Regulations in force to deal with client money protection scheme for property agents

  • The Client Money Protection Schemes for Property Agents (Approval and Designation of Schemes) Regulations 2018 (SI 751/2018) (CMPSPA Regulations 2018) came into force on 21 June 2018.
  • This sought to give landlords and tenants confidence in their safe-handling of the money by the agents as well as to move away from client money protection schemes being voluntary.
  • The CMPSPA Regulations 2018 therefore give the Secretary of State the power to:
    • Approve a client money protection scheme (regulation 3).
    • Approve amendments to an approved scheme (regulation 4).
    • Designate a government administered client money protection scheme (which can also be amended (regulation 6)).
  • Further, the Secretary of State may have regard to the number of other approved or designated schemes, when considering whether to approve or designate schemes (regulation 7).
  • Regulation 8 contains the conditions with which scheme administrators must comply.
  • The Secretary of State also has the power to withdraw the approval or revoke the designation of a scheme (regulation 9).
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