Faced with mounting media pressure, and consumer demand for greater security and transparency, a number of new solutions are contemplated by the BMF, including the mandatory use of dedicated client trust accounts, an insurance package to guarantee the security of their funds during a construction process, bonding or use of stakeholders to hold funds.

Whilst, as recent events show, funds in client accounts are vulnerable in insolvency situations, these accounts still provide good security, provided they are properly operated in compliance with a few simple golden rules.

Firstly, you put into the account all (and only) client's money. Secondly, you only make or take monies out of the account as are available and due and specifically agreed by the client (whether by consent or the provisions of contract such as the sale or brokerage agreement).

Thirdly, you keep clear and meticulous detailed records of all such financial dealings. This requires set procedures and financial discipline, not rocket science!

Final BMF recommendations are awaited, but adoption and proper operation of a client account will provide reassurance to customers, and demonstrate prudence to bankers and potential insurers.

Those who have not yet adopted this discipline should accordingly consider doing so without delay.