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Property Services Regulatory Authority

Annual Report 2012

Contents

Foreword by the Chairperson Introduction by the Chief Executive Officer Background to the Establishment of the Authority The New Regulatory Regime Giving Effect to the Statutory Provisions Letters of Engagement Licensing Complaints, Investigation and Redress System Consumer Protection Residential Property Price Register Merging of the PSRA and the PRTB Resources

Appendices Appendix I - Financial Report Appendix II - Authority’s Regulations

i

Foreword by Geraldine Clarke, Chairperson of the Property Services Regulatory Authority. I am pleased to present the first Annual Report on the Property Services

Regulatory Authority in respect of the year ending 31st December 2012.

The Property Services Regulatory Authority was established in April 2012 and

I was delighted to be invited by the Minister for Justice and Equality, Mr. Alan

Shatter T.D., to chair the Board and lead it in bringing about a fundamental

change in the regulation of the property services industry in the State.

The Property Services (Regulation) Act 2011, which led to the establishment

of the Authority, was long promised and widely welcomed by the industry and

many in wider society who had lost confidence in a mostly unregulated

property services industry. This new legislation not only strengthens the

existing law governing Auctioneers/Estate Agents and Letting Agents but its

provisions also cover, for the first time, Management Agents, namely, persons

providing services to Owners’ Management Companies in Multi-Unit

Developments.

The legislation heralds a new era in the regulation of Auctioneers/Estate

Agents, Letting Agents and Management Agents and, also for the first time,

will provide transparency and protection for the consumer and ensure that the

property services sector operates to the highest standard.

It has been an exciting and challenging year for the Authority which saw it

introduce a wide range of regulations governing service providers’

qualifications, professional indemnity insurance, the management of client

accounts, the establishment of a Compensation Fund and the introduction of

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a radically new licensing system. This Annual Report covers the nine month

period between the Authority’s establishment in April 2012 and the end of

December 2012 and gives a summary of all our achievements during this

period.

I would like to pay tribute to the staff of the Authority whose dedication and

commitment has facilitated the Authority in making such progress in its first

nine months.

Finally, I would like to pay tribute to my fellow Board members, whose

commitment and expertise has been crucial in making this a successful

inaugural year for the Authority.

Geraldine Clarke

5th December 2013

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Introduction by Tom Lynch, Chief Executive of the Property Services Regulatory Authority The Property Services Regulatory Authority was established in April 2012 and

this Report covers the 9 month period to 31st December 2012. The new

legislation, under which the Authority was established, considerably

strengthens the legislative framework for the regulation of Auctioneers/Estate

Agents, Letting Agents, and Management Agents.

The aim of the Authority is to ensure that the new regulatory regime is

effectively implemented so that consumers are protected and that the property

services sector operates to the highest standards.

This period in the development of the Authority was an exciting and

challenging time. As a start up organisation the Authority was tasked with

establishing the basic organisational structures, systems, procedures,

protocols, rules and regulations, which are fundamental to the long term

functioning of the Authority.

In this initial phase it developed and implemented office, file and data

management systems suitable for the Authority’s long term needs; developed

and put in place financial and accounting systems; designed, developed and

implemented computerised licensing and complaints databases; drafted rules

and regulations governing complaints procedures and prepared and published

information on the provision of property services and guidance on the

licensing of Property Services Providers.

In addition to putting in place the basic organisation systems and procedures

the Authority also drafted five comprehensive Statutory Instruments which

underpin and give effect to the detailed provisions of the Act.

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The Authority also during this period established and published two very

important public Registers namely, the Public Register of Licensed Property

Services Providers and the Residential Property Prices Register.

The Authority set as its goal the 6th July 2012 as the date for introducing the

new licensing system. To introduce a new licensing regime within 3 months

of being established was indeed and ambitious target. It met its target.

That all of the necessary systems and procedures and statutory regulations

were put in place within such a short timeframe is testament to the

commitment of the members of the Board and staff of the Authority.

For my own part, 2012 presented many challenges but all accompanied by

great supports. In this regard I would like to thank the Industry for their

readiness to embrace the new regime, the Department of Justice and Equality

for its support, the Property Registration Authority for their invaluable help in

the initial stages of vetting licence applications and the Revenue

Commissioners for their assistance in developing the new property price

register.

Finally, I would like to thank the Board of the Authority for their expertise,

advice and comprehensive analysis of the many proposals put before them

and also the staff of the Authority for their dedication and commitment without

which the ambitious targets set could not have been achieved.

In the first nine months of the Authority’s life the staffing resources made

available to the authority were limited. To ensure that the Authority is in a

position to properly meet its obligations under the Act and achieve its targets it

is essential that adequate staffing and financial resources are made available.

The next year will bring many challenges. We must ensure that the new

licensing system is fully implemented and that we are in a position to embark

on the investigation of complaints and give full effect to the new regulatory

framework.

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Members of the Property Services Regulatory Authority

Ms. Geraldine Clarke (Chairperson)

Ms. Carol Boate Mr. Edward Carey Mr. Patrick Davitt

Mr. James Doorley Ms. Deirdre Fox

Mr. Martin Hanratty Ms. Josephine Henry

Mr. Paul Mooney Mr. Myles O’Reilly Ms. Regina Terry

1

Background to the Establishment of the Authority

The Property Services Regulatory Authority (PSRA) was established on the

3rd April 2012 pursuant to the Property Services (Regulation) Act 2011. It is

the statutory body with responsibility for the control, supervision and

regulation of Property Services Providers (i.e. Auctioneers/Estate Agents,

Letting Agents and Management Agents) in Ireland. This is the first Annual

Report of the AUTHORITY. The Authority is based in Navan, Co Meath.

The Government decision to establish the Authority followed from a

recommendation of the “Auctioneering/Estate Agency Review Group” which

was set up in by the then Minister for Justice Equality and Law Reform to

carry out a review of all aspects of the auctioneering profession in Ireland.

The Review Group recommended the establishment of a Regulatory Authority

to take over responsibility from the Courts and the Revenue Commissioners

for the licensing and regulation of Auctioneers, Estate Agents and

Management Agents.

The Legislation

The Property Services (Regulation) Act 2011 which provided for the

establishment of the Authority was signed by the President in December

2011.

The main functions of the Authority, as set out in the Act, are:

• To control, supervise and regulate Property Services Providers (i.e.

Auctioneers/Estate Agents, Letting Agents and Management Agents);

• To operate a comprehensive licensing system covering all Property

Services Providers;

• To specify and enforce:-

o standards for the granting of licences to Property Services

Providers (e.g. educational/training standards; levels of

professional indemnity insurance), and;

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o standards to be observed in the provision of property services

by Property Services Providers (e.g. technical standards;

appropriate ethical standards);

• To establish and administer a system of investigation and adjudication

of complaints against Property Services Providers;

• To establish and administer a system of investigation of standards in

the provision of Property Services;

• To impose sanctions on Property Services Providers for improper

conduct (including fines up to €250,000 and the revocation of a

licence);

• To promote increased consumer protection and public awareness of

property services in general;

• To establish, maintain and administer a Compensation Fund to

compensate parties who lose money as a direct consequence of the

dishonesty of a Property Services Provider;

• To develop Codes of Practice for Property Services Providers;

• To establish and maintain a Public Register of Property Sales Prices;

• To establish and maintain a Commercial Leases Database;

• To establish and maintain a Public Register of Licensed Property

services Providers;

• To act as State Competent Authority for Money Laundering;

• To assist the Minister in the development of policy relating to the

regulation of the Property Services Industry;

• To undertake or commission research projects.

3

The New Regulatory Regime

The new legislation replaces the Auctioneers and House Agents Acts 1947 to

1973 which have been repealed and introduced an entirely new regulatory

regime.

The new regime replaces and considerably strengthens the previous

legislative framework, whereby Auctioneers/Estate Agents were licensed

through the Courts and the Revenue Commissioners. It also brings Property

Management Agents, those persons providing services to owners’

management companies within multi-unit developments (typically apartment

complexes), within the scope of regulation for the first time. It also aims to

afford greater protection for consumers and ensure that the property services

sector operates to the highest standards.

Higher standards are required for obtaining a licence. Service providers have

strict obligations in relation to their dealings with their clients and the

administration of client accounts. The Authority is empowered to investigate

complaints against licensed service providers and it can impose tough

sanctions for improper conduct and provide redress to complainants.

The sanctions for operating without a licence have also been substantially

strengthened.

Any person operating without a licence is guilty of an offence and liable:

� On summary conviction to a fine not exceeding €5,000 or 12 months

imprisonment or both; or

� On conviction on indictment to an unlimited fine or five years

imprisonment or both.

4

Giving Effect to the Statutory Provisions

On its establishment the Authority decided that, in order to give immediate

effect to the new regulatory regime, it would take over the licensing of

Auctioneers/Estate Agents and Letting Agents from the Courts and Revenue

Commissioners and bring Property Management Agents within the scope of

the new legislation with effect from the 6th July 2012, which was the end of the

licensing period under the old legislation.

A very significant feature of the legislation is the power given to the Authority

to make Regulations to provide for the detailed implementation of the Act. In

particular, it provides for the Authority to make regulations providing for:-

� the classes of licences which may be issued and the conditions

attaching to such licences;

� the standards to be observed in the provision of property services by

licensees;

� the qualifications, including education and experience, necessary to

qualify for a licence

� the terms on which indemnity against losses is to be available to

licensees under any policy of indemnity insurance

� the records to be maintained and the information and returns to be

provided to the Authority

� the payment of contributions to the Compensation Fund and the

procedures governing grants from the Fund

� the protection of client moneys

Before the new regulatory regime could be introduced it was necessary for the

Authority to draft extensive and detailed Regulations to give effect to the

detailed provisions of the Act. As the Authority had decided that the new

regime should be introduced with effect from the 6th July 2012 it set about

drafting the necessary regulations immediately on its establishment. Between

the 3rd April 2012 (establishment day) and the 6th July 2012 the Authority met

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twice a month and drafted and published five detailed Statutory Instruments.

Briefly, the Statutory Instruments provide as follows:

• Licensing Regulations 2012 (SI No. 180 of 2012)

[To provide for different classes of licence and rules for the granting of

licences the form of Licence Application]

• Qualifications Regulations 2012 (SI No. 181 of 2012)

[To specify the minimum qualifications and experience necessary to

obtain a Property Services Provider’s Licence]

• Professional Indemnity Insurance Regulations (SI No. 182 of 2012)

[To specify the terms on which indemnity against losses is to be

available to licensees under a policy of indemnity insurance]

• Compensation Fund Regulations 2012 (SI No. 183 of 2012)

[To provide for the establishment of the Property Services

Compensation Fund, the level of contributions to the Fund and the

rules governing the payment of compensation]

• Client Accounts Regulations 2012 (SI No. 199 of 2012)

[To provide for statutory rules for the keeping and preservation of client

accounts]

These regulations underpin the new regulatory regime and given their

importance the Statutory Instruments have been included in full at Appendix

II.

In addition to the drafting of Regulations the Authority also drafted and

published “A Guide to Becoming a Licensed Property Services Provider”.

This guide, which was published to assist persons in making their licence

applications under the new regulatory regime, included full particulars of the

different licence categories, the Property Services Providers which are

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required to be licensed, the licensing requirements, including qualification

standards, and detailed instructions on how to make a licence application.

In the course of preparing the regulations the Authority had detailed

discussions with the industry representative bodies, accounting bodies, the

insurance industry and academic institutions.

Having put in place the necessary regulations the Authority achieved its aim

and introduced the new licensing and regulation system for all Property

Services Providers on the 6th July 2012.

Altogether, in the nine months of 2012, the Authority met on nine occasions.

7

Property Services Agreements A very important feature of the new legislation is the requirement that a

Property Services Provider have a written contract with the Client. Briefly,

Section 43 of the Act requires a licensed Property Services Provider to issue

a Property Services Agreement (the contract), in the form specified by the

Authority, to all Clients. It must be issued within 7 working days of starting to

provide, or agreeing to provide, a property service, whichever is the earlier. If

the client does not sign and return the contract to the licensee within a further

7 working days, the Property Services Provider must cease, or not

commence, the provision of the property service.

This contract is a core element of the new regulatory regime. Because of the

importance of the contract the Authority drafted detailed contracts for use

Property Services Providers. The contract drawn up by the Authority is the

only form of contract which may be used by Property Services Providers when

providing services to Clients. Altogether the Authority drew up 11 different

forms of contract to meet different requirements as follows:

Auction � Services Agreement for the Auction of Property Other Than

Land - Sole Agency � Services Agreement for the Auction of Livestock – Mart

Auction � Services Agreement for the Auction of Land - Sole Agency

Sale other than by Auction

� Services Agreement for the Sale of Land - Multiple Agency � Services Agreement for the Sale of Land - Sole Agency � Services Agreement for the Sale of Land - Joint Sole Agency

Purchase of land

� Services Agreement for the Purchase of Land - Sole Agency

Letting of Land � Services Agreement for the Letting of Land - Multiple Agency � Services Agreement for the Letting of Land - Joint Sole

Agency � Services Agreement for the Letting of Land - Sole Agency

Property Management Services

� Services Agreement for the Provision of Property Management Services

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These Property Services Agreements are detailed contracts which set out the

terms governing the agreement between the parties. All of the contracts

drafted include the following general provisions:

� The name, licence number and business contact details of the Property

Services Provider.

� Details of the property services to be provided to the Client.

� The amount or the rate of any commission or other fee payable by the

Client under the agreement and the circumstances under which it

becomes payable.

� The period during which the rights or obligations of the Client or

Property Services Provider are to have effect under the agreement.

� The length of notice to be given in the event of the termination of the

agreement and the consequences,

� Affirmation that no conflict of interest exists which would prevent the

Property Services Provider providing the service.

� Details of the Professional Indemnity Insurance of the Property

Services Provider.

� Details of the records to be kept by the Property Services Provider in

respect of the provision of the property service,

� The name and address of the bank in which the Property Services

Provider’s client accounts are kept.

� Information on the Property Services Provider’s complaints and redress

procedures.

In addition to the foregoing contracts for the sale of land include such

additional provisions as the advised market value of the land, a description of

the agency model, the obligations which apply to the Client should he or she

dispose of it otherwise than through the Property Services Provider

concerned, etc.

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Similarly with contracts for the letting of land additional provisions relating to

the advised letting value of the land, rent collection, additional letting

management services to be provided etc. are included.

The Property Management Services contract is extremely detailed including

as it does a full list of all of the services which a Property Management Agent

may provide and the terms under they are to be provided.

Because of the importance which the Authority attaches to such contracts it

engaged in extensive discussions on them with the bodies representing the

industry namely, the Society of Chartered Surveyors Ireland (SCSI), the

Institute of Professional Auctioneers and Valuers (IPAV) and the Irish

Property and Facility Managers Association (IPFMA).

The detailed contracts are available on the Authority’s website www.psr.ie.

10

Licensing

Under the Act a property service is defined as:

• The auction of property other than land.

• The purchase or sale, by whatever means, of land.

• The letting of land.

• Property management services.

The definition of “land” is wide and includes any estate or interest in or over

land, buildings or structures of any kind on land, etc.

A separate licence is required in respect of each of these property services.

However, a licensee may hold a single licence covering one or more of the

different categories of property service.

In contrast to the previous licensing system, the new licensing requirement

will apply to both employers and employees engaged in the provision of

property services and the Act specifies the categories of service providers

which must hold a licence. Altogether there are six distinct categories,

namely:

• A Company,

• A Partnership,

• A Sole Trader,

• An Independent Contractor,

• A Principal Officer (e.g. company director, a partner in a partnership or

a manager in a company or partnership) and

• Employees.

In addition to the extension of the licensing requirement to employees, there

are also new requirements which licence applicants must meet. Any person

wishing to obtain a licence must, when making their application provide the

Authority with the following:

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• In the case of Property Services Employers and Independent

Contractors-

o Evidence of the qualifications of Principal Officers (Companies

and Partnerships) or individual applicant.

o Evidence that the applicant has Professional Indemnity (P. I.)

Insurance

o Tax Clearance Details,

o Accountant’s Report

o Certificate of Incorporation and or Business Registration (where

applicable),

o Prescribed Licence Fee.

• In the case of Principal Officers and Employees-

o Evidence of the qualifications of the applicant,

o Evidence that the applicant is covered by Professional Indemnity

Insurance,

o Prescribed Licence Fee.

The new licensing system introduced four very significant new elements into

the licensing process namely, qualifications, insurance, compensation and

extended tax clearance.

Prior to the introduction of the new licensing regime it was not necessary to

hold any form of qualification to be licensed by the Revenue Commissioners

as either an Auctioneer of House Agent. Under the new system applicants for

a Licence must meet certain “minimum qualification requirements” before a

licence can be granted, namely:

� Have a “minimum academic qualification”, or

� Have “appropriate experience”.

The “minimum academic qualification” is the equivalent of a two year diploma,

at third level institution, in a number of specified subjects. “Appropriate

experience” means having been lawfully engaged in the provision of the

property service, the subject of the licence application, for three of the five

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years immediately preceding the making of the application. Many applicants

had difficulty in providing evidence of their qualifications.

Altogether between the 6th July 2012 and the 31st December 2012 the

Authority processed a total of 5, 458 licence applications. Of the 5,458

applications received 3,452 related to employees.

The processing of applications included:

� The recording, on computer, of each applicant’s details together with

the class of licence being sought.

� The evaluation of each applicants qualifications to hold a licence

� An examination of the adequacy of the Professional Indemnity

Insurance available to the applicant and

� Verifying that the applicant was tax compliant.

The new licensing system presented many difficulties for applicants with the

result that over 80% of applications received were either incomplete or

inaccurate in some respect. While there were deficiencies under a number of

different headings that which presented the greatest difficulty was compliance

with the qualification requirements. Because of the high level (80%) of initial

rejections it was necessary for the Authority to engage in extensive

correspondence with applicants which led to considerable delays in the

processing of applications. In the nine months from April to December 2012

the Authority issued over 25,000 letters to applicants.

A requirement of the new legislation is for each applicant to make a

contribution to the Compensation Fund before an actual licence may issue.

While a total of 2,886 licences had been approved, and were ready for issue

at the end of 2012, the Authority had only received Compensation Fund

contributions in respect of 664 applications as at the 31st December 2012.

A further 1,156 applicants had either been refused a licence or had been

informed of the Authority’s proposal to refuse a licence. In so far as those to

whom a proposal to refuse a licence had issued they were given a final

13

opportunity to make representations to the Authority in support of their

application.

In so far as the remaining 1,416 applications were concerned all of these

applicants had been written to and been informed of the defects in their

licence applications and had been requested to furnish additional information

or clarification.

The position in relation to all applications received as at the 31st December

2012 is as follows:

� Decision to Grant a Licence issued 2,886

� Notification of Proposal to Refuse Licence 1,110

� Licences refused 46

� Awaiting Further Information from Applicant 1, 416

� Total 5,458

Licence Fees

In line with Government policy the PSRA is a self-financing body. It depends

on licence fee income to fund itself. When determining the level of licence fee

to be paid the Authority based its fees on the estimated annual cost of

administering the new licensing system. The licence fee is payable annually.

The fee for a Property Services Employer is €1,000 per annum while that for

an employee is €100 per annum.

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Complaints, Investigation and Redress System

One of the major shortcomings of the old system was the lack of any system

of investigation into allegations of improper conduct by service providers.

Under the new regulatory regime a comprehensive system for investigating

complaints made against service providers, and imposing appropriate

sanctions where such complaints are upheld, is now provided for.

The Act provides that the Authority must investigate complaints made against

service providers where it considers that the complaint is made in good faith

and is neither frivolous nor vexatious. It can also, of its own volition, carry out

an investigation to identify any improper conduct of a service provider.

In this regard the powers of investigation which the Authority has are quite

extensive. Where it decides that an investigation is warranted the Authority

will appoint an inspector to carry out the investigation. The Act confers

extensive powers on such inspectors including powers to enter and search

premises, require the production of relevant books and records, inspect bank

accounts, carry out examinations and inquiries and conduct oral hearings.

On completion of the investigation the service provider concerned and the

complainant must be given a copy of the inspectors report and be afforded an

opportunity to address the inspector’s findings. Before making a final decision

on a complaint the Authority may conduct an oral hearing of the complaint or

invite the parties to the complaint to make submissions.

Where, on conclusion of the investigation, the Authority is satisfied that the

service provider is engaging or has engaged in improper conduct, it may

impose either a “minor” or a “major” sanction. The Act defines these

sanctions as follows:

� A minor sanction means: a reprimand, warning, caution or advice.

� A major sanction means:

o the suspension or revocation of a licence,

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o payment of up to €50,000 into the compensation fund,

o payment of up to €50,000 towards the costs of the investigation,

or

o payment of a penalty of up to €250,000.

A service provider may appeal any minor sanction imposed to the Appeal

Board but a major sanction must be appealed to the High Court.

There is a statutory obligation on the Authority to publish full details of all

major sanctions imposed and the Authority has discretion in the publication of

minor sanctions.

Any person who obstructs or impedes the Authority in its investigations is

guilty of an offence and liable:

• on summary conviction to a fine not exceeding €5,000 or 12 months

imprisonment or both, or

• on conviction on indictment to a fine not exceeding €50,000 or 5 years

imprisonment or both.

At the end of 2012 the authority had put in place the necessary systems for

the establishment of a complaints investigation and redress system.

Between April and December 2012 the authority had received a total of 76

complaints. However, it did not investigate any of those complaints during

that period. The reason for not investigating any complaints during this period

was primarily due to the limited resources available to the Authority and the

requirement under the Act which limits the investigation of complaints to

persons holding a licence under the Act. Consequently, it was decided to

concentrate on the introduction of the new licensing system before engaging

in the investigation of complaints.

The staff resources available to the Authority, during the first 9 months of its

operation, were very limited and comprised of only 9 people. As a result it was

necessary to devote all of the Authority’s staffing resources to the processing

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of licence applications in order to ensure that the Authority would be in a

position to properly address complaints.

As was pointed out the new licensing regime only commenced in July 2012

and by the end of the year, while all applications received had been

processed, considerable work remained to be done on the licensing of

applicants. Consequently, work on the investigation of complaints had to be

deferred.

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Consumer Protection

Client monies

The protection of client money is of critical importance. Now, for the first time,

the manner in which client accounts must be maintained is provided for in

detail in regulations which specify:

� The kind of bank accounts which may be opened by a property

services provider for the keeping of client monies;

� The rights, duties and responsibilities of a property services provider in

respect of client monies;

� The accounting records which must be maintained by a property

services provider and;

� The examination of accounts by an accountant and the form of

accountant’s report to be supplied to the PSRA.

Failure to comply fully with these regulations constitutes improper conduct

which, as outlined above, can lead to considerable sanctions. In addition, any

service provider who knowingly makes a false or misleading entry in any

accounting record is guilty of an offence and liable to an unlimited fine or five

years imprisonment or both.

Client contracts

The new regime provides for a greater level of transparency and certainty for

clients of property service providers. It is now a statutory requirement that

service providers give clients a “services agreement” within seven working

days of having agreed with the client to provide a property service. This

agreement must include, in clear language details of the services to be

provided by the service provider, the fees payable by the client, the

consequences of termination of the agreement etc. Again, failure to comply

constitutes improper conduct.

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Insurance

The requirement, under the old legislation that a licence applicant lodge a

fidelity guarantee bond with the High Court is replaced with a requirement to

have Professions Indemnity Insurance. Each property services employer

must have in place a minimum level of insurance which covers both the

applicant and all of his or her employees engaged in the provision of property

services. The Professional Indemnity Insurance requirements are prescribed

in Regulations made by the Authority.

Compensation Fund

In addition to insurance each applicant is required to contribute a specified

sum to the Property Services Compensation Fund before a licence is granted.

The purpose of the Fund is to compensate persons who sustain loss due to

the dishonesty of a service provider. The Authority is required to ensure that

the amount standing to the credit of the Fund is maintained at a minimum of

€2M. and this must be achieved within 4 years of its establishment.

The level of contribution payable to the Fund by a Property Services Employer

is €200 per annum while that for an employee is €50 per annum.

At the 31st December 2012 the amount standing to the credit of the Fund was

€167,800. On the basis of the number of licence applications received up to

the end of 2012 the requirement to have €2M in the Fund within 4 years of the

establishment of the Authority can be achieved by maintaining the current

level of contributions.

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Residential Property Price Register

The Act requires that the Authority establish and maintain a number of Public

Registers. In September 2012 the Authority established and published its first

public register: the Residential Property Price Register.

The Register includes information on residential properties purchased in

Ireland since the 1st January 2010, as declared to the Revenue

Commissioners for stamp duty purposes.

It contains the price paid for individual properties and contains details of all

residential sales – both cash sales and sales with mortgage. The particulars

published in the Register include the price, the date of sale and the address

(including house number) of each residential property sold in Ireland since

January 2010. The information is updated on a regular basis and the

information is published within a month of the date of sale of the property.

The Register can be searched by reference to a number of criteria including

all sales by county, city or town, individual property address and by year.

Such a facility enables members of the public to discover easily and quickly

prices paid for properties sold in Ireland since January, 2010. It provides both

buyers and sellers with a service they have previously lacked namely,

accurate and up-to-date information on the market price of individual

properties.

In recent years, because of the steep downturn in the property market, it has

been difficult to get accurate information on property prices. This uncertainty

has led to a lack of investor confidence and has contributed to stagnation in

the property market, particularly among first time buyers. One of the aims of

the new Register is to remove some of this uncertainty, restore some

confidence in the property market and provide transparency in residential

property sale prices. From the very positive feedback which the Authority has

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received it is clear that it is of substantial assistance in helping people make

decisions in relation to both the purchase and sale of property.

The new Register was widely welcomed and there was a high public interest

in it from the beginning. In the first month of its publication it had 293,924

“hits”. Following this initial high interest visits to the site settled down to a

steady 100,000 per month thereafter. From its initial publication at the end of

September to the end of December 2012 the site had a total of 550,916 visits.

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Merger of PSRA and PRTB

The ‘Special Group on Public Services Numbers and Expenditure

Programmes’ report of July 2009 (the McCarthy report) recommended the

merger of the PSRA and PRTB. This merger proposal was subsequently

identified as one of the proposals for critical review in the Government’s

Public Service Reform document (November 2011).

The proposal was reviewed by a Group comprising officials from the

Department of Environment, Community & Local Government, the

Department of Justice & Equality, the Department of Public Expenditure and

Reform, the Chief Executive Officer of the Property Services Regulatory

Authority (PSRA) and the Director of the Private Residential Tenancies Board

(PRTB).

Having carefully considered the proposal the Group presented a report to the

Minister for Public Expenditure and Reform. The Group concluded that the

PSRA and the PRTB are not a good merger-match, either structurally or

functionally.

Nonetheless, the Group considered in detail whether savings would arise from

a merger and came to the clear conclusion that there is no clear potential for

savings if a merger of the PSRA and PRTB was to go ahead. In fact it

concluded that it was likely that ICT and accommodation costs would erode

any potential administrative savings and would incur considerable additional

ongoing costs.

Functionally, there is no common purpose in the work of both bodies and

given their varying roles any merger has the potential to distract from the core

functions of both bodies. This could prove to be very disruptive. In the case of

the PSRA, which was only formally established in April 2012, and which was

engaged in the first round of a new licensing system for property service

22

providers, any reorientation of its activities to support the progression of a

merger, could adversely impact on its core activities.

The Group also concluded that when the respective roles of the PSRA and

PRTB are examined closely it becomes clear that to merge both bodies would

give rise to a conflict of roles which would create serious conflicts of interest

for a new single body.

The Working Group concluded that, having regard to the lack of synergies

between the PSRA and the PRTB, the significant savings in each organisation

in recent years, and the fact that both organisations are self-financing, that

there is no objective justification for proceeding with a merger of these two

organisations. Indeed proceeding with a merger would likely to give rise to

additional costs (which would not otherwise arise) and almost certainly would

have a significant negative impact on the delivery of the core activities of both

organisations.

Accordingly, the Members of the Working Group recommended that the

Government should not proceed with a merger of the Property Services

Regulatory Authority and Private Residential Tenancies Board.

The recommendation was accepted by the Minister and on the 31st October

2012 he announced that, following a review of some 93 State bodies

recommended for rationalisation or merger in "the Mc Carthy report", it had

been decided to:

� rationalise or amalgamate 47 specified bodies by end 2012,

� rationalise or amalgamate 24 specified bodies by end 2013 and

� reject proposals for the rationalisation/merger of 10 specified bodies

(including the PSRA and PRTB).

23

Resources

Staff of the Authority

In addition to the CEO the Authority has 7 full-time and 3 part time staff. This

staffing level is totally inadequate and the Authority will not be in a position to

meet its statutory obligations unless there is a considerable increase in the

numbers.

Financing the Authority

Each year the fees generated by the Authority are paid into the Exchequer

and financial provision is then made by the Exchequer to the Authority.

In effect the cost of running the Authority is not borne by the Exchequer but by

the fees which the Authority generates.

The Authority is required by law to be self financing. All of its costs,

including staff costs, must be financed from the fees it generates.

Of particular relevance in this regard is the provision in section 25(3) of the

Act which states:

“(3) The total amount of the fees charged annually under this Act

shall, as nearly as may be, taking one year with another, be equal

to the total expenditure incurred annually in the administration of

this Act.”

The fees generated from licensing in the period from the establishment of the

Authority on 3rd April 2012 to 31st December 2012 totalled €2.3M.

Appendix I

Financial Report

Appendix I I

Regulations made by the Authority

S.I. No. 180/2012

Property Services (Regulation) Act 2011 (Licensing) Regulations

2012.

Notice of the making of this Statutory Instrument was published in

“Iris Oifigiúil” of 5th June, 2012.

The Property Services Regulatory Authority in exercise of the powers conferred on

it by section 25 of the Property Services (Regulation) Act 2011 (No. 40 of 2011),

with the consent of the Minister for Justice and Equality, hereby makes the

following regulations:

Citation and commencement

1. (1) These Regulations may be cited as the Property Services (Regulation) Act

2011 (Licensing) Regulations 2012.

(2) These Regulations shall come into operation on 30 May 2012.

Definitions

2. In these Regulations—

“Act” means the Property Services (Regulation) Act 2011 (No. 40 of 2011);

“employee” means an employee who requires a licence to provide a property

service.

Licence applications for separate classes of property service

3. An applicant for a licence may make a single application to provide one or more

of the property services referred to in paragraph (a), (b), (c) or (d) of the definition

of “property service” in section 2(1) of the Act.

Licence fee

4. An application for the issue or renewal of a licence shall be accompanied by the

appropriate licence fee specified in the Table to this Regulation.

TABLE

(1) Class of Licence (2) Licence fee

Property Services Employer €1,000

Independent Contractor €1,000

Principal Officer or Employee €100

Refund of licence fee

5. Where an application for the issue or renewal of a licence is refused under the

Act, or an application for the issue or renewal of a licence is withdrawn or deemed

to be withdrawn prior to the issue or renewal of the licence, the Authority shall

refund to the applicant the appropriate licence fee that accompanied the application.

The Minister for Justice and Equality consents to the making of the foregoing

Regulations.

GIVEN under my Official Seal,

30 May 2012.

ALAN SHATTER,

Minister for Justice and Equality.

GIVEN under the seal of the Property Services Regulatory Authority,

30 May 2012.

THOMAS LYNCH,

Chief Executive, Property Services Regulatory Authority.

GERALDINE CLARKE,

Chairperson, Property Services Regulatory Authority.

S.I. No. 181/2012

Property Services (Regulation) Act 2011 (Qualifications) Regulations

2012.









2011 (Qualifications) Regulations 2012.


Definitions



“awarding body” has the meaning given to it in section 2 of the Qualifications

(Education and Training) Act 1999 (No. 26 of 1999);

“ECTS” means the European Credit Transfer and Accumulation System (ECTS);

“equivalent”, in relation to any matter outside the State, means equivalent in the

opinion of the Authority;

“European Credit Transfer and Accumulation System (ECTS)” means the credit

system for higher education used in the European Higher Education Area;

“framework of qualifications” has the meaning given to it in section 7 of the

Qualifications (Education and Training) Act 1999 ;

“minimum qualification requirements”, in relation to an application for a licence,

means—

(a) the applicant has, in respect of the subject areas specified in the Schedule,

successfully completed a course of studies which has led to the awarding to him

or her, by a nationally recognised awarding body or awarding bodies, of 120

ECTS compatible higher education and training credits at levels 6 to 10 of the

framework of qualifications (in this definition referred to as the “Irish

framework”),

(b) the applicant has, in another jurisdiction, in respect of the subject areas

specified in the Schedule, successfully completed a course of studies which has

led to the awarding to him or her, by a body or bodies in that jurisdiction that is

or are equivalent to a nationally recognised awarding body or awarding bodies,

credits, under a framework in that jurisdiction that is equivalent to the Irish

framework, equivalent to levels 6 to 10 of the Irish framework,

(c) the applicant has lawfully engaged in, and for periods amounting together

to not less than 3 years of the 5 year period immediately preceding the making

of the application, the provision of the property service for which he or she is

seeking the licence, or

(d) the applicant has such other qualifications or experience, or both, which,

although not falling (or fully falling) within paragraph (a), (b) or (c), satisfies the

Authority that the applicant is suitable to provide the property service for which

he or she is seeking the licence.

Qualification requirements

3. For the purposes of the required levels of education, training and experience

referred to in section 30(2)(a) of the Act, an application for a licence shall be

accompanied by evidence acceptable to the Authority that—

(a) in the case of an application for a property services employer licence

under the Act, where the applicant is a body corporate or partnership, a principal

officer of the applicant falls within the definition of “minimum qualification

requirements” in Regulation 2, and

(b) in any other case, the applicant falls within the definition of “minimum

qualification requirements” in Regulation 2.

Evidence of qualifications

4. The evidence that the minimum qualification requirements have been attained

shall be—

(a) in the case of a body corporate or partnership—

(i) if paragraph (a) of the definition of “minimum qualification

requirements” in Regulation 2 applies, a letter or certificate from an awarding

body certifying that a principal officer of the body corporate or partnership has

been awarded the credits referred to in that paragraph,

(ii) if paragraph (b) of the definition of “minimum qualification

requirements” in Regulation 2 applies, a letter or certificate from a body

referred to in that paragraph that is, in respect of a principal officer of the body

corporate or partnership, equivalent to a letter or certificate referred to in

subparagraph (i),

(iii) if paragraph (c) of the definition of “minimum qualification

requirements” in Regulation 2 applies, evidence which satisfies the Authority

that a principal officer of the body corporate or partnership falls within that

paragraph,

(iv) if paragraph (d) of the definition of “minimum qualification

requirements” in Regulation 2 applies, evidence which satisfies the Authority,

as mentioned in that paragraph, in respect of a principal officer of the body

corporate or partnership, and

(v) in any case, other evidence which the Authority considers sufficient to

satisfy it that a principal officer of the body corporate or partnership has

attained the minimum qualification requirements,

and

(b) in the case of an individual—

(i) if paragraph (a) of the definition of “minimum qualification

requirements” in Regulation 2 applies, a letter or certificate from an awarding

body certifying that the individual has been awarded the credits referred to in

that paragraph,

(ii) if paragraph (b) of the definition of “minimum qualification

requirements” in Regulation 2 applies, a letter or certificate from a body

referred to in that paragraph that is, in respect of that individual, equivalent to a

letter or certificate referred to in subparagraph (i),

(iii) if paragraph (c) of the definition of “minimum qualification

requirements” in Regulation 2 applies, evidence which satisfies the Authority

that that individual falls within that paragraph,

(iv) if paragraph (d) of the definition of “minimum qualification

requirements” in Regulation 2 applies, evidence which satisfies the Authority,

as mentioned in that paragraph, in respect of that individual, and

(v) in any case, other evidence which the Authority considers sufficient to

satisfy it that that individual has attained the minimum qualification

requirements.

Regulation 2

SCHEDULESUBJECT AREAS FOR PURPOSES OF PARAGRAPHS (a) AND

(b) OF DEFINITION OF “MINIMUM QUALIFICATION REQUIREMENTS” IN

REGULATION 2

1. Subject to paragraph 2, details of the subjects and the associated credits, or their

equivalents in another jurisdiction, which satisfy the requirements of paragraphs (a)

and (b) of the definition of “minimum qualification requirements” in Regulation 2

are specified in the Table to this paragraph.

TABLE

(1) Subjects (2) Number of ECTS Credits

Valuations 7.5

Marketing/Practice Knowledge 30

Economics 7.5

Law 30

Property Management 20

Building Construction/Technical 7.5

Business Studies/Professional

Development

7.5

2. The 110 ECTS credits referred to in the Table to paragraph 1 shall be

supplemented by 10 additional ECTS credits in one or more of the subjects

specified in that Table.


Regulations.


30 May 2012.

ALAN SHATTER,



30 May 2012.

THOMAS LYNCH,

Chief Executive.

GERALDINE CLARKE,


S.I. No. 182/2012

Property Services (Regulation) Act 2011 (Professional Indemnity

Insurance) Regulations 2012.









2011 (Professional Indemnity Insurance) Regulations 2012.

(2) These Regulations shall come into operation on the 30 May 2012.

Interpretation



“authorised insurer” means an insurer that holds an authorisation to carry on

insurance business for the purposes of Council Directive 73/239/EEC of 24 July

19731 or that is otherwise entitled to carry on non-life insurance business in the

State;

“insolvency event”, in relation to an authorised insurer, means—

(a) the appointment of a liquidator, receiver, administrative receiver,

administrator or examiner to the authorised insurer (or an analogous

appointment being made in respect of the authorised insurer in any jurisdiction

outside the State),

(b) the passing by the members of an authorised insurer of a resolution for a

voluntary winding-up (or an analogous step being taken in relation to an

authorised insurer in any jurisdiction outside the State),

(c) the making of a winding-up order in relation to an authorised insurer (or an

analogous order being made in relation to an authorised insurer in any

jurisdiction outside the State), or

(d) the approval of a voluntary arrangement or similar form of composition

with creditors in respect of an authorised insurer (or an analogous event

occurring in relation to an authorised insurer in any jurisdiction outside the

State);

“insured” means—

(a) a licensee, or

(b) each principal officer, employee or agent, or former principal officer,

employee or agent, of the licensee;

“non-performance event”, in relation to an authorised insurer, means the loss by that

authorised insurer of its ability to lawfully fulfil any obligations undertaken by it in

respect of professional indemnity insurance in the State (whether by withdrawal or

qualification of its authorisation to do so or otherwise);

“period of cover” means the period during which a claim under a policy of insurance

is not precluded by the Statute of Limitations 1957 (No. 6 of 1957);

“period of indemnity”, in relation to a licence, means—

(a) the period of 12 months starting on the date the licence was issued, or

(b) any subsequent period of 12 months for which the licence has been

renewed under section 35 of the Act;

“run-off cover” means a policy or policies of insurance for a licensee whose

business ceases during or on expiry of a period of indemnity and there is no

succeeding business, which, in the case of a single such policy or arrangement,

includes the same terms and conditions as those provided under the insurance in

place in respect of the relevant business or, in the case of a number of such policies

or arrangements, taken together include the same terms and conditions as those

provided under the insurance in place in respect of the relevant business;

“run-off period” means the period of 7 years from the end of the licensee’s last

period of indemnity during which, or at the end of which, the licensee’s business

ceases, and a licensee’s business shall not be deemed to have ceased for the

purposes of this definition where there is a succeeding business;

“self-insured excess” means an amount that the insured is required, by the terms of

any contract between the insured and the insurer, to pay to the claimant in the event

of a claim;

“succeeding business” means a business that is largely similar to, or has succeeded

to, the business formerly carried on by a licensee.

Licensees to whom these Regulations apply

3. These Regulations shall apply to a licensee who is—

(a) a property services employer, or

(b) an independent contractor.

Maintenance of professional indemnity insurance

4. (1) A licensee who provides a property service during an indemnity period shall,

subject to and in accordance with these Regulations, procure and maintain in place,

for the entire duration of that provision, professional indemnity insurance with a

minimum scope and level of cover as set out in Regulations 5 and 6.

(2) A licensee to whom paragraph (1) applies shall be required to procure and

maintain professional indemnity insurance as at and from the commencement of any

period of indemnity in which the licensee carries on a business.

(3) A licensee shall provide to the Authority evidence that he or she has procured

and is maintaining professional indemnity insurance in accordance with these

Regulations as the Authority may from time to time require.

Scope of cover

5. The professional indemnity insurance procured and maintained by a licensee in

accordance with Regulation 4(1) shall—

(a) indemnify each insured against claims in respect of any description of civil

liability incurred by an insured arising from any provision of property services

during the period of cover provided that—

(i) a claim in respect of such civil liability is first made against the insured

during the period of indemnity, or

(ii) such civil liability arises from circumstances first notified to the insurer

during the period of indemnity,

and

(b) indemnify the insured against defence costs in relation to any claim

referred to in subparagraph (a) and provide that such defence costs will be met

by the insurer as and when they are determined due and payable.

Minimum level of cover

6. The professional indemnity insurance procured and maintained by a licensee in

accordance with Regulation 4(1) shall—

(a) provide that the amount insured for each and every claim (exclusive of

defence costs) is at least twice the licensee’s annual fee income (exclusive of

value-added tax) in the previous fiscal year,

(b) provide a minimum cover of €500,000 with no limitation on the number of

claims in any one year, and

(c) provide unlimited cover for defence costs.

Self-insured excess

7. (1) A licensee shall be permitted to agree with his or her authorised insurer a

self-insured excess in respect of professional indemnity insurance to be borne by the

licensee in the event of a claim, provided that the authorised insurer has agreed that,

in any case where the licensee defaults in making payment of any part of such self-

insured excess to a claimant when lawfully due, the authorised insurer will pay the

outstanding amount directly to the claimant.

(2) Where a self-insured excess referred to in paragraph (1) is agreed between the

licensee and the authorised insurer, the relevant insurance policy shall provide that

that excess does not reduce or limit the liability of the insurer specified in

Regulation 6.

(3) The self-insured excess referred to in paragraph (1) shall not apply to defence

costs.

(4) Every licensee shall make prompt payment to a claimant, in the event of a

claim being upheld against it, of the amount of any self-insured excess provided for

under the policy of insurance when the same is lawfully due to the claimant.

Maintenance of insurance in run-off

8. (1) Subject to paragraph (3), where immediately prior to the commencement of a

run-off period, a licensee held professional indemnity insurance with an authorised

insurer, the licensee shall maintain in place run-off cover with an authorised insurer

during the run-off period in respect of the licensee’s former business and such cover

shall be provided on the basis of the terms and conditions of the relevant policy of

insurance which applied during the final period of indemnity.

(2) Where—

(a) the licensee’s business ceases during or on expiry of a period of

indemnity, and

(b) there is no succeeding business, that holds professional indemnity

insurance in respect of the licensee’s business,

then the licensee shall ensure that the insurance provides run-off cover for the first 7

years from the date upon which the licensee’s last period of indemnity expires.

(3) The run-off cover mentioned in paragraph (1) shall provide that the cover may

only be cancelled on terms to be agreed between the insurer and the licensee

where—

(a) the licensee has obtained replacement insurance with an alternative

authorised insurer,

(b) the authorised insurer under the replacement insurance referred to in

subparagraph (a) has confirmed in writing to the licensee and to the authorised

insurer under the relevant run-off cover that it is providing insurance on the

basis that the licensee’s business being indemnified is to be treated as a

continuation of the licensee’s business prior to the cessation thereof and that,

accordingly, it will be liable for any claims against the licensee arising from

matters that occurred prior to the cessation, and

(c) the authorised insurer under the replacement insurance referred to in

subparagraph (a) has provided any required confirmations of coverage to the

Authority pursuant to these Regulations.

(4) A licensee or former licensee shall provide to the Authority such evidence that

the licensee or former licensee, as the case may be, has established and is

maintaining run-off cover as required pursuant to paragraph (1) as the Authority

may from time to time require.

Insolvency of authorised insurers and other events

9. (1) Where a licensee has procured professional indemnity insurance or run-off

cover with an authorised insurer in accordance with Regulation 4 or 8 and an

insolvency event or non-performance event occurs in respect of the authorised

insurer, the licensee-shall, as soon as reasonably practicable and in any event not

later than 10 working days after the date upon which such insolvency event or non-

performance event occurs (but not counting the date upon which such event occurs)

establish and maintain in place professional indemnity insurance or run-off cover

with an authorised insurer that is unaffected by an insolvency event or non-

performance event.

(2) A licensee shall provide to the Authority, or procure that there is provided to

the Authority on the licensee’s behalf, confirmation in any form designated by the

Authority that the licensee has procured and is maintaining professional indemnity

insurance or run-off cover within 10 working days of the insolvency event or non-

performance event that gives rise to the obligation to establish and maintain

professional indemnity insurance or run-off cover pursuant to paragraph (1).

Retroactive cover

10. Where a licensee has procured professional indemnity insurance or run-off

cover with an authorised insurer and subsequently transfers the insurance to another

authorised insurer, the licensee shall ensure that the authorised insurer under the

replacement insurance provides retroactive cover and accepts liability for any claims

against the licensee arising from the provision of property services insured by the

former insurer during the period of cover.

Provision of information to claimants

11. Where a person asserts a claim against an insured which relates to a matter

within the scope of cover of the insurance, the insured shall furnish to the

claimant—

(a) details of the identity of the authorised insurer,

(b) any applicable insurance reference number, and

(c) the authorised insurer’s contact details.


Regulations.


30 May 2012.

ALAN SHATTER,



30 May 2012.

THOMAS LYNCH,

Chief Executive,property Services Regulatory Authority.

GERALDINE CLARKE,


S.I. No. 183/2012

Property Services (Regulation) Act 2011 (Compensation Fund)

Regulations 2012.







Citation and commencement.


2011 (Compensation Fund) Regulations 2012.


Definitions.



“employee” has the meaning given to it in the Property Services (Regulation) Act

2011 (Licensing) Regulations 2012 ( S.I. No. 180 of 2012 ).

Contributions to Fund.

3. (1) The amount of the contribution to be made to the Fund by a person making

an application for a licence or the renewal of a licence shall be the contribution

appropriate to that licence as specified in the Table to this paragraph.

TABLE

(1) Class of Licence (2) Fund Contribution

Property Services Employer €200

Independent Contractor €200

Principal Officer or Employee €50

(2) A person shall, within 7 days of receipt of a notice in writing from the

Authority of its intention to—

(a) issue a licence to him or her under section 31 of the Act, or

(b) renew his or her licence under section 35 of the Act,

make the appropriate contribution to the Fund as specified in paragraph (1).


Regulations.


30 May 2012.

ALAN SHATTER,



30 May 2012.

THOMAS LYNCH,

Chief Executive, Property Services Regulatory Authority.

GERALDINE CLARKE,


S.I. No. 199/2012

Property Services (Regulation) Act 2011 (Client Moneys) Regulations

2012.





hereby makes the following regulations:



2011 (Client Moneys) Regulations 2012.

(2) These Regulations shall come into operation on the 11th June 2012.

Definitions

2. In these Regulations_

“accountant” means a person who_

(a) has been admitted as, and is, a member of a prescribed accountancy body,

(b) is currently practising in the profession of accountancy,

(c) is not and never has been a principal officer or employee, or an owner or

part owner, of the licensee in respect of whom he or she is preparing an

accountant’s report, and

(d) is maintaining such minimum level of professional indemnity insurance as

is required by the prescribed accountancy body concerned;

“accountant’s report” has the meaning given to it in Regulation 12(1);

“accounting date” means the last date of the licensee’s accounting period in each

year;

“accounting period” means the period of one year ending on the accounting date;

“accounting records” means the books of account and all other documents required

to be maintained and kept by a licensee arising from the provision of property

services, including loose-leaf books, cards and such other forms of permanent

documents of record as are appropriate for the operation of, and the vouching of, an

efficient accounting system, whether in written, mechanical, optical, electronic or

other format;


“annual service charge” means the charge referred to in section 18 of the Multi-Unit

Developments Act 2011 (No. 2 of 2011);

“associated firms” means 2 or more licensees having one or more principal officers

in common;

“auditor” has the meaning given to it in section 2 (1) of the Companies Act 1963

(No. 33 of 1963);

“balancing date” means—

(a) the date expiring 6 months after the commencement of the accounting

period in each year, and

(b) the accounting date at the end of the accounting period in each year;

“balancing statement” has the meaning given to it in Regulation 10(5)(a);

“books of account” means that part of a licensee’s accounting records which

comprise the books of account required to be maintained by a licensee pursuant to

these Regulations;

“client matter” means each separate matter the subject of a property services

agreement;

“clients’ ledger account” means that part of the books of account of a licensee

which, in respect of each client matter, records the financial transactions between

the licensee and his or her client, both on client account and on office account;

“documents” includes books of account, papers, records, vouchers, correspondence

and files and shall be construed to include any documents stored, whether in written,

mechanical, optical, electronic or other format;

“draft” means a bank draft and includes a transaction conducted electronically that is

equivalent to a transaction by means of a draft;

“fees” means fees (including commission but not outlays) charged by a licensee to a

client in a statement of fees and outlays furnished to that client and payable to the

licensee in respect of property services which have been provided to that client and

includes fees represented by moneys actually held by the licensee in the client

account to the credit of the client concerned;

“in a timely manner” means within a period not exceeding 3 months after the date

on which the licensee concerned has furnished to the client concerned a statement of

fees and outlays (or an interim statement of fees and outlays, as the case may be)

specifying the amount of the fees payable by the client and in respect of which fees

the licensee may properly apply client moneys of the client concerned in

satisfaction, in whole or in part, thereof;

“moneys” includes moneys in a currency other than that of the State, cheques, bank

notes, postal orders, money orders or any form of negotiable or non-negotiable

instrument, including payments by way of electronic payments, moneys deposited or

otherwise credited to a bank account or moneys deposited or otherwise credited to a

bank or other financial institution outside the State;

“moneys to which a licensee is beneficially entitled” means—

(a) moneys which fall within Regulation 6(6)(a)(ii),

(b) moneys which fall within Regulation 6(6)(a)(iii), or

(c) moneys which are held in client account to the credit of a client matter

which the licensee is himself or herself beneficially entitled to share together

with one or more clients, to the extent of the amount of the beneficial share of

the licensee;

“office account” means a bank account (whether a current or a deposit account)

opened and kept by a licensee at a bank in his or her name through which moneys

belonging to the licensee are transacted in the course of and arising from the

provision of property services, and a reference in these Regulations to office account

refers to the totality of office accounts opened and kept by the licensee;

“office balancing statement” has the meaning given to it in Regulation 10(6)(b);

“office side of the clients’ ledger account” means the record of financial transactions

between a licensee and his or her client in respect of each client matter arising, other

than on client account, in relation to that client;

“outlays” means disbursements made or to be made or expenses incurred or to be

incurred by a licensee for and on behalf of a client in respect of the provision to that

client of property services;

“prescribed accountancy body” has the meaning given to it in section 4 of the

Companies (Auditing and Accounting) Act 2003 (No. 44 of 2003);

“relevant account” has the meaning given to it in section 47(2) of the Act;

“sinking fund” means the fund referred to in section 19 of the Multi-Unit

Developments Act 2011 ;

“statement of fees and outlays” means a formal intimation in writing furnished by a

licensee to a client of the amount of fees and, where applicable, outlays payable by

the client concerned to the licensee in respect of the provision of property services,

and “interim statement of fees and outlays” shall be construed in accordance with

Regulation 8(2).

Licensees to whom these Regulations apply

3. (1) Subject to paragraphs (2) and (3), these Regulations shall apply to a licensee

who is—

(a) a property services employer, or

(b) an independent contractor.

(2) Regulation 16 shall not apply to a licensee, referred to in paragraph (1), who

does not provide a property management service.

(3) If a licensee referred to in paragraph (1) does not provide property services

other than property management services, then only Regulations 1 to 4, 12, 13 and

16 shall apply to the licensee.

Keeping of client moneys

4. (1) A licensee, referred to in Regulation 3(1) and who does not fall within

Regulation 3(3), shall keep client moneys in a client bank account which is kept in a

bank in the State.

(2) A licensee, referred to in Regulation 3(3), shall deposit client moneys in a

relevant account nominated by the client.

Opening and keeping of client accounts

5. (1) A licensee shall open and keep a client account and may, if he or she thinks

fit, open and keep more than one client account.

(2) A licensee who keeps more than one client account shall keep all such accounts

at the same bank unless the Authority otherwise authorises in writing.

(3) A licensee shall at all times keep proper accounting records to show all his or

her dealings with, particulars of and information regarding, moneys received or held

for, or paid to or on behalf of, each client.

(4) A licensee shall preserve accounting records kept by him or her under these

Regulations for not less than 7 years from either the date of the last entry therein or

the date of the last dealing with client moneys, whichever is the later.

General duty of licensees regarding client moneys

6. (1) A licensee shall pay moneys, without unnecessary delay, received by him or

her for, or on behalf of, a client into client account unless the moneys—

(a) is received in the form of cash and is paid without unnecessary delay in

cash to that client, or

(b) is received in the form of a cheque or other negotiable instrument, whether

by way of electronic payment or not, which is endorsed over and delivered

without unnecessary delay to that client.

(2) Without prejudice to the generality of paragraph (1), a licensee shall not be

required to pay into client account such client moneys received by him or her which

he or she pays into a separate bank account in the name of the client concerned or,

where so instructed by the client in writing, of some other person.

(3) A licensee who receives, holds or controls moneys in respect of outlays not yet

disbursed shall, without unnecessary delay, pay such moneys into client account and

shall treat such moneys in all respects as client moneys.

(4) Where a licensee receives, holds or controls a cheque or draft which includes

both moneys for a client and other moneys, he or she shall pay the cheque or draft in

full into client account and withdraw therefrom the money that is not money for a

client.

(5) A licensee shall ensure that no payment, other than money for a client, is made

into client account except payment as is authorised to be made under paragraph (4)

or is necessary in order to open or maintain the account or authorised under

Regulation 7(1).

(6) A licensee shall not withdraw money from a client account except—

(a) subject to the amount of moneys withdrawn not exceeding the total of the

moneys held for the time being in client account on behalf of the client

concerned, in the case of client moneys—

(i) moneys properly required for the payment to the client or (in accordance

with the instructions in writing of the client) to another person or persons on

behalf of the client,

(ii) moneys properly required for or towards payment of an amount due to

the licensee by the client in respect of outlays actually disbursed by the licensee

on behalf of that client in the course of the provision of property services to the

client,

(iii) moneys properly available to be applied by the licensee in satisfaction

(in whole or in part) of fees payable by the client where it has been made clear

to such client that the moneys held by the licensee for the client are being or

will be applied by the licensee in satisfaction (in whole or in part) of such fees,

provided that such moneys shall be transferred in a timely manner from client

account to office account, or

(iv) moneys which are transferred into another client account in accordance

with the instructions in writing of the client concerned,

(b) moneys which for any reason have been paid into the client account in

error or otherwise in contravention of these Regulations, or

(c) as provided for in paragraph (4).

(7) A licensee shall not withdraw money from a client account unless—

(a) authorised to do so by virtue of paragraph (6), or

(b) authorised in writing to do so by the Authority upon application by the

licensee to the Authority.

(8) A licensee shall ensure that withdrawal from a client account is—

(a) in the case of a withdrawal under paragraph (6)(a)(i), by—

(i) a transfer to a bank account in the name of the client concerned,

(ii) a cheque drawn in favour of the client concerned or that client’s legal

representative, or

(iii) a cheque drawn in favour of another person on the instructions in

writing of the client concerned,

and

(b) in the case of a withdrawal under subparagraph (ii) or (iii) of paragraph

(6)(a) or under paragraph (6)(b), by—

(i) a cheque drawn on client account in favour of the licensee, the proceeds

of which are then paid into office account, or

(ii) a transfer from client account to office account.

(9) A licensee shall ensure that money withdrawn from a client account for or

towards reimbursement of money paid to the client concerned by the licensee out of

his or her own funds does not exceed the amount paid to the licensee in respect of

the corresponding transaction on behalf of that client and properly available in the

client account for the purposes of such reimbursement.

(10) Where a licensee withdraws moneys from a client account by means of_

(a) a cheque drawn on that client account payable to any person (including the

client concerned), or

(b) a cheque which is made payable to a bank in order to purchase a draft or

other negotiable or non-negotiable instrument,

the payee details, to be recorded on the client account cheque and the cheque stub

and requisition docket or other document of record in respect thereof maintained and

kept by the licensee, includes—

(i) in the case of subparagraph (a), the name of the payee or other person who

is to be credited with such payment, and

(ii) in the case of subparagraph (b), the name of the person shown as payee on

such draft or other negotiable or non-negotiable instrument.

(11) A licensee shall not transfer an amount from the clients’ ledger account of one

client to the clients’ ledger account of another client, other than in circumstances in

which it would have been permissible for the licensee, under these Regulations, to

have withdrawn, by means of a cheque drawn on the client account in favour of the

second client, such amount debited against the first client and then to have paid the

proceeds of that cheque into a client account credited to the second client, provided

that—

(a) the licensee shall maintain and keep, in respect of each such transfer, such

accounting records and other documents as will enable such transaction to be

appropriately vouched, and

(b) the licensee shall record each such transaction in his or her books of

account in the manner provided for in Regulation 10.

(12) Without prejudice to the provisions of paragraphs (1) to (4), it shall be a

contravention of these Regulations for a licensee, having received client moneys, to

fail without reasonable cause—

(a) to pay such client moneys into the appropriate client account (or client

accounts), and

(b) to record such receipt in his or her accounting records.

(13) It shall be a contravention of these Regulations for a licensee to—

(a) allow a debit balance to arise on any clients’ ledger account in respect of

any of his or her clients, other than a debit balance which is fully offset by a

credit balance arising on another clients’ ledger account in respect of the same

client, and

(b) discharge personal or office expenditure from client account.

Payment of moneys into client account by licensee

7. (1) Subject to paragraph (2), a licensee may pay into a client account such

moneys as are—

(a) moneys to replace moneys which have been withdrawn from the client

account in contravention of Regulation 6(7),

(b) moneys received by the licensee which include an amount being paid to

the licensee by or on behalf of a client on account of outlays actually disbursed

by the licensee in the course of the provision of property services to that client,

(c) a cheque or draft, to which Regulation 6(4) applies, received by a licensee

which cannot be apportioned, or

(d) moneys which represent interest on client moneys, as provided for in

Regulation 14.

(2) A licensee shall not hold moneys, to which the licensee is beneficially entitled,

in a client account for longer than one month.

(3) It shall be a contravention of these Regulations for a licensee to pay into or hold

in a client account moneys other than client moneys and any moneys referred to in

paragraphs (1) and (2).

Duty to furnish statement of fees and outlays

8. (1) A licensee, on behalf of a client to whom a property service has been

provided, shall as soon as may be furnish to such client a statement of fees and

outlays, as provided for in the property services agreement, which specifies the

amount of the fees and outlays payable by the client in respect of such property

service.

(2) Nothing in paragraph (1) shall prevent a licensee from furnishing to a client an

interim statement of fees and outlays for interim fees and outlays for property

services already provided, where—

(a) the property service has not been fully completed, and

(b) client moneys held in client account on behalf of the client concerned are

client moneys which that client has designated in writing as being in respect of

such interim fees and outlays for property services already provided by the

licensee.

Office account

9. (1) A licensee shall open and keep an office account and may, if he or she thinks

fit, open and keep more than one office account and the licensee may pay into office

account any moneys to which the licensee is beneficially entitled.

(2) A licensee shall, without unnecessary delay, pay all moneys received by him or

her in respect of fees into client account or office account.

(3) Where a licensee pays moneys received by him or her in respect of fees into

client account pursuant to paragraph (2), he or she shall then transfer such moneys

in a timely manner after the receipt of the payment, from client account to office

account, as provided for in Regulation 6(6)(a)(iii).

(4) A licensee shall, without unnecessary delay, record as a debit on the office side

of the relevant clients’ ledger account the amount of fees in any statement of fees

and outlays furnished to a client.

(5) Subject to paragraph (6), it shall not be permissible under these Regulations for

a credit balance to arise on the office side of a clients’ ledger account and, where

such a credit balance does arise, it shall be a contravention of these Regulations for

the licensee concerned to fail, without delay, to correct the position as appropriate in

the particular circumstances consequent on an investigation by him or her as to how

such credit balance has arisen, including whether such credit balance has arisen as a

result of—

(a) a failure to comply with Regulation 6(3) by lodging moneys in respect of

outlays not yet disbursed to office account instead of to client account,

(b) a failure to comply with paragraph (4) by not recording as a debit on the

office side of the relevant clients’ ledger account the amount of fees in a

statement of fees and outlays furnished to a client and where the subsequent

receipt (in whole or in part) of such amount from the client has been recorded as

a credit on the office side of that clients’ ledger account,

(c) the payment into office account of moneys received from a client in excess

of an amount payable by that client for fees the subject of a statement of fees and

outlays, the furnishing of which has been recorded as provided for in paragraph

(4), or

(d) another accounting or posting error.

(6) It shall not be a contravention of these Regulations for a credit balance to arise

on the office side of a clients’ ledger account where that credit balance is totally

offset by a debit balance or balances arising on the office side of one or more other

clients’ ledger accounts in respect of the same client.

Accounting records to be maintained by licensees

10. (1) A licensee shall in the course of and arising from the provision of property

services, maintain as part of his or her accounting records proper books of account

and such relevant supporting documents as will enable client moneys handled and

dealt with by the licensee to be duly recorded and the entries relevant thereto in the

books of account to be appropriately and properly vouched.

(2) Without prejudice to the generality of paragraph (1), a licensee shall maintain

books of account—

(a) which will show the true financial position in relation to the licensee’s

transactions with client moneys and with other moneys transacted by him or her

through client account, as referred to in Regulation 7(1), and

(b) which shall, in respect of each client, distinguish separately between—

(i) client moneys and moneys as specified in subparagraph (a), and

(ii) any other moneys received, held, controlled or paid by him or her.

(3) A licensee shall—

(a) at all times maintain a separate clients’ ledger account for each client

matter dealt with where client moneys are received, held, controlled or paid by

the licensee,

(b) where applicable, maintain and keep on the relevant client matter file

appropriate evidence of outlays disbursed out of moneys withdrawn from client

account or disbursed out of moneys withdrawn from office account and

recouped out of client moneys withdrawn from client account, and

(c) record each of his or her transactions with client moneys and with any

other moneys transacted through client account as referred to in paragraph

(2)(a), as appropriate, in a clients’ ledger, and—

(i) in a clients’ cash book, or

(ii) in a journal, where the particular transaction involves the transfer from

one clients’ ledger account to another clients’ ledger account, which shall

include a narrative explaining each such transaction.

(4) A licensee shall record in books of account each of his or her transactions on

office account with moneys, other than client moneys or moneys referred to in

paragraph (2)(a), as appropriate, in the following books of account—

(a) an office cash book (or the office side of a clients’ cash book),

(b) an office ledger (or the office side of a clients’ ledger account),

(c) an office ledger control account (to record the totals of all items that have

been posted individually to the debit and credit columns of the office ledger),

and

(d) nominal ledger accounts (to record the totals of all items that have been

posted individually other than to the debit and credit columns of the clients’

ledger account or the debit and credit columns of the office ledger).

(5)(a) A licensee shall, as of each balancing date, prepare a statement (in these

Regulations referred to as a “balancing statement”) in the specified form

comparing and balancing—

(i) the total of the credit balances due to his or her clients as extracted from

the clients’ ledger accounts provided that, without prejudice to the generality of

Regulation 6(13)(a), the licensee shall not offset debit balances against credit

balances other than a debit balance or balances arising on one or more clients’

ledger accounts in respect of a client of the licensee which is or are totally

offset by a credit balance or balances on one or more other clients’ ledger

accounts in respect of the same client,

(ii) the balance on the clients’ ledger control account, and

(iii) the balance or balances of each client account opened and kept by the

licensee, as appearing from current statements from the bank or banks in which

such client account or accounts is or are so opened and kept, as adjusted for

outstanding withdrawals and lodgements.

(b) Each balancing statement shall be completed not later than 2 months after

the balancing date to which it relates.

(c) A licensee shall retain a copy of each such balancing statement.

(d) The balancing statements in respect of the accounting period in question

shall be furnished by the licensee to his or her auditor or accountant and the

information therein shall in turn be used by the auditor or accountant to form an

opinion to be expressed in their report for the accounting period in question.

(6)(a) A licensee shall, not later than 2 months after each balancing date,

extract a list of all debit and credit balances as of such balancing date arising on

the office side of all relevant clients’ ledger accounts.

(b) A licensee shall, not later than 2 months after the accounting date at the

end of each accounting period, prepare a statement (in these Regulations referred

to as an “office balancing statement”) comparing and balancing as of that

accounting date—

(i) the balance on the office ledger control account, and

(ii) the total of the debit and credit balances, as extracted from the office

side of all relevant clients’ ledger accounts.

(c) The lists of all debit and credit balances prepared pursuant to subparagraph

(a) together with the office balancing statement in respect of the accounting

period in question shall be furnished by the licensee to his or her auditor or

accountant and the information therein shall in turn be provided to the Authority

in the specified form.

Minimum accounting records

11. (1) A licensee shall maintain and keep, in connection with the provision of

property services, the following minimum accounting records:

(a) a cash book (or books) that shows (or show) separate cash transactions

pertaining to office account and separate cash transactions pertaining to client

account;

(b) an office ledger (or ledgers) and a clients’ ledger (or ledgers) so as to

distinguish clearly between transactions on office account and transactions on

client account, with a separate account in the office ledger and a separate

account in the clients’ ledger for each client matter dealt with where client

moneys are handled;

(c) a record of bank lodgements of moneys received by the licensee in

connection with and arising out of the provision of property services,

distinguishing between lodgements made to office account and lodgements

made to client account;

(d) a journal of amounts transferred from one clients’ ledger account to

another clients’ ledger account or to an office ledger account or from an office

ledger account to a clients’ ledger account, each entry therein to include a

narrative explaining the transaction;

(e) a bank account register, detailing in respect of each office account and

each client account, the bank, the branch thereof, the title or name designation of

the account, the account number, the opening date, the names of those mandated

to withdraw from the account and, where applicable, the date of closure;

(f) each client matter file, each containing all documents generated in the

course of each such matter;

(g) a copy of each statement of fees and outlays (distinguishing between fees

and outlays) furnished by the licensee to his or her clients, which shall be

retained by the licensee in a statement of fees and outlays delivered book or on a

file dedicated for that purpose;

(h) a copy of each balancing statement and each office balancing statement;

(i) a copy of each accountant’s report.

(2) A licensee shall retain for at least 7 years each of the accounting records

maintained and kept pursuant to paragraph (1).

Verifying compliance with Regulations

12. (1) A licensee shall furnish to the Authority annually a report, in the specified

form (in these Regulations referred to as the “accountant’s report”), signed by the

licensee’s auditor or accountant stating that he or she has examined the accounting

records of the licensee for the accounting period specified in the report and that the

licensee has complied with the provisions of the Property Services (Regulation) Act

2011 and these Regulations—

(a) in the case of a licensee referred to in Regulation 3(1) and who does not

fall within Regulation 3(3), relating to the keeping of accounts and to the

opening and keeping of client accounts, and

(b) in the case of a licensee referred to in Regulation 3(3), relating to the

keeping of accounts and the payment of client moneys into relevant accounts.

(2) Where a licensee proposes to change his or her accounting date, such that it

would extend the accounting period to a period longer than one year from the

immediately preceding accounting date, the prior consent in writing of the Authority

shall be required for such change.

(3) A licensee shall satisfy himself or herself that the person completing the

accountant’s report is an auditor or accountant within the meaning of these

Regulations.

Examination by auditor or accountant

13. (1) For the purpose of preparing an accountant’s report, a licensee shall furnish

to the auditor or accountant, for the purposes of enabling the auditor or accountant

to carry out an examination of the licensees accounting records—

(a) particulars of each bank account (whether office account or client account)

opened and kept by the licensee in connection with the provision of property

services at any time during the accounting period to which the accountant’s

report will relate, and

(b) any document or documents requested by the auditor or accountant which

the auditor or accountant considers necessary to inspect.

(2) Nothing in this Regulation shall require the auditor or accountant, in the course

of his or her preparation of a licensee’s accountant’s report in respect of an

accounting period under review, to extend his or her examination wider than what

should be ascertainable from the licensee’s accounting records, duly maintained by

the licensee in accordance with these Regulations, relating to any client matter

produced to the auditor or accountant, supplemented by such information and

explanations as the auditor or accountant may obtain from the licensee or from the

licensee’s bank or banks.

(3) Where, after carrying out an examination, as appropriate, it appears to the

auditor or accountant that there is evidence that these Regulations have not been

complied with by the licensee concerned, the licensee shall provide the auditor or

accountant with all the information and documentation necessary to enable the

auditor or accountant to carry out such further examination as he or she considers

necessary in order to complete the accountant’s report with or without qualification.

(4) Where a licensee has 2 or more places of business—

(a) the licensee shall ensure that each place of business has the same

accounting date, and

(b) the accountant’s report for each accounting period under review that is

furnished by the licensee to the Authority shall be prepared by the same auditor

or accountant as if each place of business together comprised one place of

business.

Payment of interest on client moneys

14. (1) Interest received by a licensee on client moneys, held by the licensee on

account for his or her clients generally in an interest-bearing client account, shall,

save as provided in paragraphs (2) and (3), not be considered to be client moneys for

the purposes of these Regulations.

(2) A licensee who opens and maintains an interest-bearing client account for client

moneys held by the licensee solely for the benefit of a specified client shall treat the

amount of interest credited by the bank concerned to such client account as

additional client moneys held by the licensee for such client and the amount of such

interest so credited shall be held in the client account to the credit of the specific

client concerned until such time as it is paid out by the licensee to that client or with

the instructions in writing of the client concerned.

(3) Subject to paragraph (4), a licensee who opens and maintains an interest-

bearing client account for client moneys held by the licensee for the benefit of more

than one client shall, within a period of 3 months or by the next accounting date,

whichever is the later, after the date on which an amount of interest has been

credited by the bank or banks concerned to such client account, calculate the amount

of such interest due to the individual clients concerned and—

(a) credit to the appropriate clients’ ledger account of each individual client

concerned the specific amount of such interest due to that client and, thereafter,

such specific amount so credited to that client shall be treated by the licensee as

additional client moneys held by the licensee for that client, or

(b) transfer from client account to office account the amount of such interest

so credited to the extent that it has not already been paid out of client account by

the licensee to an individual client or clients entitled to be paid interest, and the

licensee shall designate such amount so transferred as being interest earned on

client account.

(4) A licensee shall not be required to account for, or pay, interest on client moneys

received by him or her for or on account of the client, to the client where the amount

of interest would be less than €50 in respect of any one client matter.

(5) A licensee who has a liability to a client, other than a client referred to in

paragraph (2), for interest pursuant to this Regulation shall pay the amount due to

the client (whether by one or more separate payments)—

(a) out of client account up to but not exceeding the amount of interest at that

time standing to the credit of the client account, whether or not the amount being

paid to the client also includes all or part of other moneys at that time standing to

the credit of the client in client account, or

(b) out of office account.

Obligations of licensee to make good moneys to client account

15. Where any amount of moneys which has for any reason been withdrawn from

client account in contravention of Regulation 6(7), the licensee shall pay that

amount into client account in accordance with Regulation 7 and the licensee shall

also pay into client account all interest accruing on such amount for the period

during which such amount was withdrawn from client account.

Accounting for moneys lodged to relevant account

16. (1) A licensee who receives money in respect of annual service charge (or

charges) or sinking fund contribution payable to the management body concerned

shall—

(a) without unnecessary delay, pay it into the relevant account, and

(b) where the money was received in the form of cash, furnish each such

member of the management body with a receipt in writing.

(2) A licensee shall at all times keep such properly written up and maintained

accounting records as may be necessary to show all his or her dealings with,

particulars of and information regarding, moneys received by him or her for or on

behalf of each client.

(3) A licensee may, in the course of and arising from the provision of property

management services, open and keep in a bank or banks more than one office

account as he or she thinks fit and a licensee may pay into office account any

moneys to which a licensee is beneficially entitled.

(4) A licensee shall, without unnecessary delay, pay all moneys received by him or

her in respect of fees directly into office account.

(5) A licensee shall, at all times in the course of and arising from the provision of

property management services, maintain (as part of his or her accounting records)

proper books of account and such relevant supporting documents as will enable

client moneys handled and dealt with by the licensee to be duly recorded and the

entries relevant thereto in the books of account to be appropriately vouched.

(6) Without prejudice to the generality of paragraph (5), a licensee shall—

(a) maintain books of account which—

(i) will show the true financial position in relation to the licensee’s

transactions with client moneys, and

(ii) shall, in respect of each client, distinguish separately between client

moneys and any other moneys received, held or controlled by him or her,

(b) at all times, in respect of each client, maintain—

(i) a separate clients’ ledger account,

(ii) a separate annual service charge account, and

(iii) a sinking fund contributions account,

and

(c) record each of his or her transactions with client moneys in a journal,

where all moneys received from management body members in respect of

annual service charges and sinking fund contributions are recorded, such journal

record to include a narrative explaining each such entry where necessary.

(7)(a) A licensee shall furnish a client with a statement of fees and outlays, as

provided for in the property services agreement, which specifies the amount of

the fees and outlays payable by the client in respect of the property management

service provided.

(b) Nothing in subparagraph (a) shall prevent a licensee from furnishing to a

client an interim statement of fees and outlays for interim fees and outlays for

property management services already provided, where the property service has

not been fully completed.

(8) A licensee shall maintain and keep, in connection with the provision of

property management services, the following minimum accounting records:

(a) a cash book (or books) that shows (or show) separate cash transactions

pertaining to office account and separate cash transactions pertaining to relevant

account;

(b) an office ledger (or ledgers) and a clients’ ledger (or ledgers) so as to

distinguish clearly between transactions on office account and transactions on

relevant account;

(c) a record of bank lodgements of moneys received by the licensee in

connection with and arising out of the provision of property management

services, distinguishing between lodgements made to office account and

lodgements made to relevant account;

(d) a bank account register detailing in respect of each office account—

(i) the bank and the branch thereof,

(ii) the title or name designation of the account,

(iii) the account number,

(iv) the opening date,

(v) the names of those mandated to withdraw from the account, and

(vi) where applicable, the date of closure;

(e) a bank account register detailing in respect of each relevant account—

(i) the bank and the branch thereof,

(ii) the title or name designation of the account, and

(iii) the account number;

(f) a copy of each statement of fees and outlays (distinguishing between fees

and outlays) furnished by the licensee to his or her clients, which shall be

retained by the licensee in a statement of fees and outlays delivered in a book or

on a file dedicated for that purpose;

(g) a copy of each accountant’s report.

(9) Moneys payable to the relevant account which have been paid in error into an

account other than the relevant account shall, as soon as may be after the licensee

becomes aware of the error, be made good by the licensee and all interest accruing

on such moneys from the date on which the moneys were paid into the account

concerned shall also be made good by the licensee.

(10)(a) A licensee shall preserve accounting records kept by him or her under

this Regulation for not less than 7 years from either the date of the last entry

therein or the date of the last dealing with client moneys, whichever is the later,

except where such records have been transferred to the management body

concerned.

(b) Where accounting records referred to in subparagraph (a) have been

transferred to a management body, the licensee shall obtain from the

management body a receipt outlining the records so transferred and preserve the

receipt for not less than 7 years from the date of the transfer of the records.

(11) It shall be a contravention of this Regulation for a licensee having received

client moneys to fail, without reasonable cause, to—

(a) pay such client moneys into the relevant account, and

(b) record such receipt in his or her accounting records.


11th June 2012.

THOMAS LYNCH,

Chief Executive , Property Services Regulatory Authority.

11th June 2012.

GERALDINE CLARKE,


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