payment is usually made into the usual Ben Holden Ltd current account to facilitate the purchase of the item required. Then the purchase can be made directly for the account by card by the Case Manager, Administrator or Assistant Case Manager and a receipt provided to the solicitor/insurer. Any balance (if the amount of the advance is greater than the cost) can be returned to the solicitor/insurer.
For longer term funds and rolling funds, we segregate the funds in one of our unique and separate client accounts to ensure that the transactions can be traced, tracked and can be clearly audited.
Identifying Ownership of Funds:
The client funds which BHL occasionally holds can usually be divided into two distinct categories:
Insurer Funds (owned by Insurer)
Client Funds (owned by the Client)
On receipt of a request to hold funds, the Administrator will liaise with the Case Manager to decide who has ownership of the funds.
If the funds are owned by an insurer, the relevant email communications will provide adequate records indicating this request for us to hold funds.
If the funds are owned by a client, the Administrator will make checks or delegate such to the allocated Case Manager to determine if we hold a signed (within the last twelve months) client consent form.
The Administrator will also complete a spreadsheet enabling an overview of all client accounts managed by BHL. This spreadsheet will also identify which client accounts require consent and whether the necessary consent is up to date (signed within the last twelve months).
Anti-Money Laundering
In all situations, BHL staff will be able to trace the source of funds to either an insurer (or their legal representative) or the client’s solicitor. We do not accept cash or any type of payments from any individuals or third parties and will only receive electronic funds transfer from one of the official authorised aforementioned parties (insurer or solicitor/legal firm). We accept the funds electronically in good faith acknowledging that the insurer and legal firm have undertaken relevant AML checks on the funds before we receive it.
Client Consent to Manage Client Owned Funds
The BHL client consent form is designed to explain and capture the client’s consent for BHL to hold their funds. At BHL, we usually update consent forms every twelve months on active cases. If we are asked to hold client funds more than six months after instruction, it would be prudent for the Case Manager or Administrator to check the consent form is up to date (signed and dated within the last twelve months).
Setting Up Client Accounts & Management
Once a request to hold client funds has been received, the Administrator will contact Barclays bank to set up a new client specific account. Barclays will require us to identify the relevant scenario for the client account set up, dependant upon the individual’s circumstances around Deputyship and capacity etc. Further details about the scenarios can be found towards the end of this policy and procedure. The administrator will issue a letter to the requestor to obtain signed authorisation and relevant identification to satisfy Barclays/FCA requirements. The Managing Director will also complete an attestation as required by Barclays Bank to confirm we have relevant permissions from the client to hold funds for them. Once the account is set up, the Administrator will notify the requestor with the relevant bank details to deposit the funds. Payments will then be made directly from the client account by the Administrator as requested by the client/Case Manager.
A regular report in spreadsheet form will be sent to the client and their representative at least every three months, showing the opening balance and payments that we have been instructed to make. As the account balance approaches zero, the Consultancy Manager, Case Manager or Administrator will request more funds. If the account is no longer required or the case is closed or transferred, Ben Holden Ltd will issue a closing balance spreadsheet and return any balance to the requestor.
When the client account is no longer required, the account will be closed in full with the Bank.
Responsibilities of the Case Manager
Responsibilities of Administration
Safeguards to Client Funds
BHL’s obligation to safeguard funds commences immediately on receipt of client funds in one of our business banking accounts with Barclays Business Banking and/or other associated authorised credit institution.
We have many data protection and security protocols in place to minimise risk of loss or diminution of funds through fraud, negligence, or misuse. Our Company accountant is aware of our numerous client accounts and this policy.
The Consultancy Manger, Administrator, Financial Controller and the allocated Case Manager all have clearly defined roles in maintaining relevant, accurate and detailed records. Our records, held in both iinsight (online Case Management software) and in the online business accounts are readily available allowing us to immediately distinguish segregated client funds. Both iinsight, Xero and business bank accounts use multifactor authentication to secure data and funds.
The Financial Controller will carry out quarterly internal reconciliation of records and accounts. Where discrepancies arise because of reconciliation, the Financial Controller will identify them and take immediate steps to pay the shortfall or withdrawing any excess.
We prefer the client funds to be directly deposited into the specific and separate client account. If the funds are received directly into our business current account, we ensure within 24 hours of receipt, they will be transferred and segregated into the separate allocated client account.
We never handle bank notes or coins, funds are only accepted digitally.
BHL safeguards client funds utilising the segregation method, client funds are ring-fenced in unique accounts for the client’s use only. Client accounts are always completely separate to BHL funds.
To protect client funds via the FSCS, BHL will regularly review any relevant client accounts. The Financial Controller and Administrator will monitor this on a weekly basis and this will also be a recurring agenda item at the monthly Company Business Management Meeting.
Scenarios – as set out by Barclays
Scenario 1:
Evidence Required
Any one of the following
o Appointeeship (a certified copy of the original is required)
o Lasting Power of Attorney for Property and Financial Affairs
o Scottish Continuing Power of Attorney
o Scottish Combined Continuing and Welfare Power of Attorney
o Enduring Power of Attorney
o Deputy Court of Protection for Property and Financial Affairs (a certified copy of the original is required)
And
o For Lasting Power of Attorney for Property and Financial Affairs, Scottish Continuing Power of Attorney, or Scottish Combined Continuing and Welfare Power of Attorney documents, a Declaration of Capacity signed by the Attorney is also required
Please provide this declaration using the templates provided further down this email in the section ‘Declaration of Capacity’.
And
o If the authority holder is a named individual, we need a signed confirmation from the authority holders authorising the Care Home/Provider to open the bank account, along with a copy of a valid form of photo identification from the authority holders (i.e. passport or driving licence)
This should read ‘I/We, [INSERT AUTHORITY HOLDER NAMES] confirm that I/We authorise [INSERT CARE HOME/PROVIDER’S NAME] to open and operate a client account for [INSERT UNDERLYING CLIENT’S NAME]’.
At least one of these individuals should also be on the mandate for your business.
Scenario 2
Evidence Required
Any one of the following
o Appointeeship (a certified copy of the original is required)
o Lasting Power of Attorney for Property and Financial Affairs
o Scottish Continuing Power of Attorney
o Scottish Combined Continuing and Welfare Power of Attorney
o Enduring Power of Attorney
o Deputy Court of Protection for Property and Financial Affairs (a certified copy of the original is required)
And
o For Lasting Power of Attorney for Property and Financial Affairs, Scottish Continuing Power of Attorney, or Scottish Combined Continuing and Welfare Power of Attorney documents, a Declaration of Capacity signed by the Attorney is also required
Please provide this declaration using the templates provided further down this email in the section ‘Declaration of Capacity’.
And
o A signed confirmation from the authority holders authorising the care home/provider to open the bank account, along with a copy of a valid form of photo identification from the authority holders (i.e. passport or driving licence)
This should read ‘I/We, [INSERT AUTHORITY HOLDER NAMES] confirm that I/We authorise [INSERT CARE HOME/PROVIDER’S NAME] to open and operate a client account for the purpose of sundry expenses for [INSERT UNDERLYING CLIENT’S NAME]’.
And
o A signed attestation from your business (in accordance with the mandate) stating that you’ve been authorised to open the account, that funds are for sundry/expense purpose, that the authority holder will provide the funds, and that balances won’t exceed £1,000
This should be on company headed paper, and read ‘I confirm that I have been authorised by [INSERT AUTHORITY HOLDER NAMES] to open and operate a client account for the purpose of sundry expenses for [INSERT UNDERLYING CLIENT’S NAME]. All funds credited to the account will be provided by [INSERT AUTHORITY HOLDER NAMES], and the total balance on the account will not exceed £1,000’
Scenario 3:
Evidence Required
Either
o A trust deed, set up in relation to the purchase of care for the vulnerable individual, with a specific provision allowing the trustee to delegate to a third party
Or
o A trust deed, set up in relation to the purchase of care for the vulnerable individual
And
o A signed confirmation from the trustees authorising the care home/provider to open the bank account, along with a copy of a valid form of photo identification from the trustees (i.e. passport or driving licence)
This should read ‘I/We, [INSERT TRUSTEE NAMES] confirm that I/We authorise [INSERT CARE HOME/PROVIDER’S NAME] to open and operate a client account for the purpose of care for [INSERT UNDERLYING CLIENT’S NAME]’
And
o A signed attestation from your business (in accordance with the mandate) stating that you have been authorised to open the account, and that funds are for care for the vulnerable.
This should be on company headed paper, and read ‘I can confirm that I have been authorised by [INSERT TRUSTEE NAMES] to open and operate a client account for the purpose of care for [INSERT UNDERLYING CLIENT’S NAME]’
Scenario 4:
Evidence Required:
o General Power of Attorney (a certified copy of the original is required)
o Lasting Power of Attorney for Property and Financial Affairs
o Scottish Continuing Power of Attorney
o Scottish Combined Continuing and Welfare Power of Attorney
o Enduring Power of Attorney
And
o a copy of a valid form of photo identification from the underlying client (i.e. passport or driving licence)
And
o For Lasting Power of Attorney for Property and Financial Affairs, Scottish Continuing Power of Attorney or Scottish Combined Continuing and Welfare Power of Attorney documents, a Declaration of Capacity signed by the Attorney is also required
Please provide this declaration using the templates provided further down this email in the section ‘Declaration of Capacity’.
And
o If the authority holder is a named individual, we need a signed confirmation from the authority holders authorising the care home/provider to open the bank account, along with a copy of a valid form of photo identification from the authority holders (i.e. passport or driving licence)
This should read ‘I/We, [INSERT AUTHORITY HOLDER NAME(S)] confirm that I/We authorise [INSERT CARE HOME/PROVIDER’S NAME] to open and operate a client account for [INSERT UNDERLYING CLIENT’S NAME]’
At least one of these individuals should also be on the mandate for your business
Scenario 5:
Evidence Required:
o A signed confirmation from the underlying client stating that they authorise you to open and operate an account on their behalf, along with a copy of a valid form of photo identification from the underlying client (i.e. passport or driving licence).
This should read ‘I, [INSERT UNDERLYING CLIENT’S NAME] confirm that I authorise [INSERT CARE HOME/PROVIDER’S NAME] to open and operate a client account on my behalf’
And
o A signed attestation from you (in accordance with the mandate) stating that the underlying client has authorised you to open the account.
This should be on company headed paper, and read: ‘I can confirm that [INSERT CARE HOME/PROVIDER’S NAME] has been authorised by [INSERT UNDERLYING CLIENT’S NAME] to open and operate a client account on their behalf’
Scenario 6:
Evidence Required:
o A letter (on headed paper) from the NHS/local authority/public body authorising your business to open the account for the client
And
o A signed attestation from you (in accordance with the mandate) stating that the NHS/Local Authority/public body has authorised you to open the account.
This should be on company headed paper, and read: ‘I can confirm that [INSERT CARE HOME/PROVIDER’S NAME] has been authorised by [INSERT NHS/LOCAL AUTHORITY/PUBLIC BODY’S NAME] to open and operate a client account for [INSERT UNDERLYING CLIENT’S NAME]’
Policy Info. | Staff Member | Date |
Policy First Published | Bobby Doughty | January 2016 |
Latest Revision | Ben Holden/ Callum Ranns /Dave Carter | June 2023 |
Next Planned Annual Revision | Ben Holden | February 2024 |
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