Letting agents urged to check their client accounts are legally compliant

Letting agents urged to check their client accounts are legally compliant

0:02 AM, 8th February 2023, About A year ago

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Following a surge in the availability of alternative banking products, safeagent has written to all of its agents in England urging them to check the legal requirements when setting up or operating a client account.

It says that as a Government-approved provider of Client Money Protection (CMP), it must ensure that as a scheme it complies with legislation.

And that its agent firms must only hold client money in a bank or building society that is authorised by the Financial Conduct Authority.

Largest not-for-profit accreditation scheme for lettings agents

The UK’s largest not-for-profit accreditation scheme for lettings and management agents says this is a requirement of the Client Money Protection Schemes for Property Agents (Approval and Designation of Schemes) Regulations 2018.

And it has advised its agents to check their relevant accounts are set up with organisations that are authorised as a bank or building society.

Agents can carry out any checks on the Financial Conduct Authority’s (FCA’s) register.

CMP regulations have improved consumer confidence

Isobel Thomson, safeagent’s chief executive, said: “CMP regulations have improved consumer confidence in financial protection which is why we campaigned for their mandatory introduction.

“There is a growing range of alternative banking products available to agents.

“While many of these options offer convenience and flexibility, agents must complete their due diligence to ensure they comply with the regulations on holding client money, if used for that purpose.”

‘Ask your provider if they are FCA registered’

She added: “The message is simple: if in doubt, ask your provider if they are FCA registered as a bank or building society.

“We know our agents are committed to fulfilling their CMP responsibilities – and we have had enquiries from some already to check whether the suitability of products during the CMP renewal process.

“We therefore wanted to ensure all our members are clear on what’s required and where they could risk unknowingly and unintentionally falling foul of rules.”


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