The scheme reimburses landlords, tenants and other clients should an agent misappropriate their rent, deposit or other client funds.

It is mandatory for all Principal, Partner or Director (PPD) member firms to have CMP for every company that acts as an agency in property (including chattels auctioning) and handles client money or uses a third-party to oversee client money.

Client money handling procedures

To comply with requirements set by UKALA for handling of client
money an agent must:

  1. Have set up a separate bank account for clients’ money;
  2. Have the title of their Clients’ money bank account easily
    distinguished from other accounts of their business;
  3. Have in writing from their bank confirmation that all money is held
    by the business as an agent;
  4. Have the banks written confirmation that the bank is not entitled
    to combine the clients’ money account(s) with any other account
    or to exercise right of set-off or counterclaim against money in
    that accounting respect of any sum owed to it or any other
    account of the business;
  5. Have and maintain systems and controls which enable you to
    monitor and manage clients’ money transactions and any credit
    risk arising;
  6. Have accounting systems and client data securely controlled and
    protected;
  7. Obtain client’s written approval to make payments from their
    account;
  8. Bank all clients’ money at the earliest reasonable opportunity;
  9. Nominate authorised staff to handle money
  10. Ensure that records show any and all cash transactions
  11. Reconcile client accounts together with bank and cash balances at
    regular intervals in order to demonstrate control over the
    accuracy and completeness of accounting records;
  12. Ensure there are always sufficient funds in the account to pay all
    amounts owing to clients; and
  13. To pay amounts owing to clients as they fall due without delay.

UKALA CMP Guarantee

UKALA CMP Insurance Certificate