Home    //    Residential    //    Property Management    //    Client Money Protection - TDS Deposits

Client Money Protection - TDS Deposits

TDS Deposits


The Dispute Service Limited (TDS) has been appointed by the Secretary of State for Communities and Local Government under the provisions of Schedule 10 of the
Housing Act 2004 to collect and hold Tenancy Deposits from agents and landlords who are registered with it as members of the Insurance Based Tenancy Deposit Protection Scheme (IBTDP) in England and Wales and to distribute such deposits in accordance with any adjudication made by TDS or by the Courts or by any other body appointed by TDS to adjudicate in such cases.


TDS has a wholly owned subsidiary Tenancy Deposit Scheme Northern Ireland Limited (TDSNI) which has been appointed by Ministers in the Department of Social Development in Northern Ireland under The Tenancy Deposit Schemes Regulations (Northern Ireland) 2012 to operate both a custodial tenancy deposit protection scheme and an IBTDP Scheme in Northern Ireland. TDSNI is appointed to collect and hold disputed tenancy deposits from agents and landlords who are registered with it as members of the IBTDP Scheme in Northern Ireland and to distribute such deposits in accordance with any adjudication made by TDSNI or by the Courts or by any other body appointed by TDSNI to adjudicate in such cases.


RICS has agreed with TDS that Claims by TDS or TDSNI, or their appointed insurer representatives, made against RICS Members and RICS Registered Firms will be paid in accordance with an insurance policy taken out by RICS, up to an aggregate limit of £3,000,000 in respect of any Financial Year – being each period of twelve months beginning on 1 April. RICS has made such an appropriate insurance arrangement with CMP Insurance PCC Limited, a subsidiary of RICS which is an insurer authorised by the Guernsey Financial Services Authority.

It should be noted that the agreement between RICS and TDS for RICS to meet Claims up to an aggregate limit of £3,000,000 in any one Financial Year is limited to claims for protected tenancy deposit monies made against RICS Members and RICS Registered Firms by TDS or TDSNI and shall not be taken to include any associated legal costs or advisory costs, damages or interest incurred by TDS or TDSNI or their appointed insurer representatives.


For any amount over £3,000,000, the claim amount remains with TDS or TDSNI, as appropriate. RICS may from time to time issue guidance or additional required procedures for RICS Registered Firms which are members of TDS or TDSNI relating to the above matters if it thinks it appropriate.

 

For full information please visit the RICS website or follow the link here