The Inspection Department also verifies the operating accounts of agencies and brokers acting on their own account

Although it is stated in the regulations and in the invitation letter, some agency executive officers and some brokers acting on their own account are sometimes reluctant to allow an inspector to verify their bank accounts (statements, cheques and deposit book) other than their trust account.

In fact, many brokers acting on their own account do not have a transaction account specific to their business. This creates some discomfort when verifying their bank accounts. Nonetheless, the examination of different bank accounts opened under the name of the agency or broker acting on his own account allows us to ensure that:

• no compensation is paid to individuals who are not authorized to receive such payments (e.g. sums given to non-licence holders for client referrals);
• an agency or broker acting on his own account received down payments, disbursement or remuneration advances that have been deposited directly in the transaction account;
• an agency that delegated the management of its trust account receives down payments, disbursement or remuneration advances deposited directly in its operating account;
• the rules relating to the management of deposits (deposit and withdrawal times) have been met.

Since the sharing of compensation with a non-licence holder and the misappropriation of funds are offences that can only be uncovered by verifying general accounts and accounting registers of an agency or broker acting on his own account, it is imperative that the Inspection Department access these documents. In this regard, and in order to avoid indiscretions, we advise brokers acting on their own account as well as agencies that are not incorporated to separate their business accounting from their personal accounting.

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