News

Safeagent is delighted that the Government is proposing commonsense measures to tackle the difficulties lettings and management agents have in obtaining pooled client accounts (PCAs).

In response to HM Treasury’s consultation on Improving the Effectiveness of Money Laundering regulations, safeagent, the UK’s largest not-for-profit accreditation scheme for lettings and management agents, focused on PCAs from the point of view of its accredited firms. As the consultation paper recognised, many agents find it virtually impossible to open PCAs while banks continue to close existing PCAs of established letting agents, some of whom have been trading for decades, without any issues having been raised by their bank.

Safeagent called for improved access to PCAs for lettings and management agents who need a safe and cost-effective way to hold multiple clients’ funds. In its response to the consultation, the Treasury confirmed plans to remove the link between PCAs and Simplified Due Diligence (SDD) in the money laundering regulations (MLRs). New requirements for PCAs will instead be included in the MLRs, allowing financial institutions to offer PCAs under a wider set of circumstances than currently permitted under the SDD rules.

Isobel Thomson, chief executive of safeagent, says:

“For some time we have tried raising this issue, so it is excellent news that Government is addressing it with commonsense measures.

“For new firms, the inability to access a client account is a barrier to trade and is not conducive to a healthy market. For existing firms when faced with issues regarding their client account, it can prove hugely time consuming and stressful to resolve.

“What’s more, without a client account, agents cannot obtain or maintain inclusion under a Government-approved CMP scheme – and without CMP, they will be trading illegally. Local trading standards carry out spot checks and can impose fines of up to £30,000 on agents trading without CMP, so its importance cannot be underestimated.”