Client Money Protection scheme – what is it?
If you have been wondering what is a Client Money Protection scheme or how much client money protection costs, you are on the right page. Read through to learn more.
CMP is a scheme that reimburses landlords and tenants should a letting agent misappropriate their rent, deposit or other client funds. It has been a legal requirement in England, Scotland and Wales for firms handling clients’ money to be part of a Client Money Protection (CMP) Scheme in order to operate since 1 April 2019.
CMP is currently the only client money protection membership scheme in the UK that agents can join without having to become a member of a trade body. It is also the quickest, simplest and cheapest client money protection scheme.
The standard levy starts at £410 and you will need to renew annually.
CMP covers landlords’ and tenants’ client money if the agent goes out of business and does not have the client’s money kept in a separate account. This could be a tenant’s deposit (subject to any deposit protection) or a landlord’s rent or repairs fund.
- Client Money Protect
- RICS Client Money Protection
- Money Shield
- Safeagent (previously NALS)
- UKALA Client Money Protection
Rentancy ourselves have enrolled in the CMP scheme so that our clients can feel rest assured that we uphold the standards across the industry.
If your agency is not yet under the Client Money Protection scheme, or you are considering outsourcing the services, we are looking forward to assisting you with property management, client accounting or bookkeeping services. Please feel free to contact Max Burney on 0330 321 3500 to learn how Rentancy can be a cost-effective alternative to integrate experts into your business.