Compliance
We carry out proactive audits to check that businesses are operating in line with best practice, as set out in the General Membership Obligations and/or Codes of Practice. We support businesses to be fully compliant and deliver a high standard of service to their customers.
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What is our audit process?
- A business is chosen at random and a desktop audit is carried out by our compliance team.
- The results are shared with the business.
- If further action is needed, we tell the business what it needs to do to be compliant and will share guidance to support them.
- The business submits evidence of the changes it has made within four weeks.
What do we check for?
About your business
We will check your membership information to make sure our records are up to date. The survey must be completed by the nominated contact listed in your business details.
Our logos
You must prominently display our logo in the window of all offices, on your website(s) and on all relevant documentation. This includes marketing materials, property adverts, letterheads, emails and other digital communications. Contact us to request the relevant logo – please include your membership number in your message (you will find this on your initial request letter).
In-house complaints procedure
As part of your membership obligations, you must maintain and operate an internal complaints procedure. This must be in writing and should explain how customers can complain to you and the timescales, which are outlined in our Codes of Practice. Your procedure should also include how a consumer can refer their complaint to us within 12 months of receiving your final viewpoint letter and our contact details (website, email address, phone number and postal address).
Client Money Protection (CMP)
CMP is a legal requirement for letting agents in England that deal with client money. The rules are different in Scotland, Wales and Northern Ireland so do refer to the government’s CMP guidance. You are required to display your certificate prominently on your website(s) and in any office.
Anti Money Laundering (AML) registration
If your services include residential sales, you must be registered with HM Revenue and Customs (HMRC) for money laundering supervision. Letting agents must register for supervision if you meet all the following criteria:
- Acting as a letting agency business for a month or more.
- Manage residential or commercial properties which, individually, generate over 10,000 euros per month.
- You do not need to register if you are a lettings agent only carrying out lettings work that is not defined within the regulations. For example, below 10,000 euros rent per month.
Letting agents must check if tenants and landlords are subject to UK financial sanctions to prevent money-laundering. More information is available on GOV.UK.
Information Commissioner’s Office (ICO) registration
Under the Data Protection Act, individuals and organisations that process personal information need to register with the ICO unless they are exempt.
How do we help businesses stay compliant?
With industry input, we’ve produced a range of complaint handling toolkits for different sectors that you can use. These documents are under review, pending upcoming legislative and regulation changes.
What happens if a business is non-compliant?
If a business does not pass the compliance audit on initial inspection, we will explain what it needs to do and offer help and guidance to make sure it becomes compliant.
Many of the things we check are required by law. If a business is inspected by Trading Standards and the requirements are not in place, you could be fined up to £5,000 for each area of non-compliance. We always aim to work constructively with businesses, but where there are concerns that a business may be operating outside of legislation, we may need to share our findings with Trading Standards.