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News & opinion

21 MAY 2018

RICS welcomes draft regulations on client money protection requirements

RICS welcomes the publication by the government of the draft regulations on client money protection (CMP) requirements for property agents in England.

All RICS-regulated firms are already covered by the RICS CMP scheme in the UK, and we have strongly advocated government to make CMP mandatory for all property agents. In 2016, we gave evidence to the CMP working group review chaired by Baroness Hayter and Lord Palmer of Childs Hill, and have discussed the importance of CMP schemes in protecting consumers with ministers and officials across government.

We are in close contact with the government on our scheme becoming approved under the proposed new government regulations and are pursuing this as a matter of priority.

Under the proposed regulations, membership of an approved client money protection scheme will be mandatory for property agents in England that hold client money from 1 April 2019.

These regulations will be enforced by local authorities, who can issue penalties of up to £30,000 to a firm failing to belong to an approved CMP scheme, and £5,000 for breaches of the transparency requirements.

We will continue to keep the profession updated of these developments.

Please view the draft regulations and the requirements for approval of a scheme.