Another client money protection scheme has been given approval to launch itself before regulations go live on April 1.
From that date it will be mandatory for all letting agents and property managers in England to be a member of an approved client money protection scheme or face fines and sanctions for non-compliance.
Yesterday we reported that Client Money Protect, part of the Hamilton Fraser group, had won formal government approval to operate a client money protection scheme.
Now the same approval has been given to the UK Association of Lettings Agents, which is marketing what it calls its “industry first total loss client money protection scheme” to its members.
According to a UKALA statement, total loss CMP means that tenants and landlords will be able to claim back the entire amount of money that has been lost or misappropriated by an agent.
The association says that with billions of pounds worth of tenants’ and landlords’ money handled by letting agents, the total loss CMP which it launched just over a year ago is “an important milestone” in the industry.
“In some other schemes the amount you could claim was capped, it will be interesting to see if that remains the case going forward” says UKALA.
The scheme is underwritten by insurers Hiscox and regulated by the Financial Conduct Authority in the UK, and is open to all property agents and professionals who are UKALA members.