Client Money Protect, part of the Hamilton Fraser group, has been awarded consent to operate a client money protection scheme when the regulations go live on April 1st 2019.
From the start of April, it will become mandatory for all letting agents and property managers in England to be a member of an approved client money protection scheme or face fines and sanctions for non-compliance.
Client Money Protect will offer a scheme that is fully compliant with the regulations and will feature no inner limits or annual aggregate claim caps meaning every customer of the agent, including buy-to-let landlords, will be fully protected should the worse happen and every member of the scheme will have all their client money covered.
Missing deposits that are not protected by an authorised tenancy deposit protection scheme will also be covered by the scheme, aimed at small to medium sized operators, as will bank failure up to a certain level.
Eddie Hooker, CEO of Hamilton Fraser commented: “In an increasingly regulated industry in which landlords are feeling the strain, this [approval of the CMP scheme] will offer some positive news in landlords’ and tenants’ favour. Tenants’ deposits will remain covered by the deposit protection schemes, but CMP will act as a backstop should there be an issue.”
Paul Shamplina, founder of Landlord Action and brand ambassador for Hamilton Fraser, added: “Having dealt with too many cases where landlords and tenants have fallen victim to rogue letting agents who have misappropriated their money, I have long championed this move for our industry.
“However, the challenge of educating consumers to understand the importance of ensuring their agent holds CMP will continue, but hopefully this will raise awareness and standards.”