LettsPay is warning agents that Client Money Protection (CMP) regulations are written in such a way that they have been interpreted to be inflexible with new initiatives such as Electronic Money Institutions (EMI).

Speaking on The Home Stretch podcast Matt Gibbard, Business Development Manager from LettsPay, talks to Iain McKenzie, Chief Executive of The Guild of Property Professionals, about the potential pending issue with regard to client accounts and letting agents.

DILEMMA

Proptech could be a solution to the dilemma – LettsPay is an automated client accounting engine that makes reconciling tenant rental payments and remaining compliant far easier.

Gibbard tells that McKenzie that proptech platforms such as LettsPay are revolutionising the market.

Originally holding the funds in an EMI and not a bank, this gave flexibility and security to the agents.

However, the Client Money Protection (CMP) regulations are written in such a way that they have been interpreted to be inflexible with new initiatives such as EMIs.

Gibbard notes that a rental collection platform will help letting agents save time while ensuring they remain compliant with CMP and AML regulations.

“We have built the system which tracks where every penny comes from and where it is going, ensuring agents are fully in control of their clients’ money,” he says.

DESIGNATED

“Through the system, each firm would have an automated designated client account for each of their landlords to speed up reconciliation, but the funds are stored in a bank, which has a full reconciliation and audit trail, all under the name of the agent.”

During the podcast, McKenzie and Gibbard discuss various other aspects around client accounts and how proptech platforms can help agents manage their lettings portfolios, deal with the required legislative requirements and save time, while remaining compliant.

Listen to the latest The Home Stretch HERE.