The Government has set out regulations to implement mandatory membership of a client money protection scheme for all property agents in England from 1st April 2019. The maximum penalty for non-compliance will be £30,000.
Tim Frome, Associate Director at Hamilton Fraser, administrator for existing scheme Client Money Protect (CMP) comments:
“We are delighted that the government has followed through with the recommendations from the client money protection (CMP) consultation and will make it a legal requirement for those undertaking lettings work to become a member of a government authorised CMP scheme from 1st April 2019.
"Making CMP mandatory before the introduction of the tenant fees ban, will ensure that consumers are protected should an agent use their client funds to avoid any negative impact the ban on tenant fees may have on their business.
"We would encourage all agents that do not already have CMP through being a member of a trade association to act now. Membership of a CMP scheme will provide tenants and landlords with peace of mind their money is protected. Our scheme, Client Money Protect, will now begin the process of gaining authorisation in line with the government’s timetable.”