CMP deadline for agents extended until April 2021
Article Posted - 10th February 2020
The Government has put forward changes to the Client Money Protection regulations, giving agents up to 1 April 2021 to be compliant with the requirement to hold client money in a client money account.
The Client Money Protection (CMP) regulations came into force in April 2019 with agents required to join any of the government backed schemes which include CM Protect, UKALA, NALS, ARLA Propertymark, RICS and Money Shield.
As part of the scheme agents are expected to:
- hold clients' money in a separate client money account with a bank or building society authorised by the Financial Conduct Authority
- get a certificate confirming their membership of the scheme and provide it to anyone who asks, free of charge.
Agents were originally given a 12-month grace period to comply with the requirement to hold client money in a client money account. This will now be extended for a further year.
Industry commentators have speculated that the Government extension has been approved because agents have faced challenges arising from banking practices that have made opening client money accounts more difficult.
It is expected that the Government officials will be working with banks to provide reassurance during this extension period so that agents are able to become compliant without having to face unnecessary hurdles.
What can you do:
Landlords should undertake their due diligence and ensure that their property agent is compliant with regulations and signed up to one of the schemes. Members can access the NLA CMP guidance here and can contact our Advice Line on 020 7840 8939 if they have further queries.
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