Client Money Protection for Letting Agents to Come into Force in 2021
By the 1st April 2021, all letting agents will be required to join an official Client Money Protection Scheme. This is not the same as a Tenancy Deposit Protection scheme.
CMPS was originally set to come into force in 2020 but was pushed back another year.to the 1st April 2021.
The amendment provides for the following:
“”Regulation 2 of these regulations substitutes the date of 1 April 2021 for the relevant date of 1 April 2020 set out in regulation 5(2A) of the principal regulations. It therefore has the effect of extending, by a year, the application of the provision for deemed compliance with the requirement to hold client money in a client money account at an authorised bank or building society..”
More information can be found on the Government website here.
Different rules will apply in Wales and Scotland.