Client Money Protection Working Group Report


For those of you who are new to the lettings industry, Client Money Protection (CMP) is a scheme ensuring that landlords and tenants are reimbursed in the event of a letting or managing agent going into administration.  The Client Money Protection (CMP) working group, recently published its latest report reviewing whether Client Money Protection should be made mandatory for letting and management agents.

Published in March 2017, the latest report suggests there is evidence to show that stakeholders are in favour of CMP becoming mandatory.  In fact, 85% of positive survey responses felt CMP would improve the professional standards and reputation of the industry. This, coupled with offering financial protection to consumers, would help bring the sector in line with other industries.

The group shares the Government’s desire to increase the range and quality of homes in the private rented sector but agrees this requires confidence from landlords that there is no risk of money going astray, from either, deposits not being protected or rents disappearing.  CMP would ensure that every agent does indeed offer the same level of financial protection and in turn, help to raise the confidence of the consumer.

The recommendation of the group is that all Letting and Managing Agents in England that handle client money, must hold it in a Client Money Protection (CMP) Scheme and that CMP becomes compulsory.  However, they do not recommend that membership of a professional body should be a requirement to obtain CMP cover. 

Mandatory CMP would undoubtedly help to raise standards across the sector, ensuring that each, and every agent was offering the same minimum level of protection.  Surely this would also help to boost consumer confidence and deter rogue agents. Although the group is keen to minimise the impact on the sector, it doesn’t want to restrict new firms entering the industry.  The costs of CMP to a letting agent are not excessive, however, to a landlord or tenant, the cost of not having it, is enormous.

We feel this is a positive step for landlords but we need to wait and see the detail of the implementation to ensure it’s a true and even playing field. 

Crystal joined Pace in 2007 and was appointed to her current role of Managing Director in 2010, heading up the company founded by her father in 1994.

She is responsible for the daily operations of the business, whilst also ensuring the company is financially sound, has strategic direction and is planning for future growth.

Crystal takes a thoughtful and considered approach to all that she does, transferring her determination to deliver implicit care, attention and professionalism to every member of her team.

Pace employ 20 full time staff. Meet the key team members here.

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