1. Purpose, Scope and Regulatory Framework
This procedure sets out how Olympus Management (London) Limited (“Olympus”) handles client money. It applies to all funds received, held, or disbursed in connection with properties under management, whether administered by Olympus or by HML PM Limited trading as B-hive Property Solutions (“B-hive”). It is issued to all clients at the commencement of management and reviewed annually.
Olympus is regulated by RICS and is a registered member of the RICS Client Money Protection (CMP) Scheme. B-hive, which provides back-office financial administration on behalf of Olympus, is not RICS-regulated but adheres to RICS best practice guidelines and operates subject to Olympus’s governance and oversight. Olympus bears ultimate regulatory responsibility for client money compliance.
This procedure is governed by the RICS Client Money Handling Rules, the RICS Service Charge Residential Management Code (4th Edition, April 2026), Section 42 of the Landlord and Tenant Act 1987, the Commonhold and Leasehold Reform Act 2002, the Property Agents (Client Money Protection Scheme) (England) Regulations 2019, and applicable FCA rules where insurance activities are involved. B-hive additionally observes the TPI Code of Conduct.
Client money means any money held by Olympus or B-hive on behalf of a client or third party, including service charge contributions, reserve fund contributions, ground rent, insurance premiums, and insurance claim proceeds. Olympus’s own fees and disbursements, once properly deducted, are not client money.
2. Client Bank Accounts
2.1 How and where client money is held
Client money is held by B-hive in designated client bank accounts, operated in trust for the respective client and maintained entirely separately from the business accounts of Olympus and B-hive. A separate account is maintained for each property; service charge and reserve funds are held in discrete accounts and never co-mingled. Accounts are currently held with Barclays Bank plc (PRA-authorised and FCA-regulated). Olympus will notify clients in advance of any change of bank. No overdrawn balance will be created in any client account.
2.2 Access to client funds
Transactional access to client bank accounts is restricted to authorised senior finance personnel within B-hive, operating under a designated signatory mandate approved by B-hive’s management. No member of the Olympus team holds direct transactional access. The authority to instruct B-hive to make
payments is restricted to Olympus Directors and, for routine pre-approved expenditure within budget, to senior property managers designated in writing by a Director. Access credentials are not shared, are reviewed annually, and are revoked promptly on any change of role or departure.
2.3 Interest and bank charges
Interest earned on client account balances is credited to the relevant client account quarterly, at the rate applicable to a Barclays Clients’ Premium Account (or equivalent). Olympus does not retain interest for its own account. Interest is itemised in the annual service charge accounts. Bank charges attributable to a client account are charged to that account and reflected in the service charge accounts.
2.4 Oversight by Olympus
Olympus has read access to all transaction records, bank statements, and reconciliations through B-hive’s accounting system. Olympus monitors receipts and disbursements, reviews reconciliations, authorises expenditure, and ensures B-hive’s administration remains consistent with this procedure and RICS requirements.
3. Collection of Funds and Banking Timescales
Service charge demands are prepared and issued by B-hive at least 14 days before the due date, in compliance with the Landlord and Tenant Act 1985, CLRA 2002, and applicable lease provisions. Olympus and B-hive do not accept cash. All payments are received directly into the designated client account. Accepted methods are bank transfer (BACS/Faster Payments), standing order, direct debit, and cheque.
Cheques received by B-hive are banked within two business days of receipt. Cheques received by Olympus are forwarded to B-hive without delay and in any event within two business days. No cheque is held uncashed beyond this period. Electronic payments are credited on the day of receipt or settlement date. All payments are allocated to the relevant leaseholder account and recorded promptly.
Where ground rent or insurance premiums are collected, these are held in separate designated accounts and the same banking timescales apply.
4. Unidentified and Suspense Funds
All incoming client funds are initially received into a central clearing (“river”) account operated by B-hive before being allocated to the designated client account for the relevant property. Where a payment cannot be immediately identified or matched to a specific client account, B-hive will investigate and seek allocation advice from Olympus and, where necessary, from the paying party. If allocation cannot be confirmed within 14–21 days of receipt, the funds will be returned to the sender without delay.
In cases where funds cannot be returned to the sender (for example, where the originating account is unknown), a Client Suspense Account may be maintained to hold old or unidentified client funds pending investigation. B-hive and Olympus will take all reasonable steps to trace the beneficiary, and a full record of all investigative steps taken is retained.
If all reasonable avenues to identify or locate the beneficiary have been exhausted, the funds must be donated to a registered charity. In such cases, Olympus will obtain both a receipt and a written indemnity from the recipient charity before the transfer is made. A record of the donation, receipt, and indemnity is retained as part of the client money audit trail.
5. Arrears Recovery
Arrears of service charges, ground rent, and other recoverable sums are managed in accordance with the following procedure. The aim is to manage arrears fairly and consistently, maintain adequate cash flow, and reduce the risk of bad debt.
| Arrears Recovery Procedure | |
| Step 1
Invoice issue |
Service charge and/or ground rent demands issued in accordance with lease terms, including Summary of Rights & Obligations, landlord name and address, payment due date, and accepted payment methods. |
| Step 2
14 days after due date |
Polite reminder letter/email sent showing balance due, due date, and payment options. No administration charge at this stage. |
| Step 3
21 days after due date |
Firmer reminder issued noting continued non-payment may result in solicitor referral and additional recovery costs. Administration charge of £100 + VAT applied. |
| Step 4
45–60 days after due date |
Referral to solicitors (default partner: PDC Law). Letter Before Action issued including full account statement, charges and interest, response form, and a 30-day settlement deadline. Administration charge of £350 + VAT applied. PDC will calculate interest on arrears for a fee of 20% of the interest due, capped at £150 + VAT. Once referred, all correspondence with the leaseholder passes through the solicitors. |
| Step 5
105–120 days after due date |
Continued non-payment: referral to PDC Law, with client instruction, to seek a County Court Judgment. Note: legal action will not be initiated where ground rent arrears are below £350 and have been outstanding for fewer than three years. |
Clients will be notified of significant arrears positions without delay. Arrears are discussed at contracted client meetings and reports are available on request at any time.
6. Authorisation of Payments
All payments from client accounts are subject to a formal authorisation framework. B-hive will not process any instruction that does not comply with these controls. All instructions and authorisations are retained as part of the audit trail.
| Payment Authorisation Framework | |
| Routine expenditure within approved budget and expenditure limit | Instructed by a designated Olympus property manager or Director. Processed by B-hive without further approval. |
| Above per-item expenditure limit (as per management agreement) | Written authorisation from an Olympus Director required before B-hive will process. |
| Above approved annual budget | Written authorisation from an Olympus Director and prior notification to the client required, except in genuine emergency. |
| Emergency expenditure | Authorised by an Olympus Director. Client notified at the earliest practicable opportunity with full explanation. |
| Management fees and B-hive charges | Deducted per the management agreement. No per-transaction authorisation required once agreement is in place. |
Olympus’s management fees are charged quarterly in advance and deducted from the client account. Fees, once deducted, are not client money. Contractors and suppliers are paid within 30 days of a valid invoice, subject to available funds. If funds are insufficient, Olympus notifies the client promptly and may cease services if funds are not advanced.
7. Reconciliation and Records
B-hive performs client account reconciliations monthly and whenever funds are transferred into or out of a reserve account. Each reconciliation compares the client bank account balance against the accounting system ledger for that property, with all uncleared items identified and reviewed. Reconciling items outstanding for more than 30 days are escalated for investigation. Reconciliations are signed off by a senior member of B-hive’s finance team and made available to Olympus through the shared accounting system.
Any discrepancy that cannot be attributed to a timing difference is treated as an exception: B-hive notifies Olympus immediately, both parties investigate, and if unresolved promptly, Olympus reports to RICS in accordance with the RICS Client Money Handling Rules. All exceptions and their resolution are recorded.
Detailed transaction records (date, amount, payee/payer, reference) are retained for a minimum of six years. Records are available to clients and their accountants on written request, by appointment at the offices of the Service Providers.
8. Client Reporting
Olympus and B-hive provide clients with the following standard financial reporting:
| Standard Client Reporting Schedule | |
| Annual service charge accounts | Circulated within six months of the financial year end. Shows income, expenditure, and closing balances. |
| Annual budget | Available for client review at least four weeks before demands are due. |
| Service charge demands | Issued at least 14 days before the due date. |
| Financial management reports | At the frequency agreed in the management agreement (quarterly by default): income, expenditure to date vs budget, and account balances. |
| Arrears reports | On request and at contracted client meetings; significant positions flagged without delay. |
| Ad hoc statements / invoices | Available on written request, by appointment. |
All reporting is produced in accordance with the RICS Service Charge Residential Management Code and the Landlord and Tenant Act 1985. Additional reporting frequency may be agreed; charges apply per B-hive’s Schedule of Charges.
9. Additional Matters
Client Money Protection and Insurance
Olympus is a registered member of the RICS CMP Scheme, which protects clients in the event of misappropriation. The scheme certificate is available on request and displayed at Olympus’s registered office. Olympus holds professional indemnity insurance including fidelity cover throughout any management appointment, and is a member of a recognised independent redress scheme. Where regulated insurance activities are carried out, these are conducted in compliance with FCA rules, and any commission received is disclosed to the client.
Termination and Handover
On termination, and subject to settlement of outstanding fees and costs, all documents, vouchers, and statements of expenditure will be available for collection within two months. Client monies will be fully accounted for and transferred to the incoming agent or client as instructed. The audit file will be available from B-hive within one month of completion of audit or certification of accounts.
Reporting Concerns
Clients with concerns about client money handling should contact Olympus in the first instance. If unresolved, concerns may be referred to the relevant ombudsman scheme or raised directly with RICS.
Review
This procedure is reviewed annually or sooner following any change in legislation, RICS rules, or operational practice, and is provided to all clients at the commencement of management.