Rules tightened around client money protection.
From 1 April 2019 all property agents in England who hold client money must be a member of an approved or designated client money protection scheme. In most cases the client money protection schemes require property agents to obtain a report from an accountant on an annual basis. These schemes are set up slightly differently by each body and it is important to check the requirements with your clients.
- a person who engages in English letting agency work within the meaning of section 54, or
- a person who engages in English property management work within the meaning of section 55,
Other than a person who engages in that work in the course of the person’s employment under a contract of employment.
There are a number of approved or designated client money protection schemes including the following:
- Association of Residential Letting Agents (ARLA)
- Client Money Protect (CMP)
- National Approved Lettings Scheme (NALS)
- Royal Institute of Chartered Surveyors (RICS)
- United Kingdom Association of Letting Agents (UKALA).
The legislation which introduced client money protection schemes was Statutory Instrument 2018 number 751. Each of the client money protection schemes have their own requirements which property agents need to comply with in order to be a member of the scheme.
Article from ACCA In Practice