1. What is Client Money Protection (CMP)?
Client Money Protection reimburses both the landlord and the tenants if an agent goes bust or misuses client money. Client money can include rents, deposits and funds for maintenance work.
2. What is Money Shield?
Money Shield is a Client Money Protection (CMP) scheme, available to all UK lettings and estate agents. It offers a straight-forward and cost-effective CMP solution, allowing agents to secure robust protection for their clients without membership of a professional body. Money Shield is owned jointly by Propertymark and the The Dispute Service (TDS), administered by Propertymark and operated in partnership with The Property Ombudsman (TPO). Money Shield is the trading name of Money Shield Ltd.
3. What standards does a Money Shield agent meet?
Money Shield is a commercial product governing how letting agents manage their clients’ funds. Therefore, they are required to adhere to the same robust accounting practices as any Propertymark Protected agent.
4. How do I join Money Shield?
You can join online by clicking Join Now to start your application.
5. How much will Money Shield cost me?
Money Shield will cost agents £400 a year.
6. When will mandatory CMP be enforced?
We currently expect that mandatory CMP to come into force in England in April 2019 – to coincide with the expected lettings fee ban.
7. Why should I sign up now, rather than waiting until closer to the deadline?
Agents should sign up before mandatory CMP comes into effect to set themselves apart from competitors and gain market share. It will also mean they avoid scrabbling around when the deadline nears, and risk falling foul of the law if they miss it.
8. What will happen if I don’t sign up to a CMP scheme after it’s mandatory?
Agents who aren’t enrolled in a CMP scheme when it’s mandatory will be operating unlawfully. With the creation of the Legal Enforcement Authority under the lettings fee ban, we expect vigorous enforcement of this law – far more so than we’ve seen with other laws over the last decade.
9. How is Money Shield run, governed and owned?
Please view the Money Shield Articles of Association here for more information.