The Client Money Protection (CMP) Scheme is a compensation scheme run by Propertymark which provides compensation to landlords, tenants and other clients should an agent misappropriate their rent, deposit or other client funds.
As a professional body, raising standards and providing consumer protection are key factors; the Client Money Protection Compensation Scheme plays an integral part in this.
Since May 2015 it has been a legal requirement for letting agents to display fees along with details of the redress scheme that they belong to and membership of a client money protection scheme where appropriate. Please display your CMP Certificate in your office as evidence for your clients that their money is protected.
As a membership organisation, we also rely upon our members to help raise public awareness. Why not use the professionally printed CMP Leaflet in your promotional material when seeking a new instruction? Both of these documents are subsidised as we believe that the scheme is key to promoting the service that our members offer.
Please note: For Regulated by RICS companies, or companies regulated by the Law Society or the Law Society of Scotland, these requirements do not apply. We accept evidence that a company is regulated by one of those organisations in lieu of our own regulation.
Protection of clients' money, giving the public further trust and confidence in dealing with you, our members.
A differentiator setting you apart from those who do not belong to a professional body and who do not have CMP in place.
A discount of £1.50 per tenancy deposit is offered by the Tenancy Deposit Scheme (TDS) for those members who have CMP through our scheme. This discount is not available to all professional bodies / schemes.
It is a mandatory requirement of association membership for Principal, Partner, Director (PPD) members that they have CMP in place for every company that acts as an agency in property (including the auctioning of chattels), and that handles client money or uses a third party to control its client money.
There is an element of fidelity bonding in professional indemnity insurance policies, but this only provides you with protection should your staff misappropriate client funds. A CMP scheme can provide the public with protection should the agent do so.
Not all schemes provide the same levels of cover to your clients that ours does, nor do they necessarily qualify you for a discount per tenancy deposit from the TDS. The only other scheme available which we can currently accept in lieu of our own is the one run by the Royal Institution of Chartered Surveyors (RICS).
If you are a member of one of the Propertymark divisions, then NALS would not pay out on any CMP claim. NALS relies on our members belonging to the Propertymark scheme. Their CMP scheme excludes members of our divisions. You must therefore be a member of either the Propertymark CMP scheme or the RICS scheme.
There is a one-off fee of £180 to join the scheme. The 2017 levy is £340. You can find an introduction to the 2017 scheme in an open letter from David Cox and Mark Hayward. More info...
Late submission of documentation concerning professional indemnity insurance, accountant’s reports and declarations, and late payment of the client money protection scheme levy, may be pursued as a disciplinary matter. Such matters will be dealt with outside of the disciplinary procedures. In these circumstances members may not have an opportunity to explain the reasons for their delay. Instead, late submission is likely to result in an automatic fine of up to £200 per breach of every separate requirement. Members who persistently fail to provide their documents will have their membership terminated.
You can pay the Client Money Protection Levy in the following ways:
Should you have any queries, please call 01926 417 365.
You can find information for the public about the scheme, about how to make a claim, and the CMP leaflet, here.
Please refer to The Financial Services Compensation Scheme PDF for information.
There is no policy number. The CMP scheme is not an insurance policy, but a compensation scheme. For those companies in the Propertymark CMP scheme TPOS will accept Propertymark in lieu of a policy number.
No, I am afraid not. Your payment is an annual levy, charged at a flat rate per legal entity as a contribution to the cost of running the scheme. Once paid, your company’s clients will continue to have protection for their money your company handled whilst you were in membership.