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Compliance Update July 2021
New rules and guidance from SRA Anti-money laundering ('AML') - SRA priority risk Updated AML Guidance has now been published by the Legal Sector Affinity Group (LSAG): https://www.lawsociety.org.uk/topics/anti-money-laundering/anti-money-laundering-guidance. Though a long document, it is most likely essential reading at least for the compliance team / MLRO / MLCO. There is a very useful checklist at the beginning. In terms of the key changes, here is a summary of the changes we have made to our standard templates: To add an 'adverse media...
Compliance Update April 2021
SRA Risk Outlook 2020/2021 The SRA have published their risk outlook for 2020/2021. The outlook considers the market landscape and the effects of Covid-19 and Brexit, primarily the economic impact; The SRA priority risks for 2020/2021 are: AML: Highlighting property work, commercial work and client accounts as highest risks; For property an increasing risk around people pretending to own properties owned by more vulnerable people NEW: Updated AML Guidance has now been published:...
Solicitors: the SRA (probably) hates your client care letter template
The Solicitors Regulation Authority (SRA) has recently published a client care letter checklist (see summary below) on its website to help solicitors assess whether the regulator is likely to find their initial client paperwork suitable or not. For 99.9% of law firms I can probably save you the suspense: the answer is no (sorry!). The SRA has stressed that client care letters should be short, easy to read and make it obvious who will do what next. The SRA even goes so far as to suggest the use of icons. 'Icons!' I hear you say? What has our...
What is a freelance solicitor?
Today, if you want to work as a solicitor serving the public then you need to work in a regulated law firm. From 25 November 2019 however the SRA will scrap this rule. This means that a solicitor will be able to set up in business selling legal services to the public without opening a regulated law firm. If you are doing ‘unreserved work’ (such as will writing, employment law, contract drafting, general legal advice) then the implications of working outside of a law firm are a real game-changer: strictly speaking you are not required to...
Compliance Update January 2017
Rule changes The 18th edition of the SRA Handbook went live on 1 November 2016 and by now all firms should be comfortable that their solicitors are planning their CPD activity for the year. COLPs in particular should be conscious of their duty to put systems in place to ensure that solicitors in the firm are compliant. Firms will need to make a declaration during bulk renewals that firms are compliant. We can help make the process easier in a few ways: we have a free training video and template policy on the new regime on our website; our...
Training on SRA Continuing Competence Regime
Compliance is not just for the COLP and COFA
Your SRA compliance duties: the facts and the fibs The roles of compliance officer for legal practice (COLP) and the compliance officer for finance and administration (COFA) in championing compliance are now well established in most firms. However, anyone in the firm who thinks that the COLP, COFA or compliance partner has drawn the short straw probably needs to think again. The reality is that there will not be a very big difference in practice between the duties of a compliance officer and many other members of staff. We’ve tried to create...
Compliance update April 2016
Rule changes The 16th edition of the SRA Handbook went live on 1 April 2016. The most fundamental changes relate to the end of the transitional arrangements for regulating consumer credit activities and the implementation of the new consumer credit regime. The SRA claims to have been successful in excluding debt collecting from separate regulation under the Financial Services and Markets Act 2000 if solicitors undertake such work in the course of providing advocacy or litigation services. Other consumer credit activities have however...
Compliance update November 2015
Rule changes The 15th edition of the SRA Handbook went live on 1 November 2015 and includes some very significant changes to the SRA rules. The amendments include the following: well over one in ten law firms will no longer need to obtain or deliver an accountant’s report. Firms which, during an accounting year, hold an average client account balance of £10,000 or less and never in excess of £250,000, will no longer need to deliver an accountant’s report. In addition, accountants will no longer need to ‘qualify’ a report unless it is felt...
Shining a light on ‘shadow clients’ and professional independence
Reading new research commissioned by the SRA into professional independence I was reminded of the unfortunate time that I tried to discuss professional ethics with my estate agent. It’s not a pastime that I would recommend you try. For a start, there’s very little in the way of shared vocabulary. ‘Independent advice?’ my agent repeated, utterly perplexed by my complaint that his advice appeared to have been influenced more by what was best for him than what was best for me. After some explanation (and diagrams and role-play) my agent...