The Property Ombudsman (TPO) is canvassing its members’ views on Client
Money Protection (CMP) insurance. The TPO does not currently require its member letting agents to hold CMP. It does, however, require them to have Professional Indemnity insurance, to
hold clients’ money in separate accounts and to abide by the TPO’s code of
practice. Bill McClintock, chairman of the TPO operating company, said:
“Given that the code of practice is generally accepted as the primary
standards document in the industry, the omission of such an important aspect
needs to be addressed. This is something the board and the Ombudsman,
Christopher Hamer, have been considering for some time, and recent incidents of
both landlords and tenants suffering financial loss means action on CMP is now
imperative.”
The consultation paper sets out various options and points out that members of
ARLA, NALS, and RICS are required to have CMP. McClintock is asking TPO members whether CMP should be made a mandatory
requirement, or whether there should be an alternative fall-back position
requiring all TPO member firms without CMP to disclose it in writing and
actively flag its absence at the point of instruction. McClintock said:
“TPO and its codes of practice are part of a consumer protection regime
with the firm objective of raising standards in the industry. Whilst TPO cannot
force agents to sign up to the code, firms should see the codes as enhancing
the reputation of the industry, and for those that are already members of TPO,
the addition of a clause requiring CMP will enable them to demonstrate to
landlords and tenants that their money is protected. TPO is a not-for-profit
company and will not itself offer CMP to member firms as a new revenue stream.
It is not appropriate for TPO to offer such services but I believe it is
appropriate for member firms to have such cover. However, members now have the
opportunity to express what they think should be the minimum required
standard.”
Here at Applegate Lettings, we're happy to say that as members of ARLA (the Association of Residential Letting Agents) we do hold Client Money Protection Insurance as well as Professional Indemnity Insurance to fully abide by the Property Ombudsman's code of practice, and their recommendations.
Just another reason why so many landlords choose Applegate Lettings to represent them and their properties!
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