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Client Money Protection: are you signed up?

Prior to last summer, while thousands of experienced agents already had comprehensive CMP cover through their trade body membership with organisations such as ARLA, NALS, RICS and UKALA, there was no ‘whole of market’ offering. The introduction of new CMP cover launched by PSR Insurance brokers and Hamilton Fraser Insurance Brokers enabled all letting agents to access CMP protection for the first time.

One of the biggest issues facing letting agents that have yet to sign up for CMP cover is their understanding of what level of protection they can offer their landlord clients.

Did you know? While all agents are required to hold client money in a separate Clients Account, there is no current requirement to have those funds insured against unlawful use or fraud, which is why CMP is crucial for landlords and tenants.

The nature of CMP means that it not only protects a tenant’s deposit but it also applies to the collection of rent, giving landlords and tenants maximum protection and peace of mind.

It is estimated that some &23 billion is paid annually in rent, of which &6 - &10 billion is collected by agents on behalf of landlords and newspaper headlines have reported a number of high-profile incidents where landlords and tenants have not been able to recover funds due to them, which were held by agents without CMP cover in place.

All this gives letting agents with CMP cover a massive marketing opportunity to market themselves above and beyond their competitors by offering the highest levels of protection available in the market.

Did you know? TPO surveyed 8,000 lettings branches to assess the viewpoints of member agents registered with the TPO scheme. The results revealed an overwhelming number of agents backed CMP, with 80% already protected.

Find out more: Further information on CMP can be found on the Members’ Area of the TPO website.

Categories: TPO News