FAQs

AGENTS

CMP is a standalone Membership scheme designed to protect the client money held by its property agent Members. The Members', clients are therefore protected in the event that the Member misappropriates the client money held in the course of running their business and the clients are able to raise a claim for compensation with CMP.

CMP provides a ‘financial guarantee’ to pay claims when one of its Members misappropriates the client monies. CMP insures its liability to meet this guarantee with an ‘A’ rated global insurer authorised and regulated by the Financial Conduct Authority in the UK.

CMP is operated and administered by HFIS plc T/A Hamilton Fraser Insurance who are the people behind the government approved tenancy deposit schemes mydeposits, mydeposits Scotland and mydeposits Northern Ireland. Therefore you can rest assured that we know all about the protection of client monies, whether this by insurance based or custodial facilities, since 2007. Hamilton Fraser is also, first and foremost, an insurance provider and administers, amongst others, the successful Total Landlord Insurance brand. HFIS plc are authorised and regulated by the Financial Conduct Authority and are part of the Financial Services Compensation Scheme. CM Protect are Introducer Appointed Representatives of HFIS plc and operate a full and transparent complaints procedure and are subject to the same rules and regulations of HFIS plc

It is a membership requirement for all members of CMP to adhere to the latest version of the Scheme Rules, which includes but is not limited to; how the firm holds its clients' money, maintain redress membership with a Government authorised scheme and maintain adequate Professional Indemnity Insurance. As a Member of CMP you are also required to display the CMP logo window sticker in a prominent position at all their branches; Agree to provide information to their tenant and landlord clients explaining client money protection and their membership of CMP;

When joining CMP and throughout membership all Members are required to handle client money as per section E in our Scheme Rules. CMP undertake credit and fraud checking references using reputable companies which puts our Members on continuous monitoring. CMP ask for evidence of and use of segregated client accounts and proof of deposit protections. We are confident that our pre-membership and on-going checks provide an adequate representation of how the Member holds their client's money.

You can join CMP online selecting the option for the maximum amount of client money your firm holds at any one time and then completing the online application and uploading the relevant documentation. Once the application has been submitted the membership team will carry out the required membership checks within 2-3 working days and if accepted a notification email will be sent requesting payment for membership. Payment of membership can be done directly online via the payment link in the email or by BACS. Once payment has been received you Membership will be activated.

Unfortunately if you already hold client money protection through a Trade Body organisation or elsewhere we are unable to accept your membership application to CMP.

Memberships need to be renewed on an annual basis. Members of CMP will be sent renewal notification by email 45 days prior to the renewal date in order for the member to check information we currently hold is up to date. Members can confirm details for renewal directly through their online member area. The membership team will then carry out their checks with the on-going monitoring and if everything is in order CMP will request payment for the renewal. Before a Member can renew their membership we may request updated client money account bank statements, PI schedule and deposit summary. Please note that CMP carry out membership checks a minimum of once every 9-12 months and this will not always fall when the renewal is due.

Complaints can only be made about the process or service provided by CMP. The majority of complaints will be dealt with within 5 workings days. For more information on how to complain please refer to the Scheme Rules.

Members are required to hold and maintain Professional Indemnity Insurance cover that is appropriate for the size, income, type of work and the amount of client money held. The minimum limit of indemnity should be no less than £100,000. Cover must include negligence or breach of a duty of care and Ombudsman or arbitration awards. CMP recommends all its Members to include crime cover to the policy which will provide cover in the event of employee theft.

England: The new regulations that come into force on 1st April 2019 under Section 134 of the Housing and Planning Act 2016, require all property agents that hold money on behalf of clients to belong to an approved client money protection scheme. Scotland: The Scottish Government introduced mandatory CMP for all property agents on 1st October 2018. Wales: Since November 2016 Property Agents have been required to have client money protection in place as part of Rent Smart Wales (Housing (Wales Act 2014).

You are required to provide clients with a copy of the Scheme's guidance for clients which is available in the member area of the Scheme's website

If you are a Member of CMP you are required to a) Display the Scheme's window sticker and membership certificate in all member offices b) Display the Scheme's logo on firm's letterhead and website & c) Publish procedure for handling client money on the firm's website.

If you have not paid for your membership by the renewal due date then there will be a gap in membership. We are unable to advise whether or not the firm will be penalised by the local Trading Standards office for this lapse.

If you are a Letting or Property Management Agent based in England, Wales or Scotland you are legally required to have Client Money Protection Insurance in place.

An account that is separate from the firm's business account and is ring-fenced which is free of lien, charge or adverse claim and is retained for the specific purpose of holding client money only.

CMP requires Members to have at least one designated ring-fenced client account. In order to clearly distinguish deposits and rents CMP do recommend two separate accounts, one for the deposits and one for rents.

No, CMP provide full cover with no inner limits.

Client Money is money that a firm holds / receives from a client such as rent and deposits.

The Scheme is licensed in England by the Ministry of Housing, Communities and Local Government (MHCLG) and is recognised in Scotland by the Scottish Ministers and Wales by the Welsh Ministers.

CMP does not cover rent when the landlord has entered into a guaranteed rent or rent2rent type arrangement. This is a commercial arrangement between the parties and the rent which should be paid to the landlord is not Client Money.

LANDLORDS & TENANTS

All government authorised client money protection scheme should have a member list/ search facility on their website. You can search our member list here: https://www.clientmoneyprotect.co.uk/Consumer/Members

You can call us on 0333 321 9414 or check our members list here on our website

No, CMP does not act on behalf of the letting agent. It is an independent membership body that provides the protection of client money whilst held by its members and the Scheme insures its liability for the payment of any claims

CMP does not offer a ‘for whatever reason’ guarantee. The guarantee extends only to loss by theft of client monies by the principle or owners of the business. For the purpose of doubt, theft means the dishonest obtaining of money with the intention of permanently depriving the client of such money. When considering whether a claim under the guarantee is valid or not, CMP will need to ascertain whether theft of client monies, and therefore a crime, has taken place. CMP will not accept claims where the agent merely refuses to return monies and those monies are clearly still in the custody and control of the agent.

The main exclusions are as follows: 1. Theft of client monies by an employee of the business. CMP is designed to protect clients from theft of money by the owner of the business. Theft of client monies by an employee of the business is still the responsibility of the employer and therefore it is the responsibility of the employer to protect the business against this type of risk. CMP requires all its members to hold Professional Indemnity Insurance that will pick up this type of theft. Landlords and tenants will be directed to make a claim against the letting agents’ PI policy. 2. Theft of monies by the owner owed to another owner. CMP will not pick up any claims where one business owner misappropriates monies owed to another owner. 3. Theft of monies by a third party. CMP will not honour any claim where theft of client monies is undertaken by any person not connected with the letting agent. For example, monies held by tradesmen, financial institutions or other businesses. 4. Theft of monies already protected/held by an authorised Tenancy Deposit Protection Scheme. CMP will not pick up claims which relate to tenant’s deposits that are protected by a government authorised tenancy deposit protection scheme, whether the scheme is a custodial scheme or insured-based scheme. CMP will only honour claims if the deposit schemes’ Membership Rules are exhausted or not applicable e.g. the deposit was never protected or the scheme cannot or will not honour the protection of the deposit. If the deposit is clearly protected, or held in a custodial scheme, the claimant will be directed back to the relevant deposit protection scheme. CMP will not accept claims from an authorised Tenancy Deposit Protection scheme to offset its liability.

Complaints can only be made about the process or service provided by CMP. The majority of complaints will be dealt with within 5 workings days. Please see the CMP Complaints Procedure.

With effect from April 1st 2019 all residential letting and property management agents in England are required to have membership with a government authorised client money protection provider.

You should report the agent to their local trading standards office for them to investigate

Please contact the claims team on 0333 321 9414 who will be happy to assist.

CMP is designed to protect clients from theft of money by the owner of the business. Theft of client money by an employee of the business is still the responsibility of the employer and therefore it is the responsibility of the employer to protect the business against this type of risk. CMP required all its members to hold professional indemnity insurance that will pick up this of theft. landlords and tenants will be directed to make a claim against the letting agents' PI policy.

CMP will not pick up any claims where one business owner misappropriates money owed to another owner

CMP will not honour any claim where theft of the client money is undertaken by any person not connected with the letting agent. For example: money held by tradesmen, financial institution or other business.

CMP will not pick up claims which relate to tenant's deposits that are protected by a government authorised tenancy deposit scheme, whether the scheme is a custodial or insured scheme. CMP will only honour claims if the deposit schemes' Membership rules are exhausted or not applicable. For example: The deposit was never protected or the scheme cannot or will not honour the protection. If the deposit is clearly protected, or held in a custodial scheme, the claimant will be directed back to the relevant deposit protection scheme. CMP will not accept claims from an authorised tenancy deposit protection scheme to offset its liability.

CMP does not cover rent when the landlord has entered into a guaranteed rent or rent2rent type arrangement. This is a commercial arrangement between the parties and the rent which should be paid to the landlord is not Client Money.