CMP has been mandatory for every company that acts as an agency in property and handles client money or uses a third party to oversee client money since 1 April 2019. Propertymark led a campaign many years before it became mandatory, stating it must be introduced. It has long been a requirement for Propertymark members to belong to a scheme, even before it was a legal requirement.
Propertymark’s CMP Scheme is the best value CMP product on the market and displays the Propertymark Protection our members offer their clients.
Client Money Protection applications
Client Money Protection (CMP) is a scheme that reimburses landlords and tenants should an agent misappropriate rent or other client funds.
Helping members avoid penalties
As part of Propertymark’s Compliance Teams’ inspections, they have noted several instances where CMP certificates in branches and on websites don’t match. This a stark reminder for agencies particularly if they outsource website management, they must have a process to ensure all areas where a CMP certificate is visible are updated. This is the responsibility of the agency owner and directors.
There’s no hiding for agencies that don’t have client money protection and Trading Standards can drop in at any time. Fines totalling £12,000 were issued in 2023 to six letting agents in the London Borough of Haringey after a crackdown by Trading Standards.
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.
Top-notch support for members
Propertymark members can download our CMP fact sheet which covers eligibility and compliance, and take advantage of our Calm about Compliance support service, which helps members to make the changes they need to avoid penalties.
How to comply with CMP rules
CMP through a scheme recognised by the UK Government, is a mandatory requirement for property agents holding client money in England, Wales and Scotland.
A certificate confirming membership to a CMP Scheme must be displayed prominently on all agency premises in England where consumers can easily see it and prominently on websites. Also, requests for copies could be forthcoming and agents must produce a copy and issue it free of charge.
Whilst different legislation covers Scotland and Wales, it is still best practice to adhere to the same rules governing England.
CMP scheme changed or revoked
If an agent has their membership of a CMP scheme withdrawn, or if they leave one scheme and join another, they must notify each client in writing within 14 calendar days of the change, giving the name and address of the new scheme where applicable.
