Client Money Protection Mandatory for Letting Agents

Posted on March 8th, 2019

From 1^st April 2019, letting agents must belong to an approved CMP scheme. As part of this scheme, they must;

• display a certificate within branch and on website
• produce a copy of the certificate to anyone who reasonably requires it (without charge)
• notify all clients within 14 days if their CMP membership is revoked or if they change to a different CMP scheme
• provide clients with the name and address of the scheme to which they become a member

The agent must also ensure the level of CMP membership provides enough cover to compensate clients for the maximum amount of client money that they hold.

Local Authorities will have powers to impose fines of up to £30,000.00 on agents who do not belong to a scheme beyond this date. They can also impose fines of up to £5,000.00 on agents who fail to display correct scheme membership details on their website and within branch.

https://www.gov.uk/government/consultations/mandatory-client-money-protection-schemes-for-property-agents

Article information from ARLA