Client Money Protection (CMP)

CMP is a scheme that reimburses landlords and tenants should a letting agent misappropriate their rent, deposit or other client funds. It has long been a requirement for ARLA Propertymark members to have CMP and has been a legal requirement for all letting agents since 1 April 2019.

Membership eligibility 

CMP is mandatory for every company that acts as an agency in property (including chattels auctioning) which handles client money or uses a third party to oversee client money. If this is the case, to become a member Principals, Partners and Directors (PPDs) have to take out CMP with Propertymark (unless they have CMP with Money Shield, RICS or the Law Society of Scotland). Former ARLA Propertymark Chief Executive David Cox explains more in this video. 

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How much does it cost?

The standard levy is £385 and you will need to renew annuallyHowever, the final payable levy will depend on the amount of 'other client funds' held in your client account. Upon receipt of the Accountant’s Report or The Letting Partnership's 'HealthCheck', we will determine the applicable levy as covered in the table below and send you an invoice.

Balance of other client funds at last Accountant’s Report CMP Levy
Under £500,000 £385
£500,000 – £1 million £1,020
£1 million – £3 million £1,935
£3 million – £7 million £3,235
£7 million – £13 million £4,850

 

WHAT ARE OTHER CLIENT FUNDS?
'Other client funds' means all the money held in your client account except for tenancy deposits protected by a Government-authorised tenancy deposit protection scheme. 

If you hold £13 million or more in ‘other client funds’ and belong to the Propertymark Large Corporate CMP scheme, please contact the Membership Documents Team to discuss the CMP levy and additional information that may be required to ensure continued CMP protection. 

Client Money Protection FAQs 

Money Shield is the easy route to CMP

Legally you must have have CMP, offering Money Shield protection is the quickest, easiest and most cost effective route to comply.