From the 1st April 2019, it became a mandatory requirement for all letting and property management agents that handle client money in England to be a member of a Client Money Protection (CMP) scheme. There was a grace period of one year until 1^st April 2020, where schemes could accept agents as members who have made all reasonable efforts to hold client money in a client money account with a bank or building society authorised by the Financial Conduct Authority.

What is Client Money?
Client money is in essence any money any monies held on behalf of the client (landlord or tenant) in advance of being due. This includes rent, holding deposits and security deposits, as well as money paid in advance for bills, or repairs, or maintenance work.

What are the approved Client Money Protection schemes?
There are currently six government-approved client money protection schemes:

• UKALA Client Money Protection
• Client Money Protect
• Money Shield
• Propertymark
• RICS
• Safeagent (previously NALS)

Exclusive Short Stays Estates Limited is a member of UKALA Client Money Protection and information on this is found here.

What are the requirements of joining a Client Money Protection scheme?
The Client Money Protection scheme is an insurance product taken out by letting agents and property management agents to protect landlords, tenants and other clients against misappropriation of funds or the agent going into administration.

In order to join a client money protection scheme, agencies will need to hold their clients’ money in an account with a bank or building society authorised by the Financial Conduct Authority. Agencies are also expected to have strong client money handling procedures in place.

How do Property management agents show that they belong to an approved scheme?
Agencies will need to display the certificate confirming their membership of an approved CMP scheme in a visible location in each of their premises and on their website. You can find ours here. Agents must provide a copy of the certificate from their approved scheme to anyone who reasonable requests it, free of charge.

What are the Penalties for not belonging to an approved scheme?
From the 1^st April 2019, agencies can be fined up to £30,000 if they do not belong to a CMP scheme. There was a two-year grace period that ended on 1^st April 2021 for those having difficulty in opening a client money account. If an agent doesn’t display their certificate of membership or provide when asked, they can be fined up to £5,000.

Exclusive Short Stays Estates Limited is a proud member (008510) of UKALA (The UK Association of Letting Agents) and is a professional property management company.

It demonstrates our:

• Commitment. We are committed to protecting clients against financial loss.
• Credibility. Property management agents who are not a member of a CMP scheme are acting unlawfully and present the highest risk of misappropriating client funds.
• Protection. Even the most professional agent is unable to control the variations in the property market. CMP cover protects against not just misappropriation but also administration, meaning that even if an agency goes under, it can honour its commitments to its clients.

Exclusive Short Stays professionally manages serviced accommodation properties for landlords and clients. We are proud to offer our clients the trust they deserve whilst generating a great return on their property investment. If you would like to know more on how we can generate income for you, then please see ‘Partner With Us’.