A report from Ian Langley, Director at mydeposits Scotland on the latest updates from the rental sector:
I attended the Council of Letting Agents Conference yesterday (19 May 2016), and Client Money Protection (CMP) was certainly the hot topic of conversation. The government aims to introduce mandatory CMP for all letting agents in Scotland from January 2018, but the instructions from the expert speakers at the CLA event was:
‘we encourage agents to research the best option for them so they have CMP cover sooner rather than later, it’s best practice for all letting agents.’
Having worked in insurance and property sectors since 1965, I can claim to know a thing or two about this area:
What is CMP?
The benefit of CMP is that it ensures the money that a landlord or tenant pays to a letting agent is safely protected against misappropriation by any of the principals of that agency.
Letting agents that have the benefit of CMP must maintain and operate a separate a Client Money Account with their bank, where all client money is held separately from their operating funds. Examples of client money can include tenants’ deposits (before and after they’re protected), landlords’ repair funds, rents, service charges and arbitration fees. So, in the unlikely event that money is mishandled by the agent, the landlord or tenant’s money is secure, and they can make a claim from the relevant CMP scheme for its return.
Exclusive discounted CMP membership for mydeposits Scotland members:
mydeposits Scotland has a special relationship with Client Money Protect (CMP), a specialist provider of standalone CMP to letting agents across the UK.
You can apply to join CMP online, it’s the cheapest and quickest way to get CMP cover anywhere on the market.
- Client Money Protect fee – usually £299 + VAT a year.
- £269 + VAT for mydeposits Scotland members with live protections in force.
Find out more at: https://www.clientmoneyprotect.co.uk/PropertyAgent/JoinNow
Who is Client Money Protect?
Client Money Protect is a trading name of CM Protect Limited, which is a subsidiary of, and an Introducer Appointed Representative of, HFIS plc. who are authorised and regulated by the Financial Conduct Authority.
CMP is usually obtained as part of trade association membership. So if you join UKALA, ARLA, NALS, RICS or the NAEA then CMP is an automatic member benefit.
However, if being a member of a trade body doesn’t suit your business requirements then you can obtain CMP cover by joining Client Money Protect. That means no ‘Codes of Conduct’, no educational entry requirements, no industry lobbying or setting of rules and guidelines. Their only focus is the CMP to the lettings industry and the transparency and promotion of this important protection to the wider landlord and tenant community.
Agents that are interested in a trade association membership should look at UKALA, who both mydeposits and Client Money Protect have a close working relationship.
Join Client Money Protect Now
All Agents can join Client Money Protect; the joining process is simple and straightforward. All you are required to do is complete the application process and pay the appropriate annual subscription fee.
Don’t forget, you can obtain a special discounted annual rate of £269 plus VAT if you are a mydeposits Scotland member with live protections in force; just fill out the online Application Form and choose Option 3 – Mydeposits Scotland User membership at the beginning of the process.
Once again, the website is at: https://www.clientmoneyprotect.co.uk/PropertyAgent/JoinNow