CLIENT MONEY PROTECTION (CMP)
What is the safeagent Client Money Protection (CMP) Scheme?
safeagent CMP scheme is vital assurance for tenants and landlords which offers compensation of rent, unprotected deposits or other client funds, in the event that monies are misappropriated or fraudulently used by a safeagent firm.
What are some of the standards the agent is expected to adhere to?
The agent is required to have a separate designated bank account for clients funds only. It is the agents responsibility is to:-
make sure all money from clients is paid into this account without delay
this money is not to be used for the ordinary trading purposes of the business or its liabilities.
only approved forms of withdrawal from the client account
a clients’ bank account is a special type of account which is opened with rules that are issued by the bank on the understanding that funds are held on behalf of client and are not to be used for the companies trading activities.
Record keeping
All safeagent firms must maintain proper internal accounts showing the up-to-date position in relation to circumstances outlined above.
At all times balances on the client account must satisfy the indebtedness shown in internal accounts.The agent must provide an annual Declaration by an Accountant in the format requested by safeagent confirming that the firm has bookkeeping procedures in place for handing clients’ money.
Failure to provide a Report within the given time will lead to the withdrawal of safeagent accreditation and the CMP being cancelled.
what else?
What we have mentioned so far doesn’t cover all of the rules and regulations that an agent must adhere to in order to be affiliated with safeagent, or indeed allow us to offer our customers the assurance of CMP. There is far more responsibility for the agent to comply with.
We welcome you to explore further the lengths we have gone to, in order to be compliant and offer these confidences to our customers from the day we opened our doors. As a minimum we wanted to a) offer high levels of service
b) make sure your money would be kept in a safe manner
c)and overall make sure that our customers know that their investment is in safe hands with an agent you can trust.
Please visit the links below for answers to other questions you may have about client money protection.