Appropriate use of client current account

Bubbly Scot

Registered User
Messages
493
If cheques have a business name and then "client account", am I right in thinking they should only be used for client related transactions? I thought client accounts were used to hold client money by the like of solicitors, property agents and the like. Would it seem suspicious if such a cheque was cashed, as in written out to cash in a local business?
 
If it was a solicitor, it would be very wrong.

There would also be regulations governing auctioneers and some other businesses which might keep money on their clients' behalf.

What business is the particular case referring to? It is probably just a badly described bank account. If it's a sole trader or partnership, there would be very little wrong with it.
 
Ah right, thanks. I don't know for sure what business but I think it's an auctioneer. I could give more details which would probably explain more about why I'm curious but I don't want to identify him...or me to him, should he stumble across here. There is a chance too that it's a sole trader or similar.
Thank Brendan, I don't plan to do anything with the info, I was just curious. It's not a company I have any dealings with.
 
Auctioneers are liable to the same rules governing solicitors in terms of client accounts. Under no circumstances should an auctioneer use a "client account" cheque for anything other than refunding a deposit, paying himself after a sale has closed or passing deposits onto the vendor or their solicitor.

Even fees due to the auctioneer from the client account should not be used or spent until they have been transferred first to the standard office account.