Compliance simplified: annual client account inspections
In the fast-paced world of property management, letting agents face a myriad of challenges, with client money management sitting high on the list of priorities. Ensuring the safety and transparency of client funds is not only a legal obligation; it’s good business practice.
The Chancellor needs to act on the closure of pooled client accounts
Following a series of high-profile account closures, Propertymark has written to the Rt Hon Jeremy Hunt MP highlighting the ongoing issues and pushing for action from the UK Government to find solutions that reduce barriers for letting agents to operate.
Compliance basics should not be ignored
The introduction of the Renter's (Reform) Bill resulted a lot of media coverage, with agents and landlords voicing valid concerns about the potential impact of future legislation on their businesses. However, it is important to note that the Bill has not yet become law and is still undergoing scrutiny and possible amendments.
No hiding for agencies that don’t have client money protection
Fines totalling £12,000 have been handed out to six letting agents in the London Borough of Haringey after a crackdown by Trading Standards.
PayProp keeping property agents compliant
Following the launch of Propertymark’s Calm About Compliance service in December 2022, designed to help property agents navigate the myriad of sector laws, regulations and guidance, we are partnering with PayProp to trial an extra service where agencies no longer incur costly annual accountant reports and health checks.
Understanding client accounting options for letting agents
Letting agents can suffer from ‘choice overload’ when it comes to client accounting solutions, and with such a myriad of options available there has never been a better time to outsource. Choosing the right outsourcing provider is crucial to continued business success, so it is paramount that agents understand their options.
No hiding for agencies with no CMP
A landmark case of an agent being issued a five-figure fine for failing to follow CMP regulations has brought the legislation back into sharp focus.
The removal of undesignated client accounts
On 10 January 2020, the Money Laundering and Terrorist Financing (Amendment) Regulations 2019 came into force. This required letting agents who manage properties with monthly rental incomes of €10,000 or more (or equivalent amount in a Member State) to comply with anti-money laundering regulations.
FAQs: Client Accounting Service Providers
Letting agents who manage properties which yield an income of 10,000 Euros or more a month (or equivalent amount in each Member State) have to comply with anti-money laundering regulations. Despite how the Regulations specifically only affect a small portion of properties, many banks refused to allow letting agents to open new pooled client accounts.
How PayProp can help with CMP insurance
Valid client money protection (CMP) insurance is a legal requirement for any letting agency that handles client money in England, Scotland and Wales. Agencies that flout this rule could face warnings, fines, and in some cases bans.
Benefits of a Client Money HealthCheck
Annually, Propertymark PPD (Principal, Partner or Director) members have to submit a Client Money Examination Report to be inspected as part of their membership, and for every company, they are legally responsible.
Benefits of having a client account
By keeping money ring-fenced from other business activities agents can use a client account for the sole purpose of handling and distributing deposits, rents, and fees and client accounts come in a few guises – designated or pooled/undesignated.
Block Management Sector Code
The RoPA Steering Group recently consulted on its draft Block Management Sector Code as part of its commitment to elevate standards within the sector.
Seven agents expelled from The Property Ombudsman
As per the strict processes put in place by The Property Ombudsman (TPO), the agents were referred to the TPO’s independent Compliance Committee, which ruled they should be expelled with most failing to pay compensatory rewards.
Fine underlines importance of having CMP
Propertymark received a report that a letting agent in Kensington and Chelsea has been issued a fine of £20,000 for not belonging to a Client Money Protection scheme, despite applying to join one. The case underlines the importance of having Client Money Protection (CMP), with Trading standards taking action even when an application is in progress.
Propertymark pressure leads to improved guidance on Pooled Client Accounts
We welcome improved Joint Money Laundering Steering Group (JMLSG) guidance on Pooled Client Accounts (PCAs) following our response to their review and sustained engagement with HM Treasury and UK Finance to make it easier for letting agents to meet their legal obligations.