Housing Minister cans requirement for Client Money Protection

Housing Minister cans requirement for Client Money Protection

9:37 AM, 7th January 2016, About 6 years ago 11

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The Housing minister, Brandon Lewis, opposed a clause in the new Housing and Planning Bill that would have required all letting agents to carry Client Money Protection insurance.Brandon Lewis

Teresa Pearce, Labour MP for Erith and Thamesmead, who proposed the clause indicating that there was industry support said,”The new clause is designed to protect both parties in the unlikely event that an agent goes into administration or misappropriates the client’s funds. Any losses could be recovered through the scheme.”

Mr Lewis countered saying “We want to ensure that we have a strong and thriving private rented sector that is not tied up in excessive regulation.

“Requiring agents to pay to belong to a client money protection scheme would force honest agents to buy insurance against the risk that they themselves were fraudulent, when, as the hon. Lady said, the vast majority of agencies are not.

“Introducing a mandatory Client Money Protection scheme at this point would be a step too far and would overburden a market that is perfectly capable of self-regulation.

“However, in May 2016 we will review the impact of the transparency measures that were put in place only recently.

“At that stage, I will take due consideration of whether any further action is needed, and obviously I will take into account the comments made this afternoon. I hope that, with those points in mind, the hon. Lady will withdraw the new Clause.”

The subsequent withdrawal of this clause has already been criticised by ARLA and their MD David Cox said, “It’s very disappointing the amendment requiring all letting agents to have Client Money Protection has not been successful especially when so many organisations from across the industry were supportive.

“However, we are pleased the minister has agreed to review the issue again in May.

“We should not be disheartened as it is a positive step that Client Money Protection is now firmly on politician’s radars and being discussed at the highest levels of Government. ARLA will continue to fight for mandatory Client Money Protection as a step on the road to a more appropriately regulated lettings industry.”



Comments

by DALE ROBERTS

14:16 PM, 9th January 2016, About 6 years ago

Reply to the comment left by "money manager" at "09/01/2016 - 13:17":

You assume incorrectly.
There was a concerted and collective outcry from both tenants and landlords regarding the complete failure of any statutory body in the UK actually considering the massive fraud perpetrated by Oliver-Knights worthy of investigating. The only two organisations who actually acted on the complaints were Paul Shamplina of Landlord Action and Sonia Pavlovic of BriteSpark Films. I believe there is going to an expose on this scandal flighted by BriteSpark Films in the next few months. Landlord Referencing was a very welcome platform to air our united disparagement of those organisations. Some google research by yourself will quickly illuminate how Oliver-Knights, not only knowingly defrauded tenants and landlords, but how the rather inept regulations in the UK actually permit if not encourage such behaviour. There is NO corporate governance rule which permits the piercing of the corporate veil.
And that needs serious addressing.


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