FAQs

AGENTS

CMP is a Membership scheme that provides clients of it's Members with protection for their money if the owners of the Member misappropriates it. It is set up in the same way a trade association but without any other joining requirements. CMP therefore have no ‘Codes of Conduct’ covering all aspects of the letting process, no educational entry requirements, and we undertake no industry lobbying or setting of rules and guidelines. Our only focus is the provision of CMP to the lettings industry and the transparency and promotion of this important protection to the wider landlord and tenant community. Members of CMP must complete our joining process which involves checks on the company's solvency and adhere to the CMP terms and conditions of membership which relate to the adequate holding of client monies and the promotion of the CMP membership standards to its clients.

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 my|deposits, my|deposits Scotland and my|deposits 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 requirement of members of CMP that: They hold client monies in a designated segregated client money account at all times that is separate from their own monies and comply with our Client Money Handling Guidance Notes; They maintain professional indemnity insurance in accordance with the CMP minimum PI requirements; They maintain membership of a recognised consumer redress scheme; They agree to adhere to the CMP Terms and Conditions of membership; They agree to display the CMP logo in a prominent position within all their lettings branches; They agree to provide information to their tenant and landlords clients explaining client money protection and their membership of CMP; They agree to allow CMP to display their membership details on the CMP website.

Joining CMP is not a ‘form-filling’ exercise. We undertake credit and fraud checking references using reputable credit referencing companies which puts our our Members on monitoring. CMP; asks for evidence of and use of a segregated client account. CMP also ask for evidence of professional indemnity insurance that conforms to CMP’s requirements and all members must also be members of an independent complaints redress scheme such as the PRS. We are therefore confident that only the right type of letting agent will become a member of CMP and our guarantee will only be called into operation for the unexpected situation.

Applying for membership of CMP is a simple three stage process. 1. You must complete the initial application form. 2. Once received, CMP will undertake various credit references on the firm and where applicable the directors and shareholders. 3. If you pass our requirements in Stage One and Two, the firm must then undertake our ‘Client Money questionnaire’ and provide three months client money bank statements to ensure that the client account is being used correctly and that sufficient funds are held in the account to cover the client money liabilities of the firm.

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.

The cost of membership of CMP is £299.00 plus VAT a year. This fee is payable when first applying to join CMP, we do not currently offer payment plans. The fee covers 12 months of Membership starting from the date all three stages have been successfully completed and membership confirmed in writing.

Memberships will need to be renewed yearly, credit and fraud references undertaken and renewal fee paid for on each anniversary date of membership. What is the law surrounding Client Money Protection Insurance? CMPI is not yet compulsory in the UK for letting agents, it is now widely recognised within the property industry that this type of protection is the very minimum requirement for a well-run and professional agent. However on 27th May 2015 it became mandatory for all letting agents to display their client money protection status whether they hold it or not.

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.

Member are required to obtain and keep in force Professional Indemnity Insurance and it must include the following cover: • Negligence or breach of a duty of care • Negligent misstatement or negligent misrepresentation • Infringement of intellectual property rights including copyright, trademark or moral rights or any act of passing-off • Breach of confidence or misuse of any information, which is either confidential or subject to statutory restrictions on its use • Defamation • Dishonesty of your individual partners/owners, directors or employees, or sub-contractors or outsourcers directly contracted to you and under your supervision • Negligence or breach of duty of care in connection with the transmission of a computer virus or a denial of service attack • Cover on a Civil Liability basis • The Limit of Indemnity is written on an a anyone claim basis • Indemnity in respect of claims arising out of all work carried out and continue to provide cover for all aspects of a members activities, past and present • The minimum Limit of Indemnity shall be no less than £100,000 • Your policy covers awards by ombudsman or arbitration

LANDLORDS & TENANTS

Traditionally, the provision of CMPI has been made available through letting agent trade bodies or organisations such as RICS, ARLA, UKALA or NALS. These organisations provide CMPI to their members, publicise the benefits to the wider community, and deal with any claims made against the insurance. Without the inclusion of this independent entity within the CMPI sale process, the landlord and tenant risks not knowing about the existence of CMPI, the terms and conditions of the insurance, who to contact and how to make a claim – especially if the agent has gone into liquidation and is un-contactable.

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 financial guarantee provided by CMP is limited to the insurance we have purchased. The limits are: - £500,000 cover for any one Agent - £25,000 to any one Landlord/Tenant which includes a maximum of three months rent

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.