Landlord’s guide to client money protection schemes

There are in fact 5 CMP schemes - RICS, ARLA, NAEA, NALS and the Law Society. Whilst NAEA & ARLA are both under the NFoPP umbrella, its important to note that both organisations members will have CPM. It must be noted that only Licensed members of ARLA and NAEA will have CMP, Individual members will not if their firms partners, principals or Directors are not themselves members. Individual ARLA and NAEA members can only display their accreditation and logo on personal stationery. This is under review by ARLA as it may cause confusion to consumers. Together with NALS, these 5 organisations offer CMP via insurance backed schemes whilst RICS & the Law Society's members contribute to a fund.

Only agents who are bound by membership of these 5 schemes may hold deposits under the TDS. These agents will not only have CMP, but also Professional Indemnity Insurance, a dedicated, ring fenced clients account which is audited each year, membership of an independent redress scheme and be bound by a strict code of practise.

For an agent to be a member of SAFEagent, they will need to demonstrate that they hold CMP and as such will be a member of obne of the 5 regulators as CMP is categorically not available elsewhere. . Premiums are paid annually in advance and cover continues unless that member leaves the regulator of which they are a member, or they are expelled.
SAFEagents display a sticker in their window which clearly shows the year for which they are covered. In the event that membership is not renewed or lapses, checks are made to ensure that that agent does not use the SAFE mark on their website.

Thank you for the further clarification Eric, excellent.

Letting Agents although compliant can not join SafeAgent unless they are also a member of bureaucratic organisations such as ARLA id suggest their aim is not to "promote money protection" instead promote the voluntary bureaucratic schemes.

In addition id suggest to Landlords to not allow any Letting Agent to hold onto three months rent of which these schemes apparently cover, ensure you get paid month by month. You wont find me letting 3rd parties hold 3 months or more rent on my behalf because they have a logo on their website or letterhead.

@Your Letting - perhaps you would be kind enough to clarify your comment - "Letting Agents although compliant can not join SafeAgent unless they are also a member of bureaucratic organisations such as ARLA". The reason I ask is that an agent cannot have Client Money Protection Insurance unless they are members of one of the 5 regulators. SAFEagent was only intended to promote consumer awareness and has no interest in promoting anything else. There is, after all, no benefit in doing so as SAFE is entirely independent and non commercial. Its an initiative started by agents for agents.

I record that the only bureaucracy in respect of such organisations is the requirement for independently audited accounts, CMP and proof of PI insurance as well as membership of an independent redress scheme. There are many good agents who don't subscribe to such schemes, however, its how the consumers tells them apart from the rogues which is the key issue.

@Eric Walker - I totally agree, until CMP becomes compulsory for letting agents, evidence of one or more corporate memberships to the 5 professional bodies or an up to date SAFE sticker in a letting agents window is all that landlords and tenants can rely on to ensure their money really is protected.