CMP is an acronym for client money protection and is widely used within the property sector. CMP was introduced to protect client money held by property agents.

It is a legal requirement for all companies that acts as letting agents, and holds client money, to be members of a CMP scheme.

By keeping money ring-fenced from other business activities agents can use a client account for the sole purpose of handling and distributing deposits, rents, and fees. The scheme reimburses landlords and tenants if a letting agent misappropriates their rent, deposit or other client funds. In simple terms, if your agent goes bust or commits theft, your money is protected.

Who enforces CMP?

In the Requirement Regulations 2019 it is the duty of every local authority in England to
enforce the requirements of regulations 3 and 4 in its area.
• Regulation 3 – Requirement to belong to an approved client money protection
scheme from 1 April 2019.
• Regulation 4 – Transparency Requirements
The Housing and Planning Act 2016 references, “enforcement authority” in relation to client
money protection schemes to mean a local weights and measures authority in England:
a) Local weights and measures authorities (“Trading Standards”) – it is the duty of every
local weights and measures authority in England to enforce in its area
b) The lead enforcement authority – the lead enforcement authority has the power to take
steps to enforce the relevant letting agent legislation where necessary or expedient to do
so.

Agencies can take out CMP membership with Propertymark, Money Shield, RICS or the Law Society of Scotland.

Membership

PIIM Property use Propertymark client money protection scheme.