Bank Accounts

Should an Association / Group have its own bank account or use the regulated client account of a land agent, accountant or solicitor? There are pros and cons to both so consider what works for your circumstance.

Your own Association Bank Account:

• Advantages:

  • you have complete control

  • you can access the account online and do your banking yourselves

  • you can appoint your professional advisor access as a signatory

• Disadvantages:

  • Many banks now do not wish to open community accounts where there are multiple officers.

  • The money laundering / safeguard / ID requirements are increasingly burdensome and can result in accounts being suspended / closed.

  • There are bank charges for running the account and for transactions by cheque or cash

  • Online payments require co-ordination when there are two signatories  

Regulated Client Account

• Advantages:

  • The management of funds is strictly regulated by a professional body and there are severe penalties for poor management.

  • The safeguarding requirements are all handled by your professional firm as part of their standard day to day requirements

  • Online transfers are straightforward to arrange

• Disadvantages:

  • You are not singing the cheques yourself so may wish to have other signing off procedures

  • You will have to ask your firm for details of fund balances and transactions.