Moore & York Lettings Limited
Leicester LE1
England
Determination
Findings with Reasons
Reasoned decision on the facts: The firm of Moore & York Lettings Limited appears before this Panel facing an allegation against Rule 8 of the Rules of Conduct for Firms 2007 in that it failed to preserve the security of clients’ money entrusted to its care.
The allegation is based upon seven discrete matters discovered on a routine visit conducted by the Institution on 21 November 2007.
We have considered the papers and had the benefit of hearing submissions from Ms Buckley representing the Institution and Mr Moore on behalf of Moore & York Lettings.
We do not propose to refer to each of the matters.
Mr Moore has admitted the charge and each of its seven particulars and has presented helpful mitigation.
Clearly the need to secure clients’ money is fundamentally important and any failure, however small the amount, is regarded as a breach of substantial gravity.
We accept that there was no dishonesty, but we cannot believe that the company could have regarded the use of funds in the way outlined in this case as anything other than inappropriate.
It is a case of little heed being paid to, and a failure to appreciate, the distinction that has to be drawn between client and office funds.
We have been extremely concerned at the payment of £5,965.95 out of client account in respect of a company liability, its repayment only being made a year later on the prompting of the Institution.
Overall, the Panel has found there to have been a somewhat reckless approach to client money management and the failure to preserve its security is very clear.
Determination on Penalty
As to penalty, the Panel have had regard to the relevant considerations contained in the Institution’s sanctions policy. Specifically it had regard to the General Guidance and the guidance in relation to Rule 8 breaches.
The Panel has determined that this is a serious breach, especially by reason of the payment of £5,965.95 out of client account and its late and prompted return.
The Panel takes into account that the company has no previous disciplinary findings. We take into account the company’s co-operation and its acceptance today of the charge in all its particulars.
The company has taken remedial steps which should, we are assured, prevent a recurrence. All monies, which were small amounts, have been reimbursed.
The Panel believes an appropriate and proportionate penalty to be:
- reprimand;
- £750 fine
Determination on Costs & Publication:
- Costs in the sum of £2,839.44;
- Publication on the RICS website, in the RICS Business News and a local newspaper circulating in the Leicester area.
Although the Panel has no power to compel it to do so, the Panel encourages the company to maintain its registered status so that its clients can continue to have the protection of a regulated environment and it is strongly suggested that it submits to the Institution monthly reconciliations for the months July to December 2008 by 31 January 2009, certified by a chartered or certified accountant, to satisfy the Institution that this important measure of control is in place.
Finally, the Panel reminds Moore & York Lettings Limited that it has a right of appeal within 28 days under Rule 59 of the Disciplinary Registration and Appeal Panel Rules 2008.
