Agents - FAQs

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FAQs - Joining

Applying for membership of CMP is a simple three stage process. 1. You must complete an application form and submit to CMP together with evidence of your segregated client money account, professional indemnity insurance and membership details of your external redress scheme. 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’ 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.

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.

Unfortunately if you already hold CMPI through a Trade Body/ organisation or else where we are unable to accept your membership application to CMP

The cost of membership of CMP starts from £350.00 plus VAT a year. This fee is payable when first applying to join CMP, we do not currently offer payment plans although we are looking at introducing a direct debit offering in the future. The fee covers 12 months of Membership starting from the date all three stages have been successfully completed and membership confirmed in writing.

FAQs - Legal

The standards that CMP requires of its members are those that surround the handling of client money. 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 They adhere to the Royal Institution of Chartered Surveyors (RICS) client money guidelines They maintain professional indemnity insurance in accordance with the CMP minimum PI requirements They maintain membership of a recognised external 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.

In an ideal world, CMPI would never exist because all letting agents would manage monies held by them in an honest and correct way. However, in the real world circumstances change or businesses make poor decisions. Whilst most letting agents operate their businesses in a professional manner, others have no concept of financial controls or do not even understand the difference between client monies and their own. To ensure that letting agents joining CMP understand these differences, and are looking to operate their business in a professional manner from the outset, there are several financial checks that we undertake before we will accept them as a member and provide the CMPI benefit. Joining CMP is not a ‘form-filling’ exercise. We undertake credit and fraud checking references using reputable credit referencing companies; ask for evidence and use of a segregated client account We 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.

FAQs - General

CMP is a company that provides CMPI to its letting agent members, along the same lines as a trade body, without actually being a trade body. The only benefit provided by CMP to its members is CMPI. CMP provides the ‘financial guarantee’ and purchases insurance to cover its liability to settle claims if one of its members misappropriates client monies. CMP was formed to provide access to this valuable protection without the need to join a trade body. We only provide CMPI and 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 CMPI to the lettings industry and the transparency and promotion of this important protection to the wider landlord and tenant community. Members of CMP undertake to adhere to the terms and conditions of membership which relate purely to the adequate holding of client monies and the promotion of the CMP membership standards to its clients and customers.

As already stated, it is CMP that provides the ‘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.

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.