The National Approved Letting Scheme and Propertymark’s Money Shield service have each received government approval to operate Client Money Protection (CMP) schemes.
CMP schemes are designed to provide compensation to landlords, tenants and other clients should an agent misappropriate their rent, deposit or other client funds.
From April 1 it will be mandatory in England for all letting agents and property managers to be a member of an approved client money protection scheme. Non-compliance will see them face fines and sanctions.
According to an article in LettingAgentToday, the National Approved Letting Scheme (NALS) has been providing a CMP scheme for over 15 years to its agents. It has been an important part of NALS accreditation to have CMP as a consumer protection measure.
Government approval means that NALS can continue to offer agents inclusion under its CMP scheme.
Chief executive of NALS, Isobel Thomson, says: “While it’s great news that CMP will become a legal requirement from April 1, it is only one of the elements that make up a professional lettings and management firm. We don’t believe that being part of a CMP scheme should just be a case of buying an off the shelf product to comply with the Regulations.
“Any agent coming under our CMP scheme will have to be part of NALS so we can ensure consumers are obtaining the best possible service in all areas and high standards are maintained.”