WHAT IS CLIENT MONEY PROTECTION (CMP)?

Client Money Protection has been a legal requirement for lettings agencies since 2019. Previously, it had merely been a recommendation.

Here at Kings Lettings, we have created an article that explains what Client Money Protection is, how it protects the assets of landlords and tenants, and how you can ensure your money is fully protected.

WHAT IS CLIENT MONEY PROTECTION?

Lettings Agents in England who handle client money must legally be registered with a Client Money Protection Scheme. These schemes provide compensation to tenants and landlords if the agent is unable to repay their money for any reason.

Lettings agents must hold client money in a separate bank account that is regulated by the Financial Conduct Authority. They must also have a copy of their Client Money Protection Scheme certificate displayed in a position where it is easily visible to clients.

APPROVED CLIENT MONEY PROTECTION SCHEMES

The Ministry of Housing Communities and Government have approved the following Client Money Protection schemes:

• Client Money Protect
• Money Shield
• Propertymark
• RICS
• Safeagent (previously NALS)
• UKALA Client Money Protection

CLIENT MONEY PROTECTION REGULATIONS

Following government guidance, members of Client Money Protection Schemes must:

1. Hold client’s money in a bank or building society account that is authorised by the Financial Conduct Authority
2. Have a certificate confirming membership of their scheme and allow anyone who asks to access it, free of charge
3. Have a copy of their Client Money Protection Scheme certificate displayed in a position where it is easily visible to clients
4. Display their certificate of membership on their website

CLIENT RIGHTS

Clients of Lettings Agents, including landlords and tenants, have the right to:

• Know which Client Money Protection Scheme their letting agent belongs to.
• Request a copy of the certificate confirming the Client Money Protection membership, free of charge.
• Know if their letting agent swaps schemes within 14 days of expiry.

CLIENT MONEY PROTECTION PENALTIES

Since 2019, penalties for lettings agents include:

• £30,000 should they fail to join a Client Money Protection Scheme
• £5,000 if they fail to display a certificate of membership or provide it on demand to a client

HOW TO CHECK IF YOUR AGENT HAS CLIENT MONEY PROTECTION

It is an offence for letting agents to handle client money without joining a Client Money Protection Scheme. As such, you have a right to know if your money is being managed safely and under government regulations.

If you are unsure whether your Letting Agent is a member of a Client Money Protection scheme, you should ask to see their certificate of membership and confirm their membership with their provider.

CLIENT MONEY PROTECTION WITH KINGS LETTINGS

Kings Lettings is a proud member of Propertymark, a leading membership body for lettings agents in the UK.

Propertymark’s Client Money Protection scheme covers you, your tenants and Kings Lettings should your money be mislaid at any time.

For more information on how we protect client money, or to find out how to become a landlord with Kings Lettings, please feel free to get in touch.

KINGS LETTINGS, 103 HIGH STREET, MAIDENHEAD, BERKSHIRE, SL6 1JX
Lettings and property management offices in London, Reading, Maidenhead, Staines & Windsor.
T: +44 (0)16 2863 2188 | E: MAIDENHEAD@KINGS-LETTINGS.CO.UK