The government have published guidance on approved Client Money Protection (CMP) schemes, aimed at letting and property management agents in the private rented sector. Agents who hold client money are required by law to be a part of a government-approved CMP scheme by 1 April 2019 following proposals made in April last year that have now been passed by Parliament.
Other requirements include:
- hold client money in a client money account with a bank or building society authorised by the Financial Conduct Authority
- hold and maintain appropriate professional indemnity insurance
- have appropriate client money protection handling procedures
- obtain a certificate confirming membership of an approved CMP scheme and display this prominently in each of their offices where they deal with the public and on their website
- provide a copy of the certificate to any person who may reasonably require it, free of charge