Letting and property management agents in the private rented sector who hold client money, must belong to a government-approved CMP scheme by 1 April 2019. Agents must also:
- hold client money in a client money account with a bank or building society authorised by the Financial Conduct Authority (or be making all reasonable efforts to do so: CMP schemes are permitted to offer a grace period until 1 April 2020 to allow agents to open such accounts)
- hold and maintain appropriate professional indemnity insurance
- have appropriate client money protection handling procedures
- obtain a certificate confirming membership of an approved CMP scheme and display this prominently in each of their offices where they deal with the public and on their website
- provide a copy of the certificate to any person who may reasonably require it, free of charge.
The government has approved the following client money protection (CMP) schemes for letting and property management agents in the private rented sector: