Propertymark has become the latest firm to receive approval to operate a Government-authorised Client Money Protection (CMP) scheme.
Its scheme is already available to agents within ARLA, NAEA, NAEA Commercial and NAVA.
Lettings agents will need to have joined an approved CMP scheme or will be operating illegally from April 1.
David Cox, chief executive of ARLA Propertymark, told EYE that agents will need to have a client account to join both its scheme and the Money Shield offering for non members, which gained Government approval earlier this week.
This is despite concerns that agents may struggle to get client accounts set up from banks in time.
Cox said: “It is more of a perception of a problem than an actual problem.
“It has been a requirement of our membership for years and very few members have ever had difficulties getting client accounts and none have had insurmountable difficulties otherwise they wouldn’t be members.”
Comments (7)
David Cox your ARLA members may have been holding client accounts, for many years, however given changes in FCA ( not sure when these amended rules came in) and bank regulations regarding client accounts, are they holding the right type?
Perhaps you would kind enough to read my posting under CMP links and comment, I assume if I tried to join ARLA and produce Client accounts statements for the last 10 years these would be rejected, without the official bank letter to confirm its a client account under the current regulations. Do your members have a special status with FCA?, as the industry as whole Estate & Letting agents are not accredited with FCA status to hold un-designated client accounts.
Yes there is a problem with the banks and its real, and the regulations not being joined up and its not just Lloyds bank there are others out there with the same policies.
Happy to be corrected this information given by my bank is wrong, hopefully it is.
Massive price hike in my CMP membership this year and Nat West have upped the fees on my client account to £4.50 per same-day BACs transaction. Trying to open a client account elsewhere – absolute nightmare. Most banks don’t offer them unless you’re in financial services and unless you move ALL of your banking to that bank. Any suggestions of good client account banks gratefully accepted.
Northern Rock?
Hmm – thanks. I’ll give them a call later this morning – got to do a valuation on a bit of a bridge in London first. 🙂
Risk assesment? I hear it might be falling down
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The problem is that auditors are taking excel spread sheets prepared to marry up to the physical bank account as bank reconciliations so agents pass annual audits (those that require an audit)
Having an insurance policy is all well and good but if the practical safeguards that will have to be in place before the policy pays out aren’t met the underwriters won’t pay out
When a business fails because of the business principal not their staff I suspect the very vast majority of claims will be rejected because the principals weren’t quite as cushtee as they should be.
My opinion is CMP will be a mandatory unnecessary policy for the honest that will fail to pay out when it needs to