Client Money Protection is now Mandatory for Letting Agents

From 1 April, all private property agents in England holding client money must belong to a government approved client money protection scheme.

To date there are 5 schemes approved by the government

1. Client Money Protect

2. Money Shield

3. NALS Client Money Protection

4. Propertymark

5. RICS

6. UKALA Client Money Protection

Agents need to have a client account and professional indemnity insurance which meets the requisite schemes requirements. Schemes will also expect agents to have strong client money handling procedures although how this is judged may vary amongst the different schemes. Agents need to obtain a certificate confirming membership of a scheme and display it in their office(s) and on their website. A copy of the certificate will also need to be provided free of charge to any person who may reasonably require it.

In addition to becoming a member of one of the above schemes agents will also need to:

• –   Hold client money in a client account with an FCA authorised bank account or building society (some schemes may offer a grace period until 1 April 2020 to open a account)

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• –   Hold and maintain professional indemnity insurance

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• –   Have appropriate client money protection handling procedures

• –   Obtain membership of a CMP scheme and display the membership certificate in a prominent place in the office/s and any website

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• –   Provide a copy of the certificate to any person who reasonably requires it, free of charge