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Client Money Protection

CONDUCT AND MEMBERSHIP RULES

 


Propertymark CMP Main Scheme Certificate.pdf

CONTENTS


INTRODUCTION
GENERAL OBLIGATIONS
CONDUCT RULES FOR ALL PPD MEMBERS

1. Accounting Rule
1.1. Introduction to the Accounting Rule
1.2. Interpretation and definitions of some key terms used in Client Accounting
1.3. Using a Client Accounting Service Provider (CASP)
1.4. General
1.5. Provision of this Rule to relevant staff and the reporting Accountant
1.6. Key elements
1.7. Access to, or availability of, Client Money
1.8. Client Money from members’ properties
1.9. Title and conditions of a Client (Bank) Account
1.10. Clients’ Money
1.11. Clients’ Money does not include the following:
1.12. Interest on Clients’ money
1.13. Payments into a Client (Bank) Account
1.14. Payments out of a Client (Bank) Account
1.15. Timing of banking
1.16. Methods of payment from a Client (Bank) account:
1.17. Signatories to payments from a Client (Bank) Account:
1.18. Record keeping (firms using a CASP; see also 1.3.2)
1.19. Books of record
1.20. Supporting documentation
1.21. Preservation of records
1.22. Computerised recording
1.23. Reconciliation(s) – format and frequency
1.24. Qualifications of Accountants
1.25. Eligibility of Accountants
1.26. Accountant’s report – timing and format (see clause 1.48)
1.27. Submission of report or HealthCheck
1.28. The relevant accounting period
1.29. Change of accounting period
1.30. Reporting when no Client’s Money has been held
1.31. Where a member is a PPD of more than one firm
1.32. More than one place of business
1.33. More than one CASP
1.34. Accountant’s Report – scope and content
1.35. Special requirements
1.36. Client accounting compliance check visits and investigations
1.37. Notification of such visits/investigations
1.38. Duty to co-operate and provide information/records
1.39. Scope of visits
1.40. Liability for costs of such visits/inspections
1.41. Ongoing liability to co-operate after membership ceases
1.42. Old or dormant Client balances
1.43. Identifying ownership of old or dormant funds
1.44. Donation of dormant funds to charity
1.45. Client Suspense Account after mergers etc.
1.46. Non-compliance – breaches of the Accounting Rule
1.47. Tri-partite agreements for audits
1.48. Client Account ‘HealthCheck’ in lieu of an Accountant’s Report
2. Duty to co-operate with requests for Client account inspections
3. Complaints handling procedures
4. Professional Indemnity (PI) insurance
5. Propertymark Client Money Protection (CMP)
6. Obligation to update information
7. Use of window stickers
8. Use of divisional logos
8.1. ARLA Propertymark Protected logo
8.2. NAEA Propertymark Protected logo
8.3. NAEA Commercial logo
8.4. NAVA Propertymark Protected logo
8.5. ARLA Inventories logo
8.6. Propertymark logo
9. Regulation by other organisations
10. Declarations
11. Anti-Money Laundering (AML)
12. Data Protection

CONDUCT RULES FOR ALL MEMBERS (see Clause 22)

13. General duty to uphold high standards of ethical and professional behaviour
14. Duty to assist in disciplinary proceedings
15. Whistle blowing
16. Duty not to accept secret commissions
17. Personal declarations
18. Information sharing
19. Sale, disposal and merger

MEMBERSHIP RULES FOR ALL MEMBERS

20. Designatory letters and their use
21. Continuing professional development (CPD) rules
22. Membership grades
22.1. Student grade
22.2. Associate grade
22.3. Member grade
22.4. Fellow grade
22.5. Deferred grade
22.6. Retired grade
22.7. ARLA Developer Membership
22.8. Affiliate grade
22.9. Changes that may affect status of membership
22.10.NAEA Propertymark Protected status
22.11.ARLA Propertymark Protected status
23. Suspended members
GLOSSARY

APPENDIX A – ACCOUNTANT’S REPORT

APPENDIX B – ARLA INVENTORIES CODE OF PRACTICE

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INTRODUCTION

The Conduct Rules for Principal, Partner or Director (PPD) members apply to all members who have
responsibility for one or more firms or companies as:

a) principal (sole trader), full equity partner (not associate), or director (listed at Companies
House), or
b) as ARLA Nominee PPD Developer Members as defined in clause 22.7

for firms that are engaged in the following business areas, according to their membership division(s):
NAEA Propertymark PPD members:

• Residential property sales
• Residential property lettings
• Residential property management
• Non-residential sales
• Non-residential lettings
• Non-residential property management
• Auctions (including property and chattels)
• Land and new homes
ARLA Propertymark PPD Members:
• Residential property lettings
• Residential property management
NAEA Commercial PPD Members:
• Non-residential sales
• Non-residential lettings
• Non-residential property management
• Business transfer
NAVA Propertymark PPD Members:
• Valuations
• Auctions (including property, chattels, land and machinery)
• Bailiff and insolvency practice
ARLA Inventories PPD Members:
• Inventories

GENERAL OBLIGATIONS
Obligations to provide information
Members have an obligation to provide the Membership Department with up-to-date information
about their employment, and also about any responsibilities as a PPD that are relevant to their
membership. See business areas to which the Conduct Rules for all PPD members apply (page 1). See
also www.propertymark.co.uk/working-in-the-industry/member-requirements.

Obligation to update information

PPD members must advise the Membership Department of any changes to companies of which they
are a PPD and that have business areas relevant to their membership. PPD members have an
obligation to update the Membership Department about any changes to business addresses, branch
openings and closures and changes in business structure, including business transfers, company
purchases and changes in company type.

Principal (sole traders), Partner and Director (PPD) members
It is a mandatory requirement for PPD members* to ensure that any company of which they are a
principal, partner or director and that is involved in agency is a member of an approved independent
redress scheme. Any firm involved in auctioneering will need to be members of TPOS.

*With the exception of ARLA Propertymark PPD members operating a letting agency based solely in
Scotland, as landlords and tenants of such companies would have access to redress through the First
Tier Tribunal and the exception of NAVA Propertymark PPD members operating as chattels valuers
only, as redress is not available to them.

PPDs should refer to The Property Ombudsman (TPO) scheme documents relevant to the work that
their firm undertakes. PPD members’ conduct will be judged with reference to these TPO documents,
regardless of the division(s) of Propertymark to which they belong. PPDs are also responsible for
their colleagues’ compliance with these documents, which are available from www.tpos.co.uk and
www.propertymark.co.uk/working-in-the-industry/member-requirements/professional-standards

Employees
Employees should refer to the TPO documents relevant to the work they undertake. Employees’
conduct will be judged with reference to these TPO documents regardless of the division(s) to which
they belong. Employees are expected to do all they can to comply with the detail and spirit of the
TPO documents. However, it is recognised that not all employees will be able to comply with all
aspects of the TPO Code at all times and each circumstance will be judged on its merits.

The remainder of these rules are divided into three categories:

• Rules that apply only to PPDs, including nominee PPDs
• Rules that apply to all members, employees and PPDs
• Membership Rules

Variation
Propertymark reserves the right to amend these rules, subject to agreement by the Propertymark
Board.

Note: Suspended members and current members who currently are subject to disciplinary
procedures (including appeals) remain subject to these Conduct Rules.


CONDUCT RULES FOR ALL PPD MEMBERS
1. Accounting Rule
(This rule does not apply to members of ARLA Inventories)
Members’ firms that are regulated by the Royal Institution of Chartered Surveyors (RICS),
the Law Society or the Law Society of Scotland are exempt from the requirements of this
rules.

1.1. Introduction to the Accounting Rule

1.1.1. The principles of this Rule shall apply to any PPD member’s firm that holds or
handles Client Money or that has a contract with a Client and then outsources the
Client Accounting to another organisation/legal entity.

1.1.2. These rules and the annexed Accountant’s Report or Accountant’s Report for Client
Money Entrusted to an Unnamed Client Accounting Service Provider define the
minimum level of accounting control required by a PPD where Clients’ funds are
transacted by the business of that member. It is presented in a manner that anyone
with a rudimentary knowledge of bookkeeping will find easy to comprehend. If
complied with, it should be impossible for a member to confuse Clients’ Money
with their own, or inadvertently to make improper payments.

1.1.3. In a partnership or company, all partners or directors share the responsibility of
maintaining a proper bookkeeping system. Any misappropriation or error by one
partner, director or a member of staff is the responsibility of every principal,
partner or director. It is therefore incumbent upon all principals, partners and
directors to satisfy themselves that any breach in the rules is rectified immediately.

1.2. Interpretation and definitions of some key terms used in Client Accounting
Accountant A suitably qualified or authorised person as detailed in clauses 1.24
and 1.25 of this Rule.

Accountant’s report The annual form duly completed and signed by the Accountant and
provided to Propertymark.

Bank The Bank of England, the Post Office (in the exercise of its powers to
provide banking services) or an authorised institution that has
permission to accept deposits under the Financial Services and
Markets Act 2000.

Building society As defined in section 119(1) of the Building Societies Act 1986 and is
an authorised institution that has permission to accept deposits
under the Financial Services and Markets Act 2000.

Client Any person or body for whom the PPD member’s firm or Client
Accounting Service Provider holds or receives Clients’ Money (which
may include a landlord or tenant, purchaser, vendor or contractor);
including past, present and prospective Clients.

Client Accounting
Service Provider (CASP)
A PPD member’s firm that manages Client Money on behalf of
another PPD member’s firm. See clause 1.3 for a fuller definition.
Client (Bank) Account(s) A suitably designated and recognised current or deposit account at
a bank or building society into which Clients’ Money is paid or
transferred. (See clause 1.9 of this Rule.) (Sometimes called a
pooled Client Bank Account.)

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Client’s ledger Documents, journals, file cards, printouts – handwritten or
mechanical or computer generated – which comprise a permanent
chronological record of transactions and balances for an individual
Client, at any time.

Clients’ Money Any money received or held by a member or PPD member’s firm or
its Client Accounting Service Provider to which they are not
beneficially entitled and over which there is exclusive control. See
Clause 1.10 of this Rule for a more detailed definition.

Connected
person/associate
A person is an associate of another if he or she is the spouse or a
relative of that other or a business associate of that other. A
relative is a brother, sister, uncle, aunt, nephew, niece, lineal
ancestor or lineal descendant. References to a spouse include a
former spouse and a reputed spouse. For the purposes of this
subsection a relationship shall be established as if an illegitimate
child or step-child of a person had been a child born to him or her in
wedlock.

Office Account Any normal trading, business or office bank account opened or
maintained by the member in which are held, or transferred, funds
belonging to the member and/or from which outgoings incurred or
due from the member, are paid; as distinct and separate from a
Client Bank Account.

Payment(s) Any type or style of disbursement, withdrawal or transfer from a
Client Bank Account.

PPD Member’s firm Firm (legal entity) under the control of any principal, partner, or
director who is a member of ARLA Propertymark, NAEA
Propertymark, NAVA Propertymark, ARLA Inventories or NAEA
Commercial.

Principal Agent (PA) The firm or firms named in the contracts with the Client.
Reconciliation An analysis that identifies, on a given date, any differences between
balances on Client ledgers against sums held in the Client Bank
Account(s) and the Client Account Cash Book.

Records All documentation relating to the necessary operation and
monitoring of the accounting/bookkeeping process in compliance
with the rules of membership (including any bye-laws, rules of
conduct, codes of practice including appendices of ARLA
Propertymark, NAEA Propertymark, NAVA Propertymark, or NAEA
Commercial).

1.3. Using a Client Accounting Service Provider (CASP)
PPD member firms wishing to use a CASP are required to adopt one of the following two
options:

• Use a named CASP (see 1.3.1), or
• Use a white label CASP service (see 1.3.2).
1.3.1. Use a named CASP. The following conditions apply:
(a) The CASP is a PPD member firm (excluding ARLA Inventories) or a RICS
regulated firm where Propertymark receives written assurances from RICS
that all Client Money is covered.

(b) All Client Monies are paid direct to the Client Account(s) owned by the CASP.
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(c) All terms of business, landlord and tenancy agreements must clearly identify
the legal names of the Principal Agents.

(d) All terms of business, landlord and tenancy agreements must clearly identify
the legal name of the CASP in all references to Client Money.
(e) The CASP is the only firm to be able to make payments/withdrawals from the
Client Account(s).

(f) The CASP provides Propertymark with a standard annual accountant’s report
for ALL the Client Money it handles. See Appendix A of the rules.
(g) Both Principal Agents pay the Propertymark CMP levy.

In this way the CASP has exclusive control of the Client Account, and all Clients
know who is handling their money. Liability to Clients remains with the CASP, and
not with the firm using the CASP. This then constitutes first party Client Accounting
by the CASP.

1.3.2. Use an unnamed CASP service. The following conditions apply:
(a) The CASP is a PPD member firm or a RICS regulated firm.
(b) All Client Monies are paid direct to the Client Account(s) owned by the CASP.
(c) The CASP is not clearly named in terms of business, landlord and tenancy
agreements.

(d) The legal name of the firm using the CASP (the Principal Agent) is clearly
stated in terms of business, landlord and tenancy agreements.
(e) All Client Monies are paid into a separate Client Account(s) designated to the
PA PPD member firm, and owned solely by the CASP.
(f) The CASP is the only firm to be able to make payments/withdrawals from the
Client Account.

(g) The PA and CASP both pay the Propertymark CMP levy.
(h) The PA maintains records of all Client Monies in accordance with the relevant
Propertymark rules. It may rely on schedules and reconciliations from the
CASP but these should be kept in paper form.

(i) The PA PPD member firm provides Propertymark with an Accountant’s
Report for Client Money Entrusted to an Unnamed Client Accounting
Service Provider on joining or on taking up the Client accounting
service, and annually thereafter. See Appendix A to the rules. The
report may be commissioned by the PA or CASP, but it remains the
responsibility of the PA to provide it to Propertymark.

1.3.3. Any member’s firm acting as a CASP as outlined in 1.3.2 must meet the following
requirements:

(a) Keep any such Client Money in a Client Account specifically designated to
each PA for whom it handles Client Money.

(b) Supply the PA with a copy bank statement from the Client Bank Account at
least monthly.

(c) Not limit the liability of the CASP to its PAs, or if there is any limitation it is, as
a minimum, at least the amount the PA has entrusted to it.

(d) Allow a suitably qualified Accountant to audit the CASP in respect of Client
Money held on behalf of the PA.

1.3.4. PPDs with member firms using a CASP where the arrangements do not comply with
one of the CASP options described in 1.3 must take one of the following actions in
order to continue with their divisional membership:
(a) Change their Client Money-handling arrangements in line with one of the
CASP options described in 1.3, or
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(b) Find another CASP which complies, or
(c) The member’s firm must handle all of its own Client Money.
1.3.5. Client Money subject to the Estate Agents Act 1979 must not be entrusted to a
CASP.

1.4. General
Propertymark reserves the right to waive or modify, with or without conditions, in any
particular case, the requirements and/or general provisions of this Rule.

1.5. Provision of this Rule to relevant staff and the reporting Accountant
It is the duty and responsibility of PPD members that this Rule is readily available to and
understood by all principals, partners and directors etc. of a PPD member’s firm and, most
essentially, by any staff responsible for operating the accounting process and procedures of
that firm. A copy of this Rule together with Appendix A must be provided to the reporting
Accountant prior to beginning an examination.

Member Firms must publish their client money handling procedures on their company
website and, upon request, make hard copies available, free of charge, to all customers. To
meet this obligation the following link to the Propertymark Conduct and Membership Rules,
http://www.propertymark.co.uk/media/1045366/conduct-and-membership-rules.pdf should
be added to the Member Firms website. The annual Accountant’s Report will require
confirmation that this Rule has been met.

1.6. Key elements
1.6.1. The relevant membership division requires its members to comply with these rules
in respect of their Client Accounts to ensure that Clients’ Money is protected. The
key basic elements that must apply to Clients’ Money entrusted to a PPD member’s
firm are as follows:

(a) Each transaction must be properly recorded in the PPD member’s firm’s
books/ledgers of account (paper, electronic or otherwise) so that it is clearly
identifiable to an individual Client.
(b) Monies must be paid into a specifically designated Client (Bank) account with
a recognised bank or building society and thus kept separate from the
member’s firm’s own money.
(c) All transactions must be monitored and reconciled on a regular basis.

1.6.2. Client (Bank) Accounts must be properly designated (see clause 1.9 below), easily
identifiable and the individual beneficial owners of any money contained therein
should be attributable, without difficulty, for the following main reasons:
(a) To prevent a bank or building society offsetting a credit balance in one
account against a debit or charge incurred by another.
(b) To enable a receiver or liquidator or other investigator to identify money that
does not belong to the member or their business.
(c) To allow such accounts to easily be monitored and reconciled both internally
and externally to demonstrate the financial integrity of the member and to
ensure the smooth running of its accounting practices.
Propertymark Conduct and Membership Rules V.01.01.2018

1.7. Access to, or availability of, Client Money
A member must ensure that, at all times, all Client Money is held in Client Bank Accounts and
is available on demand to Clients without undue delay or penalty. (For the avoidance of
doubt, Client Money must not be placed or held in off-shore accounts or fixed/variable rate
term bonds or similar funds or arrangements, unless the bank or building society falls within
the definitions in 1.2, funds are available on demand and any penalty for withdrawal is paid
by the member’s firm.)

Note: Any penalty for withdrawal of Client Money must be limited to interest earned.

1.8. Client Money from members’ properties
A member must not conduct personal or office transactions through a Client Bank Account,
save that it shall be permissible for the member to manage and collect rent on a property or
properties belonging to any principal, partner, or director of the firm, so long as the number
of properties involved are de minimis (no more than 5%), declared to and so recorded by the
Accountant while completing the annual audit. It is permissible to hold tenants’ deposit
monies relating to such properties in a Client (Bank) Account. This clause must be read in
conjunction with clauses 1.10.2 and 1.11.1.

1.9. Title and conditions of a Client (Bank) Account
1.9.1. All members who receive, or may receive, deposits in transactions to which the
Estate Agents Act 1979 applies shall open and operate a distinct Clients’ Account
for that purpose in accordance with the requirements of that Act and with the
Regulations made under it.

1.9.2. A PPD member’s firm that receives or holds Client money must maintain at least
one Client (Bank) Account for this purpose.

1.9.3. Any such account(s) must include both the word “Client” and the legal name of the
Principal Agent or CASP in the title.

1.9.4. The PPD member’s firm must hold on file in its records, written confirmation from
any bank or building society where a Client (Bank) Account is held, that the
following conditions apply to any such account(s):
(a) All money held in the account is Clients’ Money; and
(b) The bank or building society is not entitled to combine the account with any
other account or to exercise any right of set-off or counter claim against
money in that account in respect of any sum owed to it on any other
accounts of the member or the member’s firm.

1.10. Clients’ Money
Clients’ Money shall include the following:

1.10.1. Any money received or held by a member or PPD member’s firm or its Client
Accounting Service Provider to which they are not beneficially entitled and over
which there is exclusive control.

1.10.2. Money held in respect of properties owned jointly by a principal, or one or more
partners, or directors, together with a person who is not a co-principal, co-partner
or director of the member’s firm. (The member’s firm is considered a trustee for
such money, which must be paid into a Client Bank Account.)

Propertymark Conduct and Membership Rules V.01.01.2018
1.10.3. Payments or lodgements in respect of fees and/or disbursements received before
these have been earned or incurred by the member’s firm, or passed on to a third
party.

1.10.4. Tenants’ deposits passed to a Tenancy Deposit Scheme operating a custodial option
under the provisions of the Housing Act 2004 in England and Wales and the Housing
(Scotland) Act 2006 and the relevant regulations for such schemes.
Examples of Client Money may include:

(a) Tenants' deposits
(b) Rents
(c) Interest (if in an interest-bearing Client Account), but see 1.12.
(d) Arbitration fees
(e) Fee money taken in advance
(f) Clients' Money held but due to be paid to contractors
(g) Money held by members appointed as a Receiver
(h) Sale proceeds
(i) Purchase deposits
(j) Other money which is held on behalf of any Client related to the normal
business of estate agency, letting agency, business agency, auctioneering and
property management but excluding any money held for or in connection
with investment, saving, banking, conveyancing or any mortgage.

1.11. Clients’ Money does not include the following:

1.11.1. Money (other than tenants’ deposits) received in respect of properties wholly
owned by a principal, or by one or more partners or directors of the member’s firm.

1.11.2. Money held in an account from which a particular Client can separately make
withdrawals and so over which the member’s firm does not have exclusive control.
In the rare circumstances where such accounts are operated, the member’s firm
must promptly confirm to the Client in writing (and retain a copy) that:
(a) The account is not a Client Account;
(b) Such money is not covered by the Client Money Protection Scheme; and
(c) The account is not monitored as part of the Client accounting compliance
procedures.

1.11.3. For the purposes of Propertymark client account reporting, service charges and
other client monies collected for block management and/or holiday let purposes
are excluded. Client Money held for block management and/or holiday let activities
are not regulated by Propertymark.

1.12. Interest on Clients’ money

1.12.1. A member’s firm may enter into an arrangement, which must be in writing (for
example via terms of business, tenancy agreement, letter of engagement, pretenancy application documents or similar), with a Client (landlord or tenant) that
allows the member’s firm to retain interest earned on money held on a Client’s
behalf. (Such written arrangements/documents shall constitute part of the records
as defined in this Rule.) Where no such arrangement exists, any interest earned
belongs to the relevant Client.
Propertymark Conduct and Membership Rules V.01.01.2018

1.12.2. Subject to clause 1.12.1 above, where interest is credited to Client Bank Accounts
of a member’s firm, the Client Account(s) should be organised in such a way that
the member’s firm is able to account to each individual Client for the amount of
interest earned or due to them.

1.12.3. A member’s firm holding Clients’ Money (in this context, tenancy deposit bonds) as
stakeholder during a tenancy, is entitled to retain any interest that may accrue to
such money (Potters vs. Loppert 1973), providing this entitlement is made known to
the relevant Client(s), in writing, from commencement; i.e. in line with clause
1.12.1 of this Rule.

1.13. Payments into a Client (Bank) Account

Payment of money into a Client Bank Account is restricted to the following:

1.13.1. The minimum sum required to open or maintain the Client Bank Account;

1.13.2. Clients’ Money (see clause 1.10);

1.13.3. An amount required to be paid by a member’s firm to restore in whole or part any
money paid out, or withdrawn, in contravention of this Rule;

1.13.4. A cheque or bank draft that includes Clients’ Money as well as other money.

1.14. Payments out of a Client (Bank) Account

A member’s firm should withdraw, transfer or make a payment from a Client Bank Account
only in the following circumstances:

1.14.1. Money paid in to open or maintain the account in accordance with clause 1.13.1 of
this Rule and where it is no longer required.

1.14.2. Money paid into the account in accordance with clause 1.13.4 of this Rule, which
does not belong to the Client, for payment to the person lawfully entitled to it.

1.14.3. Within three working days of becoming aware of a relevant contravention, money
paid into the account in contravention of this Rule.

1.14.4. Money payable to a Client, or, to an appropriate person suitably authorised (in
writing) to receive such payments on that Client’s behalf.

1.14.5. Money being paid directly into another Client Bank Account.

1.14.6. Reimbursement of money to the member’s firm for money expended by the
member‘s firm on behalf of the Client.

1.14.7. Money lawfully and contractually due, in respect of a PPD member’s firm’s fees and
charges.

1.14.8. Legitimate disbursements, e.g. amounts subject to invoices, costs or demands
incurred or received on behalf of the Client.

1.14.9. Provided that in the case of money drawn under sub-clauses 1.14.6 and 1.14.7
above:

Propertymark Conduct and Membership Rules V.01.01.2018
(a) The payment is in accordance with lawful and contractual written
arrangements (for example via terms of business, pre-contract/tenancy
application documents, tenancy agreement, letter of engagement),
previously agreed between the parties; or
(b) The Client, or an authorised representative, has been notified or invoiced in
writing by the member’s firm of the amount and purpose for which the
money is being withdrawn and no objection has been raised within a
reasonable timescale.

1.14.10. Provided always that, under rule 1.14, no payment shall be made for or on behalf of
an individual Client that exceeds the total amount held on behalf of that particular
Client.

1.15. Timing of banking

1.15.1. A member’s firm must bank all receipts of Client Money into an appropriate Client
bank account within a maximum of two working days from the day on which it was
received.

1.15.2. All payments out of a Client bank account should be made promptly, and within not
more than 1 calendar month of becoming due.

1.16. Methods of payment from a Client (Bank) account:
Payment from a Client (Bank) account may be made by:

1.16.1. A cheque;

1.16.2. An electronic transfer to another bank or building society account, provided that
such an arrangement does not constitute a direct debit transaction;

1.16.3. A bank draft;

1.16.4. Cash (in exceptional cases and where sufficient (staff) safety and (financial) security
measures can, in the opinion of the member’s firm, be taken for the holding of such
money prior to payment; the handing over of such money and, where sufficient
records of receipt are obtained upon collection of the money).

1.17. Signatories to payments from a Client (Bank) Account:

1.17.1. To avoid undue delays or inconvenience to Clients or others entitled to receive
payments, during any absence from the business, the principal, partner or director
member must make adequate provision for designated personnel to be able to
authorise and/or make appropriate payments.

1.17.2. A member’s firm has a duty of care to ensure that appropriate controls exist around
the ability of any individual(s) to make payments from a Client Bank Account,
including making online payments, and must maintain an up-to-date and accurate
record listing, as a minimum:
(a) The full names of such persons; and
(b) Any limits or restrictions governing the amounts for which that individual is
authorised either exclusively or, jointly with others; and
(c) An example or specimen signature of each person.
Propertymark Conduct and Membership Rules V.01.01.2018

1.17.3. The original of such a list or schedule should be lodged with the relevant bank or
building society used by the member’s firm and a copy retained within the records
of the member’s firm.

1.18. Record keeping (firms using a CASP; see also 1.3.2)
Each member’s firm must keep properly detailed accounting records, using a bookkeeping
system that is adequately designed and operated. Such records need to record:

1.18.1. All Clients’ Money received, held or paid out by the firm;

1.18.2. The amounts, dates, names, property addresses, reference numbers and other
relevant details to identify individual transactions;

1.18.3. Any other money dealt with through a Client (Bank) Account, attributable to
individual Clients;

1.18.4. An individual Client’s balance of monies held, and a balance of all Clients’ Money
held.

1.19. Books of record
All dealings referred to in clauses 1.18.1 to 1.18.4 above shall be recorded as appropriate,
either:

1.19.1. In a Clients’ cash book, or in a Client’s column of a cash book; or

1.19.2. In a journal recording transfers from the ledger account of one Client to that of
another;

1.19.3. And, in either case, additionally in a Clients’ ledger or in a Client’s column of a
ledger.

1.20. Supporting documentation
Records must include a list of all persons for whom a member’s firm is or has been holding
Clients’ Money, reconciliation documents, and a list of all the bank and building society
account(s) in which the money is held and must include counterfoils or duplicate copies of all
receipts issued in respect of Clients’ Money received, which shall contain the particulars
required to be shown in the accounts.

1.21. Preservation of records
The records kept for the purpose of complying with this Rule must be preserved for six years
from the end of the accounting period to which they relate, or from when the account shows
a nil balance following a cessation of the contractual relationship between the parties,
whichever is the later. Propertymark recommends that a member’s firm consult with their
Accountant before disposing of, or destroying, any historic accounting records.

1.22. Computerised recording
Where a computerised bookkeeping system is in operation, this must be capable of
producing printed information to conform to this Rule, which therefore is or can be
preserved in a permanent format to comply with clause 1.21.
Propertymark Conduct and Membership Rules V.01.01.2018

1.23. Reconciliation(s) – format and frequency

1.23.1. Every member’s firm shall:
(a) Ensure all monies due to member firm are removed prior to final
reconciliations being undertaken.
(b) At least once every two calendar months (and within no later than ten weeks
of a previous reconciliation), reconcile the balance on their Client’s cash
book(s):
(i) With the balance in their Client Bank Account(s) using the
bank/building society statement(s); and
(ii) With the total of each Client’s balance in the Clients’ ledger; and
(c) Ensure that such documents necessary to support the reconciliation so
produced have been kept safe, complete and readily available in the cash
book or other appropriate place.

1.23.2. All such reconciliations should be checked and signed by the PPD member of the
company, or by such person formally appointed by the PPD, who shall not be the
person responsible for the preparation of such reconciliation. (This could be a
member of staff of the appointed reporting Accountant, provided this is carried out
within ten working days of the reconciliation.)

1.23.3. Reconciliations must be stored so as to be readily available at audit or inspection, in
accordance with 1.21.

1.24. Qualifications of Accountants
An Accountant is disqualified from making a report under this Rule if, at any time between
the beginning of the accounting period to which the report relates and the completion of the
report, the reporting accountant shall be a connected person to any principal, partner or
director of the member’s firm (whether Principal Agent or CASP) or to any member of the
staff employed by the member’s firm in the preparation of the Client Accounting records.
The Accountant must be a member of a relevant professional body and, where the Client
funds held are subject to the Estate Agents Act 1979 must be a registered auditor as per
section 1239 of the Companies Act 2006.

1.25. Eligibility of Accountants

1.25.1. Where this clause does not conflict with clause 1.24 above, an Accountant is eligible
and qualified to give an Accountant’s Report for the purposes of this Rule if he or
she is a member of any of the following:
• Institute of Chartered Accountants in England and Wales
• institute of Chartered Accountants of Scotland
• Chartered Accountants Ireland
• Association of Chartered Certified Accountants
and has a practising certificate from one of the aforementioned bodies, required to
undertake such work, where applicable.

1.25.2. And also, if the agent carries out transactions regulated by the Estates Agents Act
1979:
• An individual who is a registered auditor within the terms of Section 1239 of
the Companies Act 2006; or
• An employee of such an individual; or
Propertymark Conduct and Membership Rules V.01.01.2018 Page | 16
• A partner in or employee of a partnership that is a registered auditor within
the terms of the Companies Act 2006; or
• A director or employee of a company that is a registered auditor within the
terms of the Companies Act 2006; or
• A member or employee of a limited liability partnership under the Limited
Liability Partnership Act 2000 that is a registered auditor within the terms of
the Companies Act 2006.

1.26. Accountant’s report – timing and format (see clause 1.48)
Once in every period of twelve months each member‘s firm shall cause to be prepared and
delivered to Propertymark an Accountant’s Report or Accountant’s Report for Client Money
Entrusted to an Unnamed Client Accounting Service Provider on behalf of the member’s firm,
as appropriate. (See Appendices A and B to the rules).

1.27. Submission of report or HealthCheck
The report referred to in this Rule must be submitted to Propertymark by the member’s firm
no later than six months after the end of the accounting period to which it relates (if
completing the HealthCheck, please ensure information is supplied to The Letting
Partnership, allowing sufficient time to ensure the final report or HealthCheck is received by
Propertymark in accordance with this rule).. Late submission of Accountant’s Reports may be
pursued as a disciplinary matter. Such matters will be dealt with outside of the disciplinary
procedures. In these circumstances members may not have an opportunity to explain the
reasons for their delay. Instead, late submission is likely to result in an automatic fine of up to
£200 per breach of every separate requirement. Failure to provide an Accountant’s Report
within twenty eight days of the deadline will result in termination of all memberships of all
PPD members responsible for the firm. This timescale may be altered with prior arrangement
of Propertymark.

1.28. The relevant accounting period
The relevant accounting period:

1.28.1. Shall cover not more than twelve months*;

1.28.2. Shall begin at the expiry of the last preceding accounting period for which a report
under this Rule has been submitted to the Propertymark; and

1.28.3. Shall, where possible, correspond to a period or consecutive periods for which the
accounts of the member’s firm or CASP are ordinarily made up.
*Except where otherwise agreed by Propertymark (for instance, to allow for a change in yearend accounting date); in such circumstances Propertymark may at its discretion request
additional information in order to be satisfied of the continuing compliance of the member’s
firm.

1.29. Change of accounting period
A change of the accounting period of a member’s firm must be notified to Propertymark at
least one month before the end of the originally notified accounting period.
Propertymark Conduct and Membership Rules V.01.01.2018

1.30. Reporting when no Client’s Money has been held
Where a member’s firm has a Clients’ Account or uses a CASP but no Client’s Money has
been held during the relevant period, a report shall be completed, by the Accountant, to this
effect.

1.31. Where a member is a PPD of more than one firm
Where a member is a principal, partner or director of more than one firm, a separate report
for each firm must be submitted.

1.32. More than one place of business
Where a member’s firm has more than one place of business, one or more report(s) may be
submitted in respect of the business, provided that the report(s) cover(s) all Clients’ Money
held, received or paid out by the member’s firm.

1.33. More than one CASP
Where a member’s firm uses more than one CASP, then the requirements must be met for
each CASP.

1.34. Accountant’s Report – scope and content
It is the duty of each member’s firm to provide to their Accountant at appropriate times
(usually this would be both at the point of agreeing their terms of engagement and at the
time of the audit visit):

1.34.1. An up-to-date copy of this Rule, together with

1.34.2. The Accountant’s Report (Appendix A), which must be submitted to Propertymark
in due course with each page signed and dated by the reporting Accountant.

1.35. Special requirements

1.35.1. New PPD firms that have started trading with a Client (Bank) Account nil balance,
and have not yet had an accounting year end, are required to submit immediately
an Accountant’s Report. See Appendix A to the rules.

1.35.2. PPD member’s firms that begin to use an unnamed CASP as described at 1.3.2 are
required to submit immediately an Accountant’s Report for Client Money Entrusted
to an Unnamed Client Accounting Service Provider on behalf of the member’s firm.

1.35.3. New PPD applicants and current PPD members whose newly acquired company
inherited a Client (Bank) Account balance, or whose company has already had an
accounting year end, will need to submit immediately an Accountant’s Report for
the company’s last financial year.

1.35.4. For business transfers, company purchases, or changes in company type, or if it is
unclear what Client Account reporting is required, a PPD member must seek
instruction from Propertymark.
Propertymark Conduct and Membership Rules V.01.01.2018

1.36. Client accounting compliance check visits and investigations
Reason/rationale for such visits/investigations: In order to comply with obligations placed
on Propertymark under its Client Money Protection Scheme and its duty to both its own
membership and the public to robustly monitor compliance with Accounting rules,
Propertymark may, at any time, carry out or authorise a visit or inspection as part of the
random spot checks carried out by Propertymark from time to time upon a member’s firm(s)
or as a result of information coming to the attention of Propertymark.

1.37. Notification of such visits/investigations
The relevant selected member’s firm will be provided with at least a minimum of ten working
days’ notice of the intention to carry out such a visit.

1.38. Duty to co-operate and provide information/records
It is a condition of membership that a member’s firm co-operates with such a visit or
inspection and, in this regard, will be required to produce or make available, at a time and
place duly notified, such records and documents (howsoever maintained or stored) as
necessary for inspection and review by a person appointed by Propertymark, in order that a
report on compliance may be produced. CASPs must ensure that their terms of business
allow Propertymark access to their Client Account records for inspection visits or audit
purposes.

1.39. Scope of visits
Such visits or investigations may or may not comprise an audit (insomuch as this term applies
to compliance with this Rule) and may or may not be restricted to an assessment of the
systems, procedures and controls operated by the member’s firm with regard to the
Accounting rules.

1.40. Liability for costs of such visits/inspections
If, following such a visit or inspection carried out under this Rule, the member’s firm is found
to have contravened or breached the relevant rules, Propertymark reserves the right to
require the member’s firm to pay an amount, which shall be no more than the total costs,
towards the expenses and/or expenditure incurred by Propertymark in carrying out such a
visit and/or investigation. (For the avoidance of doubt, this amount shall be separate from
any other fine or sanction imposed by the Propertymark or Disciplinary Tribunal for a
contravention or breach of the rules.)

1.41. Ongoing liability to co-operate after membership ceases
Where membership ceases (for whatever reason) and Propertymark has cause to believe
Propertymark may be, or may become, liable to a claim under the Propertymark Client
Money Protection Scheme, that member and their firm shall have an ongoing liability to
provide full access to the Propertymark or its representatives in relation to this Rule.
Propertymark Conduct and Membership Rules V.01.01.2018

1.42. Old or dormant Client balances

1.42.1. If a member’s firm has credit balances in its Client (Bank) Account(s) that represent
money previously held for Clients who cannot now be traced or which cannot now
be attributed to or identified as belonging to a particular Client, the member’s firm
is not entitled to take that money, as it can never belong to the member’s firm. It
represents funds entrusted to the member’s firm and would thus be a breach of
trust to take a Client’s Money even where the member’s firm has tried and failed to
trace and/or identify the relevant Client.

1.42.2. Such old/dormant funds should be transferred to and recorded in a suitably
designated Client Suspense Account Ledger. (For the avoidance of doubt, any such
account remains within the scope of this Rule and still subject to regular
reconciliation and the year-end audit.)

1.43. Identifying ownership of old or dormant funds

1.43.1. A member’s firm must take reasonable steps to identify to whom the money
belongs through their accounting and other records and this should include carrying
out an extensive investigation of the audit trail; and,

1.43.2. In the case of an old or ex-Client for whom the member’s firm no longer acts;
reasonable steps must be taken by the Principal Agent(s) to trace the Client, and
this might include writing to: the last known place of residence; to the Client’s
professional advisers (Solicitors, Accountants etc.); to the Client’s Bank or any other
contacts (referees, guarantors, next of kin, employers etc.) provided within their
file.

1.44. Donation of dormant funds to charity
Under exceptional circumstances, and following written explanation of:
• The actions taken by the Principal Agent(s), and
• The current situation and status of any investigations, and
• Disclosure of the amount involved, and
• Sufficient time (usually at least six years) having elapsed from last contact from the
Client or activity on the relevant Client Ledger Account,
Propertymark may allow the old or dormant Client funds to be donated by the Principal
Agent(s) to a suitable registered charity; subject to an undertaking that any valid proven
claim subsequently received by the Principal Agent(s) from the beneficial or legal owner
would immediately be met by the member‘s firm from its own resources. The transfer of
such funds to a charity may require a note to the Principal Agent(s) business accounts of a
potential liability to a future claim. Any such sums dealt with in this manner should form part
of any disclosure to a future potential purchaser of the business.

1.45. Client Suspense Account after mergers etc.
Where any merger, acquisition, amalgamation etc. or similar takes place between a
member’s firm and any other firm or company, any such funds held in the relevant Client
Suspense Account as required under clause 1.42 above, should be transferred to the new
company or firm with appropriate and sufficient information and, upon the member’s firm
receiving a satisfactory written contractual undertaking that such amounts will, subject to a
valid future claim, be refunded to the beneficial or legal owner. A member’s firm is advised
to include in any contract of sale (or similar) an indemnity from the purchaser that any Client
funds previously transferred, as a charitable donation, will be a liability of the purchaser.
Propertymark Conduct and Membership Rules V.01.01.2018

1.46. Non-compliance – breaches of the Accounting Rule
For the avoidance of doubt, Propertymark considers breaches of, or a failure to comply with,
the general or specific requirements of the Accounting Rule as a serious matter that may
result in significant sanctions being imposed and may jeopardise membership.

1.47. Tri-partite agreements for audits
(PPD member’s firm – Accountants – Regulatory/Professional Body)
It should be noted that the requirement of a PPD member’s firm to provide a report under
this Rule would not constitute a contract between the Accountants of the firm and
Propertymark. A PPD member’s firm must take appropriate steps to include in its letter of
engagement/contract with its Accountants a clause that permits a copy of any such report to
be provided to Propertymark in order to comply with the Accounting Rule.

1.48. Client Account ‘HealthCheck’ in lieu of an Accountant’s Report
Qualifying PPD member firms (see clause 1.48.3 below) may satisfy their annual obligations
to provide an accountant’s report by agreeing to a Client Account ‘HealthCheck’ undertaken
by the Lettings Partnership. In doing so the PPD member firm agrees to provide specified
information through an online form directly with the Lettings Partnership who will assess the
PPD member firm’s compliance with accepted client accounting practice.

1.48.1. A PPD member firm must provide either an Accountant’s Report as specified in
clause 1.26 or a ‘HealthCheck’ within the 6-month period following their financial
year end as specified in clause 1.27. A HealthCheck must not be submitted before
the PPD member firm’s year-end.

1.48.2. Should Propertymark be in receipt of a ‘HealthCheck’ assessed as ‘Refer’,
Propertymark may seek further explanation(s) or undertake further investigations
which may include compliance visits and/or accounts inspections to the PPD
member firm.

1.48.3. PPD member firms may choose to undertake a ‘HealthCheck’ rather than submit an
Accountant’s Report if they meet the following criteria:
a) At no stage during the financial year does the total amount held in the PPD
member firm’s Client Account(s) exceed £1m.
b) Client money held by a PPD member firm must only relate to residential
lettings and management activities (excluding client money described in
1.11.3, specifically excluding holiday lets, block management, sales and
auctioneering).
c) The PPD member firms must not handle client money on behalf of any other
legal entity.
d) The PPD member firm must not use a CASP.

1.48.4. Propertymark reserve the right to withdraw the ‘HealthCheck’ facility at any time or
to refuse the ability of a PPD member firm to choose the ‘HealthCheck’ option if
there are valid concerns about the PPD member firm’s compliance with the
Propertymark accounting rules, in either case reasonable notice will be provided in
writing to the PPD member firm.

Propertymark Conduct and Membership Rules V.01.01.2018

2. Duty to co-operate with requests for Client account inspections

2.1. Propertymark may ‒ whether or not a complaint has been made ‒ require a member to
produce for inspection the company books of account, bank statements, vouchers and other
relevant documents, to provide copies, and give necessary information and explanations. The
member shall comply with any of these requirements at a time and place specified by
Propertymark.

2.2. This Rule applies to accounting periods up to and including the date of termination or
resignation.

3. Complaints handling procedures

3.1. A PPD member’s firm must have a written in-house complaints handling procedure. A
customer complaint procedure template is available from Propertymark or from the online
shop at store.propertymark.co.uk

3.2. The procedure must advise complainants how to complain to an independent redress
scheme and to Propertymark. Except for Inventory Providers and Valuers, unless the member
firm is registered with an approved redress scheme. If based in Scotland a referrence to the
First Tier Tribunal must be made.

3.3. A PPD member’s firm must supply details of the complaints procedure to a complainant as
soon as the firm becomes aware of a complaint, or to a complainant who expresses a wish to
make a complaint.

4. Professional Indemnity (PI) insurance

Members’ firms that are regulated by the RICS, the Law Society or the Law Society of
Scotland are exempt from the requirements of this rule.

4.1. All firms where there is a PPD member within membership of one of the divisions of
Propertymark (excluding ARLA Inventories, see clause 4.5 for details of ARLA Inventories’
requirements) shall maintain PI insurance commensurate with the size and nature of the
business and which shall comply with the minimum requirements set out in Note A to this
Rule.

4.1.1. A failure to maintain PI insurance cover or a failure to provide documentary
evidence of that cover to Propertymark will result in termination of membership of
all PPD members associated with that company.

4.2. A PPD member’s firm is required to provide documentary evidence of their PI insurance
cover on the anniversary of their renewal to Propertymark. In circumstances where a policy
with rolling or continuous cover has been arranged, Propertymark will require written
confirmation from the insurance company or insurance broker that cover continues in place.

4.3. PPD members are required to declare annually their firm’s total fee income from all sources
for the last financial year so that we can ensure the correct level of indemnity cover is in
place (see Note A).

4.4. A PPD member’s firm’s PI insurance policy must include the following elements:
• Cover is on a civil liability basis;
• The limit of cover must be on an “any one claim” basis;
• Indemnity in respect of any claims arising out of all work undertaken since the
inception of the business;
• Cover for liability arising out of all aspects of the PPD member’s firm’s activities.
Propertymark Conduct and Membership Rules V.01.01.2018

4.5. ARLA Inventories PPD members are required to provide documentary evidence on
application and thereafter on an annual basis that they hold current public liability insurance
and professional indemnity insurance. A minimum limit of indemnity of £50,000 per claim for
both insurances is required.

NOTE A: For those PPD members’ firms that undertake work that includes residential lettings
or property management, the minimium levels of indemnity are as follows:
For organisations with a total annual fee income up to and including £150,000, the limit of
indemnity of the PI Insurance policy must be a minimum of £150,000.
For organisations with a total annual fee income over £150,000, the limit of indemnity of the
PI Insurance policy must be a minimum of £500,000.
For those PPD members’ firms that undertake work that does not include any element of
redidential letting or property management, the limit of indemnity of the PI Insurance policy
must be a minimum of £100,000.

For PPD members’ firms that operate as a CASP, PI insurance cover must:
(i) Have no exclusion or limitation in respect of fraud or dishonesty (fidelity cover
relating to the CASP’s own money may be limited or excluded), and
(ii) Have a limit of at least £2m in respect of any one claim.

5. Propertymark Client Money Protection (CMP)
(This rule does not apply to members of ARLA Inventories.)
Members’ firms that are regulated by the RICS, the Law Society or the Law Society of
Scotland and Money Shield are exempt from the requirements of this rule.

5.1. Propertymark retains the right to modify, amend, withdraw or cease the CMP scheme
arrangements or the details therein and, in such circumstances, material changes will be
notified to PPDs’ firms accordingly, as soon as administratively practicable.

5.2. Propertymark, in consultation with its insurance advisers, will determine the annual levy due
under the CMP scheme from each PPD’s firm or category of PPD’s firm. Requests for
payment of the levy will be sent to the PPD’s firm on or around the anniversary of
acceptance into the CMP scheme. All PPD member’s firms that handle/hold clients’ money
are required to pay the Propertymark CMP levy.

5.3. The CMP levy once paid is non-refundable.

5.4. The same CMP payment limit, as currently in force, applies separately to franchisor members
and franchisee members. This is regardless of whether franchisors hold funds on behalf of
multiple franchisees, and regardless of whether franchisees rely on franchisors or others to
provide their accounting services.

5.5. Similarly, members who subcontract their accounting work to a CASP are required to pay the
CMP levy currently in force.

5.6. The failure to make payment of the annual levy by the due date as appears on the invoice
will result in termination of membership of all of the PPDs associated with that firm.

5.7. Propertymark may, from time to time, require all PPD members’ firms to pay a special
additional levy to help maintain and sustain the financial viability of the CMP scheme.
Propertymark Conduct and Membership Rules V.01.01.2018

5.8. Where a successful claim is made on the CMP scheme it will constitute a serious breach of
the Membership and Conduct Rules, such that disciplinary proceedings may follow.

5.9. Where a payment is made by the CMP scheme to compensate any third party for the default
howsoever arising of a sole trader, partnership, limited liability partnership or limited
company (“the Business”) or of any CASP (as defined in clause 1.3) to whom the custody of
client money has been entrusted by the Business then any individual member of
Propertymark who is associated with the Business as either a sole trader, principal, director,
employee, shadow director, member, consultant, partner or shareholder shall be jointly and
severally liable to indemnify Propertymark or its insurers in respect of any such payment.

5.10. Propertymark will cooperate fully and make full disclosure to any appropriate authority in
the event of crminal investigation or proceedings.

6. Obligation to update information
PPD members have an obligation to update the Membership Department as to any changes
to business addresses, including branch openings and closures, and regarding changes in
business structure. PPD members must advise the Membership Department of any
companies of which they are a PPD and have business areas that are relevant to their
membership. PPD members must also advise the Membership Department when they cease
to be a PPD of a relevant business.

7. Use of window stickers
PPD members have an obligation to display appropriate window stickers as provided by
Propertymark.
PPD members must ensure that old stickers are removed when new ones are provided.

8. Use of divisional logos
In accordance with the rules you should use and display such material promoting your
membership of the relevant divisions of the organisation as provided by Propertymark. You
should prominently display the appropriate logo on all applicable documentation such as
marketing literature, property advertisements, websites and on letterheads.
You must not use logos that you are not entitled to use.

8.1. ARLA Propertymark Protected logo
The ARLA Propertymark Protected logo can be used throughout a company and in all
branches i.e. on the Company’s website and all company documentation, where the PPD in
membership meets all the company obligations for ARLA membership. Employees and all
Associate, Affiliate, Student, Deferred and Retired grade members are not permitted to use
the ARLA Propertymark Protected logo.

8.2. NAEA Propertymark Protected logo
The NAEA Propertymark Protected logo can be used throughout a company and in all
branches i.e. on the Company’s website and all company documentation, where the PPD in
membership meets all the company obligations for NAEA membership. Employees and all
Affiliate, Student, Deferred and Retired grade members are not permitted to use the NAEA
Propertymark Protected logo.
 
Propertymark Conduct and Membership Rules V.01.01.2018 Page | 24
It is a condition of the use of the Propertymark logos that they shall not be used without
indicating that they are a Collective Trademark. This can be done by adding a note on your
website which states: “The Propertymark logo is a Collective Trademark owned by
Propertymark Ltd.”

8.3. NAEA Commercial logo
The NAEA Commercial logo may be used throughout a company and in all branches i.e. on
the Company’s website and all company documentation, where the PPD in membership
meets all the company obligations for NAEA Commercial membership. Employees and all
Affiliate, Student, Deferred and Retired grade members are not entitled to advertise their
membership using the NAEA Commercial logo.

8.4. NAVA Propertymark Protected logo
The NAVA Propertymark Protected logo can be used throughout a company and in all
branches i.e. on the Company’s website and all company documentation, where the PPD in
membership meets all the company obligations for NAVA membership. Employees and all
Affiliate, Student, Deferred and Retired grade members are not permitted to use the NAVA
Propertymark Protected logo.

8.5. ARLA Inventories logo
The ARLA Inventories logo may be used throughout a company and in all branches i.e. on the
Company’s website and all company documentation, where the PPD in membership meets
all the company obligations for ARLA Inventories membership. Employees and all Student
and Deferred members are not permitted to use the ARLA Inventories logo.

8.6. Propertymark logo
The Propertymark logo in isolation must not be used by any member. This is the corporate
logo used by Propertymark only.
Note: Displaying the logo of a trade body when you are not authorised to do so, or falsely
claiming to be a member of a professional body, is a criminal offence. The business itself, a
person in charge, or an employee or an associate, may be the subject of the conviction,
fine, or civil court order.

9. Regulation by other organisations

9.1. Where a PPD member’s firm is a regulated by the RICS, Law Society or Law Society for
Scotland, that firm is not required to provide Propertymark with an annual Accountant’s
Report, evidence of professional indemnity insurance cover or to pay the annual Client
Money Protection scheme levy, as those organisations take responsibility for regulating those
companies.

9.2. If a PPD member’s firm ceases to be regulated by the RICS, Law Society or Law Society for
Scotland, they must immediately inform Propertymark and supply evidence of PI insurance
cover, an Accountant’s Report for the last financial year and pay the Client Money Protection
levy applicable at that time.

Propertymark Conduct and Membership Rules V.01.01.2018

10. Declarations
PPD members are required to make annual declarations in a format applicable to their
relevant property business interests and with regard to the handling of Client Money. In any
intervening period, PPD members are required to advise Propertymark if their firm
commences handling Client Money. Additional declarations may also be required when
Propertymark receives information that company responsibilities and/or business areas may
have changed. All branches must be declared to Propertymark, with new branches and
closures reported as and when necessary.

11. Anti-Money Laundering (AML)
All PPD members’ firms, regardless of the member’s division, are required to follow the
relevant industry guidance if the firm undertakes regulated activities defined within the
Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer)
Regulations 2017 and any successor legislation.

12. Data Protection
All PPD members’ firms, regardless of the member’s division, are required to comply with the
General Data Protection Regulation (GDPR), the Data Protection Act 2018 and any successor
legislation.

Propertymark Conduct and Membership Rules V.01.01.2018

CONDUCT RULES FOR ALL MEMBERS (see Clause 22)

13. General duty to uphold high standards of ethical and professional behaviour
13.1. No member shall do any act (whether in business or otherwise) which:

13.1.1. Involves dishonesty, deceitful behaviour, or misrepresentation; and/or

13.1.2. Involves other unprofessional practice or practice that is unfair to members of the
public; and/or

13.1.3. In any other way brings Propertymark or any of its divisions or subsidiaries into
disrepute.

14. Duty to assist in disciplinary proceedings

14.1. Members shall co-operate with disciplinary investigations and/or proceedings taken against
them or other members.

14.2. Members shall comply with the timescales described in the disciplinary procedures and are
expected to attend disciplinary hearings. If these procedures result in a fine that is not paid
within the prescribed time, then membership will automatically be terminated and the
Propertymark will pursue payment and undertake civil action against the member if
necessary.

14.3. Propertymark reserves the right to take disciplinary action regardless of any Ombudsman’s
actual or potential adjudication arising from the same matter.

14.4. Members must co-operate with compliance visits conducted by Propertymark staff or others
acting on their behalf.

14.5. Members or their representatives are obliged to provide accounts or other records on
demand (see Rule 1).

14.6. This rule applies to work undertaken during the period of membership, even if the member
has subsequently left membership for any reason.

15. Whistle blowing
Members are under a duty to provide Propertymark with details of any other member who
they suspect has breached these conduct and membership rules, including TPO documents.
No member shall be unfairly treated as a result of reporting such breaches.

16. Duty not to accept secret commissions
Members shall not accept any payment from a third-party service provider unless it is
disclosed to their Client. This includes interest on their Client (Bank) Account if appropriate.
Propertymark Conduct and Membership Rules V.01.01.2018

17. Personal declarations

17.1. All members are obliged to provide a declaration of their personal status at the time of
joining, and at the time of renewal. Members are obliged to provide Propertymark with any
changes that occur in their status, including any new responsibilities as a PPD that are
relevant to their membership within a reasonable time period. See
www.propertymark.co.uk/working-in-the-industry/member-requirements or see the
introduction to these rules. We retain the right to refuse membership or terminate members
as a result of matters disclosed, or because of a failure to disclose.

17.2. All members are obliged to provide contact details (including relevant telephone numbers
and email addresses), including primary work and other business and homes address details
and to advise the Membership Department of any changes to these details. This is to ensure
members can be contacted at any time.

18. Information sharing

18.1. PPD members have a duty to inform Propertymark of any allegation or finding made about
their firm by any ombudsman, independent redress scheme or other professional body.
Employee members have a duty to inform Propertymark of any allegation or finding made
about them personally by any ombudsman, independent redress scheme or other
professional body.

18.2. Propertymark reserves the right to distribute or receive information about alleged or actual
misconduct by members with other relevant bodies, such as the ombudsmen, independent
redress schemes and tenancy deposit schemes.

19. Sale, disposal and merger
Membership is personal and therefore is not a transferable asset or benefit.
Propertymark Conduct and Membership Rules V.01.01.2018

MEMBERSHIP RULES FOR ALL MEMBERS

20. Designatory letters and their use

20.1. Designatory letters can be used by all full members at the following grades in each division:
ARLA
MARLA Member grade
FARLA Fellow grade
NAEA
ANAEA Associate grade
MNAEA Member grade
FNAEA Fellow grade
NAEA Commercial
ANAEA (Comm) Associate grade
MNAEA (Comm) Member grade
FNAEA (Comm) Fellow grade
NAVA
ANAVA Associate grade
MNAVA Member grade
FNAVA Fellow grade
ARLA Inventories
MARLA (Inv) Member grade
20.2. Retired members are entitled to use designatory letters, with the addition of (Retd).
20.3. Affiliate, Deferred, Student, and ARLA Associate members are not permitted to use logos or
designatory letters at any time.
20.4. Past presidents of a division can be designated as:
PPNAEA
PPARLA
PPNAVA

20.5. Those members in the College of Fellows have their designations extended with (Honoured)
or (Hon’d). Although known as the College of Fellows, there will be occasions where Member
grade members are invited to join the College. Membership of the College does not make
them a Fellow grade member.

21. Continuing professional development (CPD) rules

21.1. CPD is mandatory for all ARLA, ARLA Inventories, NAEA, NAEA Commercial and NAVA
members except for Affiliate, Deferred, Retired grade members.

21.2. Members are required to undertake at least twelve hours’ CPD activity per year. At least four
of the twelve hours must be obtained by attendance at relevant educational events and up
to eight hours by relevant private study (except for those studying for Propertymark
Qualifications relevant to their specialism). All CPD should be relevant to the membership
specialism and/or relevant to business needs.

21.3. The CPD year runs from 1 January to 31 December and the twelve hours should be submitted
by 31 January of the following year, listing the learning outcomes.
Propertymark Conduct and Membership Rules V.01.01.2018

21.4. CPD must be provided annually for membership to continue.

21.5. If members belong to more than one division, they are required to submit twelve hours’ CPD
for each division demonstrating a relevant learning outcome.

22. Membership grades

22.1. Student grade

22.1.1. Employees without applicable industry-based qualifications are able to join at the
Student grade.

22.1.2. Individuals have three years in which to obtain an accepted qualification and
upgrade their membership to the Associate, Member or Fellow grade of
membership.

22.1.3. Individuals do not have to be working within the industry in order to join at the
Student grade.

22.1.4. If a qualification is achieved within the three year period, individuals may continue
at the Student grade if not currently working within the industry.

22.1.5. If an applicable qualification is not obtained and/or the individual is not in
applicable employment at the end of the three year period, membership will be
terminated.

22.1.6. If an individual resigns or is terminated from the Student grade, they are not
permitted to re-apply for membership at this grade.

Principals, partners or directors are not eligible to join at the Student grade of ARLA, NAEA,
NAEA Commercial or NAVA. In the event a Student member becomes a principal, partner or
director, membership will be terminated. PPDs can join ARLA Inventories at the Student
grade.

22.2. Associate grade

22.2.1. NAEA, NAEA Commercial and NAVA Associate applicants must have five years’
industry-based experience and demonstrate this upon application. They must
remain working in the industry while in membership.

22.2.2. ARLA Associate applicants must hold at least the Propertymark Qualifications Level
2 Award in Introduction to Residential Lettings & Property Management Practice
(Level 5 in Scotland) or above, or a comparable, regulated and nationally recognised
qualification. They must remain working in the industry while in membership. ARLA
Associate grade is available only to those members not working for an ARLA PPD
member. ARLA Associate grade is available only to employees and those with
pending ARLA PPD status. However, if an ARLA Associate becomes a PPD of a
relevant property relation company, they must hold the Propertymark
Qualifications Level 3 Technical Award in Residential Letting & Property
Management (Level 6 in Scotland) or above, or a comparable, regulated and
nationally approved qualification, approved by ARLA or an ARLA endorsed learning
programme approved for Level 3 or above.
Propertymark Conduct and Membership Rules V.01.01.2018

22.3. Member grade

22.3.1. ARLA Inventories, NAEA, NAEA Commercial and NAVA member applicants must
hold the at least the applicable Propertymark Qualifications Level 3 Technical
Award (Level 6 in Scotland) or a comparable, regulated and nationally approved
qualification, which is industry specific for the division and approved by the division
or for NAEA, an NAEA endorsed learning programme approved for Level 3 or above.
They must remain working in industry while in membership.

22.3.2. ARLA employee Member applicants must hold the Propertymark Qualifications
Level 2 Award in Introduction to Residential Lettings & Property Management
(Level 5 in Scotland) or above, or a comparable, regulated and nationally approved
qualification, approved by ARLA or an ARLA endorsed learning programme
approved for Level 3 or above. They must remain working in the industry while in
membership. ARLA employee Member grade members must continue to work for
an ARLA PPD to retain the Member grade. If this changes the grade will be
amended to ARLA Associate grade.

22.3.3. ARLA PPD Member applicants must hold the Propertymark Qualifications Level 3
Technical Award in Residential Letting & Property Management or above, or a
comparable, regulated and nationally approved qualification, approved by ARLA or
an ARLA endorsed learning programme approved for Level 3 or above. They must
remain working in the industry while in membership.

22.3.4. ARLA PPD Grandfathered Members must have at least one ARLA member qualified
at Level 3 (Level 6 in Scotland) or above at the Company to join and retain the ARLA
Grandfathered Member grade. ARLA Grandfathered Member grade members are
not required to hold an industry-relevant qualification. In the event, there is no
longer an ARLA Member or Fellow qualified at Level 3 (Level 6 in Scotland) or above
at the firm, ARLA Grandfathered PPD members are given six months in which to
qualify at Level 3 (Level 6 in Scotland) or above or to join another ARLA Member or
Fellow grade member qualified at Level 3 or above from the Company to ARLA
membership. ARLA PPD Grandfathered Members must remain working in the
industry while in membership.

22.4. Fellow grade

22.4.1. NAEA, NAEA Commercial and NAVA applicants must hold an industry-specific
qualification at Level 4 or above, approved by the division, such as Propertymark
Qualifications Level 4 Certificate qualifications or for NAEA, an NAEA endorsed
learning programme approved at Level 4 or above, to qualify for the Fellow grade.
Fellow grade members must also have five years’ industry-based experience and
must remain working in the industry while in membership.

22.4.2. ARLA applicants must hold an industry-specific qualification at Level 4 or above,
such as the Propertymark Qualifications Level 4 Certificate in Residential Letting &
Property Management or an ARLA endorsed learning programme approved for
Level 4 or above to qualify for the Fellow grade. Fellow grade members must also
have five years’ industry-based experience, must remain working in the industry
while in membership and work for an ARLA PPD member. If the member is no
longer working for an ARLA PPD member, the grade will be amended to the
Associate grade.

Propertymark Conduct and Membership Rules V.01.01.2018

22.5. Deferred grade

22.5.1. Deferred membership is available for a maximum of one year and is awarded on a
case-by-case basis. This grade is intended for those who, due to circumstances such
as maternity leave, illness, or redundancy, are not currently working within the
industry.

22.5.2. This grade is offered at a reduced rate and is available only to full members at
Associate, Member or Fellow grade and is not available to PPD members, unless
there is another PPD of the company within membership. While at the Deferred
grade, members are not permitted to use designatory letters or advertise
membership in any way.

22.6. Retired grade

22.6.1. The Retired grade of membership is available to those members who have retired
or are no longer working in the industry. Retired grade is not available to ARLA
Inventories members.

22.6.2. Retired grade members are permitted to use designatory letters followed by (Retd).
However, they are not permitted to use membership logos in any way.

22.6.3. A Retired grade member must not be a PPD of any property-related company.
22.6.4. Once at the Retired grade, the member is given six months to revert to their
previous grade. After this point, if the member wishes to become a full member
again, they will need to re-apply for full membership and meet the current criteria
of membership.

22.7. ARLA Developer Membership

22.7.1. ARLA Developer Membership is open to persons acting as Nominee de facto PPD
for a firm or company that acts as letting agent or performs the functions of a
letting agent for and on behalf of a property developer or housing association, in
circumstances where the letting of the properties of such property developer or
housing association (or companies, partnerships or other corporate entities within
the same group) is the firm’s sole or principal activity.

22.7.2. Where the PPDs of the legal entity described in 2.7.1 are not personally involved in
the business or willing to become ARLA members, a de jure PPD can nominate a
senior staff member as “responsible person” for the company (Nominee de facto
PPD).

22.7.3. ARLA Nominee PPD Developer Membership is only available for ARLA Member and
Fellow grades. ARLA Nominee PPD Grandfathered Developer Membership could be
made available if necessary.

22.7.4. The Board of Directors of Propertymark shall have the absolute right to determine
whether or not such a person, firm or company’s activities constitute eligibility for
such membership, or for the continuation of such membership, from time to time.

22.7.5. ARLA Developer Members shall be bound by all of the Conduct and Membership
Rules which apply to ARLA PPD members from time to time.
Propertymark Conduct and Membership Rules V.01.01.2018

22.8. Affiliate grade

22.8.1. To be eligible for the Affiliate grade of membership, a member must not be working
for an agency-based firm. They must be working in an associated industry to be
able to justify their need for Affiliate grade membership. Affiliate grade is not
available to ARLA Inventories members.

22.8.2. Affiliate grade members are not permitted to advertise membership in any way.

22.9. Changes that may affect status of membership

Any change in circumstances, change of employment, or change of industry, must be notified
to the Membership Department, as it may affect status of membership.

22.10. NAEA Propertymark Protected status
A NAEA PPD member at Associate, Member or Fellow grade, dealing with residential sales,
should adopt the NAEA Propertymark Protected status for their residential sales company(s)
if all other membership obligations have been met. NAEA members must not use the NAEA
Propertymark Protected status to describe their individual membership.

22.11. ARLA Propertymark Protected status
An ARLA PPD member at Member or Fellow grade, dealing with residential lettings and
property management, should adopt the Propertymark status for their company, if all other
membership obligations have been met. ARLA members must not use the ARLA
Propertymark Protected status to describe their individual membership.

22.12. NAVA Propertymark Protected status
A NAVA PPD member at Associate, Member or Fellow grade, dealing with property or
chattels auctioneering or valuation, should adopt the NAVA Propertymark Protected status
for their application company(s) if all other membership obligations have been met. NAVA
members must not use the NAVA Propertymark Protected status to describe their individual
membership.

23. Suspended members
Once suspensions have been lifted, if membership fees are outstanding, membership fees
will be back-dated to the end of the membership period in which suspension took place.
Propertymark Conduct and Membership Rules V.01.01.2018

GLOSSARY

ARLA Association of Residential Letting Agents
ARLA Inventories Association of Residential Letting Agents Inventories
NAEA National Association of Estate Agents
NAEA Commercial National Association of Estate Agents Commercial
NAVA National Association of Valuers and Auctioneers
PPD Principal (sole trader), partner (full partner, not associate) or director (as
listed on Companies House, not Company Secretary). PPDs have
responsibilities for every company for which they fulfil a PPD function, and
which operates as an agent in property sales, lettings, property
management and auctioneering.
Propertymark will consider the facts and circumstances of the case to
establish whether a person is a PPD and not just using the term as a job
title.

PPD member’s firm A company engaged in a relevant property-related business and which has
a PPD within membership of one of the divisions of Propertymark.
Propertymark The trading name of Propertymark Ltd
RICS Royal Institution of Chartered Surveyors
TPO The Property Ombudsman

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APPENDIX A – ACCOUNTANT’S REPORT

The Propertymark Accountant’s Report which must be submitted annually by PPD Members’ firms of
NAEA Propertymark, ARLA Propertymark, NAEA Commercial and NAVA Propertymark whose
business handles Client Money and/or entrusts Client Money to a CASP.
The latest version of the Propertymark Accountant’s Report can be obtained from the following link:
www.propertymark.co.uk/acreport

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APPENDIX B – ARLA INVENTORIES CODE OF PRACTICE

Introductory Notes:

• The Divisional Council of the Association of Residential Letting Agents (ARLA) has approved
this Code of Practice for ARLA Inventories. It helps underpin ARLA Propertymark’s
commitment to promoting the highest standards in the letting and management of private
residential property.

• Membership of ARLA Inventories is available to individuals engaged in the provision of
Inventories who are partners, principals or employees of specialist Inventory Providers, and
individuals employed by residential letting agents whose primary responsibility is the
provision of Inventories.

• This Code of Practice is not intended to be a step-by-step guide to dealing with an inventory
but sets down what good practice should be in key areas. Specific processes, procedures,
obligations or responsibilities may vary depending on individual Terms of Business and the
relevant Tenancy Agreement.

• Where a formal written complaint is made against a Member, any such complaint will be
considered against the guidance contained within this Code of Practice combined with the
Propertymark Conduct and Membership Rules. A Member following these practices,
complying with the aforementioned rules and fulfilling contractual obligations, is therefore
unlikely to be found to have acted without reasonable competence. Where a Member has
not complied with this Code of Practice or contractual obligations mentioned above, they
would be expected to justify such departures in the light of any complaint.
Aims of this Code of Practice:

1. To help to ensure that Landlords, Tenants and Members are aware of the
expectations of standards of service that Members strive to provide both through
ARLA Propertymark and ARLA Inventories.
To help to maintain and enhance the reputation, standing and good name of ARLA
Inventories and through it ARLA Propertymark and their memberships by promoting
good practice and protecting the public against fraud, misrepresentation and
malpractice in the letting industry.

A. General

1. A Member must take reasonable steps to ensure that they are conversant with all aspects of
this Code of Practice and the Propertymark Conduct and Membership Rules and have an upto-date working knowledge of their legal responsibilities and obligations in dealing with
Clients, applicants and tenants, appropriate to their job role.

2. A Member must offer equality of professional service to any person regardless of race, creed,
sex, sexual orientation, disability or nationality. A Member must not knowingly be a party to
discrimination by others in the performance or provision of services.

3. A Member must always act in a fair and impartial manner and produce objective assessments
of the contents and condition of properties. A Member must not act or behave in a way or
manner that knowingly involves dishonesty or deceit.

4. Members who make public their personal views on matters relating to the private rented
sector must not claim, or give the impression, that they are representing the official view or
policy of ARLA Inventories.

5. A Member Firm must assist ARLA Inventories, or any duly authorised representative or
adjudicator, in its enquiries into any alleged breach of this Code or relevant aspects of the
Propertymark Conduct and Membership Rules.

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B. Data Protection Act

1. A Member must, as required by the Data Protection Act 1998, register their Firm’s activities,
as and when appropriate, with the Information Commissioner. www.ico.org.uk

2. A Member must be aware of its obligations relating to the obtaining, recording, holding or
disclosing of personal data and have suitable systems and controls to comply with the eight
general principles of the Act which say that such personal data must be: - fairly and lawfully
processed; processed for limited purposes; adequate, relevant and not excessive; accurate;
not kept longer than necessary; processed in accordance with the data subject’s rights;
secure; not transferable to other countries without adequate protection.

3. A Member must not release confidential or sensitive personal information to unconnected
third parties without permission or unless legally required to do so; including for example, on
the appropriate authorised written request from the Police, Local Authority or HMRC where
a crime, fraud or a breach of relevant legislation is suspected or under official investigation.

C. Terms of Business, Instructions, Fees & Charges

1. A Member must give a (potential) Client written details of their Terms of Business setting out
what different types or levels of service are available and all relevant Fees and Charges
before the Client is committed to or has incurred any liability. A Member should confirm in
writing the Client’s instructions to act on their behalf and which type or level of service is
being provided.

2. The Terms of Business used by a Member must be clearly presented and written in plain and
intelligible language and endeavour, where appropriate, to take account of the implications
of the Unfair Terms in Consumer Contract Regulations 1999 and Consumer Protection from
Unfair Trading Regulations 2008 if applicable. (Members should note that standard terms or
clauses or fees and charges deemed unfair by the court under these regulations are
unenforceable.)

3. The Terms of Business of a Member must include clear and accurate information regarding
the circumstances under which either party to the contract may cancel or terminate the
arrangement and what liability for fees or charges may be incurred in those circumstances.

D. Access to Property

1. When access to the property is required by the Member, for the purpose of viewing the
condition, state of repair and/or to fulfil related statutory obligations; the occupying tenant
must be provided with the appropriate minimum notice, prescribed by law, of the
appointment unless agreed otherwise with the occupying tenant beforehand (except in cases
of genuine emergency.) It is the duty of the Member to satisfy themselves that such notice
has been properly given to the tenant before they enter the property.

2. A Member must exercise due diligence to ensure that a property is left secure after any visit
by a Member (or at least as secure as it was prior to the visit).

3. A Member must make sure that all keys held on behalf of Clients are suitably coded and kept
secure. Records of the addresses of such keys must be kept separate from the actual keys
and kept safe.

4. A Member must maintain a record or log of when and from whom keys are collected and
when they are returned. A Member must take reasonable steps to ensure that keys are given
only to suitably authorised people who have provided satisfactory identification.

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5. A Member must take steps to ensure that appropriate office procedures are in place to
provide for the well-being of staff when on appointments away from the office.
E. Inventories

1. A Member should ensure that upon appropriate instructions from the Client at
commencement of a tenancy, any Inventory/Schedule of Condition prepared for the Client
by the Member clearly displays their name and ARLA Inventories Membership number, is
sufficiently detailed, and up to date, as far as is within their control, to allow it to be used as a
fair measure of the condition of the property at the end of the tenancy.

2. An inventory should be prepared to a minimum standard as contained in “A Guide to Best
Practice for Inventory Providers” which provides a format as well as guidance. Members
must ensure that they are familiar with all aspects of this Guide and should be aware that
complaints will be assessed against compliance with the Guide as well as this Code of
Practice.

3. Reference should be made in the Inventory documentation to the Guide standards and best
practice contained within this Code of Practice in case of dispute.

4. A Member should not have any financial connection with a maintenance, cleaning or similar
contracting company.

5. A Member should be fully conversant with the procedures concerning the assessment of
damages and the apportionment of the deposit at the end of the tenancy as contained in “A
Guide to Best Practice for Inventory Providers”. The Member is expected to provide as much
cooperation as may reasonably be expected to all parties involved in this process.

6. A Member is expected to co-operate and comply fully and promptly with any independent
alternative dispute resolution process (such as The Tenancy Deposit Scheme) invoked by the
landlord and tenant.

F. Complaint Handling – Members’ Internal Procedures

1. As set out in the Propertymark Conduct and Membership Rules, a Member must have an inhouse complaints procedure (appropriate to its size and structure) and any person wishing to
make a formal written complaint about the standards of service received must be made
aware (in writing) of those procedures upon request. Following the conclusion of the
Member Firm’s in-house complaint process, where an impasse has been reached or a
complainant remains unsatisfied; the complainant must be informed of the contact details
for ARLA Inventories should they wish to pursue their complaint.

2. ARLA Inventories Members must have Professional Indemnity Insurance and Public Liability
Insurance at levels and scope of cover set, from time to time, by the ARLA Inventories or be
covered under the policies held by their employer. Where a Member feels a complaint or
allegation is likely to result in formal legal action/claim against the firm, the Member should
promptly inform their Insurers in line with the arrangements between them.

G. Complaints Handling – Referrals to ARLA Inventories

ARLA Inventories will not normally consider a complaint unless and until it is satisfied that the
complainant has exhausted a Member’s own internal complaints procedures, nor if the
matters are subject to formal legal action.

1. Members must comply promptly and fully with any investigation or assessment of a
complaint or dispute carried out by ARLA Inventories or its appointed adjudicator, expert or

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arbitrator.

2. Members must, subject to any appeal process, comply with the result, recommendations or
requirements of the evaluation of a complaint or dispute carried out by ARLA Inventories or
its appointed adjudicator, expert or arbitrator.

3. Sanctions available to ARLA Inventories are set out in the Propertymark Sanctions Policy (as
amended from time to time) and within the Complaints Form leaflet. These sanctions are
subject to variation but generally include: -

a. To recommend that the Member apologise, in writing, to the appropriate person
for the relevant conduct, action(s) or omission(s).

b. To caution the Member against repeating the conduct, action(s) or omission(s).

c. To recommend to the Member that they refund all or some part of fees or charges
previously made, in recognition of the conduct, action(s) or omission(s).

d. To impose a financial penalty or fine (which may be suspended) upon the Member
for the contravention, breach or infringement, according to a scale decided upon
from time to time by ARLA Propertymark/ARLA Inventories.

e. To recommend that the Member change its procedures or documentation arising
from the facts disclosed by a complaint, breach or infringement, which has been
upheld.

f. To recommend that the Member undertake such action as ARLA Inventories
considers appropriate to rectify or redress the conduct, action(s) or omission(s).

g. To recommend to the parties other, more appropriate, ways of resolving the
complaint or dispute including mediation or arbitration.

h. To reprimand or severely reprimand the Member for the conduct, action(s) or
omission(s).

i. To suspend the Member from membership of ARLA Inventories.

j. To expel the Member from membership of ARLA Inventories.

k. Any combination of the above or any other reasonable action which ARLA
Inventories feels appropriate in order to support high standards within the industry
and amongst its membership.

H. Glossary

Please Note: - These are not legal definitions and are provided simply by way of explanation to help
clarify understanding and interpretation of some of the words, terms or expressions used in this
document.

Propertymark Conduct and Membership Rules

The detailed rules of Propertymark which incorporate this
Code of Practice (available on www.propertymark.co.uk);
the criteria for membership of ARLA Inventories; disciplinary
powers and procedures, including those relating to
complaints; the requirements of member firms in regard to
Professional Indemnity Insurance and Public Liability
Insurance; the use of the ARLA Inventories logo which is
protected by trademark; and other matters.
A Member Any individual who is a current full member of ARLA
Inventories and thus regulated by the Propertymark.
Terms of Business A document which is the basis of the contractual
arrangement between the Client and the Member; setting
out what services are available to be provided for various
fees or charges.
Tenancy Agreement A legally binding document, which creates the contract
between Landlord and Tenant and governs the respective
obligations and responsibilities of both parties.


Client(s)
The person or persons (or company) who have exercised
their lawful authority to instruct a Member to act on their
behalf.

Tenant(s)
A person or persons who at any relevant time have the
lawful right to occupy a property, under the terms of a
tenancy agreement, for which rent is usually paid.
Landlord A person or persons (or company) who at any relevant time
own, or have a formal interest in, the property that gives
them the right to possession of that property.

Inventory/Schedule of Condition
In the letting industry these are encompassed in, and
considered to be, one document. An Inventory is an itemised
listing of the items(contents, fixtures and fittings etc) in a
property and the integral Schedule of Condition element
describes the state of the property, including walls, floors,
ceilings and externally, the garden and garage; and their (the
items), state.

Unfair Terms in Consumer
Contract Regulations 1999
These regulations require that where there is a contract
between two parties (a supplier and an individual
consumer), the standard terms and clauses of that contract
are in plain and intelligible language and are balanced and
fair so as not to unduly penalise, mislead, or restrict the
rights of the consumer.

Inventory Provider
A person with appropriate experience and/or training, who
prepares an Inventory/Schedule of Condition prior to
commencement of a tenancy; checks the document at the
end and prepares a summary of disrepair or damage etc;
and updates the document as appropriate before re-letting.

Public Liability Insurance
Insurance held by a Member or company to cover claims
made for injury or damage caused to someone or something
while in or around a relevant property.

Professional Indemnity Insurance
Insurance cover which each Member is required to hold as a
condition of membership, to provide indemnity against
claims for compensation by Clients who sustain a financial
loss arising out of professional negligence by directors,
partners or employees in the conduct of their business.