Client Money Protection (CMP)
Legal & RegulatoryInsurance that protects landlords and tenants if a letting agent misappropriates their money, required by law for all letting agents in England
Client Money Protection (CMP) is mandatory insurance protecting money held by letting agents on behalf of landlords and tenants in England since April 2019. CMP covers rent, deposits, and other client funds if an agent becomes insolvent or misappropriates funds. Agents must display their CMP certificate in-office and online, with failure to join an approved scheme carrying penalties up to GBP30,000.
What It Protects
CMP covers money held by agents including:
- Tenant deposits before protection
- Rent collected on behalf of landlords
- Holding deposits
- Maintenance funds
- Any other money held in a client account
When CMP Pays Out
CMP insurance pays out when an agent:
- Goes out of business owing client money
- Misappropriates (steals) client funds
- Cannot return money due to fraud or theft
It does not cover:
- Disputes about fees or charges
- Poor service quality
- Delays in passing on rent
Legal Requirements
In England:
- Mandatory since April 2019
- Agents must display their CMP certificate
- Membership details must be published on their website
- Applies to agents holding client money only
Approved Schemes:
- Client Money Protect
- ARLA Propertymark
- Money Shield
- RICS
- UKALA
For Letting Agents
CMP compliance requires you to:
- Join an approved scheme before handling client money
- Display your certificate prominently
- Include scheme details on your website and literature
- Renew membership annually
- Report the amount of client money held
For Landlords and Tenants
Before using an agent, check:
- They display a valid CMP certificate
- Their membership can be verified with the scheme
- The cover amount is adequate for your funds