Government’s approval of RICS’ Client Money Protection scheme is welcomed
Principle Estate Management has welcomed the government’s approval of the Royal Institution of Chartered Surveyors’ (RICS) Client Money Protection (CMP) scheme.
From 1 April 2019, RICS-registered firms holding money in regulated areas will automatically be registered on to the new CMP scheme for property agents, without the need for further registration.
This follows formal approval by the Ministry of Housing, Communities and Local Government.
Non-RICS regulated firms will have to take out additional cover to match the RICS CMP scheme.
Brett Williams, managing director at Principle, said: “News that the government has backed the RICS’ CMP scheme is excellent progress.
“This will ensure appropriate protection of their funds across all surveying services provided by the profession.”
To gain government approval, RICS has made a number of changes to the existing CMP arrangements, including:
- The annual aggregate claims limit for all registered firms holding client money will go up from £5.3 million to £10.3 million, regardless of the activity.
- The annual aggregate claims limit for activities falling under the regulations will have an additional aggregate limit of £20 million (bringing the total to £30.3 million in the regulated area).
- Registered firms providing services that come under the regulations will need to display their scheme membership certificates in a prominent place, once they have been issued by RICS.
- Registered firms will need to publish a client money-handling procedure on their website.
Mr Williams added: “Our clients can now be even more assured about the safety of their funds when working with us, which is yet another benefit of using RICS-registered companies.”
Principle was launched last year by Mr Williams, the former head of residential property management at CPBigwood in Birmingham and an experienced chartered surveyor.
The expanding company is based at Cornwall House in Lionel Street, Birmingham, and offers a national property management service.