New guidelines are being brought in to give tenants and home owners who use lettings agencies more protection. The Association of Residential Lettings Agents is introducing a licensing scheme for its UK members and a code of practice for lettings agents. Under the new rules licensed agents will need to hold a professional qualification related to lettings, take part in continuing professional development, have professional indemnity insurance, have plans in place to protect any money they are holding for clients and have an independent audit carried out on clients funds. This would mean that if the licensed agent went out of business any money it owed to its clients would be protected.