By Gemma Todd, Accounts Administrator
At Pure Block Management, we believe strong financial governance is fundamental to effective property management
That is why we completed the rollout of designated client bank accounts across our entire portfolio last year, marking a significant enhancement in the way client funds are managed and reported.
Historically, client monies were held within a combined client account structure. Whilst fully compliant, we recognised the opportunity to further strengthen transparency, governance and financial visibility for our clients by moving to a fully designated account model.
As part of this investment, every development under our management now benefits from its own dedicated client bank account, ensuring funds are clearly segregated and easily identifiable.
Better protection, governance and interest
The initiative was driven by several key objectives: enhancing client fund protection, aligning with evolving industry best practice, supporting increasingly robust governance expectations, improving visibility of service charge finances, and delivering additional value through interest-bearing accounts.
The transition also supports the principles set out within the RICS Service Charge Residential Management Code and strengthens compliance with RICS Client Money Protection measures.
A key benefit of the new structure is that designated accounts are interest-bearing. Where agreed with our clients, interest earned is credited directly to reserve funds, helping to support long-term maintenance planning and investment in the development.
This ensures that funds held on behalf of leaseholders and clients continue to work for the benefit of the property, rather than remaining dormant.
Investing to provide highest service standards
The move to designated accounts required a significant operational investment at Pure Block Management.
Managing individual banking arrangements across an entire portfolio creates additional administration, reconciliation requirements and financial oversight responsibilities. However, we believe this investment is essential in delivering the highest standards of transparency and accountability to our clients.
Alongside designated banking arrangements, we maintain robust financial controls designed to protect client monies and provide confidence to residents, directors, freeholders and stakeholders.
These include the segregation of client funds from company operating funds, regular reconciliations, independent accountant reporting and adherence to recognised industry standards for client money handling.
The enhanced structure also improves accessibility to financial information. Directors of Resident Management Companies and freeholder clients are able to review financial information relating to their development, providing greater visibility and confidence in how funds are managed.
Commitment to transparency, accountability and continuous improvement
The introduction of designated client accounts across our entire portfolio reflects our commitment to transparency, accountability and continuous improvement.
As the regulatory landscape continues to evolve, we remain committed to investing in technology, systems and governance measures that not only meet industry requirements but strive to exceed them, ensuring our clients benefit from the highest standards of financial stewardship.
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