News & Blog

Client Money Protect becomes first to gain government approval to operate a CMP Scheme











Client Money Protect, part of the Hamilton Fraser group of companies and partner of the Property Redress Scheme, has gained formal government approval to operate a client money protection scheme when the regulations go live on April 1st 2019. From April 1st, it will become mandatory for all letting agents and property managers in England to be a member of an approved client money protection scheme or face fines and sanctions for non-compliance.


Client Money Protect will offer a scheme that is fully compliant with the regulations and will feature no inner limits or annual aggregate claim caps meaning every customer of the agent is fully protected should the worse happen and every member of the scheme will have all their client money covered.  Missing deposits that are not protected by an authorised tenancy deposit protection scheme will also be covered as will bank failure up to a certain level.  


Professional indemnity insurance, crime and directors and officers insurance can also be added to the membership thereby offering a complete package of protection for both the letting agent and their clients.   


Membership of Client Money Protect is available immediately although it will not be mandatory to join the scheme until 1st April.  


Eddie Hooker, CEO of Hamilton Fraser commented on the approval:

“After being fully involved in the consultation and shaping of the Client Money Protection legislation, we’re delighted with today’s approval.

As administrators of a CMP scheme since 2014, which enabled agents to join on a voluntary basis, we are proud to have been approved to continue providing CMP under the new legislation. We have worked hard to create a scheme that fully encapsulates the principle of what the government is trying to do by introducing mandatory client money protection. We want to be the gold standard of client money protection schemes.

In an increasingly regulated industry in which landlords are feeling the strain, this will offer some positive news in landlords’ and tenants’ favour.  Tenants’ deposits will remain covered by the deposit protection schemes, but CMP will act as a backstop should there be an issue.”


Paul Shamplina, the founder of Landlord Action and brand ambassador for Hamilton Fraser, added:

“Having dealt with too many cases where landlords and tenants have fallen victim to rogue letting agents who have misappropriated their money, I have long championed this move for our industry.  However, the challenge of educating consumers to understand the importance of ensuring their agent holds CMP will continue, but hopefully this will raise awareness and standards.”


About Client Money Protect:

Client Money Protect (CMP) is a client money protection Membership designed to protect client money held by Property Agents and Professionals. The Member’s clients are protected in the event that the Member misappropriates the client money held in the course of running their business.


Client Money Protect is a trading name of CM Protect Limited.
CM Protect Limited is a subsidiary of and an Introducer Appointed Representative of HFIS plc. who are authorised and regulated by the Financial Conduct Authority.


CMP is currently the only client money protection membership scheme in the UK that agents can join without having to become a member of a trade body.


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Authorised by

Property Redress Scheme is approved by Government under the Alternative Dispute Resolution for Consumer Disputes (Competent Authorities and Information) Regulations 2015