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Bank Safeguarding Letters and Client Money Protection (CMP)

This article explains the process for Bank Safeguarding Letters and Client Money Protection (CMP) requirements when using Calmony client banking services.

What is a Bank Safeguarding Letter?

A Bank Safeguarding Letter is a document issued by our banking partner, Griffin Bank, confirming that your client money account is held in a designated safeguarded account. This letter provides evidence that client funds are protected in accordance with regulatory requirements.

Requesting Your Bank Safeguarding Letter

Once your Calmony client banking account has been opened and is operational, you may request a Bank Safeguarding Letter. To request your letter, please contact us via your usual support channel or email support@calmony.co.

Client Money Protection (CMP) Membership

Your CMP Responsibilities

Under UK legislation, it is the agent's responsibility to obtain and maintain Client Money Protection (CMP) membership and appropriate insurance. This is a legal requirement for letting agents who hold client money, and compliance remains solely your responsibility as the account holder.

Calmony provides the banking infrastructure for client money handling, but CMP membership the responsibility of the property agent.

Bank Verification Requirements

Griffin Bank, our banking partner, may request to see your CMP Certificate as part of their ongoing compliance checks. Please ensure you have your current CMP certificate available and can provide it upon request.

IMPORTANT: failure to provide a CMP certificate will result in Calmony notifying your local trading standards department if we believe you are operating without CMP 

Rescinding of Bank Safeguarding Letters

When We May Rescind a Bank Safeguarding Letter

We may rescind (withdraw) a previously issued Bank Safeguarding Letter under the following circumstances:

  1. Contract Cancellation: If you cancel your Calmony contract after the minimum 12 month term, or during any subsequent 12 month rolling term
  2. Outstanding Invoices: If there is an outstanding and unpaid invoice on your account
  3. Failure to Deposit Funds: If there is a failure to deposit funds into the bank account within the allotted timeframe

Notification Process

In the event that any of the above conditions apply, we will:

  1. Notify you of our intention to rescind the Bank Safeguarding Letter, specifying which condition has been triggered
  2. Notify your current CMP provider of the rescission

This notification ensures all relevant parties are aware of the change in your account status, allowing appropriate action to be taken regarding your CMP membership.

Frequently Asked Questions

How long does it take to receive a Bank Safeguarding Letter? Once requested, Bank Safeguarding Letters are typically issued within 5 working days.

What should I do if my CMP provider contacts me about a rescission notice? Contact Calmony immediately to resolve the underlying issue, whether that is an outstanding payment, contract matter, or funding requirement.

Can I reinstate a rescinded Bank Safeguarding Letter? Yes, once the triggering condition has been resolved (payment made, contract renewed, or funds deposited), you may request a new Bank Safeguarding Letter.

Contact Us

For questions about Bank Safeguarding Letters or the CMP process, please contact:

Email: support@calmony.co

INTERNAL PROCESS FOR CALMONY

Bank Safeguarding Letter Rescission Procedure

Step 1: Identify Trigger Condition

When one of the following conditions occurs, initiate the rescission process:

  • Customer ending their contract with Calmony (after minimum term or rolling term)
  • Failure to pay for services (outstanding invoice)
  • Failure to deposit funds within 60 days

Action: Document which condition has been triggered and the relevant dates.

Step 2: Notify the Customer

Send formal notification to the customer of our intention to rescind the Bank Safeguarding Letter.

Email Template Subject: Notice of Intent to Rescind Bank Safeguarding Letter
Key Content: State the specific condition triggered and provide opportunity to remedy (where applicable).

Step 3: Issue Rescission Letter to Tri-Parties

Issue the formal rescission letter via email to all three parties:

  1. Account Holder: The primary contact who opened the Calmony account
  2. CMP Provider: The customer's Client Money Protection scheme provider
  3. Internal Record: File copy in customer account records

Step 4: Identify the CMP Provider

If the CMP provider is not known or on record, check the following membership databases:

UK CMP Provider Lookup Links:

Step 5: If CMP Provider Cannot Be Identified

If the membership cannot be found through the provider websites:

  1. Contact the customer directly requesting confirmation of their CMP membership details
  2. Allow 3 working days for response

Step 6: No Response from Customer

If the customer fails to reply within 3 working days:

  1. Identify the local authority Trading Standards office based on the agency's registered application address
  2. Notify Trading Standards that the agency may be operating without valid CMP membership
  3. Document all correspondence and actions taken

Trading Standards Contact: Find the relevant local authority at https://www.gov.uk/find-local-trading-standards-office