News
Client Money Protection bank deadline nears, agents warned
Monday 22nd March 2021
Letting Agent Today
Letting agents have only 10 days to open segregated client accounts or they could face being expelled by their client money protection scheme.
That's the view of industry supplier Client Money Protect.
Having a segregated client account has always been a requirement of the client money protection regulations, but agents were given two 12-month grace periods to comply, as many were experiencing issues opening pooled client accounts with UK banks and building societies.
The final grace period comes to an end on April 1 and agents must comply by the deadline or they could be expelled by their scheme.
Previously, agents reported issues such as being informed by their bank that they would need to open separate accounts for each landlord rather than a pooled client account, which would be impractical as many agents manage hundreds of landlords' properties.
Others claimed they were rejected as the lettings sector was considered too high risk.
Despite the extension to resolve these issues, some agents are still experiencing problems opening pooled client accounts, explains Kate Mutter-Bowen of Client Money Protect: "Some banks and building societies are asking agents for proof that they are a member of a client money protection scheme before they can open pooled client accounts.
"The problem is agents must have a client account before they can become a member of a client money protection scheme. This stalemate could lead to agents being expelled from their scheme."
Rest assured Affinity are fully compliant and our Client Money Protection Certificate can be viewed with this article.
