Estate agent fined £15,500 for client money protection failures

The First-tier Tribunal (General Regulatory Chamber) has dismissed appeals against financial penalties totalling £15,500 imposed on a Dudley-based estate agent for failures to comply with client money protection and fee transparency requirements.

Background

Andrew Cole, trading as Andrew Cole Estates, was found to have breached Regulation 3 of the Client Money Protection Schemes for Property Agents (Requirement to Belong to a Scheme etc) Regulations 2019 between 24 January 2023 and 10 August 2023, resulting in a £14,000 penalty. A further £1,500 penalty was imposed for breach of section 83(3) of the Consumer Rights Act 2015 on 24 January 2023, relating to the failure to publish required fee information on the appellant's website.

Judge Findlay heard evidence from the appellant and three witnesses for Dudley Metropolitan Borough Council before delivering the tribunal's decision on 29 September 2025.

The appellant's case

Mr Cole advanced several grounds of appeal, primarily centring on personal circumstances that had affected business oversight. Following a road traffic collision in late 2019, his father died shortly afterwards, and his mother sustained injuries requiring care until her death in early 2023. During this period, Mr Cole spent approximately 20 months away from the business caring for his mother in France, experiencing depression and developing problems with alcohol and overeating.

The appellant contended that he had been a member of Propertymark since 2021 and previously held RICS membership, suggesting continuous client money protection coverage. Additionally, Mr Cole cited difficulties in converting undesignated client accounts to designated accounts following legal entity changes after his father's death, as well as the business's precarious financial position with debts exceeding £60,000.

Tribunal findings

The tribunal found that the appellant had not held valid client money protection scheme membership since May 2018, when RICS deregistered due to rule changes. Crucially, Mr Cole's individual membership of Propertymark from November 2021 did not provide CMPS coverage, which is only available to companies regulated by Propertymark. The tribunal noted that as a professional operating since 1999, the appellant should have been aware of these requirements.

Whilst acknowledging the personal difficulties faced, Judge Findlay held that these circumstances did not relieve Mr Cole of his responsibilities to ensure compliance. The tribunal observed that when unable to oversee the business personally, there was a duty to appoint someone else to maintain compliance.

Regarding the Consumer Rights Act breach, the tribunal noted that whilst partial corrections were made following the Notice of Intent, the website was not fully compliant until after the Final Notice was issued. The CRA requirements had been in force since May 2015, providing ample time for compliance.

Financial considerations

The tribunal scrutinised the financial evidence presented, including draft accounts and bank statements. Judge Findlay expressed concerns about the reliability of the financial information, noting inconsistencies between the draft accounts and Mr Cole's own statements to officials that the lettings business generated approximately £50,000 annually and sales work brought in £100,000-£150,000 in good years.

The tribunal was not persuaded that full and frank disclosure of the company's financial situation had been provided, nor that the penalties would cause the business to cease trading. Both penalties were substantially below statutory maximums and consistent with similar cases before the tribunal.

The appeals were dismissed, with both financial penalties confirmed in full.