Agents must display a certificate confirming membership of an Approved CMP scheme both in branch and on the website.
Under the regulations, agents are also required to have their Client Money Handling Procedures on their websites and, at a client’s request, also available in a hard copy format, free of charge.
The law requires agents to display a CMP certificate in each branch.
Client Money Protection (CMP) is a compensation scheme which recompenses landlords and tenants should an agent misappropriate their rent, deposit or other client funds. It is a requirement for ARLA Propertymark members to have CMP.
The Housing and Planning Act 2016 enabled the Secretary of State to require letting and property agents in England to be a member of a government-approved Client Money Protection scheme.
On 4 March 2019 the Government passed The Client Money Protection Schemes for Property Agents (Requirement to Belong to a Scheme etc.) Regulations 2019.
ARLA Propertymark led the campaign with industry support for the introduction of the new rules, more information can be found here.
The Housing and Planning Act 2016 enables the Secretary of State to require that letting and property agents in England belong to a government-approved Client Money Protection scheme.