RICS fines Countrywide £100,000

A hearing found that, between 2008 and 2018, the agency transferred over £10 million of client funds, representing unidentified client balances that had not been claimed for six years or more, from the client account into the firm's office account.

RICS says Countrywide was "not permitted to do so" and the conduct represented "a serious and prolonged disregard towards the firm's professional obligations".

A RICS spokesperson said: “The disciplinary panel received joint submissions from RICS and the firm that the appropriate sanction in light of the firm’s admissions and all of the circumstances of the case was a reprimand and a fine of £100,000.

“The disciplinary panel agreed with the parties that this was an appropriate and proportionate sanction and imposed the agreed sanction."

A spokesperson for Countrywide commented: “Back in 2008 we started to accumulate many thousands of individual small amounts on client accounts in our lettings businesses, where funds over six years old could not be traced to source.

“Some would have been rightly Countrywide funds and others small amounts of landlord/tenant sums that could not be traced.

“It was agreed at the time to move these untraceable amounts to an office account and put in place an indemnity that, should ever a recipient be identified, the amount would be paid across.

“In reality less than 1% were ever traced after six years. Immediately we paid over the amount due and customers did not suffer any loss. After ten years of audits an issue was raised in 2018 that this may not be in accordance with RICS rules.

“Countrywide repaid all of the funds that had been transferred from office to unnamed client accounts.

“Importantly nobody has been disadvantaged but we decided to resolve the RICS matter immediately through a full transfer.”