A new concession on the Government regulations for lettings within client money management, now provides protection for landlords and tenants should a letting agent become bankrupt or disappear. Whilst some 80% of letting agents already provide some degree of protection, the new addition to the regulations ensures that full protection becomes best practice for the industry.
This comes at a time when client money managers and SIPP trustees are having to comply with the regulation to separate trust money from all other client money. Reynolds Porter Chamberlain, City law firm, report that thousands of terms of business arrangements are having to be renegotiated due to contradictions within the FSA own current guidelines and the Client Assets Protection Regime (CASS).
Whilst latest changes to the CASS regulations were intended to reduce administrative time and costs, it appears that the opposite is true. Client Money Managers using technology to manage their customers and assets, seem to have an advantage.