A new Client Money Protection scheme has launched. It previously had a working title of ARLA Lite.
Owned jointly by trade body Propertymark and The Dispute Service, in association with The Property Ombudsman, it allows agents to have the insurance without being a member of a trade body.
Called Money Shield, Propertymark is the scheme administrator.
It is available to all agents, and describes itself as a “straightforward and cost-effective solution, allowing agents to obtain robust protection for their clients without membership of a professional body”.
It is said to cost £400 per firm.
The unusual press release announcing its launch said: “Spokespeople from Money Shield, Propertymark, TDS and TPO said: ‘Before the Government’s announcement on compulsory CMP last year, many consumers didn’t consider the financial risks of using an agent who didn’t offer protection.
‘Consumer awareness has now grown, and landlords and tenants are now far more aware of the dangers and associated risks.
‘We urge all letting agents and estate agents across the country to get ahead of the curve and enrol now before the legislation comes into effect, to gain ground on your competitors and avoid falling foul of the law.'”
Compulsory CMP is due to be implemented early next year, shortly before the ban on tenancy fees comes into effect.
We reported the launch of what was previously known as ARLA Lite back in March.
Comments (5)
Also, what does ‘in association with the TPO’ mean. Aren’t they supposed to be entirely independent with no commercial interests or bias? yet I see they are promoting this product via twitter…..
Double standards?
The Gov have not announced any of the authorised CMP schemes thus far, so anyone looking to purchase would be well advised to wait until that has been announced.
I’m a few months off launch yet but I am hoping to offer client money protection too. I simply don’t like that Propertymark is no longer a members association, trade body and are moving closer and closer towards becoming a commercial, for profit, regulator, with a virtual monopoly (we know all about monopolies and duopolies thank you very much)
In my book there has been a wholesale failure to serve and protect the honest and decent agents in the industry. If there is a commercial opportunity to profit from regulation it is reasonable there’s competition on prices and service to agents.
I have a few hoops to jump through yet but they’re nothing I can’t manage given the experience I have of building benchmark systems that have been protecting clients’ clients’ money for the past 24 years. If I achieve nothing more than controlling the costs of CMP insurance, which I still consider would be unnecessary if the audit process was more effective (automated, monthly reconciliation reporting) that will be enough for me.
To give you some idea on cost I am looking at a premium that is less than £300 with a target of £250 but that is a work in progress.
For once I have to disagree with you there Robert. Purely on the basis that the member benefits are huge. Problem I find is the members aren’t using them as much as they should and then making assumptions that it no longer represents its members in the way it should. Do a little bit research and see what other trade bodies in other sectors do and charge and I think you’ll be really surprised at how good value for money the ARLA membership is. The legal helpline alone is worth the subscription let alone the vast amounts of fact sheets, lobbying, MP agent tool kits and an array of other benefits. There has to be some kind of commercial edge in order to supply the members with said benefits. The ARLA conference alone costs propertymark a fortune. I spend a lot of time on the ARLA website and there’s so much on offer as a member.
When I travelled to Westminster to present evidence of wrong-doing on an industrial scale, breaches of CPR and BPR and was described as an irritant, persona non grata and then denigrated by Peter Savage at last years AGM I am not assuming anything about the Propertymark that’s not based on fact and personal experience.
The work I and others did on portaljuggling had a strong benefit to the honest, decent agents in the country, that work was described by Mark Hayward as of no consequence, a nothing and agent’s gripes.
If you are getting good value from Propertymark that’s great. I am looking to provide a service for those who will need a service to be legally compliant but who are not inclined to support or subsidise an organisation where they no longer have any influence or say in it’s running or direction, the very agents Propertymark are targetting with this announcement.