From 1st April 2019, all property agents holding client money must be a registered member of an approved or designated client money protection scheme (CMPS) and must:
- display their CMPS membership certificate in a location which is easily and clearly visible at each of the agent’s premises from which it deals with clients and customers on a face-to-face basis;
- publish a copy of their CMPS membership certificate on their website (if applicable); and
- produce a copy of the certificate to any person who may reasonably require it without charge.
If the CMPS membership is revoked or moved to a different scheme, the property agent must notify all of their established clients within 14 days of such revocation or move.
Every local authority in England is under a duty to enforce the requirements regarding membership of a CMPS and publication within its area. Failure by a property agent to be a registered member of a CMPS could result in a financial penalty up to a maximum of £30,000.00 and a failure to adequately publish details of their membership of a CMPS could result in a financial penalty of up to a maximum of £5,000.00.