The Client Money Protection Schemes for Property Agents (Approval and Designation of Schemes) Regulations 2018

Conditions with which scheme administrators must comply E+W

8.—(1) The scheme administrator must provide each scheme member with a certificate confirming that person's membership of the scheme as soon as reasonably practicable [F1 —

(a) after that member joins the scheme, and

(b) after the scheme rules are amended under paragraph (1D)(a) or in accordance with a notice served under paragraph (1D)(b).]

[F2 (1A) Paragraphs (1B) to (1E) apply if the rules of the scheme have the effect of requiring the scheme administrator to make good the liability of a scheme member—

(a) only up to a certain amount,

(b) only within an aggregate limit on the liability of the scheme as a whole, or

(c) only in relation to certain risks.

(1B) The certificate provided under paragraph (1) must include—

(a) information about the amount referred to in paragraph (1A)(a),

(b) information about the limit referred to in paragraph (1A)(b), or

(c) details of where to find information about the risks referred to in paragraph (1A)(c),

as the case may be.

(1C) Paragraphs (1D) and (1E) apply if the Secretary of State considers that—

(a) the amount referred to in paragraph (1A)(a) is no longer appropriate,

(b) the limit referred to in paragraph (1A)(b) is no longer appropriate,

(c) it is no longer appropriate for the rules of the scheme to exclude liability in relation to one or more of the risks referred to in paragraph (1A)(c), or

(d) it is appropriate for the rules of the scheme to exclude liability in relation to one or more risks that are not among the risks referred to in paragraph (1A)(c).

(1D) The Secretary of State may—

(a) where the Secretary of State is the scheme administrator, amend the scheme rules with the effect that the amount, the limit or the risks are replaced with such different amount, limit or risks (as the case may be) as the Secretary of State considers appropriate;

(b) in any other case, serve a notice on the scheme administrator requiring that person to amend the scheme rules with the effect that the amount, the limit or the risks are replaced with such different amount, limit or risks (as the case may be) as the Secretary of State considers appropriate.

(1E) The scheme administrator must comply with a notice served under paragraph (1D)(b)—

(a) within the period of 30 days beginning with the day on which the notice is served, or

(b) within such longer period beginning with that day as the Secretary of State may specify in the notice.]

(2) The scheme administrator must, in relation to each quarter of the financial year, provide such information as the Secretary of State may require on the operation of the scheme within a month of the end of the quarter or by such later date as is notified to the scheme administrator by the Secretary of State.

(3) The scheme administrator must provide a relevant person with such information relating to a member's membership or a claim under the scheme as the relevant person may require in connection with their functions.

[F3 (3A) The scheme administrator must maintain insurance that—

(a) covers any foreseeable liability which may arise in connection with the failure of scheme members to account for client money to persons entitled to that money, and

(b) is appropriate with regard to the size and number of scheme members and the amount of client money held by scheme members.

(3B) Before renewing the scheme's insurance, the scheme administrator must obtain the approval of the Secretary of State to the type and amount of insurance.

(3C) The Secretary of State may approve the renewal of the scheme's insurance only if the Secretary of State is satisfied that, if the insurance is renewed as proposed, the scheme administrator will continue to comply with paragraph (3A).]

(4) Within a month of renewing the scheme's insurance, the scheme administrator must provide the Secretary of State with confirmation of the renewal by sending a hard copy of the broker's certificate or similar document detailing the type and amount of insurance held by the scheme.

(5) The scheme administrator must publish on the scheme's website—

(a) the scheme's procedures for making claims against the scheme, the investigation and determination of such claims and dealing with any complaints that may be made under the scheme [F4 ,

(aa) where paragraph (1B) applies—

(i) information about the amount referred to in paragraph (1A)(a),

(ii) information about the limit referred to in paragraph (1A)(b), or

(iii) information about the risks referred to in paragraph (1A)(c),

as the case may be, and]

(b) a copy of a current broker's certificate or similar document detailing the type and amount of insurance held by the scheme.

(6) In this regulation—

“financial year” means a period of 12 months beginning with 6th April; and

“relevant person” means—

(a)

any person exercising functions under an approved or designated scheme;

(b)

any person exercising functions under a tenancy deposit scheme within the meaning of section 212(2) of the Housing Act 2004 M1 ;

(c)

any person exercising functions under a redress scheme approved or designated in accordance with provision made under section 87 of the Enterprise and Regulatory Reform Act 2013 M2 ;

(d)

any local authority in England exercising functions under regulations under section 135 of the 2016 Act; and

(e)

any other person exercising regulatory or enforcement functions in relation to property agents.

[F5 (7) In this regulation, references to renewing a scheme's insurance (however expressed) include obtaining new insurance.

(8) Paragraphs (2), (3B), (3C) and (4) do not apply where the Secretary of State is the scheme administrator.]

Textual Amendments

F1 Words in reg. 8(1) inserted (14.2.2019) by Tenant Fees Act 2019 (c. 4), ss. 22(5)(a), 34(1) (with s. 22(6)); S.I. 2019/260, reg. 2

F2 Reg. 8(1A)-(1E) inserted (14.2.2019) by Tenant Fees Act 2019 (c. 4), ss. 22(5)(b), 34(1) (with s. 22(6)); S.I. 2019/260, reg. 2

F3 Reg. 8(3A)-(3C) inserted (14.2.2019) by Tenant Fees Act 2019 (c. 4), ss. 22(5)(c), 34(1) (with s. 22(6)); S.I. 2019/260, reg. 2

F4 Reg. 8(5)(aa) substituted for word (14.2.2019) by Tenant Fees Act 2019 (c. 4), ss. 22(5)(d), 34(1) (with s. 22(6)); S.I. 2019/260, reg. 2

F5 Reg. 8(7)(8) inserted (14.2.2019) by Tenant Fees Act 2019 (c. 4), ss. 22(5)(e), 34(1) (with s. 22(6)); S.I. 2019/260, reg. 2

Commencement Information

I1 Reg. 8 in force at 21.6.2018, see reg. 1(2)

Marginal Citations

M1 2004 c.34.

M2 2013 c. 24.