CMP Annual Reviews and Audits

Letting Agents in the UK, handling client money (landlord and/or tenant), must have in place a Client Money Protection Scheme.

There are several such schemes available in the UK by providers:

• Client Money Protect;
• Money Shield;
• Propertymark;
• RICS;
• Safeagent (previously NALS); and
• UKALA Client Money Protection.

Recognised CMP Scheme Providers

Each provider applies their own set of requirements for ensuring Letting Agents remain compliant with their scheme. For example:

• Agents must stay within a Maximum Client Account Balance held by an agent in the preceding 12 months. For example, Money Shield has a maximum balance of £500,000. Propertymark has different price tiers for larger Client Account Balances held.
• Schemes handling smaller balances, below £250,000, require simpler annual compliance checks in the form of copies of bank statements and PDF copies of relevant insurances and certificates.
• Some schemes require a full Accountants Report on Client Money which must be obtained from a suitably qualified accountant.
• Some schemes support agents using The Letting Partnership HealthCheck instead of an Accountant's Report. Namely, Client Money Protect, Money Shield and Propertymark.
• There are further regional differences for Wales and Scotland.

Below is a summary of the pricing as of June 2025.

Detailed Audit Requirements

Where an agent is subject to a detailed audit, common requirements of CMP Schemes:

1. Accounting Records

Auditors will review accounting records concerning how client money is handled. Primary records usually required include:

• Client Account Bank Statements – for the audit period.
• Evidence of Reconciliations between Bank Statement and Ledger.
• Cash allocation report – showing the client money held, broken down by landlords, tenants, suppliers and any historical/suspense balances.
• Random sample of transactions – an auditor would select a sample of transactions and will follow through the primary records to confirm correct calculation and treatment in the ledger and eventual pay-out.
• Review of supporting documents – such as invoices, bills and landlord statements.

💡 Processes should be written, for example: How funds are received, stored, and paid out.

2. Compliance and Process Documentation

Auditors will seek to review an agents Client Account processes and how they match the procedures published to landlords and agents to review.

Processes should be written, for example:

• How funds are received, stored, and paid out.
• Who authorises payments.
• Segregation of Duties between preparation, approval and payout.
• How systems and software is used.

3. Regulatory Checks

• Proof of Membership to the CMP.
• Professional Indemnity Insurance Certificate.
• Tenancy Deposit Scheme Membership.
• Client Account Confirmation Letter – from the providing bank, confirming the bank account is treated as a designated client account.

4. Changes in the Rental Portfolio

• List of all tenancies.
• List of tenancies ended and started in the period.
• List of rents in arrears.

Consider using The Letting Partnership HealthCheck

If a Letting Agent today pays and obtains an Accountants Report as part of their annual compliance renewal for the following schemes: Propertymark, Money Shield or Client Money Protect, then they would also be eligible to use the TLP HealthCheck.

The TLP HealthCheck is a fast-track compliance process. Simply complete an online questionnaire and the TLP Compliance Team will run their checks providing their assessment within a short timeframe. For more information, visit our HealthCheck page.

This article is intended as a guide only and does not constitute legal advice. If in doubt seek professional legal advice.

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