The government has approved the following client money protection (CMP) schemes for letting and property management agents in the private rented sector:
The government is considering other applications.
Letting and property management agents in the private rented sector who hold client money are now required by law to belong to a government-approved CMP scheme by 1 April 2019. These proposals were made on 1 April 2018 following consultation and have been passed by Parliament; agents must also:
- 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
CMP schemes may set additional requirements on membership.
*Or be making all reasonable efforts to do so. Note that while CMP schemes are permitted to offer a grace period to allow agents to open such accounts, they may only offer a grace period until 1 April 2020.