Client Money Protection (CMP)

CMP is a scheme that reimburses landlords and tenants should an 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.

How much does it cost?

The standard levy is £385 and you will need to renew annually. However, 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

Do you accept CMP from other providers?

Not all schemes provide the same level of cover as our scheme so we only accept CMP from certain providers. We will accept CMP from RICS or the Law Society of Scotland in lieu of our own. If you have CMP with Money Shield (administered by Propertymark), this too will be accepted and you will be brought over to our CMP scheme upon your Propertymark membership being renewed.

We do not accept CMP cover from CMProtect, Safe Agent (formerly NALS) or UKALA. If you have CMP with those providers you will need to cancel that cover in order to become a Propertymark member.

Does my professional indemnity insurance cover CMP?

No, under professional indemnity insurance whilst there is an element of protection for the policyholder (for losses incurred as a result of fraudulent acts by specified employees), the consumer is not covered. CMP provides the public with a route to reimbursement.

What happens if I don’t pay my CMP Levy?

Late payment of the CMP levy (and submission of other documentation) may be pursued as a disciplinary matter and dealt with outside of the disciplinary procedures. This means that members may not have an opportunity to explain their reasons for the delay. You will be sent reminders via email and text informing you that your CMP is due for renewal and how to make payment.

Late submission in most cases results in a fine of up to £200 for each breach of the documentation requirements (e.g. professional indemnity insurance, accountants' report etc). Members who persistently fail to provide payment or documents will have their membership terminated.

How do I pay for CMP?

Once you have submitted your Accountant's Report or Letting Partnership 'HealthCheck', you will be sent an invoice requesting payment for CMP. You can make payment through our secure payment system over the phone or by BACS (bank transfer), further details will be available on the invoice.

Can I get a refund?

Unfortunately we cannot issue refunds, your payment is an annual levy charged at a flat rate per legal entity (company) as a contribution to the cost of running the scheme.

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.

Find out more