Barrister financial supplement

1

the barrister

#62

ESSENTIAL READING FOR BARRISTERS

1 st O ctober - 19 th D ecember 2014

E st . 1999

w w w. b a r r i s t e r m a g a z i n e . c o m

MICHAELMAS TERM ISSUE

Judicial Diversity: Assessing candidates of equal merit The need for a more diverse judiciary

to

which reflects our society is a common

judiciary’s

topic of discussion in the legal press. It is

in this area.

focus

PRICE £2.80

ISSN 1468-926X

Features constitutional 9 Chambers arrangements

the

By David Webster, Partner in the Corporate & Commercial Team at Russell-Cooke LLP.

work

an issue of interest to me as a Diversity and Community Relations Judge for Inner

The

Act

also

London Crown Court.

introduced

a

provision

64855 So Inspire Me Barrister Magazine 1 Front 2015/03/14 00:32:25

By Jennifer Robinson, Barrister, Cathedral Chambers, Cardiff

so

It is also an issue that exercises the legal

that, where there

profession and judiciary at all levels and

are two or more

evokes a variety of responses.

candidates equal

from a barrister’s 14 CILEx perspective

considerations 16 Toxicological in casework

of

merit

for

The Crime and Courts Act 2013 placed

a

a statutory duty on the Lord Chancellor

a candidate may

and the Lord Chief Justice to encourage

be

judicial diversity. The Lord Chief Justice has

the

established a Judicial Diversity Committee

increasing diversity. Implementing

judicial

post,

selected purpose

By Dr Simon Elliott, Consultant Forensic Toxicologist

Judge Usha Karu

for

Commissioner 19 Information warns against data breaches

of

By Louise Wynn, Business Manager, Instant On IT

p.7

It's all in the service ...

News

Clients in every shape and form are

to create new, exciting and innovative

more demanding than ever and have

opportunities as they always have and

an increasing awareness of their buying

what will differentiate those chambers

power when it comes to purchasing legal

striving to meet the challenge ?

services. The "innovative disruption" that chambers across the country are facing is

Three key ingredients: Service, Service and

being forced by clients and the combination

Service ....

03

IBAHRI calls on the Council of Europe to take urgent action against Azerbaijan

06

UK's first ever administrative justice research institute

of those service providers who are entering the legal environment for the first time

Striving to be innovative in the delivery

who very often have little or no regard to

of those services has always been vital

traditional routes or methods will no doubt

to retain competitive advantage and such

make the challenge of competition greater.

methods will inevitably include making greater use of online solutions and IT

So will this drive

chambers to continue

to promote and achieve the service

1

Publishing Director: Derek Payne 0845 5190 176 email: info@barristermagazine.com Publishers: media management corporation ltd Design and Production: Alan Pritchard email: info@soinspire.me.uk

p.12

2

00

the barrister

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2

3

NEWS

w w w. b a r r i s t e r m a g a z i n e . c o m

IBAHRI calls on the Council of Europe to take urgent action against Azerbaijan Bar

freedom of expression. It is

(NGO) Human Rights Club,

NGOs operating in Azerbaijan

Human

wholly unacceptable that the

was arrested and sentenced

and President Ilham Aliyev

Rights Institute (IBAHRI)

Azerbaijani authorities are

to

signing into law controversial

calls on the Council of

so flagrantly violating these

detention

Europe’s

basic liberties.’

August 2014, and charged

NGO

with the same offences as

perturbing picture emerges.

Intigam Aliyev.

The introduced laws have

The

International

Association’s

of

Committee

Ministers

immediate

to

take

measures

IBAHRI

fact-finding

to

delegation,

which

Azerbaijan

in

address

the

disturbing

trend

of

arresting

found

that

late

visited

months on

pre-trial

Saturday

2

amendments to Azerbaijan’s regulations,

increased

2013, •

Azerbaijani

Emin

Huseynov,

with

Director of the Institute for

for

civil society. Specifically,

silence critics of the regime

Reporters’

sanctions

the

IBAHRI

and

and

requirements

criminal law is being used to

Freedom

checks

a

registration

members of Azerbaijan’s

for

NGOs

and

heavy penalties

organisations

falling

urges

the

and curtail the operating

Safety,

General

to

freedom of journalists and

August 2014 with a travel

foul of the new legislation.’

convoke an urgent session

human rights defenders. The

ban, preventing him from

He added, ‘As a dominant

of the Committee in order

resulting May 2014 IBAHRI

leaving Baku.

economic

to discuss the situation

report, Azerbaijan Freedom

and to draft a resolution

of

condemning

Secretary

the

recent

arrests.

64855 So Inspire Me Barrister Magazine 2 Front 2015/03/14 00:32:25

The

three

was

issued

on

5

regional

power,

the recent swathe of arrests Yunus,

and the crackdown on local

found there to be a number

founding director of the Peace

and international NGOs in

of

motivated

and Democracy Institute in

Azerbaijan,

commonly

Baku and prominent human

that the country’s economic

Expression politically

prosecutions

on

• Leyla

Trial,

demonstrates

IBAHRI Co-Chair Baroness

consisting

fabricated

rights activist, was arrested

development is not being

Helena Kennedy QC said, ‘It

charges against civil society

and sentenced to pre-trial

matched by the institution

is disturbingly ironic that,

actors.

detention on 30 July 2014.

of democratic values, such

She was charged with state

as the protection of human

treason (Article 274 of the

rights. The IBAHRI urges the

Criminal Code of the Republic

government

of

large-scale

to fulfil its obligations to its

178.3.2),

citizens by respecting and

of

at a time when Azerbaijan holds

the

Chairmanship

More recently:

of the Council of Europe’s Committee of Ministers, the

•

most

Azerbaijani

dramatic

crackdown

Intigam Aliyev, an human

rights

Azerbaijan),

fraud

(Article (Article

the

lawyer, was arrested and

forgery

jurisdiction

sentenced to three months

evasion (Article 213) and

is taking place. Rather than

pre-trial detention on Friday 8

illegal business (Article 192).

representing the democratic

August 2014. He was charged

values of the Council of Europe

with tax evasion (pursuant to

• Arif

and upholding the essential

Article 213 Criminal Code of

husband

freedoms guaranteed in the

the Republic of Azerbaijan),

was arrested on 5 August

European

illegal

entrepreneurship

2014 and sentenced to pre-

Human Rights, Azerbaijan

(pursuant to Article 192) and

trial detention for the same

is

abuse of authority (pursuant

charges as his wife.

to Article 308.2).

IBAHRI Co-Chair Sternford

of

civil

society

country’s

Convention

undermining

She has

own

in

added, both

on

them.’

‘Azerbaijan

domestic

Moyo

and

of

320),

tax

Yunus, Leyla

commented,

Yunus,

‘When

the arrests are placed in the

international obligations to

• Rasul

legally protect fundamental

Chair of Azerbaijani non-

context

human

governmental

being frozen of numerous

rights,

such

as

Jafarov, organisation

3

of

bank

accounts

of

Azerbaijan

upholding the rule of law.’

4

NEWS

w w w. b a r r i s t e r m a g a z i n e . c o m

Top barristers help enhance interpreter training Barristers from St Phillip’s

Trainer at Sign Solutions said,

"Participants will have the

1998 and offers everything

Chamber in Birmingham

"It's extremely important that

chance to learn from barristers

from Level 1 British Sign

have

with

Deaf clients feel they have the

at the top of their field and will

Language to deaf awareness

Language

same access to representation

have the opportunity to put

and e-learning packages.

as those who are not Deaf.

forward their views as to how

teamed

British

up

Sign

interpreter

training

company, Sign Solutions,

For more information about

area."

Sign Solutions please visit

to offer a series of one-

“Given the many language

day workshops designed

and

to improve the courtroom

interpreters face every day,

Interpreters who opt to take

for further details on any of

experiences of Deaf people.

we thought it was important

part in these sessions will learn

the training courses available,

to offer sessions which don’t

from experienced practitioner

please

only focus on the basics but

Victoria Edmonds, who has

signsolutions.uk.com.

Victoria Edmonds and Stefan

really

the

specialised in family law, and

Kolodynski,

language

terminology

Stefan Kolodynski, who will

Joined

by

legal Sign

experts Solutions

cultural

differences

concentrate and

related

and

work

interpreting, as well as the

better together to ensure the

impacts of misunderstandings

As Britain's first dedicated

best

and

in

Sign Language interpreting

the courtroom, and whose

agency, Sign Solutions has

responsibility it is to deal with

been providing interpreting

these issues.

services across the UK since

barristers possible

can

outcome

for

Byron Campbell, Interpreter

to

this

on area

www.signsolutions.uk.com or

will look at how interpreters

their Deaf clients.

64855 So Inspire Me Barrister Magazine 2 Back 2015/03/14 00:32:25

best work in this challenging

of

misinterpretations

contact

training@

focus on criminal law.

Law Society seeks profession's views on criminal proceedings The Law Society is asking criminal law practitioners to submit their ideas on improving the criminal court process, to support their work on a reference group reviewing the efficiency of criminal proceedings.

as possible - if proposals are

forward to break down the

with at least one idea on how

to be put forward for change,

process

we could produce a more

it is important they have

streams:

the support of all of those

•

the listing of cases

who practice in the criminal

•

the

of

An official website has been

courts.

cases, and case management

set up where you can find out

up to trial stage

more about the history of the

•

review, the terms of reference,

Your

views

should

and

be

opinions

sent

to

into

three

work

efficient and fair criminal allocation

justice process.

the management of

levesonreview@lawsociety.

cases throughout the trial

the

team

conducting

the

org.uk.

process

review and how to make

Sir Brian Leveson, who is

All aspects of the process

This is a chance for all Law

contributions. See the link

leading the review, wishes

are able to be considered,

Society members who work

below.

to involve practitioners by

except

where

change

in criminal law to contribute

-

seeking their thoughts and

would

require

legislation,

to bringing about changes

w w w. l a w s o c i e t y. o r g . u k /

expertise. The Law Society's

as

no

which will hopefully be an

news/stories/law-society-

representative

legislative window available

improvement for all involved.

seeks-views-criminal-

receive views from as many

to implement such changes.

We would urge all criminal

proceedings/#sthash.

members of the profession

The group has now moved

practitioners

FK072MJW.dpuf

is

keen

to

there

is

the

currently

4

to

come

up

See

more

at:

http://

5

NEWS

w w w. b a r r i s t e r m a g a z i n e . c o m

Lack of safeguards for slavery survivors The

Law

Society

has

complex and do not reflect

seriously

ongoing

organisations on global issues

submitted evidence to the

international

problem of modern slavery,

including modern day slavery

Modern Slavery Bill Public

trafficking and forced labour

and their plans to address the

and trafficking.

Committee.

While

definitions

of

the

issue, but has reservations

Society supports plans to

•

and

about the effectiveness of the

- See more at: http://www.

address modern slavery, it

traffickers will be able to

proposals. The rule of law

l a w s o c i e t y. o r g . u k / n e w s /

raised concerns including

use the 'double criminality'

and the protection of human

press-releases/lack-of-

the

requirement (that the offence

rights underpins the work of

s a f e g u a r d s - f o r- s l a v e r y -

safeguarding of survivors

being

of slavery and trafficking.

requiring

lack

of

adequate

slave

masters

investigated

by

the

the legal profession, and of

survivors/#sthash.bCfzeoIh.

is

also

the Society. With the British

dpuf

an offence in the receiving

government leading the way

If passed, the Modern Slavery

country) to avoid successful

on modern slavery legislation

Bill will be the first of its

prosecution

it is of paramount importance

country

that

kind in Europe, and one of that

the

proposed

the

bill

safeguards

the first attempts globally

•

to specifically address the

anti-slavery

ongoing issue of slavery and

will not be effective without

trafficking in the 21st century.

being independent from the

On 10 December 2014, the

Although the Society supports

home secretary

Law Society will be hosting

victims effectively and sets an

commissioner

example in this field.'

its

the proposals it found there

64855 So Inspire Me Barrister Magazine 3 Front 2015/03/14 00:32:25

the

annual

Human

Rights

to be a number of issues with

President of the Law Society,

Conference. The event takes

the Modern Slavery Bill.

Andrew Caplen, said:

place on International Human Rights

The main concerns are: •

of

the government in taking

as well as human rights

clarity,

precision and simplicity of offences listed •

concerns that some

criminal activity in relation to modern slavery will either not be caught by the provisions, or the hurdles required to overcome prosecution

in

mounting will

a

prevent

effective law enforcement •

includes

speakers from the profession

the need to protect

lack

and

'The Law Society applauds

children •

Day

concerns the offences

clauses in the bill are overly

5

6

NEWS

w w w. b a r r i s t e r m a g a z i n e . c o m

UK's first ever administrative justice research institute The Nuffield Foundation

agenda, by undertaking an

the

has awarded a grant of

updated review of the UK

mechanisms

£325,000

and international literature,

disputes between individuals

UK's first Administrative

and

and

Justice Institute (UKAJI),

to engage researchers from

‘system’

a

project start

to

fund

collaborative

designed the

to

the

kick

expansion

empirical

of

research

administrative

into

creating

opportunities

for

resolving

Margaret University

Professor of Government and

disciplines which have not

cases than the criminal and

Public Administration, Oxford

traditionally been interested

civil justice systems combined.

in

In 2010 there were around

Andrew Le Sueur, Professor of

63,000 civil trials and 200,000

Constitutional Justice, Essex

justice

issues.

bodies.

Administrative Justice, Queen

more

administrative

public

and

Christopher Hood, Gladstone

deals

with

criminal trials in England and • Identifying

and

Wales. In the same year there

Tom Mullen, Professor of Law,

tackling capacity constraints,

were over 650,000 hearings

Glasgow

UKAJI will be led by Professor

by

to

before tribunals, in addition

Maurice

data and information, and

to innumerable internal and

Lucinda Platt, Professor of

University’s School of Law

encouraging

ombudsman complaints.

Social Policy, LSE

and

researchers into the field.

UKAJI has a core team of 11

Steve Pudney, Professor of

Sunkin

will

at

operate

Essex for

an

improving

access

early

career

initial term of three years

64855 So Inspire Me Barrister Magazine 3 Back 2015/03/14 00:32:25

law,

This

justice

issues.

procedure,

from October 2014. It is an

Public bodies make millions

and is supported by post-

Economics, Institute for Social

independent,

of decisions each year that

doctoral research assistants

and

body

directly affect the rights and

and an administrate assistant.

Essex

focusing on research relating

interests of individuals. These

The core team will work with

to

can relate to matters as wide-

a wider expert of experts and

Vania

ranging as family incomes,

its work is overseen by an

Business

jobs, welfare benefits, health

advisory group.

Entrepreneurship, Director of

broad-based,

cross-disciplinary administrative

justice

across the UK.

Economic

Sena,

Research,

Professor

Economics

of and

The institute will address the

care, housing, and education.

lack of empirical research

Individuals have the right to

Varda Bondy, Senior Research

Government Data Research

evidence

different

seek redress if they believe

Fellow, De Montfort University,

Centre, Essex

justice

the wrong decision has been

formerly Director of Research,

made. For example they may

Public Law Project

on

administrative mechanisms by:

the ESRC Business and Local

Maurice Sunkin, Professor of

be able to ask the public body •

Linking

practice

communities

policy,

to consider the matter again,

Ray

research

complain to an ombudsman,

formerly

appeal

the

and

Public Law and Socio Legal

through

an

to

Burningham, Chief

a

tribunal,

or

Administrative

the

decision

Executive, Justice

and

online forum, and a series

challenge

in

Tribunals Council, currently

of seminars and workshops.

judicial review proceedings.

adviser to Welsh Government

UKAJI

These

on Administrative Justice

a

will

searchable

also

develop

database

of

researchers active in the field.

are

avenues intended

of

redress

to

ensure

administrative justice.

David Cowan, Professor of Law and Policy, Bristol

• Developing coordinated

a research

The

‘administrative

system’

justice

encompasses

Christian

6

Gill,

Lecturer

in

Studies, Essex

7

the barrister

07

this provision is the responsibility

•

Women were 26 out of 54

is implementing a joint action plan (on

of

Appointments

appointments as Circuit Judges and 29

the JAC website) based on the findings

Commission, which I joined as

of 54 appointments as District Judges

of the 2013 research project Barriers

the circuit judge representative in June.

(Civil);

to making a judicial appointment 2013.

The JAC selects candidates for judicial

•

Minority

JAC website) suggest that we are raising

office in courts and tribunals in England

Ethnic (BAME) candidates comprised

awareness and understanding among

and Wales, and for some tribunals

11% of JAC selections and 6% of

all groups but that barriers remain that

whose jurisdiction extends to Scotland

legal/14% of non-legal selections;

impede decisions to apply for judicial

p.1

the

Judicial

The results of the research (also on the Black,

Asian

and

or Northern Ireland.

posts.

•

Disabled candidates were 12%

In 2013/14, it completed 35 selection

of selections – 5% of legal, 16% of non-

I acknowledge the work the Bar Council

exercises

legal; and

itself is doing to improve diversity within

5,500

involving

applicants

and

more made

than 806

the profession – providing a mentoring

64855 So Inspire Me Barrister Magazine 4 Front 2015/03/14 00:32:25

recommendations for appointment (the

•

largest number ever). The posts covered

legal selections.

Barristers comprised 43% of

scheme, training barristers, promoting research

a wide range of roles – including

and

pursuing

wherever

possible practical initiatives aimed at

High Court, Circuit and District Judge

Women are having marked success

and salaried and fee-paid tribunal

especially in mid-range salaried court

posts requiring legal and specialist

and tribunal posts. In some selections

For its part the JAC is creating a new

qualifications.

they are outperforming men. Fee-paid

online application system, including

and part-time salaried judicial roles can

an easier-to-use website with self-

The JAC selects candidates of good

offer a certainty and flexibility around

assessment tools to allow prospective

character solely on the basis of merit

working hours that can sometimes be

candidates to identify whether they have

through fair and open competition. The

hard to achieve as a barrister.

the right level of skills and experience to

JAC’s Commissioners will only select

making a real difference.

apply. Realistic self-assessment is crucial

the best candidates; the quality of the

BAME

judiciary should not be compromised.

recommended

candidates

are

help candidates do this. In addition it has instigated a ‘candidate attraction

It also has a responsibility under the

in some exercises BAME candidates

project’ to better target high quality

Constitutional Reform Act 2005 to “have

have been recommended at rates below

candidates

regard to the need to encourage diversity

their rate of application. They also tend

groups, again through joint working

in the range of persons available for

to be more successful in fee-paid roles

with professional bodies.

selection

rather than salaried posts.

This

with

and the JAC’s planned online tools will

proportion of the eligible pool. However,

appointments”.

line

generally their

for

in

diversity role sees the JAC work with the

from

under-represented

As of June 2014, the JAC began to

legal professions (the Bar Council, the

Encouraging

is

publish candidates’ self-declared sexual

Law Society, and the Chartered Institute

therefore a challenge for the JAC, its

orientation and religious belief in its

of Legal Executives), the Ministry of

government partners, the judiciary and

half-yearly official statistics (available

Justice, the judiciary and the Judicial

the legal professions. We are working on

here). These new categories broaden

Office. We are making progress.

understanding this jointly, particularly

the JAC’s knowledge of the diversity

BAME

applicants

through the Diversity Forum, which is

of those seeking judicial office and

In 2013/14:

chaired by JAC Chairman Christopher

help it establish a baseline for future

•

Stephens.

comparison. The JAC also hopes that

50% of JAC selections were

women – 45% in exercises requiring legal qualifications and 54% of non-

others will begin to collect and publish Improving judicial diversity

similar data.

The Diversity Forum, which includes

While the JAC does not currently collect

legal recommendations; •

Three women were appointed

government agencies and the three

or monitor data specifically on social

to the Court of Appeal and three to the

main legal professions (represented

mobility, it is working closely with

High Court (making a record 21 women

by the Bar Council, Law Society and

the legal profession and judiciary to

in the latter);

Chartered Institute of Legal Executives),

encourage them to work with schools

7

8

08

the barrister

and colleges to ensure that students

to assess candidates as being of equal

from under-represented groups know

merit.

that a judicial career is open to them.

•

I think social mobility is a key issue,

there is clear under-representation on

but it can be addressed only by close

the basis of race or gender. This will

cooperation between our organisations.

be determined by reference to National

It will be used only where

Census data and data published by the Judicial Office showing the self-declared

Equal merit

diversity of the courts and tribunals It is in the context of this cross-profession

judiciary.

and cross-government work on diversity In addition to the published

64855 So Inspire Me Barrister Magazine 4 Back 2015/03/14 00:32:25

that the Equal Merit Provision comes

•

into play. Following the passage of the

protocol, candidates will be informed

Crime and Courts Act last year, an Equal

of the detail of the provision through

Merit Provision policy was agreed by the

the selection exercise materials, which

JAC’s governing Commission in April

will contain published data about the

this year and has applied to all selection

diversity of the relevant level of the

exercises launched since 1 July 2014.

judiciary, relevant Census data and an explanation about the potential use of

The policy takes into account the response

the diversity data they provide.

to the JAC’s public consultation last year, the Ministry of Justice consultation

The JAC will report the number of

on judicial appointments and diversity

instances where an individual has

(completed in 2012) and the House of

been selected following application of

Lords’ Constitution Committee report

the policy. We expect to make the first

on judicial appointments, published in

report on the use of the provision when

2012.

we publish our six-monthly Official Statistics Bulletin in June 2015. We will

The use of the Equal Merit Provision

review the policy annually.

will only be considered when two or more candidates are agreed by the

The Equal Merit Provision will not make

Commission’s Selection and Character

the judiciary more diverse on its own. It

Committee (SCC), which makes final

is imperative that the JAC, government,

recommendations for appointment, to

the judiciary and the profession continue

be of equal merit when assessed against

work on the range of other measures

the

to help increase the diversity of the

advertised

requirements

for

a

specific post. Merit remains paramount

judiciary.

in the selection of candidates for judicial

By Her Honour Judge Usha Karu, a

posts.

Circuit Judge at the Inner London We recognise that there are concerns

Crown Court and JAC Commissioner

about how the Equal Merit Provision will

(appointed 16/6/2014)

be used. Our priority is to make sure we apply it in a sound and reasoned way,

The barrister magazine cannot accept responsibility for information supplied by other parties, views expressed may not necessarily be that of the editor or publishers.

and our approach is based on the public consultation we undertook in 2013.

•

It will be applied only at the

final decision-making stage when all the evidence is available to the SCC

8

9

the barrister

09

Chambers constitutional arrangements Chambers are no different from any other commercial organisation and should have in place a clear set of arrangements dealing with what will happen should Chambers dissolve.

By David Webster, Partner in the Corporate & Commercial Team at Russell-Cooke LLP.

64855 So Inspire Me Barrister Magazine 5 Front 2015/03/14 00:32:25

D

espite

recent

regulatory changes and

innovations,

most Chambers still operate as a group

contentious

such

as

the

financial

obligations of departing members) •

Obligations

to

has a clear written constitution which

contribute

towards Chambers’ expenses

operates and any changes in law and regulation. Flexibility can be achieved

independent, barristers joined together

by limiting the matters dealt within by

as an unincorporated association. The

Chambers to review their constitutional

the constitution to certain core issues,

constitutional arrangements of these

arrangements to ensure that they allow

with more administrative matters dealt

unincorporated associations vary in

for effective decision making (whilst

with in policies or guidance issued by

type and complexity, but will invariably

maintaining appropriate checks and

those responsible within Chambers.

deal with common themes, including

balances) and are sufficiently robust in

crucially:

relation to the financial obligations of

• Decision-making

within

Chambers •

The

admission

to,

and

departure from, Chambers (including provisions which can be particularly

and

to time to reflect the way Chambers

financial pressures have led many

self-employed,

competition

is reviewed and updated from time

other

of

Increased

It is essential to ensure that Chambers

members.

It is important that the affairs of Chambers

are

actually

conducted

in accordance with the constitution.

This article looks at some of the key

Problems can arise if, for example,

issues

in

individuals are able to argue that the

Chambers’ constitutional arrangements.

constitution has been effectively varied

1.

by conduct; or that a contentious

that

need

be

addressed

An effective Constitution

decision at a Chambers’ meeting should be set aside because formalities such as quorum requirements were not observed.

2.

Ensure individuals are bound

All members of Chambers should sign a document acknowledging that they are bound by the constitution and a central record should be maintained.

Generally Chambers have arrangements in place for new starters to sign up to the constitution when they are admitted as members. However procedures may not always have been robust and there may be a number of longstanding members who have never signed up. This can cause difficulties when members leave or if the constitution is amended to

9

10

10

the barrister

impose more onerous obligations on

commonly relate to the requirement

required to contribute to any shortfall

members, most notably in relation

for members to contribute towards the

on a winding up.

to

expenses of Chambers. These issues can

their

financial

contributions

to

Chambers expenses.

be particularly acute when as set is struggling financially. It is essential to

Clear structure

3.

have a robust accounting function in

It is important to ensure there are clear

place to monitor Chambers’ financial

lines of responsibility and authority

performance.

within Chambers, Again, it is also important to ensure that these are set out in the constitution and observed in practice.

There is a balance to be drawn as it would clearly be unfair if former members were on the hook indefinitely for matters which may well be entirely outside

their

control.

However

if

members do not remain liable for a

A key issue facing many Chambers at

period following their departure from

the moment is cash flow, particularly

Chambers (in the event that Chambers

for those who undertake significant

is dissolved within that period) then it

64855 So Inspire Me Barrister Magazine 5 Back 2015/03/14 00:32:25

amounts of publicly funded work. Cash

is all too easy to jump ship at the first

Generally authority over Chambers’

flow issues can often be difficult to

sign of trouble leaving the remaining

matters will ultimately rest with the

identify and address as they do not

members to deal with the fallout.

members as a whole, but of course

necessarily involve barristers having

certain matters will be delegated to

insufficient work, or not billing enough.

certain individuals or committees such as Head of Chambers, the Management/ Finance Committee, or Chief Executive.

Considering

• members

of

Chambers

whether

all

should

be

It is also important to consider how

required to enter into separate Deeds

much and how frequently financial

of Indemnity in respect of Chambers’

information should be provided to

liabilities in addition to their obligations

Problems can arise where material

members. A common complaint when

under the constitution. This is often

expenditure is incurred on Chambers’

financial difficulties do arise and action

considered when Chambers is taking

behalf without those concerned having

needs to be taken is that members were

on a significant additional liability, such

the necessary authority to do so. This

not kept informed about the financial

as entering into a lease, in to avoid

can be a particularly fertile ground for

position of Chambers.

any disputes as to whether the liability

disputes where the liabilities created are material and, for example, have

is covered by the standard indemnity

Preparing for the worst

5.

arrangements in the constitution.

to be satisfied on dissolution through

Chambers are no different from any

aged debt or indemnity contributions

other

rather than through incoming fees in

should have in place a clear set of

the normal course.

arrangements dealing with what will

As well as legal considerations, there are also more practical factors to take into account when considering how best to avoid disputes. For example, it may be prudent to obtain the approval of the members at a Chambers meeting before incurring

a

particularly

substantial

liability even if the item concerned is within the scope of the authority conferred

on

the

Management

or

Finance Committee.

4.

Strong

internal

accounts

function

commercial

organisation

and

happen should Chambers dissolve.

•

Use of a service company. Many

Chambers now use service companies to enter into contractual commitments on behalf of Chambers, including acting as the employer of Chambers’ employees.

Where a dissolution occurs on a solvent

Even if the Head of Chambers or other

basis (i.e. there are sufficient readily

members benefit from indemnities from

available funds to discharge all creditors

other members of Chambers, if they

in full) then it may be relatively easy

contract on behalf of Chambers they will

to manage the process of winding up

have the primarily liability to the third

Chambers’ affairs. However, in other

party and will then be required call upon

situations this may be much more

and possibly enforce the indemnities.

difficult. Particular issues to consider

That is an uncomfortable position to be

include:

in and can be mitigated by the use of a

•

Ensuring

that

the

constitution deals adequately with the position on dissolution. Of particular

service company.

6.

Capitalisation and security

deposits

Unsurprisingly, disputes in Chambers

importance is the basis on which

Many

are

members and former members will be

considering the need to recapitalise their

often

financial

in

nature

and

10

professional

practices

are

11

the barrister

businesses in order to improve their

In order protect against this situation,

financial robustness and Chambers are

Chambers may wish to consider raising

no different.

a levy (either on a one off basis or via a

Many Chambers now set Chambers’ rent at a level which is sufficient to generate a surplus. This sinking fund will provide a degree of protection against a sudden reduction in fees and be available to meet unexpected or substantial nonrecurring items of expenditure.

11

modest monthly payment) on members to act as a security deposit. The “deposit” will be held by Chambers in a separate account and applied against member’s undischarged liabilities to Chambers. It will be returned to a departing member (after

deductions)

within

a

period

following their departure.

Chambers can also face difficulties in recovering sums due from members of

64855 So Inspire Me Barrister Magazine 6 Front 2015/03/14 00:32:25

Chambers who leave. There may be no

David Webster is a Partner in the

dispute as to sums due, but departing

Corporate

members may direct aged debtors

Russell-Cooke LLP.

&

Commercial

Team

at

to make payments to a new account, leaving Chambers to pursue the former member for payment, which they are often understandably reluctant to do.

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11

12

12 p.1

the barrister

levels expected by existing and

remains a difficult task. In addition

feedback is sought and based on

potential clients.

many members do not

always fully

your clients experience, giving you a

understand or buy-in to the valuable

much clearer understanding of how

For many chambers the very concept

part they play. Their involvement has

their experience could be improved,

of service is one that is discussed at

improved over recent years and it can

thus

length, but often difficult to orchestrate.

be as easy as communicating to all

relationship and resulting in future

The chambers model and management

members who chambers "key clients"

loyalty and or instruction.

culture

are for instance. There is a need to push

often

understanding

has

issues

the

collective

around client

them further and communicate

creating

and

confirming

the

how

The whole process does not have to be

64855 So Inspire Me Barrister Magazine 6 Back 2015/03/14 00:32:26

service experience and the desire for

chambers

delivering

complicated and becomes a foundation

managing key client risk is focused on

a range of services to a range of clients

and platform where you listen to

individual need rather than a greater

and how they may wish to be involved.

you clients. The review of the client

sense of purpose and strategy that the

As a minimum to ensure they know

experience will allow chambers to be

whole of chambers can build around.

the basic and very simple things they

in a position to build both innovative

are collectively

can do to add value. These will include

delivery

Furthermore in it's practical application

responding to calls and emailing clients

collaboratively,

models

their is too much emphasis on seeking

to keep them informed. By everyone

each other’s future. Such engagement

new work and ignoring the principles

in chambers buying into simple but

allows the relationship to grow and

of consolidation, attracting more from

effective service delivery indicators they

with that investment a longer term

existing key clients and cross selling

in-turn all become brand ambassadors

business strategy for you to protect

into other practice groups and often

endorsing the very highest levels of

them from competitors.

more importantly forgetting the very

service clients expect.

Feedback

simple elements of client care such as

and

add

becoming

will

to

secure

an

loyal

clients

seeking, listening and responding to

Those with clients interests at the

acknowledgment

clients so that you become a trusted

forefront

of

business

and referrals do actually cost less to

advisor where they are comfortable

strategies

and

on

the

maintain than replacing them with

in approaching you. The "like-ability"

deliverables and outcomes will drive

new ones and are a source of repeat

factor can never be under estimated.

the business forward will no doubt

instruction and revenue. It can drive

remain ahead of the curve and become

the ambition for chambers where

Therefore it goes without saying, and

aware of the benefits much sooner. A

you aim to

for clarity it's the people involved in

well managed systematic approach to

competitors to look elsewhere as you

the process and delivery of the service

achieving excellent levels of service and

look after your key clients much better.

that become the most valuable asset

growing a portfolio of key clients will

Key clients will often forgive the odd

and resource. The human element

secure a successful route to maximise

mistake, pay on time and when asked

must not be ignored and has huge

their added value initiatives, to achieve

provide invaluable

intelligence which is vital in a service

mutually beneficial goals and will

your levels of service delivery even

delivery business where people buy

ensure that they are differentiating

higher.

people. But again, the practical reality

themselves from others and are much

of deliverable outcomes is somewhat

more likely to retain any competitive

A deliberate targeted and focused

different in the chambers environment

advantage. By aiming to meet the

approach of chambers key clients

and is hindered by the day-to-day

challenge there is a greater potential to

can clearly add value to their client

churn of work where staff resources

capture any new opportunities.

experience often resulting in higher

chambers focusing

that

value

linked

force new entrants and

feedback to drive

levels of service and where it becomes

are minimal and stretched to say the least. To undertake a whole range

What

the

the norm for chambers to become

of client service initiatives without

delivery of the very highest quality of

more explicit and actually ask the

focusing on the delivery of one to the

service across the client experience; a

clients "what is it you want" rather

highest possible level or excellence

seamless approach and where seeking

than thinking that you know what

becomes

paramount

12

is

13

the barrister

they want. By seeking feedback you are

to-day basis not only by staff but also by

in a position to provide solutions and

all members of chambers.

prevent issues rather than having to cure problems after the event.

Not only

will you be surprised with

the response but the intelligence earned and learned from client reviews on a regular basis reveals your passion to

Jonathan

Maskew

has

worked

create and add value for clients that will

extensively in a variety of roles with

differentiate you from others.

Barristers and Chambers for over 25 years has recently taken on a new and

In the

recent

research

professional

undertaken

services

in

industry

innovative role as Director of Client Services working alongside

Warren

64855 So Inspire Me Barrister Magazine 7 Front 2015/03/14 00:32:26

Foot, CEO,

at the forward thinking

understanding of the client's business

Cornerstone

Barristers

are considered as important factors

highest of quality client service delivery

and that client focus should become the

initiatives to everyone who comes into

platform for any differentiation strategy.

contact with chambers.

then

responsiveness,

reliability

and

driving

For those who remain driven, then key

client

management

techniques

will become the norm, where they are widely

acknowledged,

communicated,

valued

Cornerstone Barristers www.cornerstonebarristers.com

understood, and

most

importantly put into practice on a day-

13

the

13

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the barrister

CILEx from a barrister’s perspective It is a constant source of surprise to me that many barristers are unaware of what exactly CILEx is. As a consequence, they do not afford Chartered Legal Executives and the institution of CILEx with the credit they deserve. My experience of teaching and working with Chartered Legal Executives has taught me that this is a big mistake.

By Jennifer Robinson, Barrister, Cathedral Chambers, Cardiff

64855 So Inspire Me Barrister Magazine 7 Back 2015/03/14 00:32:26

C

ILEx is the national

a much more affordable basis although

for constant career development which

p r o f e s s i o n a l

it is certainly not an easy route into

focuses on the realities of practice

association

for

legal practice. From the exams, to

rather than academic qualifications.

Legal

the portfolios that must be prepared

The length of time that it takes to qualify

Executives, paralegals

whilst working, future Chartered Legal

can be flexible and adapted to suit the

and

individual.

Chartered

legal

Executives are expected to meet high

Legal

standards of competency throughout

Executives are qualified lawyers who

their training in every aspect of legal

are able to conduct litigation and

practice.

practitioners.

other

Chartered

It was only by chance that I came to

undertake their own advocacy. They are

be teaching the practice of family law

the third largest branch of the legal

course to CILEx students this year; I

profession and they are making their

CILEx students sit exams that are

responded to a plea on social media for

presence known.

designed to mirror the issues faced by

tutors and I haven’t looked back. My

real clients. They are given a ‘brief’

students are a highly intelligent group;

several weeks before the exam and are

they all work full time in law firms in

Since 2007, Chartered Legal Executives

encouraged to research and revise based

the day and study by night. Several are

have been eligible for judicial office and

on this document. Far from making the

also raising young families. Despite the

partnership status within their firms.

exams easier, the questions are tightly

many demands on their time, they are

It will also not be long before they

focused and complex.

all enthusiastic and full of intelligent

are able to run their own law firms

questions during every seminar.

independently of solicitors.

There are different membership levels for CILEx students, and they progress

There

CILEx offers an alternative to the

through them as they gain experience

Legal Executive who deserves to be

training contract/pupillage rat race on

and pass exams. This structure provides

highlighted. I won’t name her, but

is

a

particular

Chartered

I’m sure her firm will recognise her.

She joined a prominent Welsh firm as a legal apprentice and has worked predominantly in family law ever since.

Although this individual left school after achieving her (excellent) GCSEs, I have no doubt that she will become one of the best family lawyers in Wales. Despite her potential, her success may not have been possible without the opportunities CILEx can offer.

14

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the barrister

The legal world has historically focused

may never be able to reward them.

on tradition and exclusivity and it is unsurprising that law schools focus on whether students should become a

CILEx is offering those students a way

barrister or a solicitor. For some students,

forward that is realistic and sustainable.

those two strands of the profession will

By supporting CILEx, we are welcoming

still be the most appropriate career

talented lawyers who are going to help

path; however, CILEx will increasingly

carry the legal profession forward.

be the best option for many school leavers and graduates.

Jennifer Robinson is a barrister at

64855 So Inspire Me Barrister Magazine 8 Front 2015/03/14 00:32:26

South Wales is already alive to the

Cathedral Chambers in Cardiff. She was

benefits of supporting CILEx. South

called to the bar in 2011 and is a

Wales’ own Watkins and Gunn were

member of Gray’s Inn and the Family

the first firm in Wales to fund legal

Law Bar Association. Jennifer teaches

apprenticeships.

firms

students preparing for their Chartered

encourage their paralegals to become

Institute of Legal Executives (CILEx)

Chartered Legal Executives and support

exams.

Many

other

them throughout their studies. Those firms have already seen the returns of investing in their employees through the skills and knowledge that are gained by

6 Actors' Benevolent.pdf 6 Actors' Benevolent.pdf

6 Actors' Benevolent.pdf

every CILEx student.

We are lucky in South Wales to have such

Edwards, a Welsh family lawyer with

1

09/02/2011 09/02/2011

09:09 09:09

09/02/2011

09:09

6 Actors' Benevolent.pdf 1 09/02/2011 09:09 6 Actors' Benevolent.pdf 1 09/02/2011 09:09

6 Actors' Benevolent.pdf

a strong CILEx presence and the newly elected President of CILEx is Frances

1 1

1

Patron: H.R.H. The Prince of Wales Patron: H.R.H. The Prince of Wales 09:09

09/02/2011

Patron: H.R.H. The Prince of Wales

Patron: H.R.H. The Prince of Wales Patron: H.R.H. The Prince of Wales

Patron: H.R.H. The Prince of Wales

a clear vision for the future of her …a helping hand …a helping hand for actors since for actors since 1882… …a helping hand 1882… …a helping hand …afor helping actorshand since for actors since for actors1882… since 1882…

1882… acting profession is

organisation. Frances is supported in South Wales by a strong team including Lynne Squires (regional development officer for CILEx) and Sally Fitzherbert (chair of CILEx’s South Wales Branch).

There is no excuse for barristers not to enthusiastically support CILEx and recognise the skills of our Chartered Legal Executive colleagues. The legal profession is under continuous threat, particularly in family and criminal law and we cannot expect the brightest students to want to pay thousands of pounds to try and join a profession that

‘The public’s perception of the ‘The public’s perception of the acting profession is that we are glamorous and well paid but the image that we are glamorous andof well paid but the imageis …apublic’s helping hand ‘The perception the acting of fame and fortune is not the reality forprofession most of ‘The public’s perception of the acting profession for actors since ‘The public’s perception of the acting profession is is of fame and fortune is not the reality for most that we are glamorous and well paid but theof image the profession and for some the show will not go 1882… that weare are glamorous and well paid but the that we glamorous and well paid but the the profession and for is some the show will notimage goofimage of fame and fortune not the reality for most on – those actors and actresses who are suffering of fame and fortune not thethe reality forsuffering most of goof ofthe and fortune issome not reality for most on –fame those actors andisfor actresses who are profession the show will not hardship becauseand of illness, accident or old age. the and some thethe show will not go go hardship because offor accident orare old age.not the profession and for some show will onprofession – those actors and actresses who suffering ‘The public’s perception of the acting profession isillness, on ––those actors and actresses who areor suffering on those actors and actresses who are suffering hardship because of illness, accident old age. that we are glamorous and well paid but the image The fund was founded to provide financial support hardship illness, accident or old old age.

The fund because was founded to provide financial support hardship because illness, accident age. of fame and fortune is not thefor reality most ofofof suchfor individuals.

Please help them byormaking for such individuals. help themnancial by making The fund was founded to provide support the profession and for some the show will not go Please a donation or remembering the fundfiin your will. was founded Please to provide fithem nancial aThe donation or remembering fund in your will. forfund such individuals. help by support making on – those actors and actresses who are suffering The fund was founded to the provide financial support Thank you.’ for individuals.

Please help them by making Thank you.’ a such donation remembering the fund in your will. hardship because of illness, accident or oldorage. for such individuals.

Please help them by making Penelope Keith, C.B.E., DL a donation or remembering the fund in your will.

Penelope Keith, C.B.E., DL Thank you.’or remembering President a donation the fund in your will.

Thank you.’ support Penelope Keith, President C.B.E., DL The fund was founded to provide financial Thank you.’

Penelope Keith, C.B.E., DL Dame D President for such individuals. Please help them by making 6 Adam Street, London, WC2N 6ADPenelope Keith, C.B.E., DL President 6 Adam Street, London, WC2N Tel: 020 7836 6378 Fax: 7836 6AD 8978 a donation or remembering the fund in your will.020 President Tel: 020 7836 6378 Fax: 020 7836 8978 E-mail: office@abf.org.uk 6 Adam Street, London, WC2N 6AD Thank you.’

E-mail: office@abf.org.uk Registered Charity No. 206524 6 Adam Street, London, WC2N 6AD Tel: 020 7836C.B.E., 6378 Fax: 020 7836 8978 Penelope Keith, DL Registered Charity No. 206524 Tel: 020 7836 6378London, Fax: 020 7836 8978 6 E-mail: Adam Street, WC2N 6AD office@abf.org.uk President Registered Charity No. 206524 E-mail: office@abf.org.uk

Tel: 020 7836 6378 Fax: 020 7836 8978 Registered Charity No. 206524 E-mail: office@abf.org.uk 6 Adam Street, London, WC2N 6ADwww.actorsbenevolentfund.co.uk Registered Charity No. 206524 Tel: 020 7836 6378 Fax:Actors 020 7836 8978Ad.indd Benevolent Actors Benevolent Ad.indd E-mail: office@abf.org.uk

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Registered Charity No. 206524

Actors Benevolent Ad.indd 1 Actors Benevolent Ad.indd 1

Actors Benevolent Ad.indd 1 Actors Benevolent Ad.indd 1

15

9/12/05 16:24:10 9/12/05 16:24:10 9/12/05 16:24:10 9/12/05 16:24:10

9/12/05 16:24:10 9/12/05 16:24:10

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the barrister

Toxicological considerations in casework

By Dr Simon Elliott, Consultant Forensic Toxicologist

64855 So Inspire Me Barrister Magazine 8 Back 2015/03/14 00:32:26

S

o what is toxicology and

in the detection, identification and

A question regularly asked of the

what does a toxicologist

measurement of drugs and poisons

toxicologist is to define a “normal”

do? Toxicology can be

in human biological materials with

or

described as the study

subsequent

usually in order to assist the Court in

of drugs and poisons,

knowledge of the physiological action

understanding

although it should be

of a substance. This is important as the

an “abnormal” concentration. Whilst

borne in mind that anything can be

involvement of drugs or poisons may

this may be possible to an extent in

a poison it just depends on the dose.

not always be immediately obvious to

life, it is more difficult in post-mortem

This is certainly the case with water,

investigators either at the scene of a

situations. Dose and concentration data

which at normal consumed amounts is

crime/incident/death or through a lack

from pharmaceutical clinical trials (in

a pre-requisite to normal body function,

of drug history for a particular individual

life) cannot and do not often apply in

however, when consumed to excess it

(suspect or victim). Even in instances

post-mortem toxicology. Following on

can result in organ swelling, dilution

where there is significant evidence to

from this it is equally asked to determine

of body electrolytes and potentially

suggest the use of drugs has occurred,

what constitutes an “overdose” or fatal

death. In fact this particular example

the exact drug (or more usually drugs)

concentration,

can and does occur in some “Ecstasy”

may

without

(MDMA) poisoning/toxicity cases. The

even if a drug has been detected, the

concentration is indeed difficult to

role of the toxicologist therefore lies

interpretation of its presence or amount

define, especially for a particular case

not

interpretation

be

known.

based

on

Furthermore,

can depend on many factors.

“therapeutic”

concentration

what

may

which

knowing

circumstance.

The

constitute

consequently a

term

“normal”

“overdose”

itself can be described as a dose more As described above, dose is an important factor in toxicology and is especially important within medicine as it is necessary to ensure a patient receives

the

correct

dose

to

be

effective without being toxic. How a

than recommended and it should be understood that it does not necessarily have to take place as a single event, such an excessive dose can also occur as a result of continuous use, excessive or otherwise.

drug gets into the body (the route of administration) is also an important

Probably

factor as the same dose taken by

consideration

different

toxicological setting is the phenomenon

routes

(e.g.

by

mouth,

the

most in

a

important post-mortem

“snorting”, injecting, etc) can result

of

in different measured concentrations

occurs as a result of during life, drugs can

in the blood. In a clinical setting

be retained/stored within larger organs

inappropriate doses or routes of

(e.g. heart, lung, liver) and following

administration can often be a source

death, the processes keeping the drugs

of iatrogenic poisoning but this is

(and metabolites) in these areas cease

a consideration for any case when

and as changes in cellular biochemistry

interpreting concentration data.

and autolysis proceed, drugs and other

16

post-mortem

redistribution.

This

17

17

the barrister

substances may be released from their

toxicologist is to provide the Court with

biological fluids such as blood which

binding sites in the tissues and major

the most appropriate and scientifically

may reduce the measured concentration

organs. Unabsorbed drug may also

valid

or cause them to be undetectable (e.g.

diffuse from the stomach or bladder.

which may involve various alternative

Drugs can move into the surrounding

hypotheses. A summary of common

blood, elevating the concentration in

considerations is as follows;

blood close to these sites. Therefore,

•

for

circumstances (how, when, where for

more

reliable

and

confident

interpretation of toxicological findings,

interpretation

Case

as

possible,

cocaine, diltiazem, zopiclone).

•

information

–

the

case context), scene evidence.

In

vitro

production – some drugs have been found to be produced either in a collected sample or in the body as part

Submitted specimens – was an

with

alcohol

64855 So Inspire Me Barrister Magazine 9 Front 2015/03/14 00:32:26

are important with the concentrations of

•

some drugs more likely to be “falsely”

appropriate container used for sample

hydroxybutyrate)

elevated in blood obtained from thoracic

collection (e.g. any preservative), nature/

examples.

and abdominal vessels rather than

state of samples (e.g. clotting), anatomical

"peripheral" vessels such as femoral

site of collection (redistribution if post-

veins but this will still not necessarily

mortem), timing (detection window for

represent the concentration at the time

drug detection).

blood concentration after death can be profound (sometimes more than ten-fold for some drugs) but it should also be known that the phenomenon does not affect all drugs (e.g. not paracetamol).

A further common request is to calculate the dose ingested (usually in terms of the number of tablets) from a blood concentration.

Whilst

a

calculation

can be made it is theoretical in nature using a person’s weight and theoretical volume of distribution of the drug. Apart

post-mortem

of natural processes (e.g. putrefaction),

the sites and methods of blood sampling

of death. The potential increase in

and

and

GHB being

(gammacommon

It is not unexpected therefore that the question be asked as to what a toxicologist can realistically say and on what basis? Certainly this is the

Analysis – was the range of

case when determining the effect of a

drugs analysed for appropriate with

particular drug on a particular individual

sufficient sensitivity. Does the laboratory

as it is not possible to be specific to that

have suitable accreditation to have

individual. Nevertheless, if documented

confidence in the results, such as

and

ISO17025 (the international standard

effects are known (even in general terms)

for laboratory testing)?

these can be conveyed in an appropriate

•

scientifically/clinically

published

report. This is common practice in drug•

Tolerance – as the degree of

driving impairment casework whereby

tolerance possessed by an individual

the toxicological findings and potential

can profoundly affect the outcome of

effects of a drug should be used in

drug intake, the prescription or drug

conjunction with any recorded witness

history of an individual is paramount.

or medical evidence at the time as to the

from the volume of distribution as not

•

being an exact known value (as it is often

known that within the population some

derived from within life clinical studies

individuals metabolise drugs (including

with variable results), in post-mortem

alcohol) at variable rates to the majority

casework, with changes after death

(i.e. slow or fast metabolisers).

Pharmacogenomics

–

it

is

as described above, the concentration

demeanour and actions of an individual.

In post-mortem cases, known results in fatalities involving alternative causes of death (e.g. not drug related) are useful for comparison with the results of other post-mortem cases where drug

cannot be relied upon to be exactly that

•

Drug combinations – intake of

ingestion has been implicated in order

at the time of death therefore any dose

multiple drugs can cause a combinational

to incorporate the possible impact of

calculation would be highly inaccurate

or additive effect which may be toxic or

redistribution. Case experience of a

which

produce particular effects.

toxicologist is therefore very important

can

be

misleading

for

the

to enable a collation of knowledge of the

investigation.

Drug stability – it is known

results of many different drugs across

that various drugs can be unstable in

many different case types and scenarios.

• Ultimately, the primary aim of the

17

18

18

the barrister

64855 So Inspire Me Barrister Magazine 9 Back 2015/03/14 00:32:26

The toxicologist also relies on published

or pursue particular desired effects. This

criminal justice system, especially with

data but these can be skewed towards

has become tremendous particularly

the continued pressures of investigative

unusual

involve

within the last decade and it is a major

expectations of timeliness and resourcing

abnormally high concentrations or cases

challenge for the toxicologist to keep up

within a cost-cutting mandate of forensic

with

that

with this either analytically (i.e. actually

procurement

may not apply to the case in question.

detecting such drugs) or interpretatively

defence), whilst maintaining a high

Compilations

concentrations

(i.e. what is the significance of the

quality level of evidence. Even globally

exist but can be wide ranging or general

presence or concentration of a drug

there

with little information or detail about

when little is known about it?). Various

experts in other forensic disciplines;

the specific cases involved. “Reference

toxicologists,

(including

consequently, it is beneficial to all if the

ranges” may be quoted based on a

this author) and organisations around

toxicological resource is used wisely and

variety of different sources and thus can

the world have established expertise in

appropriately. Further benefits can be had

produce differences of opinion between

this ever changing field and experiences

if sufficient information is made available

toxicologists which is acknowledged to

and information is often shared at

throughout the investigation and Court

be frustrating to a Court but cannot be

domestic (e.g. UK & Ireland Association

proceedings. This is of prime importance

avoided due to the varying degree of

of Forensic Toxicologists; UKIAFT) and

when further comments are required

experience amongst toxicologists. The

international professional meetings (e.g.

to assist the Court, especially in light of

toxicologist should therefore be keeping

The International Association of Forensic

the relatively recent implementation of

up with published work and coupled with

Toxicologists; TIAFT).

streamlined forensic reporting which

cases

other

which

interesting of

drug

may

features

laboratories

case experience can provide relevant comments based on laboratory findings, however the extent and content of reports often varies between organisations and individuals but the wording should be clear and appropriate to the results and presented in a suitable toxicology report for the Court which can be supported as required by laboratory and/or oral

toxicologists

and

than

requires co-operation across the criminal Of greater pertinence to current UK

justice system.

toxicological casework and the Courts which Barristers may or may not be

In

aware of is the present lack of available

challenges, toxicology can be a useful

toxicological expertise and whilst some

and primary source of evidence that

consultancy services or individuals may

is important to various case types,

exist, they are typically not attached to

particularly with correct utilisation and

a suitably accredited laboratory service.

application.

closure of the Forensic Science Service appropriate

fewer

prosecution

summary,

despite

the

varying

This has primarily been as a result of the

evidence.

Whilst

are

(both

interpretation

Suggested references;

is

and other changes within the forensic

a constant challenge for all drugs,

science sector whereby newly trained

something of significant pertinence to

scientists and those with significant

modern toxicological casework is the

experience left the industry or the UK. This

rise of the so-called “legal high” (the new

is coupled with many years of inadequate

and inappropriate name for an equally

succession planning or no proactive

unfortunate term of “designer drug”). In

training which is not helped by the lack of

simple terms, since the widespread use

toxicology (forensic or otherwise) courses

of “Ecstasy” (MDMA) in the late-1980s,

at graduate or post-graduate level. In

many drugs often based on an evolving

an area of forensic science (as for many

number of chemical frameworks have

other areas) whereby opinion based on

been developed either from former

factual evidence is highly dependent on

Dr Simon Elliott, Consultant Forensic

pharmaceutical research or experimental

experience, this presents an existing and

Toxicologist, Managing Director, ROAR

pharmacology to evade drug legislation

potentially dangerous situation for the

Forensics, Malvern, UK.

18

Baselt’s Disposition of Toxic Drugs and Chemicals in Man (Biomedical Publications) Clarke’s Analysis of Drugs and Poisons (Pharmaceutical Press) Mason’s Forensic Medicine for Lawyers (Tottel Publishing) www.ukiaft.co.uk www.tiaft.org

19

the barrister

19

Information Commissioner warns against data breaches As the Information Commissioner ‘sounds the alarm’ over recent data breaches in the legal profession, we look at the implications and opportunities for UK chambers and barristers.

By Louise Wynn, Business Manager, Instant On IT

64855 So Inspire Me Barrister Magazine 10 Front 2015/03/14 00:32:26

A

ugust saw Informa-

clients’ potential distress and the repu-

IT experts first making sure they have

tion

Commissioner,

tational damage chambers could face,

been properly wiped of data carries a

Christopher Graham,

and it’s most definitely time for the legal

risk that can easily be avoided. There is

call a halt to data

sector to sit up and take a long hard look

still the common misconception that by

breaches within the

at their information security practices.

pressing ‘delete’ all information is per-

legal sector, remind-

manently deleted, but this isn’t always

ing barristers and solicitors that they

In support of the Information Commis-

the case and devices should be properly

risk hefty fines if they fail to take data

sioner’s words, and to help get the ba-

wiped.

protection seriously. This came as a

sics right, the ICO have published 6 top

result of the data protection watchdog

tips, all of which should be covered in

Then there are the tips that, although

handling a troubling 15 incidents re-

chambers security policy as a matter

also not new, are still perhaps proving

lated to solicitors and barristers losing

of best practice. Firstly, the informa-

the hardest to implement in practice,

important client data over the last 3

tion provided highlights the need for

without help from specialists. These tips

months.

a concise security policy to be set by

demand a more fundamental change

chambers management, with contribu-

in working practices and are reliant on

The ICO can serve a monetary penalty

tion from barristers to make sure that

sound technology choices, which can

of up to £500,000 for a serious breach

there are no real barriers to adoption.

then offer further benefits to chambers,

of the Data Protection, i.e. provided the

In reality, no barrister is going to adopt

barristers and clients.

incident had the potential to cause sub-

a security policy if they are to be consid-

stantial damage or substantial distress

erably inconvenienced as a result: time

Take considering email encryption for

to affected individuals. Some of the in-

is money.

example, there is no debating the fact

formation handled within the legal sec-

that email is not a secure method of

tor has to be amongst the most sensitive

You’d hope that some of the ICO tips re-

communication: you need only refer-

and personal of all data, meaning that

lating to more human factors are fairly

ence the press, Edward Snowden and

fines can be expected to reach the upper

obvious and well-practiced– such as

the NSA to affirm this. And, small busi-

threshold.

not leaving files in your car overnight,

nesses are by no means beyond risk, as

locking information away when it’s not

noted back in July in the press by Geoff

Granted, there has been a fair share of

in use and double –checking the email

White, underwriting manager for cyber,

criticism in the past when it comes to

address you are sending to, although

technology and media at Lloyd’s syn-

the ICO actually issuing these penalties

the Information Commissioner clearly

dicate Barbican, and supported by the

but this is surely the Information Com-

believes that a reminder of these is nec-

Government’s 2013 Information Securi-

missioner sending barristers and so-

essary.

ty Breaches Survey Report, according to

licitors a clear warning, especially given

which 9 out of 10 UK small companies

that they are generally classed as data

Other tips emphasise the importance of

controllers in their own right and are

establishing simple, documented pro-

therefore legally responsible for the per-

cesses. This is the case when it comes

So, with little doubt that considering the

sonal information they possess.

to disposing of old computers or oth-

encryption of sensitive emails makes

er devices. Passing on old devices to

good sense and, given that more busi-

friends or family, for example, without

nesses are beginning to recognise this,

Add to the potential eye-watering fines,

19

suffered from a data breach.

20

20

the barrister

therefore ensuring that no data resides on local devices. This is particularly useful when dealing with Pupils or guest users using their own equipment, as well as protecting data if devices are lost, stolen or in the event of barristers leaving chambers. The more progressive chambers are beginning to embrace technology, not only to minimise the extent to which paper files and records are transported around, but also recognising its importance in terms of productivity - particularly where remote working

64855 So Inspire Me Barrister Magazine 10 Back 2015/03/14 00:32:26

is concerned - and in meeting clients’ evolving expectations.

In summary, the Information Comwhy is it that much of the UK legal in-

they have a secure and easy-to-use on-

dustry continue to send out client data in

line environment, accessible anywhere,

clear email, therefore continuing to risk

at anytime. Barristers simply must be

a breach?

able to access emails, diaries and key information whilst on the move. When

One fundamental reason is that select-

we are introduced to new chambers, we

ing a method of email encryption isn’t

still find that this is unfortunately not al-

necessarily as easy as it sounds. Making

ways the case as things stand today.

an uninformed choice when it comes to encryption technology might mean that

Having a usable online environment

email recipients having to have special-

overcomes security concerns associated

ist software to be able to read the en-

with a more paper dominated environ-

crypted email, may result in complex

ment and is most definitely the way for-

key exchanges or might only work effec-

ward if properly secured. For example,

tively on certain devices, aspects which

all devices need to be password protect-

frankly makes the encryption process

ed: a password policy needs to be estab-

overly complicated and could ultimately

lished, as part of the wider information

result in major frustrations for barris-

security policy, covering aspects such

ters and their clients. Ask the right set

as acceptable complexity and the use of

of questions when assessing email en-

different passwords across the various

cryption options available and the pro-

devices.

cess can be fairly straightforward for all,

missioner’s words of warning should prompt chambers to review the security policy they have in place and barristers to give information security due consideration. Some aspects highlighted by the ICO are arguably common sense but worthy of a reminder, whilst others emphasise the need for well-thought out processes to be defined. For other aspects, technology is the enabler.

For those chambers that embrace technology as a means of improving the way that barristers engage and operate, the benefits for chambers and barristers can extend beyond data security to being more effective in winning, retaining and servicing clients.

Louise Wynn, Business Manager, Instant On IT

Another top tip that the ICO have shared

curity measures can be deployed for day

Instant On IT provides tailor-made IT guidance, management and support to SMEs in the legal sector and other professional services sectors. Instant On IT are cloud specialists, with proven experience in this field for over 7 years. The company has developed an outstanding reputation for knowledge and quality of service over the course of the last 10 years. Their approach is founded on the principles

relates to data minimisation, and ensur-

to day working, as well as making disas-

of Integrity, Quality, Dedication and Flexibility.

ing that only information essential to the

ter recovery planning much easier and

task in hand is being carried around. For

more compliant. We take security one

0207 831 1923

barristers to only carry essential notes,

step further still for some of our legal

info@instantonit.com

letters and forms around with them,

clients, by implementing and managing

www.instantonit.com

they first need to be able to trust that

options such as Private Cloud Desktops,

offering the appropriate protection of

With the legal industry now catching up

client data, as well as helping create a

with other industries and beginning to

positive client perception.

adopt newer technologies, including Microsoft’s Office 365, more advanced se-

20

21

the barrister

Personal Finance & Wealth Management Supplement COLOMA_Wilby ad 20/08/2014 8:24am Page 1

b

By Listening

WE UNDERSTAND

64855 So Inspire Me Barrister Magazine 11 Front 2015/03/14 00:32:26

THE WORLD OF WEALTH MANAGEMENT is a complex one, but one that is evolving. On that basis, with so many different organisations, offering different solutions, it can sometimes be difficult to know which way to turn and who to trust.

Based on our experience at OCM Wealth Management we would always recommend that every client needs all three of those services and a Discretionary Asset Manager to ensure your mandate is followed, not that of a Fund Manager.

That in itself causes problems because if you bring all of the services together it causes duplication of charges, the different elements not being integrated and sometimes overlapping and conflicting advice.

OCM Wealth Management has over the last ten years specialised in bringing together the services of an IFA, with that of a Tax Adviser and having an integrated Investment Manager with Discretionary Investment powers because we recognised every client needs all of these services together not them individually. We offer a singular team based approach with one single transparent charge for our clients designed to alleviate all of the problems associated with bringing the individual services together.

The reduction in charges by having everything together under one roof, but Independent, is significant and in many instances reduces the overall client charge by up to 50% on an annual basis, when compared to the traditional client model of disconnection and individual services provided by the IFA, Platform, Discretionary Fund Manager and Tax Adviser.

As an example please refer to the chart below.

Investor Profile Ongoing Charges Comparison Resource Used

DIY

Typical IFA with Platform

OCM

IFA + DFM with Platform

Underlying Portfolio

1.50%

0.60%

0.80%

0.80%

Platform

0.00%

0.25%

0.25%

0.25%

IFA / FA

0.00%

DFM Total

INVESTMENTS

MORTGAGES

CORPORATE SERVICES

INSURANCE

LIFE ASSURANCE

OUTCOME BASED INVESTING IS OUR USP!

Independent Financial Planners | Discretionary Asset Managers | Tax Advisers

For example, how do you know whether you need the individual services of an Independent Financial Adviser (IFA), a Personal Tax Adviser, an Investment Manager, or all three together?

PENSIONS

What Makes OCM Different

Wealth Management

0.75%

1.00%

1.00%

0.00%

0.00%

0.00%

1.00%

1.50%

1.60%

2.05%

3.05%

OCM fee includes IFA, DFA Tax Advice and ongoing advice all in the annual IFA fee - £1m+ client

Over the last 10 years we have listened to what our clients want from Wealth Management and the answer is always simple, “Clarity” in strategy “Value” as regards to charges and “Delivery” on performance. We have answered above the value proposition and once that has been understood the next step is to work with a client to develop “Clarity” by creating a coherent strategy that defines how you will maintain, or achieve financial independence. If you are at the start of your plan then the emphasis is on building wealth as tax efficiently as possible. Later in your plan the emphasis may shift to the transfer of assets tax efficiently to the next generation.

Once that plan is developed we provide a single document that provides “Clarity” for you and then work with our integrated Independent Discretionary Investment Managers to “Deliver” the investment strategy or your mandate, using our award winning investment process which we call “Outcome Based Investing”.

Outcome Based Investing (OBI)

OBI focuses on dynamic, cyclically adjusted, portfolio asset management, which prioritises delivering the “Outcome” (annualised return after fees and fund manager charges) and protecting capital against significant market events and cyclical economic downturns for the client, ahead of beating the benchmark and beating the indices.

By focussing on the clients’ needs rather than that of trying to beat our peers the client experience is one of significantly less volatility and peace of mind that they know we are putting their interests first.

BEAUTIFULLY CRAFTED WEALTH MANAGEMENT SOLUTIONS DESIGNED TO FIT YOU PERFECTLY.

The chart below illustrates the performance of the most popular portfolios we manage at OCM and shows the added value that OBI has provided over one of the most volatile periods in recent history, compared to the benchmarks, the FTSE all share, MSCI World and MSCI Emerging Market indices.

I am Edward Wilby, an Independent Financial Adviser with Coloma Wealth Management based in the City of London, offering a truly bespoke and individual service to clients throughout the UK.

Periodic Performance Table - Total Return Bid to Bid over Selected Periods to the 21st August 2014 Period

Annual Target Outcome

OCM OBI Focus 5%

5.00%

1.26%

2.35%

3.72%

6.73%

21.06%

63.87%

OCM OBI Focus 6.5%

6.50%

1.41%

2.13%

3.73%

8.18%

30.41%

74.77%

N/A

Mixed 0% - 35% Shares

n/a

0.88%

1.19%

2.22%

4.91%

16.83%

39.10%

22.81%

1 Months

3 Months

6 Months

12 Months

36 Months

Since June 2009

Since March 2007

N/A

My aim is to provide • Fair and unbiased independent financial advice • Financial products and solutions tailored to the client’s needs • Advice at a fair and reasonable fixed or hourly-rate fee • Client confidence and satisfaction

Model Portfolio & Benchmark & Major Global Indices for Observation

OCM OBI Focus 8%

8.00%

1.56%

1.82%

1.97%

8.48%

28.61%

73.54%

91.07%

Mixed 20% - 60% Shares

n/a

1.05%

1.52%

2.40%

6.05%

24.33%

47.47%

25.74%

OCM OBI Focus 10%

10.00%

2.44%

2.82%

2.04%

10.17%

40.74%

94.06%

113.66%

Mixed 40% - 85% Shares

n/a

1.53%

1.99%

2.07%

6.68%

34.40%

59.96%

30.66%

n/a

0.81%

0.41%

1.43%

8.58%

49.73%

81.19%

40.09%

FTSE 100 MSCI World

n/a

2.20%

5.15%

6.15%

11.13%

62.92%

92.21%

55.75%

MSCI Emerging Markets

n/a

4.81%

7.88%

16.17%

12.40%

20.17%

51.65%

62.82%

Before qualifying as an Independent Financial Adviser, I worked in the City of London as an investment banker. My previous experience and subsequent qualifications enable me to advise on all aspects of regulated financial investments, interface confidently with investment institutions, understand financial products and, where necessary, liaise with the chosen fund providers and discretionary management teams - especially helpful for those clients nearing retirement.

I have the experience of providing advice throughout the spectrum of professionals, from advising a £1.5 million

Source: Analytics 20th February 2014 – Performance is total return and net of Fund Managers fees but not advisory fees.

Please note that past performance is not an indication of future performance and cannot be guaranteed or relied upon.

Summary

OCM Wealth Management is therefore a modern wealth management firm that brings together individual client services into one Independent client focussed solution designed to not only strategise but deliver your objectives.

That is why we say “You Dream We Deliver”.

If you would like any further information on our services, or would like to arrange a no obligation meeting with one of our advisers, please contact us on 0845 338 1971, or email info@ocmwealthmanagement.co.uk.

Further information can also be found on our website www.ocmwealthmanagement.co.uk

portfolio of investments of a QC to advising a young criminal barrister seeking her first mortgage. I advise Chambers and Solicitors practices on solutions for individual and group pensions, health and income protection, and, for clients nearing retirement, investment and fund management advice.

My clients include self-employed doctors, dentists, and veterinary surgeons who I advise on a variety of investments and group scheme issues.

As a self-employed professional in a practice with many similarities to barristers’ chambers, I understand the particular uncertainties and financial issues posed by working for oneself and the real concerns when making lifetime financial decisions. Unlike advisers working for larger financial institutions who are remunerated directly by their employer and can only advise clients to invest in their tied financial products, as a completely independent adviser, I can research and access the whole financial

market. As my practice is not restricted by the ties of an institution, I can recommend the most suitable and competitive options which are available to independent financial advisers.

Just as the Independent Bar prides itself on providing unbiased fair advice, as a truly independent financial adviser I do just the same. My remuneration is transparent and fixed by agreement in a signed contract after an initial free consultation. I guide my clients through the labyrinth of available financial products, carefully explaining the advantages and disadvantages of the available mortgages, pensions or investments so that each individual is able to make an educated choice.

For further information and a complimentary first meeting, please contact Edward Wilby BSc (Hons), IMC, Cert CII (MP), Dip PFS by e-mail at etw@coloma-wealth.com or by phone on 07887 688156.

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For marketing and information purposes by UBS. For Professional Clients only. It is not to be distributed to or relied upon by Retail Clients under any circumstances. This document has been issued by UBS AG, a company registered under the Laws of Switzerland. Issued in the UK by UBS Global Asset Management (UK) Ltd, authorised and regulated by the Financial Conduct Authority. This document is for distribution only under such circumstances as may be permitted by applicable law. The products or securities described herein may not be eligible for sale in all jurisdictions or to certain categories of investors. Source for all data and charts (if not indicated otherwise): UBS Global Asset Management. © UBS 2014. The key symbol and UBS are among the registered and unregistered trademarks of UBS. All rights reserved. E6 UBS_ETF_LONDN_A4_UK.indd 1

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21

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Wealth Management

Independent Financial Planners | Discretionary Asset Managers | Tax Advisers

By Listening

WE UNDERSTAND

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THE WORLD OF WEALTH MANAGEMENT is a complex one, but one that is evolving. On that basis, with so many different organisations, offering different solutions, it can sometimes be difficult to know which way to turn and who to trust.

For example, how do you know whether you need the individual services of an Independent Financial Adviser (IFA), a Personal Tax Adviser, an Investment Manager, or all three together?

OCM Wealth Management has over the last ten years specialised in bringing together the services of an IFA, with that of a Tax Adviser and having an integrated Investment Manager with Discretionary Investment powers because we recognised every client needs all of these services together not them individually. We offer a singular team based approach with one single transparent charge for our clients designed to alleviate all of the problems associated with bringing the individual services together.

Based on our experience at OCM Wealth Management we would always recommend that every client needs all three of those services and a Discretionary Asset Manager to ensure your mandate is followed, not that of a Fund Manager.

The reduction in charges by having everything together under one roof, but Independent, is significant and in many instances reduces the overall client charge by up to 50% on an annual basis, when compared to the traditional client model of disconnection and individual services provided by the IFA, Platform, Discretionary Fund Manager and Tax Adviser.

As an example please refer to the chart below.

That in itself causes problems because if you bring all of the services together it causes duplication of charges, the different elements not being integrated and sometimes overlapping and conflicting advice.

Investor Profile Ongoing Charges Comparison Resource Used

DIY

OCM

Typical IFA with Platform

IFA + DFM with Platform

Underlying Portfolio

1.50%

0.60%

0.80%

0.80%

Platform

0.00%

0.25%

0.25%

0.25%

IFA / FA

0.00%

0.75%

1.00%

1.00%

DFM

0.00%

0.00%

0.00%

1.00%

Total

1.50%

1.60%

2.05%

3.05%

OCM fee includes IFA, DFA Tax Advice and ongoing advice all in the annual IFA fee - ÂŁ1m+ client

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What Makes OCM Different

OUTCOME BASED INVESTING IS OUR USP! Outcome Based Investing (OBI)

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Over the last 10 years we have listened to what our clients want from Wealth Management and the answer is always simple, “Clarity” in strategy “Value” as regards to charges and “Delivery” on performance. We have answered above the value proposition and once that has been understood the next step is to work with a client to develop “Clarity” by creating a coherent strategy that defines how you will maintain, or achieve financial independence. If you are at the start of your plan then the emphasis is on building wealth as tax efficiently as possible. Later in your plan the emphasis may shift to the transfer of assets tax efficiently to the next generation.

OBI focuses on dynamic, cyclically adjusted, portfolio asset management, which prioritises delivering the “Outcome” (annualised return after fees and fund manager charges) and protecting capital against significant market events and cyclical economic downturns for the client, ahead of beating the benchmark and beating the indices.

By focussing on the clients’ needs rather than that of trying to beat our peers the client experience is one of significantly less volatility and peace of mind that they know we are putting their interests first.

Once that plan is developed we provide a single document that provides “Clarity” for you and then work with our integrated Independent Discretionary Investment Managers to “Deliver” the investment strategy or your mandate, using our award winning investment process which we call “Outcome Based Investing”.

The chart below illustrates the performance of the most popular portfolios we manage at OCM and shows the added value that OBI has provided over one of the most volatile periods in recent history, compared to the benchmarks, the FTSE all share, MSCI World and MSCI Emerging Market indices.

Periodic Performance Table - Total Return Bid to Bid over Selected Periods to the 21st August 2014 Period

Annual Target Outcome

1 Months

3 Months

6 Months

12 Months

36 Months

Since June 2009

Since March 2007

Model Portfolio & Benchmark & Major Global Indices for Observation OCM OBI Focus 5%

5.00%

1.26%

2.35%

3.72%

6.73%

21.06%

63.87%

N/A

OCM OBI Focus 6.5%

6.50%

1.41%

2.13%

3.73%

8.18%

30.41%

74.77%

N/A

Mixed 0% - 35% Shares

n/a

0.88%

1.19%

2.22%

4.91%

16.83%

39.10%

22.81%

OCM OBI Focus 8%

8.00%

1.56%

1.82%

1.97%

8.48%

28.61%

73.54%

91.07%

Mixed 20% - 60% Shares

n/a

1.05%

1.52%

2.40%

6.05%

24.33%

47.47%

25.74%

OCM OBI Focus 10%

10.00%

2.44%

2.82%

2.04%

10.17%

40.74%

94.06%

113.66%

Mixed 40% - 85% Shares

n/a

1.53%

1.99%

2.07%

6.68%

34.40%

59.96%

30.66%

FTSE 100

n/a

0.81%

0.41%

1.43%

8.58%

49.73%

81.19%

40.09%

MSCI World

n/a

2.20%

5.15%

6.15%

11.13%

62.92%

92.21%

55.75%

MSCI Emerging Markets

n/a

4.81%

7.88%

16.17%

12.40%

20.17%

51.65%

62.82%

Source: Analytics 20th February 2014 – Performance is total return and net of Fund Managers fees but not advisory fees.

Please note that past performance is not an indication of future performance and cannot be guaranteed or relied upon.

Summary

OCM Wealth Management is therefore a modern wealth management firm that brings together individual client services into one Independent client focussed solution designed to not only strategise but deliver your objectives.

If you would like any further information on our services, or would like to arrange a no obligation meeting with one of our advisers, please contact us on 0845 338 1971, or email info@ocmwealthmanagement.co.uk.

Further information can also be found on our website www.ocmwealthmanagement.co.uk

That is why we say “You Dream We Deliver”.

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Wealth in a World of Change

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The world is changing faster and more fundamentally than at any time in history. At Kaiser Partner, we believe that with such change comes the need to change the way wealth is managed and created.

In our ‘Guide for Wealth Owners’ we have compiled a set of new thoughts and principles to successfully navigate wealth in these unprecedented times. To obtain a copy, or for a more connected conversation about your wealth, please get in touch via our website.

Trust Company | Private Bank | Asset Management | Family Office Liechtenstein | Switzerland

www.kaiserpartner.com

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Contents: 6

Join the pensions revolution

By Nigel Bolitho

Why investment managers are like the barristers of the financial planning world

By Andrew MacLean – Standard Life Wealth

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Six wealth insights

By Jason Butler

The Perfect Planning Experience

By Matthew Aitchison BA (Hons) APFS, Chartered Financial Planner

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Why Buy Gold? – A Safe Haven

By Oliver Temple

Avoid becoming the taxman’s next victim with tax-efficient planning

By Riki Gangola, Partner, RDP Newmans LLP

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Change is the law of life ….and of pensions too

By Neil Messenger, Partner and Head of Financial Planning, Grant Thornton UK LLP

The Naked Truth: Forestry investment returns in the UK

By Edward Anderson-Bickley, Managing Director of Honour Capital and qualified chartered surveyor

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Reducing currency risks. Investing with currency protection.

Why using currency-hedged ETFs can provide investors with more focused access to equity markets

By Andrew Walsh, Head of ETF UK and Ireland at UBS Global Asset Management

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Join the pensions revolution

By Nigel Bolitho

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The March 2014 Budget was a revelation. First the main

Of course these new rules don’t help you if you have a large

proposals were not leaked beforehand, secondly they are

pension pot subject to one sort of cap or another. Not only that

revolutionary. One announcement boosted the amount that can

but the Treasury already anticipates a large increase in taxation

be invested in an Individual Savings Account (Isa) and allowed

after April when the freedom rules begin. However it does

100% switching from cash to investments and vice versa; the

throw up lots of possibilities as the Treasury gradually realises

other heralded a pensions revolution.

the implications of pension freedom.

Thanks mainly to a combination of falling and now low interest

One possibility is switching money from defined benefit (DB) or

rates and increasing longevity (Blackrock forecasts that one of

final salary schemes to personal pensions. These switches lose

every six people in your home or office will live to 100!), personal

a lot in terms of giving up (or paying a lot for) annuity escalation

pensions had come to be considered a poor investment. First of

and a widow(er) pension. But if somebody is single and/or

all annuity rates are lousy for most people and you lose control

divorced and/or in poor health it’s not now so clear cut that a

of your of your pension money as a result. Secondly the half

transfer from a DB to a defined contribution (DC) or personal

way house called Capped Income Drawdown (CID) still controls

pension scheme is bad advice. For many years it has been

the maximum income you could take in any 12 months period.

correctly deemed to be bad advice but the number of DB to DC transfers seems to be increasing. Note, however, that specialist

Soon that rule will be swept away for many people. From next

advice must be taken over a DB to DC transfer and preferably

April anybody over the age of 55 will be able to take not only

from a specialist adviser with a G60 qualification.

25% tax free cash from their pension pot(s) but also grab as much taxable income as they wish. Of course income tax comes

So why might a DB to DC transfer be good advice? For starters

into the equation: if you are a higher rate taxpayer paying a top

the personal pension tax free lump sum is likely to be much

rate of tax of 40%, or an additional rate taxpayer on 45% or

bigger than that available from a DB scheme; then there’s

pay an effective marginal rate of tax of 60% between £100,000

complete freedom to take taxed income when one wants it

and £120,000 (when you progressively lose your personal

from next April and assuming you are over the age of 55. Not

allowance), there’s not point taking lots of highly taxed income-

surprisingly perhaps the Government wants to veto transfers

but it does make contributing to a pension fund much more

out from government and other DB schemes that are largely

worthwhile.

funded from general taxation.

But there are plenty of cases where this rule relaxation makes

In August the Government unveiled three possible options under

pension popularity jump from zero to hero. Perhaps the most

which people will be able to access their pension pots in April

obvious case is the barrister or judge’s non-working spouse.

2015 and in future years. One will allow savers to take income

Every UK resident can invest £3600 gross into a personal

from their existing pension funds; another will allow then to to

pension each tax year and receive 20% tax relief up-front even

use part of their existing pension pots or pots to purchase an

if they are a non-taxpayer. Small stuff perhaps but up until now

annuity. The third way is, imaginatively, called “flexible access

there was not much point because the end result was a small

drawdown” (FAD). Here the pension money goes into one big

annuity. Now pension flexibility combined with a rapidly rising

pot, 25% tax free cash is usually withdrawn and the balance

personal allowance (£10,500 in 2015-16) makes it attractive for

feeds income needs. Such a scheme seems to be very similar to

the spouse to invest in a pension for a year or so and then take

current CID schemes.

the money out as income. That income is likely to be initially taxed at 20% so a tax return will need to be completed: if the

Of course FAD opens up lots of other possibilities: for example

spouse has never worked, the form to reclaim tax is R40.

make pension contributions then withdraw 25% tax free cash and taking the remainder as taxed income. Not surprisingly the

If the spouse is over 60 with a few small pension pots then the

Treasury is worried about hordes of savers “recycling” their

new rules may allow those pots be taken as cash: again 25% tax

money in this way so anybody who takes more income than

free and the rest potentially taxable.

the current maximum under capped drawdown may be limited

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personal finance & wealth management supplement the barrister 2014

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to how much they can subsequently pay in as new pension

addition both the platform and the adviser’s charges have to be

contributions: one suggestion is that in these circumstances the

clearly displayed.

maximum annual pension contribution may be reduced from £40,000 (excluding certain adjustments) to £10,000.

Most Budgets are boring and all too often major proposals are leaked to friendly newspapers in advance. The Budget in March

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But assuming that some form of drawdown because the

was a big exception and in terms of the pension revolution

popular model for accessing pension money, what is the right

there’s more work to be done ahead of liftoff next April. But

form of drawdown? On the one hand you have life companies

if Americans and Australians can manage their pension funds

which sell their own-branded units (with income reinvested)

as freedom funds, most Brits should be able to do the same. I

to produce the saver’s income. That’s fine if markets are going

don’t believe that lots of pensioners will immediately become

up but if they are falling then a lot of units may have to be

spendthrifts or splurge out on a Lamborghini. But they will

sold to produce the required income. On the other hand you

welcome the fact that they can now take personal control of

have the fund platforms or supermarkets. They invest savers

what is usually the main part of their finances. At the moment

money directly into commonly-held unit trusts and usually

at least I cannot think of a situation where an annuity is the

offer much greater fund choice. Within them it is possible to

better pension option unless there are guaranteed annuity

have the “natural” income from the unit trusts paid into a cash

rates attached.

account and it is from the cash account that the saver is paid his or her income. Of course in this case the saver can always

Nigel is also a senior journalist and writer for the Investors

take more income by cashing in units but he or she can clearly

Chronicle (part of the Financial Times group) and other

view the consequences of such action. I am a firm believer

financial periodicals.

in the fund supermarket approach to managing a drawdown contract; that’s particularly so when it is also easy to make

nigel.bolitho@gmail.com

pension contributions at the same time and when nowadays

bolitho@enterprise.net

there should be no upfront, no switch and no exit charges. In

AUTO ENROLMENT INTO WORK PLACE PENSIONS HAS ARRIVED �������������������������������������������������������������������������������������������������������������� ��������������������������������������������������������������������������������������������������������� ���������������������������������������������������������������������������������������������� �������������������������������������������������������������

•��������������������������������������������������������������������������� •���������������������������������������������������������������������������������������� •���������������������������������������������� •� ����������������������������������������������������������������������� •� ��������������������������������������������������������������������������� •� ���������������������������� •� ��������������������������������� •� ��������������������������������������������������� •� ����������������������������������� ��������������������������������������������������������������������•�������������������������������������• 0845 127 1444 www.canterholland.com �������������������������������������������������������������������������������������������������������������������������������������������������������������������������

personal finance & wealth management supplement the barrister 2014

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Why investment managers are like the barristers of the financial planning world

By Andrew MacLean – Standard Life Wealth

Many of the differences between solicitors and barristers are

range, depending on the adviser’s qualifications, from investing

probably fairly opaque to the average person.

to tax planning. Management of the client’s investments may

The legal profession isn’t alone in this – differences which are

be undertaken “in-house” by their adviser, or the adviser may

obvious to industry insiders are often not so clear to those outside

“outsource” some of the management to a third party such as

it. Boundaries between roles which change over time further

a discretionary fund manager, effectively acting as a liaison

complicate matters. The world of private client management

between them and the client.

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fits neatly into this category. What, if anything, is the difference between an investment adviser, an investment manager, a

Two popular methods of outsourcing used by advisers are

portfolio manager, a financial adviser and a financial planner?

advisory and discretionary management. The choice to use

Again, there isn’t necessarily a clear distinction: different

either option may be taken directly by the client, or they may

companies and finance professionals take on different aspects

be guided as to which option is appropriate by their adviser.

of these roles.

With advisory management, the client is contacted by Managing the finances of wealthy clients can be largely divided

the investment manager before investment decisions are

into advisory and discretionary management. Many wealthy

implemented. For investors who are interested in how their

clients have a financial adviser who deals with day-to-day

investments are managed, this is often the right choice.

matters and offers advice on a variety of issues which can

However, it carries potential penalties: investment managers

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Fo re cir ind

UBS

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Keep your cool if currencies ride the roller coaster.

Use UBS ETFs with currency hedging.

With exchange traded funds (ETFs) you can add almost any index in the world to your portfolio. Exchange-rate fluctuations can reduce investment returns. It is comforting to know that you can hedge against foreign exchange risk: with currency-hedged UBS ETFs. To find out more, take a look around at www.ubs.com/etf

For marketing and information purposes by UBS. For Professional Clients only. It is not to be distributed to or relied upon by Retail Clients under any circumstances. This document has been issued by UBS AG, a company registered under the Laws of Switzerland. Issued in the UK by UBS Global Asset Management (UK) Ltd, authorised and regulated by the Financial Conduct Authority. This document is for distribution only under such circumstances as may be permitted by applicable law. The products or securities described herein may not be eligible for sale in all jurisdictions or to certain categories of investors. Source for all data and charts (if not indicated otherwise): UBS Global Asset Management. Š UBS 2014. The key symbol and UBS are among the registered and unregistered trademarks of UBS. All rights reserved. E6 UBS_ETF_LONDN_A4_UK.indd 1

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18.08.2014 14:18:32

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can’t make instant decisions when they see an opportunity.

experts in the management of our clients’ assets.

Instead they have to wait until they can contact the client and get their agreement, or otherwise, to make the trade. The nature of

People need different things from their investments at different

the relationship between client and investment manager means

points in their lives. For example, when you’re young and

that decisions can’t be instant, and any time out of contact can

earning, you’re likely to be able to take on more risk and be

lead to missed opportunities.

aiming to grow your portfolio. At the other end of the spectrum, clients in retirement may be taking a regular income from

Discretionary management, on the other hand, tends to be

their portfolio, possibly drawing down from capital. Growth is

‘hands-off’ for the client. If you go down the discretionary

a lower priority than continuing to take a sustainable income

route, you hand decision making more-or-less entirely to an

throughout retirement, and possibly leave an inheritance to pass

investment manager. You’re involved in initial conversations

on. As a result, clients will often need different approaches to

around investment constraints and aims: things like the risk

managing money which seek to meet these two types of needs.

to be taken, whether you’re investing for capital growth or

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whether an income is needed, and whether there are specific

Perhaps the most important thing we have in common

markets you have a specific interest in or wish to avoid. You’re

with barristers is that we both work with people who are

also involved in regular reviews of your portfolio. However, by

less experienced in our field of expertise than ourselves.

and large, the investment manager makes individual investment

Discretionary managers will

decisions independently. They use their professional knowledge

possible results for clients to meet their diverse and changing

and expertise to make immediate judgments on their clients’

needs.

aim to always deliver the best

behalf. This is Standard Life Wealth’s role.

About Standard Life Wealth There is also a third form of management: execution only.

Clients who choose this style aren’t looking for any form of

At Standard Life Wealth we work with a huge number of

advice, and are entirely responsible for their own investment

different clients, each of whom has different needs and goals.

decisions.

Experts in the management of our clients’ assets, we manage around £5.8 billion*.

How does this tie into the legal profession? Advisory management, with its advice-based nature, regular client

Advisers and clients turn to us when they want specialists to

interaction and face-to-face contact and dealing with their day-

manage their investments on a day-to-day basis. Our aim is to

to-day concerns, parallels the work of a solicitor. They work

find the investment approach that will best suit each client’s

directly with clients, dealing with their ongoing needs and day-

unique goals and preferences. We can work closely with advisers

to-day concerns.

or directly with clients to ensure that we fully understand their goals. We then manage their portfolio according to these goals.

But, where required, a solicitor will engage a specialist – a barrister. In most cases they don’t work directly for the client but

Standard Life Wealth offers two investment approaches. The

are instructed to act on their behalf. They act as experts in the

first of these is the conventional approach. This may be suitable

area they’re retained for. Similarly, as discretionary managers

for people who are growing their wealth, and who are happy

we’re engaged to act as specialists in the management of our

to see their portfolio fluctuate in line with investment markets.

clients’ investments. Advisers often outsource this specific

Conventional portfolios are fully diversified, investing primarily

area of their clients’ financial management to a discretionary

in traditional asset classes such as equities, bonds and property.

manager – though we can and do work directly with clients too.

To this extent we’re the investment equivalent of a barrister:

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The second investment approach available seeks to deliver

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target returns. Many people are investing for particular aims or goals. Outperforming the investment markets doesn’t necessarily help meet all client needs, particularly if the client is concerned about the impact of short to medium-term volatility.

To help manage this, the target return approach aims to deliver specific, target returns over a three year rolling timeframe, rather than aiming for market-based return.

*As at 30th June 2014

The articles in this supplement are intended for general information only and should not be construed as advice

Visit

under the Financial Services and Markets

www.standardlifewealth.com

Act

to find out more.

personal finance & wealth management supplement the barrister 2014

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Six wealth insights

By Jason Butler

Four hundred hours over five months, 800 pages of A4 text, 350 citations, 250 graphics and 10 reviewers later I’m pleased to advise that I’ve now completed the second edition of my book – The Financial Times Guide to Wealth Management – which is due out later this year. Although it’s not quite three years since I wrote the first edition, a lot has happened in the world of investment, pensions, tax and law, particularly over the past six months. I’m particularly pleased with the second edition, because it is more comprehensive, expanded, updated and improved.

Here are just six insights, from the many that I’ve included in the book, which you might find of interest.

Increasing longevity

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We are all living longer and the trend is for this to continue. This has massive implications for wealth planning because it means we need to fund a longer level of lifestyle expenditure, with an increased likelihood of requiring long term care.

Projected life expectancy at age 65 1982 - 2063

Source: Office for National Statistics: Historical and Projected Mortality Data from the Period and Cohort Life Tables, 2012-based, UK (December 2013)

Long term care costs of £250,000?

Despite the imminent introduction of a ‘cap’ on care fees of £72,000 for those in England and Wales (Scottish residents get free social care), I estimate that a typical affluent person can expect to pay about £250,000 in care costs, based on the published definitions and eligibility criteria.

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Illustrative cumulative care costs

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Source: Bloomsbury. Assumptions: Total fees £28,000pa (escalating at 4%pa), eligible fees (for cap) £20,000pa and hotel costs £12,000 pa (both escalating at 2.5%pa), cap is £72,000

Lower investment returns likely A combination of factors suggest that future investment returns are likely to be lower than the long-term historic average. This means that it is even more important to ensure that capital is invested in the most effective way, including having sufficient exposure to compensated risk factors, keeping costs low and using fund managers that adopt clever trading strategies.

The equity risk premium in developed markets

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Inflation is still likely to be a big problem Although inflation has fallen over the past few years, some experts think that the long term impact of loose monetary policies like quantitative easing will be higher inflation. Even at a relatively low inflation rate of 2.5% pa, the purchasing power of your wealth halves every 28 years. At 4% inflation, it halves every 18 years.

The erosion of purchasing power of capital by inflation Inflation

1%

2%`

3%

4%

5%

Years to halve capital

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Socially responsible and impact investing is on the rise Socially responsible investing (SRI) is rapidly gaining greater prominence as people and companies face up to the various social, environmental and ethical challenges in the world. Two particular areas, sustainable investing and social impact investing, are gaining greater acceptance among the wealth management profession and are likely to become core elements of many clients’

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wealth plans.

Source: RBC Wealth Management & Capgemini (2012), 2012 World Wealth Report; EUROSIF (2012), High net worth individuals and sustainable investment 2012, p9

Being a graduate should NOT be the default choice With the full impact of higher tuition fees and less state financial support available for many young people in England, Wales and Northern Ireland, a typical student can expect to graduate with a debt of nearly £50,000. Unless they earn either very little or quite a lot, most can expect to spend most of their working life paying off this debt. Many young people would be better advised to do a modern apprenticeship after A levels and many professions, such as law and accountancy as well as the established trades, are now offering apprenticeships.

Jason’s book - The Financial Times Guide to Wealth Management (second edition) - is due out in the autumn.

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Invest like Buffett – the Low Cost Way Low cost tracker funds are booming as more people move away from actively managed investments. Adam Laird, Hargreaves Lansdown’s Passive Investment Manager looks at the pros and cons of tracker fund investing – and when you should stick with a traditional fund manager Warren Buffett is one name in finance everyone knows. Every

Warren Buffett is himself in the opposing camp – an active fund

year he writes a letter to shareholders in his company, Berkshire

manager who chooses investments to beat the index. So why

Hathaway, which gives valuable insights from this great mind.

are he and many other professionals advocating that investors

This year’s letter included some simple advice on how he wants

shifting to tracker funds? There are three main reasons.

his wife’s inheritance to be managed after his death. He says: “put 10% of the cash in short-term government bonds and 90%

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in a very low-cost index fund [known in the UK as ‘tracker funds’].”

Performance In theory, active fund managers are full time professionals looking for the investments most likely to outperform. Whilst some, like Buffett himself, have long records of consistently

Tracker funds are simple and often low-cost investments which aim to mirror the performance of a stock market index – like the FTSE 100. They are considered a modern investment, though the concept has been around since the 1970s. They have become mainstream over the last decade and currently more than £1 in every £10 invested in funds in the UK is a tracker.

beating expectations, unfortunately the majority disappoint.

It is arguably getting more difficult to run an actively managed fund – a key skill is discovering good investments first. As technology improves and computing speed increases, bargains in the stock market are spotted more quickly. Even for the best managers, it is tougher to find stocks and bonds at the lowest price.

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The chart shows the performance of three major fund sectors

Many research organisations compile performance tables but

over the last 10 years (Source: Lipper 1st August 2004 – 1st

assessing the merits of each strategy can be time consuming.

August 2014). The Investment Managers Association calculates an average performance for funds in each sector, which is shown beside a representative market index. In all three cases, the average manager has underperformed.

The approach in Berkshire Hathaway has always been to keep things simple – investors should stick to their “circle of competence”. This is why many people favour tracker funds – it is easy to tell what they will do and to assess their performance.

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The returns on an actively managed fund can be very difficult from its benchmark. The fees on tracker funds mean they tend

Cost

to underperform their index too, but there is less risk a tracker

In Buffett’s eyes, low cost means long run outperformance.

fund performance will deviate significantly from its index.

With many things in life you get what you pay for – spending

You cannot predict a good active manager from past performance alone. Studies have shown there is little consistency in fund

a little extra means better quality, service or convenience.

Unfortunately in investing, the reverse tends to be true.

Numerous studies have found management fees are one of the

performance. Vanguard Asset Management looked at actively

biggest determinants of fund performance.

managed funds in the decade from 2003 to 2013. Of those 335 funds in the top 20% over the first five years, only 43 funds

The fees on tracker funds tend to be much lower than actively

outperformed in the second half. 82 of those funds were in the

managed funds. Their managers do not need to employ teams

bottom 20% and 79 were closed down.

of researchers to look for opportunities – the investment choices

Simplicity

are dictated by an index provider, like FTSE or Standard and

Active managers have different objectives and strategies – each

Poor’s.

will have times when they do well and when they struggle. To

The charges on all investment funds have fallen this year, due

choose the right product you need to look a fund’s portfolio, the

to competition and regulatory change. The ongoing charge

investment process and the manager’s record. There are many

on a typical actively managed fund might be 1% of assets

places investors can find research and recommendations –

whereas UK investors can currently buy tracker funds in all

companies publish lists of top performers, including Hargreaves

major sectors under 0.25%. This might sound like small change

Lansdown’s Wealth 150 list of its favourite active fund managers.

but over time even small differences can be substantial. In 10

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years, an investment of £10,000 growing by five percent per

For more information about tracker funds, visit

year will be worth £14,731 after 1% annual charges or £16,127

www.HL.co.uk/core

with a 0.1% fee. In this case, you would earn £1,395 more by switching to a tracker fund.

Adam Laird

A place for everything and everything in its place

Passive Investment Manager

No one type of investing works for everyone and there are still

Hargreaves Lansdown, 1 College Square South, Anchor Road,

reasons to stick to active managers. Most tracker funds follow

Bristol, BS1 5HL

indices where the largest, most frequently traded investments

Tel: 0117 980 9884

are the biggest proportion, so active managers are the best way to invest in small companies. Smaller firms are generally

Web: www.HL.co.uk

less well researched and less frequently traded, so it is an area

Risk Warning:

where a good manager can add real value.

The value of any investment can go down in value as well as

Whilst tracker funds can pay income, some actively managed

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up, so you could get back less than you invest. It is therefore

funds are built with the explicit purpose of holding above

important that you understand the risks and commitments.

average yields. For income seeking investors, actively managed

This article is not personal advice based on your circumstances,

funds often pay the most. Finally, tracker fund investors have

if you are unsure about the suitability of an investment please

few options for investing directly in property or cash.

speak to a financial advisor

In Hargreaves Lansdown, we find many of the best investment portfolios blend actively managed funds with trackers to suit the individual. Here are three popular ways to do this: 1.

Core and explore

Tracker funds are a good way to gain low-cost exposure to major markets - therefore some investors use tracker funds as a low-cost core for their portfolio but complement this with actively managed funds or other assets to increase exposure to favoured areas.

2.

Choose the best exposure for each area

Another popular strategy is to build a portfolio of your favourite active managers, but use tracker funds to fill in the gaps. For example, the US is a country where active managers have struggled to add value. Some believe the US is so heavily researched that it is tricky for fund managers to find undervalued stocks. Many investors would use an American tracker fund alongside actively managed funds investing in other regions.

3.

Low fee in conservative assets

There are some types of asset which tend to generate low returns, often because they are less risky. When investing in these assets, charges make a bigger proportional difference to returns and therefore investors often focus on minimising costs.

For example the yield on gilts has been at record lows, with the index yielding below 3.5% since 2011. Investors in this type of asset often opt for a low-cost tracker fund rather than pay for active management.

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The Perfect Planning Experience

By Matthew Aitchison BA (Hons) APFS, Chartered Financial Planner

Working with a financial planner can be a hugely rewarding experience, however, at the beginning of a relationship it can be difficult to spot the difference between a REAL financial planner and a traditional product based sales adviser. One of the best ways to tell early on is the planning process you experience initially and on an ongoing basis.

introductions and drinks being offered, Fred (your financial planner) explains that the purpose of today is for both parties to learn enough to decide whether or not they wish to work together moving forward. The idea of a financial planner not automatically taking you on is an intriguing one! Fred explains that as a company, they have capped the number of client relationships they have so that they can provide a top class service and add significant value to each and every one of their clients.

In this article I will walk you through my view of the ‘Perfect Planning Experience’…

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This first meeting is a slightly strange experience in comparison to your previous adviser! Instead of the normal sales pitch, Fred has begun by asking you to talk him through your background story, i.e. how have you ended up in your current situation.

He then moves on to finding out what’s important to you. This includes questions about your family and your passions as well as your hopes, dreams, goals and fears for the future. Your money has not even been mentioned up to this point which is refreshing! He finally moves on to finding out a bit about your current financial situation, although Fred stresses that at this point he is only looking for an overview.

Once Fred seems satisfied that he knows enough about your situation, he then tells you that he thinks he can help. He runs through the service he can provide and how it relates to the goals and aspirations you have for the future. The focus is on designing a strategy that will enable you to live the life you want, accomplish all your goals as well as lower your tax liabilities.

First Contact You haven’t heard from your current adviser for a while (not since the last time you wrote a cheque to your pension) so you have decided to look for a potential new adviser. After searching on the internet, you find a company who describe themselves as ‘Financial Planners’. Their website looks different to most other advisers in that they do not really mention products.

Instead they talk about “goals”, creating “strategies” and “relationships”. Intrigued you email them and a no obligation, no cost, first meeting is arranged.

He also runs through the cost of this service. What is intriguing is that he asks for a commitment to a ‘planning fee’ that is payable whether or not any products are bought. You explain to him that traditionally, you have paid your adviser through the sale of a product. Fred explains that his fees are set out the way they are to negate conflict of interest. By charging a fee for the plan, he is not dependent on selling you a product. In fact, it enables him to recommend a course of action other than a product if that is more appropriate for you. Most importantly, it aligns your interests and ensures he works for you, not the product providers. Once explained, it makes you realise why you don’t hear from your adviser unless you are adding money to existing pensions or investments, or setting up something new!

Prior to the meeting you receive a ‘welcome pack’ through the post. The accompanying letter explains that the purpose of this pack is to introduce the company and service as well as answer some common questions so the first meeting can focus on you, and be as productive as possible.

First Meeting

At the end of the meeting, Fred runs through the next steps and thanks you for your time. Shortly after you receive a fee

The day of your first meeting arrives and after initial

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Third Meeting The day of the presentation meeting has arrived. You settle down into the meeting with a mixture of excitement and nervousness.

After the initial small talk, Fred begins the meeting by running through your current financial reality including your family balance sheet and current income and tax liabilities. He then overlays a number of prudent assumptions regarding inflation, tax rates, growth rates and other variables to produce a cash flow model of your potential financial future. The outcome is surprising! Even though you are paying into a pension, you are projected to run out of money by the age of 80. You were not aware of this!

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After the initial shock, Fred explains that although bad, there is time to rectify this. He explains that there is surplus income after all expenses are paid which could go into a variety of tax wrappers. He also explains that the investment strategy being used is both expensive and inefficient. He has put together an investment strategy that is designed to deliver the personal rate of growth that you need to achieve your goals. Not only this, but there are a number of changes that can be made to reduce the money being lost to tax. Once these changes are modelled, the results are that you do not run out of money. What a lovely sight to see no red on the output screen! Not only that, but the cost savings and tax reductions more than pay for the cost of the planning exercise and the ongoing fee Fred will charge. It feels like the service is free!

proposal in the post that confirms your goals and aspirations, how Fred can help and what he will charge, which you send back promptly.

Second Meeting Your second meeting is booked for one week’s time. The day after booking the meeting you receive a confirmation letter as well as a list of requirements that you will need to prepare prior to the meeting. This includes details of your income, expenditure, assets, liabilities, tax returns, policy information and a risk profile questionnaire. Lots of information, but Fred assures you that he needs it to build a complete picture of your current financial situation.

Fred also runs through what would happen to your family if various disasters (i.e. death, serious illness, etc.) occurred.

There are some problem areas as well as some cover that isn’t needed. Again, Fred has some suggestions as to how to mitigate this risk in a cost effective way.

The day of the meeting arrives! Fred talks you through the plan for the meeting and reiterates that he needs all of this information in order to create a meaningful financial plan. This meeting is a little dryer than the previous meeting as Fred goes through his questionnaire, but he does sprinkle in some more thoughtful questions where he would like to know more about a certain area. Most importantly, your goals and aspirations are discussed in detail, and documented.

At the end of the meeting, Fred sums up the financial strategy moving forward and you agree an action plan to move towards this financial strategy. A few days after the meeting you receive a written report detailing everything recommended in the meeting and the next steps. For the first time you feel that you have an adviser who is on your side, who has your best interests at heart and is not trying to sell you something!

Not only that, but your future is clearer and you have peace of mind that comes with feeling in control. You’re looking forward to implementing the strategy and working with Fred on an ongoing basis!

At the end of the meeting, you sign letters of authority to allow Fred to write to your existing providers for details of your contracts. He talks you through the next stage of the process which includes analysing and evaluating your current financial situation, establishing the affordability of your goals and designing a strategy that provides the framework to achieve your future goals, reduce your tax liability and make your investments and pensions more efficient. All sounds good to you!

Matthew Aitchison BA (Hons) APFS Chartered Financial Planner Clear Vision Financial Planning Limited 01234 851 797 07854 769 815 maitchison@clearvisionfp.co.uk www.clearvisionfp.co.uk

Over the course of the next few weeks, you receive regular email correspondence updating you on the progress of the planning process. This is quite an insight into the battles to gain information from providers as well as the work that is going on behind the scenes! Once the analysis is complete, the third meeting is arranged.

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Change is the law of life ….and of pensions too

By Neil Messenger, Partner and Head of Financial Planning, Grant Thornton UK LLP

In June 1963 John F Kennedy addressed the leading politicians

Obviously, income tax is a consideration too. For the first time

of West Germany in Frankfurt. He said “Change is the law

in their careers, many people will have the ability to decide how

of life and those who only look to the past or the present are

much income to take in a year and, consequently, how much

certain to miss the future” Kennedy was speaking about liberty

income tax they will have to pay. Naturally, this gives scope

and internationalism but the words could just as easily apply to

for managing the income drawdown in ways that minimise the

UK pensions in 2014. The whole landscape both of building up

tax bill.

funds for retirement and of taking an income from those funds

totally free of tax as a ‘pension commencement lump sum’

is changing dramatically.

from defined contribution pension funds, everyone has an

Anyone who ignores the changes

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may fail to achieve their plans in later life.

In addition to the first 25% of the total fund being

annual personal allowance for income tax. This means that approximately a further £10,000 a year of income is free of tax.

Changes to pensions have been introduced piecemeal since

Staying within the band for basic rate tax will also mitigate the

2006 and it can be difficult to understand their combined effect.

Over the period, restrictions on the amount of money that can

tax bill and the timing of when income is taken from the fund can be critical in achieving this.

be invested in the tax-advantaged wrapper of a pension have increased. This bad news, however, is offset by the changes

For many people, the best option will be to retain their capital

in how income from a pension can be taken from April 2015.

within the favourable tax environment of the pension fund

There will be much greater flexibility on access to pension

until it is needed for income purposes. However, the need for

funds but the decisions that have to be taken will be much more

liquidity changes the time horizon for the things in which the

complex.

fund is invested. This means that the long-term, and possibly illiquid, things in which the pension fund was invested while

New freedom In the last Budget Statement, George Osborne introduced a series of proposals that will totally reform the pensions market in the years to come. The old regulations that forced people to buy annuities have been swept away. Limits on pension income have also gone. From April 2015 those with defined contribution pensions and aged 55 or over will have full access to their total pension fund to use in any way they wish. There is a catch. Any withdrawals from the fund in excess of the taxfree pension commencement lump sum will be liable to income tax. This fly in the ointment, however, does not detract from flexibility afforded by the reform.

A more serious problem will be managing the pension fund Those drawing down their accumulated pension

it was accumulating, will no longer be appropriate. A new

capital must be wary of outliving their fund. There is a balance

investment strategy will be required and will need careful

to be struck to ensure that the levels of withdrawals are aligned

management if it is to be effective.

efficiently.

with the investment growth within the residual fund, so that Your current investment strategy may also need an immediate

capital does not deplete too rapidly.

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review. When access to pension funds was restricted it was

cut to just £50,000. It remained at this level for three years but

often prudent to move the fund towards less volatile assets,

for tax year 2014/15 it has been further cut to just £40,000.

such as gilts and bonds, as the date of retirement approached.

More reductions are possible in the years to come.

Such a strategy was designed to mitigate the impact of the

who can afford to contribute the maximum each year should

volatility in the equity market just before the funds were vested

consider the potential cost of not acting immediately.

Those

and an annuity had to be purchased. Under the new regime, The Lifetime Allowance was also imposed on pension funds in

there is no cliff edge. If markets fall just before vesting, the

tax year 2006/7. This restricted the total amount that can be

investor can just take enough income for immediate needs

accumulated across all the registered pension funds a person

but the bulk of the capital can remain invested while markets recover.

held to £1.5 million. Like the Annual Allowance, this figure was

Many current pension investment plans have an

increased until 2010/11 but since then it has been reduced and

automatic move towards to bonds built in and this will be

for tax year 2014/15 it stands at £1.25 million.

triggered notwithstanding the new regime. Now would be a good time to check that your arrangements do not have such

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Crucially, the Lifetime Allowance is not just the sum of the

automatic investment changes.

contributions but also includes any investment growth within the fund. This factor has meant that many high earners have

New restrictions

to stop contributing early just to ensure that future investment Pensions have always enjoyed a number of attractive features.

returns do not carry the fund over the Allowance threshold and

Contributions receive a tax uplift equivalent to the marginal

become subject to punitive taxation. Whilst the £1.25 million

rate of income tax of the investor. Additionally, the fund grows

limit might not sound an alarm for a young barrister with a

free of tax as long as it remains unvested. Up until now, the

pension pot of, say, £700,000, investment growth of just 7%

price for these benefits has been restrictions on accessing fund and the compulsion to buy an annuity at some point. The new regime from April 2015 removes these drawbacks. Pensions have become a whole lot more attractive.

Given the tax treatment of contributions, the tax-free growth of investments within a pension and unrestricted access to the fund from the age of 55 onwards, it would seem sensible that everyone should put as much as they can into a pension fund.

However, the restrictions on contribution levels have become tighter and tighter over recent years. While contributions used to be limited as a percentage of total relevant earnings, this limitation rarely troubled most people, especially high earners.

In 2006 the concepts of an Annual Allowance and a Lifetime Allowance were introduced. The Annual Allowance restricts the total amount that attracts tax relief when contributed to a pension fund in a tax year. The Lifetime Allowance limits the size of the total fund. Punitive taxation rates are applied if either of these allowances are exceeded.

Back in tax year 2006/7 the Annual Allowance was £215,000, which wasn’t too restrictive.

Over the next few years the

Allowance increased steadily until it reached a high point of £250,000 in tax year 2010/11. Then, without warning, it was

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per annum will take it over the Allowance threshold within ten

count towards both the Annual Allowance and the Lifetime

years, without any further contributions

Allowance.

To mitigate the impact of this for those who had already built

In line with most other public sector schemes, the generosity of

up substantial pension funds before the Lifetime Allowance was

the Judicial Pension Scheme is being reduced. Members have

introduced, several different types of protection were introduced.

been required to make contributions since April 2012 and the

People could select from a number of options that protected the

level of these contributions has risen sharply in the years since.

accrued value of their tax free pension commencement lump

Along with this change, the level of benefits will be drastically

sum entitlements and the accrued value of their total pension

reduced from April 2015. Judges who were within ten years of

fund. However the protections can be easily lost if a range of

retirement in April 2012 are excluded from the changes.

restrictive conditions are breached.

Those who elected for

one of the available protections must take great care not to

One significant impact of the changes is that the scheme will become a tax registered pension scheme and as such the

inadvertently lose the benefits.

Annual Allowance and Lifetime Allowance will become relevant

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The regulations around the various forms of pension protection

for scheme members.

are complex and there are many pitfalls. If you have elected

they remain generous and require a high level of funding. The

for any protections or wish to do so, it is important that you

annual contributions for individual members will, in general,

take professional financial advice to ensure that you retain the

exceed the Annual Allowance and, therefore will give rise to an

benefits.

income tax charge in respect of the excess.

The Judicial Pension Scheme

Increasing your income in retirement

The freedoms to access pension funds that commence in April

The imminent changes to access to pension funds mean that

2015 apply to personal pensions and Self Invested Pension

they have become a much more attractive means of providing

Schemes (SIPPs).

Some barristers may still have Retirement

income in retirement but the restrictions on contributions might

Annuity Contracts (RACs). These were superseded by personal

hamper your plans to fulfil your dreams. Making contributions

pensions in July 1988. RACs were allowed to continue after that

to your own pension, however, is not the only option for funding

date, and existing contracts could be topped up with additional

future plans.

Although the benefits are being cut,

contributions, however no new RACs could be started. When pensions were reformed in the Pensions Act 2006, RACs lost their special privileges and became subject to the same regime

One option is to make contributions into a pension for your spouse.

Even a non-working spouse can put ÂŁ3,600 per

annum into a pension. This may be only a small uplift on the

as personal pensions.

Annual Allowance but the investment returns in a favourable Employed barristers often have defined benefit schemes, where

tax environment can produce a significant additional capital

the pension is determined by the rules of the scheme. The

sum in retirement and it might be possible to draw it out of the

Judicial Pension Scheme is a defined benefit scheme but it is

pension, tax-free, using the Tax Free Cash lump sum and the

also changing in April 2015.

annual Personal Allowance of your spouse.

As an employer-financed retirement benefits scheme, the

Another significant option that should be considered is

Judicial Pension Scheme is currently a non-registered pension

contributing into an ISA. Under the new rules introduced in the

scheme. It does not therefore enjoy the income tax benefits that

last Budget Statement, which came into force in July 2014, it is

apply to registered pension schemes and, more significantly for

now possible to invest ÂŁ15,000 annually into an ISA. With an

members, the contributions and benefits do not count towards

Annual Allowance of just ÂŁ40,000, the extra contribution into

the Annual Allowance or the Lifetime Allowance. Contributions

an ISA would have a significant impact upon the size of fund

towards the Judicial Additional Voluntary Contributions

available to you in retirement. Just like a pension, investments

Scheme, however, do attract tax relief and they do, therefore,

inside an ISA enjoy a favourable tax regime. Although there

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is no uplift on contributions going into an ISA, there is no income tax on any money withdrawn. Using a pension fund and an ISA fund to provide income in retirement provides many opportunities to achieve a tax-efficient outcome.

Having a range of different investments, each with different benefits and tax treatments, allows greater scope for tax planning when it comes time to enjoy your retirement.

What you need to do now The rules of the pensions game have changed. If you want to protect your hopes and dreams for your retirement, it is important that you review your pension planning immediately.

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Despite the wish to make pensions simpler that was announced by the government in 2006, they have become more complex.

The new regime to be introduced in 2015 makes drastic changes and, although superficially they simplify pensions, they actually introduce many complicated and difficult decisions around investments, tax and capital preservation. The words of JFK, quoted earlier, contain a very explicit threat: “those who only look to the past or the present are certain to miss the future�.

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The Naked Truth: Forestry investment returns in the UK

By Edward Anderson-Bickley, Managing Director of Honour Capital and qualified chartered surveyor In 1954 Dylan Thomas wrote “Under Milk Wood: A Play for Voices.” One reason why this particular piece by Thomas is so popular is that each performance reveals something new. Indeed, for the uninitiated, the opening lines are a daunting and relentless rush into an adjective rich scene set that is hard to fully comprehend.

Mention forestry investment at a dinner party, and you will invoke your own Play for Voices. From all quarters experts and laymen will opine on the good, the bad, the incorrect and the completely unnecessary.

With the above in mind, the purpose of this article is to provide you with a clear understanding of forestry investment, as told by one of only a handful of regulated forestry investment advisory firms in the world today.

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What is forestry?

Forestry is the creation, management and sustainable use of timber resources. In other words, forestry is “growing the correct type of trees, and growing them well.”

Forestry investment, particularly in the UK, centres on commercial timber production. For an investor to benefit from the extensive suite of tax reliefs that the government has given to forestry in the UK, (more on this later) successfully demonstrating that your asset is commercial is critical.

A woodland containing broadleaf trees can be owned and managed as a commercial asset. However, timber mills in the UK rely on softwood timber. Consequently, forests that are made up of softwood conifer species are more commonly regarded as commercial forests.

Trees, timber…..is this really an investment?

According to the United Nations, annual global consumption of timber is estimated at 4 billion tonnes. If this is correct, then every person uses roughly three quarters of a tonne of wood every year.

With the global population expanding at roughly 3% per year, it is folly to assume that demand for timber will decrease.

Britain was the third largest global net importer of timber in 2011 and will never be able to grow enough trees to satisfy its domestic demand for wood. To be clear, the type of wood in question is produced by commercially grown conifer trees.

The timber-processing sector in the UK is one of the most technologically advanced in Europe. If your mental image of forestry is set in sepia tones with blurred edges, then it is time to think again. A log can be passed through an automatic system of laser measurement, cut efficiency scan, cleaning, de-barking, cutting and finishing in under five minutes.

Who is forestry investment suitable for?

Whilst many people are aware of Harvard and Yale University endowment funds holding large forestry investments, not many people know that Essex County Council has just invested £60 million of its pension fund into global forestry, or that the Church Commissioners for England hold £4 million and rising in UK forestry investments.

Generally speaking, pension and endowment funds are risk averse. Individuals and families with a similar attitude to risk could benefit from exposure to forestry.

Individuals considering forestry ought to have; a high personal net worth, a balanced and established investment portfolio, and the capacity to invest above £500,000.

For those not willing to part with over £500,000, Honour Capital provides a Club Investment service that allows small groups of investors to pool funds and gain access to forestry with smaller personal contributions.

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Wise investments for clever people Explore forestry investment at honourcapital.com

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How should I invest in forestry?

This article centres on direct investment into forestry. For clarity, this is the purchase of land with trees growing on it.

It is possible to invest in forestry through a fund. There are approximately 180 forestry funds in existence today. Of those funds operating in the UK, our view is that they are expensive and present the investor with unnecessary levels of risk.

In June 2013, the Financial Conduct Authority (FCA) restricted the marketing of forestry investment funds, limiting their exposure to ordinary investors. If you are tempted to invest in a forestry fund, do make sure the FCA approves the fund and its managers.

Financial performance The Investment Property Databank (IPD) provides the only measure of forestry investment performance in the UK. In 2014 the IPD stated that 3 year returns from forestry investment in the UK were 22%. This outstanding performance caught the attention of the UK financial press, but we would argue that it should be ignored because forestry is not suitable for short-term investment.

A more reliable indicator of performance is given when we consider the 21 year annualised returns from forestry, which were 8.5%. That’s better than equities and gilts over the same period, and directly comparable to commercial real estate, which has become an accepted staple of most investment portfolios.

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Income returns from forestry in the UK over the last 21 years were -1%. This means that the financial performance relies entirely on capital growth.

Negative income returns should not be confused with zero income. Forestry investments will produce income that is often substantial and highly tax efficient.

To understand the capital growth aspect of the investment, it is best to keep things simple. As a tree grows it gains height and weight. As it reaches maturity it has the greatest volume and therefore has the greatest monetary value. The value is realised when the tree is felled and sold. At this point, new trees are planted and the capital appreciation process restarts.

Currently, it is reasonable for an investor in UK forestry to expect real (without inflation) returns ranging from 3% to 6%.

Commercially viable investments in the UK start at around £500,000 – as we mentioned earlier, this doesn’t need to come from one investor.

Forestry is not correlated to other investment classes. It is a good portfolio diversification tool and will track inflation.

Tax Advantages For many investors, it is the substantial tax advantages that make commercial forestry ownership in the UK so attractive: •

100% exempt from Inheritance Tax after two years of ownership

•

Receipts from timber sales are 100% exempt from income tax

•

Capital growth in timber is 100% exempt from capital gains tax

Example: Investing in forestry to protect wealth from Inheritance Tax Inheritance tax is charged at 40% on an estate when somebody dies. It is also payable on some lifetime gifts and transfers.

If an estate is valued at less than £325,000 no inheritance tax is payable.*

Let’s assume your estate is worth £1,000,000. The value of your estate exceeds the inheritance tax threshold by £675,000. This is simply calculated as follows:

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personal finance & wealth management supplement the barrister 2014

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£1,000,000 - £325,000 = £675,000

£675,000 will be subject to a 40% inheritance tax charge of £270,000.

By investing £675,000 in UK timberland at least 2 years prior to death, you will protect all of your estate from inheritance tax and will not have to pay HMRC a £270,000 bill.

In addition, because of the biological growth of trees, your heirs will inherit an asset that will have increased in value from the point at which you invested. This increase in value is exempt from tax. * HMRC Website. 2013/2014

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In addition, investors with capital gains to rollover can use the land element of an investment in forestry for capital gains rollover relief.

With just 13% forest cover in the UK (compared to an average of around 25% forest cover in the rest of Europe) the UK government is keen to promote forestry. It announced in 2011 that tax reliefs that forestry investors enjoy shall remain untouched.

Matching Future Liabilities An investment in forestry can be flexible and enjoyable. However, we believe that the ability to use an investment in forestry to match a future liability such as school fees or elderly care is often overlooked.

Example: Investing in forestry to cover elderly care costs.

A 50 year old investor acquires a 100 hectare forestry plantation containing newly planted commercial conifers.

On their 85th birthday, the investor decides to move into a residential nursing home.

The forest is now 35 years old, and ready to harvest. The investor harvests 50 hectares. They sell the timber at £30.00 per tonne.

Each hectare generates 350 tonnes of timber.** The harvest generates £525,000 There is no tax payable on income from harvesting.

According to the Daily Telegraph* the average cost of nursing care is £36,000 per annum.

The income from harvesting will cover 14 years of nursing care.

50 hectares of the forest remains available for harvesting, and new trees can be planted on 50 hectares to restart the capital growth cycle.

The entire investment is exempt of inheritance tax.

*Daily Telegraph “Long term care: Elderly face long wait for cap on fees” March 2013 ** Figures represent a good quality forest investment in the UK as at January 2014

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Risk Across the financial press and wealth management sector, forestry investment is commonly presented as a low risk investment.

Our opinion is that a small number of risks that do exist, and these are significant. The three main risks are: • Liquidity risk: to exit your investment, you need to sell your forest. This can take weeks or months depending on the quality of your investment and the market sentiment at the time. Selecting the best investments at the point of entry will mitigate liquidity risk.

• Natural hazards: trees may be vulnerable to disease or damaged by fire and wind. In some cases fire and wind insurance is available.

• Market risk: the price of timber – like any commodity - will rise and fall. Unless you are absolutely reliant on income from your investment at a specific point in time, the risk is substantially mitigated by the fact that trees can be left to grow and gain value when markets fall.

At Honour Capital, we believe – and can verify - that diversification and management can substantially minimise risk in forestry investment.

In summary, forestry investments ought to generate strong returns. Forestry is excellent for families anticipating inheritance tax issues or those needing to match projected future liabilities.

The combination of increasing global demand for timber, improving environmental management and certification, sensible real returns and superb tax efficiency make this a worthwhile investment consideration.

Edward Anderson-Bickley MRICS : eab@honourcapital.com Honour Capital advises on investment selection, appraisal and management of forestry assets. Honour Capital operates in the UK and internationally and is regulated by the Royal Institution of Chartered Surveyors.

Edward Anderson-Bickley is a qualified chartered surveyor and is Managing Director of Honour Capital.

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Why Buy Gold? – A Safe Haven

By Oliver Temple

coin has a purity of 99.99% as does the Australian Nugget, both being 24k. Most bullion coins are minted in 1/10oz, 1/4oz, 1/2oz & 1oz form.

One ounce gold bullion coins such as Krugerrands or Britannias, as well as the smaller coin, the British Sovereign, are by far the most popular for our clients.

Both small investors and

institutions are attracted to owning legal tender bullion coins and recognise the advantages of the divisibility afforded by

64855 So Inspire Me Barrister Magazine 25 Front 2015/03/14 00:32:27

them. Some choose to take possession of their coins and others have us store them on their behalf in our bank vaults in the City.

Buying investment grade gold bullion for investment is stamp duty free and tax free (VAT exempt) in the UK and EU due to the EU Gold Directive of 2000.The British coins, the Sovereign and the Britannia, are also completely free of Capital Gains Tax. UK citizens can, as of April 2006, invest in gold bullion through

Like most commodities, the price of gold is driven by supply and

their SIPPs.

demand as well as speculation. However, given the substantial quantity of gold stored above-ground compared with the annual

SIPPs are designed for people who want to manage their own

production, the price of gold is affected more by changes in

pension funds by investing in asset classes of their choice. SIPP

sentiment rather than changes in annual production. As gold

Investments are topped up in the form of tax relief, whereby

continues to be regarded as a natural hedge against inflation,

individuals can claim up to 40% back depending on their

currency fluctuations and instability in the financial system,

income tax band. Investors should consult their tax advisors

sentiment on any of these issues has a major affect on the gold bullion price.

on this matter before proceeding.

Gold has long been considered the most desirable of precious

Modern bullion coins allow investors to own investment grade gold in a convenient form and to buy and sell them at prices

metals, and its value has been used as the “gold standard� for

relatively close to spot price of gold.

many currencies. It is a symbol for purity, value, royalty, and in particular, roles that combine these properties.

oliver@goldinvestments.co.uk

Modern bullion coins allow investors to own investment grade gold, as coins are at a small premium to the spot price of gold as quoted on the markets. The price of bullion coins and bars is determined primarily by the gold price and handling costs.

Bars are available in various sizes such as the 1 kilogram (32 oz), the1oz bar, the 10oz bar, the 5g bar, the 10g bar, the 20g bar, the 50g bar and the 100 g bar. Coins are available in 22ct and 24ct purity.

Among the 22ct

bullion coins available for investment are

the American Gold Eagle, the South African Krugerrand, first released in 1967, the Britannia, and the British gold sovereign, as well as the half sovereign. The Canadian Gold Maple Leaf

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50

Avoid becoming the taxman’s next victim with taxefficient planning

By Riki Gangola, Partner, RDP Newmans LLP

HM Revenue and Customs (HMRC) is cracking down on unpaid

With property prices rising – and the nil rate IHT band frozen

tax payments and is increasingly targeting professionals such

at £325,000 until 2017-18 – the families of many more people

as barristers.

could find themselves vulnerable to inheritance tax liabilities if they fail to take IHT planning measures.

The tax authority recently revealed it had increased its tax take

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by 15%, up £3.2 billion on last year, bringing in a record £23.9

Making use of lifetime gifts is a good way to reduce your estate

billion from increased activity on unpaid tax.

– although these will still be subject to IHT if you die within seven years of giving the gift, which is why it is crucial to make

The figure is nearly £1 billion higher than the target set by

early plans.

George Osborne in the Autumn Statement in December, and

There are other reliefs available including woodland, heritage,

serves as a reminder of HMRC’s intent to crackdown on tax

farm and business.

avoidance and evasion.

If you have multiple trust funds you could soon see your Inheritance Tax (IHT) bills rise significantly.

Failure to keep your tax affairs up to date could trigger an investigation which could lead to substantial penalty fines,

HMRC has proposed a special “settlement” nil rate band in

interest payments and for serious offences even jail sentences.

order to simplify relevant IHT charges.

In the current climate, HMRC is in no mood to let people and

Taking effect from 6 April 2015, but applying to any settlement

businesses of the hook lightly.

established or property added to a trust after 6 June 2014, the “settlement” nil rate band would last an individual’s lifetime.

However while HMRC is clamping down on tax evasion, this does not mean that you cannot use legal, tax-efficient planning

Currently a nil rate band of £325,000 is available to all

solutions to ensure that as much of your wealth is protected as

individuals before IHT is chargeable. Where individuals give

possible.

away property to trusts during their lifetime the nil-rate band refreshes every seven years. In principle that means that an

Being aware of Inheritance Tax (IHT) rules is particularly

individual could set up a trust up to the value of £325,000 every

important when protecting your finances.

seven years, with no IHT payable by the trustees.

According to recent research more than half of people liable

The new IHT regime will mean that individuals will have to

to IHT on their estates could face unexpected tax bills because

specify how the nil-rate band would be divided between any

they do not know the correct tax threshold.

trusts they establish.

Recent research revealed that in a survey of more than 1,000

Under the new rules many trusts that were previously IHT

adults with personal assets worth more than £325,000 – the

free would fall into the tax net, increasing the total IHT charge

level at which inheritance tax is levied at 40 % – only 47% knew

payable by trustees.

the correct threshold. A total of 14% thought the threshold was £500,000 or more.

30

In its consultation document, HMRC illustrates the point by

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64855 So Inspire Me Barrister Magazine 26 Front 2015/03/14 00:32:27

explaining that under existing rules, a couple aged 40 could

There are many ways to keep capital gains tax bills as low as

give away £3.25 million to trust, by the age of 75, with no IHT

possible, including making full use of an individual’s tax-free

cost. Under the new rules, this would drop to £650,000.

allowance. For married couples and civil partners this means up to £22,000 of any gain can be tax-free in 2014/15.

It is also important to consider planning for potential Capital CGT is not payable on the sale of you main home, however

Gains Tax (CGT) liabilities.

if you live in more than one property you can nominate one property as your main home.

CGT is levied on the sale of most assets which exceed an individual’s annual exemption. It has major implications for

However, The Government has proposed that, from April 2015,

barristers who are thinking of retiring, particularly if they want

HMRC will have the power to decide which property will be

to sell assets to fund their retirement.

taxed depending on where you spend most of your time, rather than you being able to elect a home as your principle residence.

For example people will have to pay CGT on assets or trust portfolios they are looking to sell to fund retirement.

This follows a reduction in the time period you have to sell a second home before Capital Gains Tax (CGT) is charged,

CGT is currently charged at 18% on total taxable gains for basic

from the final three years of ownership if a second property

rate taxpayers and 28% for higher rate tax payers. A reduced

is declared a main residence, to 18 months. CGT is currently

10% rate may apply in certain circumstances.

charged at 28% for higher rate taxpayers on any gains following the sale of a second home.

The CGT annual exemption limit is £11,000 for 2014/15, while Other ways of reducing CGT include investing directly in an ISA

this is being raised by 1% from 2015/16.

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or a pension fund, giving shares to charity, or investing in an

qualifying period.

Enterprise Investment Scheme (EIS).

Losses from the disposal of shares can be offset against Income Changes to ISAs announced in the Budget in March, mean that

Tax, if Income Tax relief has been given and not withdrawn.

savers can now invest more of their cash tax-free and have more flexibility over their pots with the new “super-ISAs” which

By utilising efficient tax planning measures now you can ensure

came into play on 1 July.

that you keep as much of your wealth as possible, allowing you to live the life you choose, and making any future retirement as

These new ISAs have a more generous annual allowance of

comfortable as possible.

£15,000 that can be held in stocks and shares, cash or any combination of the two.

For more information on Inheritance Tax planning, Capital Gains Tax planning, trusts and estate planning or pensions

64855 So Inspire Me Barrister Magazine 26 Back 2015/03/14 00:32:27

Isas became “New ISAs”, also known as NISAs, on 1 July. This

advice, visit RDP Newmans’ Barristers Microsite

applies to all existing ISAs as well as new accounts opened after

www.rdp-barristers.com.

this date.

Previously, people have only been allowed to save up to half of their annual Isa allowance in cash and the remainder in stocks and shares.

Any money already placed into an Isa during the current tax year, which started on April 6, counts towards the new £15,000 super-Isa subscription limit for 2014-15.

Under the new rules, savers can transfer previous years’ Isa savings freely between stocks and shares and cash if they wish.

It is important to remember to make sure that any transfers individuals want to make from other ISAs stay within their “tax-free wrapper” rather than simply withdrawing the cash to deposit elsewhere, as the funds will then lose their status of being ring fenced from the taxman.

Investing in an Enterprise Investment Scheme (EIS) or Venture Capital Trust (VCT) can lead to substantial income tax and CGT reliefs. Income tax relief is available for investors at 30% of the cost of the share, on a maximum annual investment of £1,000,000.

Capital Gains Tax can be deferred if reinvested in EIS shares within a certain amount of time.

Any profit on the sale of shares will be exempt from CGT if Income Tax relief is given and the shares are held for a

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Reducing currency risks.

Investing with currency protection.

Why using currency-hedged ETFs can provide investors with more focused access to equity markets

By Andrew Walsh, Head of ETF UK and Ireland at UBS Global Asset Management

64855 So Inspire Me Barrister Magazine 27 Front 2015/03/14 00:32:27

Investors in international equity ETFs are exposed to two

foreign exposed fund (e.g., Japanese yen, Canadian dollars,

main risks: the direction of the equity market in which they

US dollars) were to decline against the pound (GBP) while the

have chosen to invest; and the foreign currency exposure that

investor held the fund. Investors should of course be aware that

is often a by-product of an equity investment, but which has

the opposite is also true. That by buying a fund with currency-

the potential to derail returns. Without any currency hedging in

hedging, they are also forgoing the potential upside which

place at all, investors are taking an implicit bet on the foreign

would occur if the underlying foreign currency rose against

currency strengthening, which may or may not be consistent

GBP during the period the investor was in the fund.

with their macroeconomic view.

US equities also provide a good recent example of the benefits To illustrate the extent to which currency movements can impact

of currency hedging. The chart below shows the historic

returns: a local Japanese investor holding the Nikkei 225 from

performance of the MSCI USA index (from 26.08.2014 to

1st January 2012 to 30th June 2013 would have achieved a

31.05.2014), where an annualised return of 21.65% for local

66.9% return in Yen terms, while a US-based investor in the

US dollars (USD) investors falls to 11.16% for a British-based

Nikkei 225 through that same period would have experienced

investor where no currency hedging was in place. By contrast,

considerably less impressive returns of 29.3% due to the steep

if the British investor had opted instead for the MSCI USA GBP-

depreciation of the Yen through that period. (Source: Bloomberg)

hedged index, they would have experienced an annualised return of 21.60%, very close to that of the local US investor.

It is a generally accepted view that currency risks exist primarily in the short to medium term, but less so in the longer term.

Large institutions have little difficulty in accessing the foreign

That is to say, over the long term currency movements do not

exchange market and thus can chose to implement currency

tend to add or subtract from investment returns as they usually

hedging overlays across their entire portfolio. Unfortunately,

average themselves out. In the short run currency movements

this is not often possible for some mid-sized and the great

can be quite dramatic and can have a major impact on the

majority of smaller investors in part due to a lack of solutions

returns of the underlying investment as was exemplified by the

on offer to them. Thus, there has been an increasing demand

Nikkei example highlighted above.

from UK and foreign investors alike to access key international equity markets with currency hedging built into funds such as

However, predicting currency movements is notoriously difficult

ETFs.

and with concerns about currency volatility increasingly on investors’ minds, many want to neutralise this uncertainty on

Ultimately, investors will have an increasing choice of funds

investment returns so as to access the underlying investment as

which offer currency hedging – particularly with ETFs. Where

cleanly as possible.

investors want exposure to a particular country or region’s stock market without having to take any specific call on the direction

Currency hedging acts to neutralise the effects of currency

of that local country or region’s currency, a currency-hedged

fluctuations on the underlying investment. Simply, when an

ETF offers very easy and cost-efficient access to international

investor buys a fund with a currency hedge embedded in the

equity indices.

product, they are trying to protect themselves from potential losses which would occur if the underlying currency of that

Finally, investors should be aware that if a fund has a GBP

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About UBS ETFs

listing, that does not make it a GBP-hedged ETF. Only a currency-hedged product can offer protection for an investor from a declining foreign investment currency. Currency hedging

UBS Global Asset Management, a business division of UBS, is

in itself cannot guarantee that the value of your investment won’t decline.

a large-scale asset manager with well-diversified businesses across regions, capabilities and distribution channels. Passive capital investments have been a core competence of UBS Global

Chart:

Asset Management for over 30 years. Overall, this business unit, which also includes UBS ETFs, has assets under management amounting to GBP 124.2 billion (31 March 2014). Assets under management in UBS ETFs amount to around GBP 11.2 billion (April 2014). Thus, UBS is one of Europe’s leading ETF providers in terms of assets under management and Europe’s

64855 So Inspire Me Barrister Magazine 27 Back 2015/03/14 00:32:27

second largest provider of physically replicated ETFs (relating to the ETF offer). UBS ETFs has a broad spectrum of ETFs for all key markets and investment classes. UBS ETFs offer investors over 100 ETFs in the fields of equities, bonds, precious metals, real estate, commodities, alternative investments and multi asset portfolio. UBS ETFs are listed on all of Europe’s leading stock exchanges: on the London Stock Exchange (LSE), Borsa Italiana, the German Stock Exchange (XETRA) and the SIX Swiss Exchange.

Source: Bloomberg, UBS Global Asset Management, as per 3 June 2014

For more information on UBS ETFs: www.ubs.com/etf

Source: Bloomberg, UBS Global Asset Management, as per 3 June 2014

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64855 So Inspire Me Barrister Magazine 28 Back 2015/03/14 00:32:27

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56

www.coloma-uk.com

57

21

the barrister

Entity regulation and business structures These are interesting times at the Bar. Many Chambers are facing increased financial pressures through a combination of increased competition, legal aid cuts, premises issues and a number of other factors. At the same time, the changing regulatory landscape offers opportunities for barristers to offer their services in new and innovative ways.

By Scott Leonard, Partner in the Corporate & Commercial Team at Russell-Cooke LLP.

T

hese

pressures

64855 So Inspire Me Barrister Magazine 29 Front 2015/03/14 00:32:27

opportunities resulted

in

and have many

example,

duplication

practices and offer a competitive fee

inherent in the traditional referral

reducing

the

structure by avoiding duplication. There

model.

may also be branding and marketing

Chambers carrying out strategic reviews with

opportunities.

• Branding opportunities.

a view to improving

•

Entities used by individual

competitiveness and profitability.

• Tax efficiency, particularly for single

barristers or teams

For many the result has been improved

barrister entities.

Another alternative is for Chambers to

financial management and corporate governance,

within

the

traditional

facilitate the use of entities by individual • Limited liability

barristers or groups of barristers within

Chambers model. Others have focused

Chambers.

on developing their corporate brand and

What are the options?

The individual or team would provide

identity often combined with a move to

Entities can be used within Chambers

their services through an entity. The

more modern premises.

in a number of different ways. Options

entity would effectively be treated as a

include:

member of Chambers and be bound by

Other sets have embraced the regulatory

the constitution, with the participating

changes and are looking to use regulated

•

entities to offer their services in different

Chambers as a whole incorporates and

ways. This article considers some of the

all members of Chambers provide their

structures that may be considered and

services through the entity rather than

These are likely to be barrister only

the issues which arise with their use.

in a self employed capacity. Chambers

entities regulated by the Bar Standards

becomes akin to a traditional law firm.

Board, when that becomes possible.

Why change?

This would obviously be a significant

For an individual barrister the main

Before embarking on what can be a

step and may be more suitable for

advantages are likely to be tax efficiency

time consuming and costly process, it is

smaller Chambers.

and limited liability. For a group of

Incorporating Chambers

essential that Chambers identifies what

barristers guaranteeing the obligations of the entity under the constitution.

barristers use of an entity will also allow

it hopes to achieve through offering

•

their services through an entity. Once

purposes

the strategic aim has been identified,

In this model, Chambers uses an entity

consideration can be given to which

alongside

structure will best achieve the objectives.

structure. Members continue to operate

The entity is likely to be either a

Use of an entity will not necessarily be

as self employed barristers through

limited company or a limited liability

appropriate for all. Offering services

Chambers and the entity is available

partnership

through a corporate entity is not an end

as an alternative vehicle through which

professional practices have preferred

in itself and could be damaging if seen as

they may offer their services.

to use a partnership model, which is

a panacea. However there are a number

If the entity is regulated by the SRA then

more flexible in terms of profit sharing

of potential advantages, including:

this may allow Chambers to compete

and the introduction and exit of new

• Increased competitiveness by, for

for particular types work with solicitors

partners. However the recent reduction

A separate entity for specific

them to jointly develop a brand and their business under the umbrella of

the

traditional

57

Chambers.

Chambers

(“LLP”).

Historically

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64855 So Inspire Me Barrister Magazine 29 Back 2015/03/14 00:32:27

in corporation tax rates, combined with

The same principle is likely to apply

Those involved in an entity regulated by

changes to the taxation of partnerships

where a small group of barristers within

the SRA will be regulated by and need

with corporate members, is likely to

Chambers join together to offer their

to comply with the rules both of the SRA

see increasing numbers of professional

services through an entity. However

and BSB. Even regulation by the BSB

practices

the conflict issues will only arise in

alone will bring with it an additional

relation to those particular members,

layer of compliance.

operating

through

limited

companies.

rather than Chambers as a whole, and Practical issues

those involved can therefore make a

The costs and administrative burden of

judgement about the likelihood of the

setting up a regulated entity should also

For all the benefits that the use of

problem arising in practice and its

not be underestimated.

an entity may bring, there are some

significance to them.

potentially thorny issues that will need

• Infrastructure

to be addressed. Some of the more

The risks are more manageable with

significant are discussed below:

an entity formed to work alongside

Chambers are not generally set up in a

Chambers, but care will still need to

way which enables them to deal with

be taken to structure the arrangements

transactional matters or to conduct

appropriately to avoid the risk of

litigation.

• Conflicts

of

interest/

Professional embarrassment

Offering

new

services

professional embarrassment arising as

will

The self employed model for barristers

a result of an association through such

from a traditional Chambers model,

ensures that members of the same

an entity.

considerable investment and possibly

Chambers are able to act on opposing sides of the same case. The connection

involve

a

significant

change

the need to buy in expertise.

•

Increased compliance

through Chambers is not sufficient in

•

Change of culture

itself to create a conflict of interest.

Operating a limited company or LLP

The models described above potentially

brings with it certain administrative

A change of ethos may be required.

undermine this principle to varying

requirements of course, for example

Whereas the existing Chambers model

degrees.

to

filing annual accounts and an annual

comprises of a collection of self employed

incorporate and provide its services

return. There are also company law

barristers sharing facilities the new

through an entity for example will lose

issues that will become relevant such as

structure may involve the sharing of

this flexibility because the members will

the fiduciary duties owed by directors.

profits and a new type of corporate

be sharing in the fees generated by all

Perhaps of more significance are the

governance. The actions of one barrister

members of the Chambers.

additional

may directly impact upon the income of

A

Chambers

choosing

regulatory

58

requirements.

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23

the barrister

the others. The participating barristers

to deal with the admission of new

Chambers will be entitled to exercise

will need to adapt to this new type of

members and the transfer of shares.

over the entity.

environment.

Will the admission of new members require unanimity or the consent of a

Constitutional arrangements

percentage of the existing members?

A shareholders agreement or members’

Should shares be transferrable freely or

agreement will be required to govern the

on a pre-emptive basis? If a specified

relationship between the participating

majority wish to sell the entity or the

barristers. Issues to be covered will

business, should they be entitled to force

include:

the others to sell.

•

Directors and shareholders

The agreement will usually provide that members can be required to offer their shares for sale upon the occurrence

will directors be appointed? If Chambers

of certain events of default, including

is operating an entity alongside the

leaving Chambers. Consideration needs

Scott Leonard is a Partner in the

traditional Chambers model then will the

to be given as to the price payable in

Corporate

shares be held as an asset of Chambers

such circumstances and whether the

Russell-Cooke LLP.

or only those likely to offer services

concept of good and bad leavers will

through the company. Will Chambers be

apply.

&

Commercial

Team

at

entitled to nominate board members?

The above points relate primarily to a • Funding

limited company but similar issues will

How will the set up and operating costs

arise in relation to

be funded? Will those participating lend

a

the funds to the entity and if so on what

agreement.

LLP

members’

terms. Will they be entitled to repayment of the loans if they leave Chambers?

Finally, it is likely

Will Chambers bear the set up costs

that there will need

(which members who are unlikely to

to

benefit from the arrangements might

agreement between

reasonably object to).

Chambers and the

be

entity •

Will the entity be profit making?

a

facilities

governing

the terms on which the entity may use

It may be that the entity is largely used

Chambers’

as a marketing and procurement vehicle,

and

with instructions generally referred or

Consideration

sub contracted to members of Chambers

need to be given

with appropriate experience. If that is

as to whether a fee

the case the entity may generate little in

will be payable to

the way of profit itself. If that is the case

Chambers for the

then tax and profit distribution become

provision of these

less of a concern.

facilities and, if so,

name facilities. will

on what basis. This •

Changes of personnel

document will also spell out the degree

Any shareholders agreement will need

of

control

which

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64855 So Inspire Me Barrister Magazine 30 Front 2015/03/14 00:32:27

Who will be the shareholders and how

19/08/2014 16:43

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24

the barrister

Too many barristers?

By Ian Dodd Bar Consultancy Network

I

n March 2009 Jack Straw,

needs. As all the signs are pointing to

the available work would require. In a

then Lord Chancellor in the

a continued reduction of crown court

finely tuned market there would be just

last Labour government, gave

activity and an increase in defence

enough barristers who would benefit

a speech at the LSE entitled

solicitor HCAs this situation can only

from sufficient work to secure a good

‘Constitutional

deteriorate.

income. If that didn’t happen the market

Continuity’.

One of the points he made

would shed numbers until equilibrium

64855 So Inspire Me Barrister Magazine 30 Back 2015/03/14 00:32:27

was that there were too many barristers

It might be worth considering, then, the

was

engaged in legal aid work.

size of the self-employed Bar and the

employment, the universal democracy

number of barristers in it.

of chambers and the absence of any

Ken Clarke repeated the message (Legal

reached.

corporate

or

Unfortunately,

community

self-

endeavour

Futures, October 11 2011) and Peter

The Bar Council reckons that there

within chambers all resist those market

Lodder QC, then Chairman of the Bar

are

forces. Given the above, it’s a buyers’

Council, reported, after a meeting at the

barristers. Of these about 400 are sole

MoJ in October 2011, that “Although

practitioners, who normally have very

Ken Clarke praised the efforts which the

specialist skills, and the rest, about

As the legal aid market works on prices

Bar has made to improve access to the

12100, are in chambers. Experience

fixed by the ‘client’ so the supply end of

profession, he expressed the view that

shows that, at any one time, about 10%

the chain is governed only by the number

too many are trying to practise at the

of the members of any chambers aren’t

of barristers who want, and individually

self-employed Bar.”

fully engaged. Maternity leave, sickness,

choose, to do the work at the fees

about

12500

self-employed

market and will continue to be so.

‘life-style’ members, etc reduce the

available. As all the criminal cases that

In a report in The Law Society Gazette

active complement in chambers to about

need a barrister have one, putting aside

(30 September 2013), Dominic Grieve

10900.

the VHCC issues for the moment, then it

returned to the subject; ‘Legal aid cuts

might be assumed that the market has The CBA claims that it has membership

some sort of balance. However, not all

of about 5000 criminal barristers which

criminal barristers have full diaries and

It is likely that all three were referring

means that almost 50% of the self-

some, it would seem, struggle to get by.

to those barristers engaged only in legal

employed Bar are engaged in crime

aid work and not the more specialist,

work.

hurt but the Bar is just too big’.

Whilst the recent fee cuts the MoJ were

definitely more lucrative and, possibly,

planning to impose might have been

less competitive, areas of advocacy.

If the Bar is over-manned by only 10%

calculated to make the savings the

Indeed, the previous Chairman of the

and, given the previous remarks, that is

Treasury require they would also have

Bar Council, Maura McGowan QC, has

concentrated in the legal aid Bar then

had the effect, we’re told, of reducing

talked about a ‘two-tier’ profession.

the ‘market’ can’t support about 500

the number of barristers willing to do

criminal barristers. 20% over-manning

the work at the new rates. However, if

is about 1000 and so on.

barristers won’t do the work we can rest

The recent Jeffrey Review, independently, repeated

the

message;

‘The

only

assured that HCAs will.

conclusion one can reach is that there

Of course, it’s hard to establish how

are many more advocates than there is

much over-manning there might be in a

Of course, the inexorable rise of HCAs

work for them to do’.

‘market’ which is as artificial as the legal

is the thing which is spoiling things for

aid market. In a free market, where the

the Bar. It is probably true, as the CBA

So, the evidence seems to be pretty

price and volume of supply are governed

claim, that many barristers are enduring

overwhelming.

more

by demand, there would be balance

reduced incomes from criminal legal aid

barristers than the current market

and, more or less, as many barristers as

work. However, the MoJ’s annual legal

There

are

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the barrister

25

favour of Barrister Only Entities which, at this distance, look very much like a chambers with a different coat of paint.

It is highly likely that the smart chambers are planning for a different future but it might be better if the Bar Council took an energetic and forceful lead. I’ve written to both the Chairman and the Chief Executive, twice in each case, asking what plans they have for

64855 So Inspire Me Barrister Magazine 31 Front 2015/03/14 00:32:27

encouraging new business models to meet the undoubted threat. Strangely, I’ve had no response from either of them.

At the start of 2014 Tooks dissolved because of the poor returns from legal aid work. More recently, Goldsmith Chambers and Argent Chambers have merged; for much the same reasons, it aid statistics which were published in

traditional chamber’s business model to

April show that the total spend on the

one that can compete with solicitors.

AGFS has remained much the same for the past three years at £220m to

Perhaps it’s time for the criminal Bar to

£240m/year and that the average cost/

look at the problem through the other

case has also remained unaltered at

end of the telescope? If there are too

around £2000.

many barristers working for insufficient income

to

support

the

traditional,

So, if this is right and individual

chambers arrangements there might

barristers are earning less, why is it?

need to be a reduction in the number

would seem. Other legal aid chambers, particularly those engage primarily in criminal work, are feeling the pinch and are looking for solutions. There is a high degree of uncertainty, disquiet and anguish abroad about the future for some chambers. This, of course, is as a result of the current legal aid fees.

What will it be like when the MoJ ends its truce on fees in early 2015?

of criminal barristers and a new way Again, Jeffrey has part of the answer,

to do business. Perhaps a new way of

‘Despite the fact that barristers are

governance, management structure and

better trained and are not being beaten

working practices might be considered

on price or quality, they are receiving

too?

a diminishing share of Crown Court work’. Better trained, arguably, they

There are about ten times as many

might be. It’s hard to see, though, how

solicitors as barristers and there are

the quality of a barrister’s advocacy

about 500 solicitor ABSs. On a pro-rata

can be compared with that of an HCA

basis it might be that there would be,

as there is no QA scheme to measure it

then, about 50 barrister ABSs. There are

and, as prices are fixed, it can only be

about five. The BSB seem to be taking

that barristers are failing to provide

an inordinately long time in getting

good enough reasons for a solicitor to

their act together about regulating

instruct them or are failing to adapt the

such entities and, so far, seem to be in

61

Ian Dodd Bar Consultancy Network

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26

the barrister

Criminalisation of homosexuality across the Commonwealth: a systemic breach of international human rights standards

By Jonathan Cooper, Chief Executive of the Human Dignity Trust

64855 So Inspire Me Barrister Magazine 31 Back 2015/03/14 00:32:27

W

e saw a rare

When people ask, as they did at regular

the implementation of a new Shari’a

piece

of

intervals

penal code that will lead to the stoning

good

news

Games, “what does this disparate and

from

the

varied group of nations have in common

transgender

and

Ugandan

Commonwealth

to death of gay men.

A Commonwealth Tragedy

find a stronger link than the legacy of Of its 53 Member States, almost 80

colonial anti-gay laws.

per cent (42 Commonwealth countries)

intersex

(LGBTI) community on 1 August 2014.

The

the

these days?”, you’d be hard pressed to

Commonwealth for the lesbian, gay, bisexual,

over

Constitutional

criminalise

New legislation

homosexuality,

despite

an obligation to oppose ‘all forms of

Court

declared the Anti-Homosexuality Act

Of course it is true to say that Uganda’s

discrimination’, as set out in the Charter

null and void on a matter of quorum.

Anti-Homosexuality Act (AHA) went

of the Commonwealth. Commonwealth

I.e. there were too few MPs present in

much further than the already existing

countries are also among some of the

Parliament on the day it was passed (23

provisions against gay sex in its penal

most active in ensuring the enforcement

December 2013). It was a victory for the

code, effectively tyrannising all aspects

of these criminal laws. Cameroon leads

rule of law, as well as the tenacity and

of gay and lesbian life. I visited Uganda

the pack in terms of prosecutions, where

skill of the Uganda activists and lawyers.

in the months during which the Anti-

LGBTI people – or those suspected to

Homosexuality Act was in force and

be - are arrested and imprisoned on a

heard directly from those affected by its

regular basis.

But we must keep the champagne on ice. The Ugandan Attorney General is

nebulous provisions against ‘promotion’.

The leading umbrella group for LGBTI

One such person was Cameroonian

people in Uganda, Sexual Minorities

Roger Jean-Claude Mbede, who sent

Uganda (SMUG), witnessed a more than

a text message to a male friend in

tenfold rise in the reported instances of

stating: ‘I’m very much in love with

persecution against LGBTI individuals

you’. Despite the lack of any evidence

under the infamous cloud of the AHA.

of sexual activity, Mbede was arrested

Yet Uganda is not even alone among

in March 2011 and convicted of ‘same-

Commonwealth nations newly imposing

sex sexual relations’ and sentenced

draconian

LGBTI

to three years imprisonment. While

identities. Nigeria’s Same-Sex Marriage

in prison he was subjected to abuse,

Uganda is not alone, it is one of

(Prohibition)

particularly

became malnourished and his health

42

with

destructive piece of legislation, which,

deteriorated. He ended up in hospital.

homophobic laws, representing more

among other things, effectively makes

On his release from prison, it has been

than 50 per cent of all the countries in

living together in a loving relationship

reported that members of Mbede’s

the world in which homosexuality is still

as

a

family isolated him without access to

criminalised. These laws are a British

by

14

the

food, water or medical care in order to

colonial legacy.

Government of Brunei recently began

‘rid him of the evil’ of homosexuality. We

appealing the decision and same sex sexual relations between consenting adults (or homosexuality, by way of shorthand) are still criminalised in Uganda, and have been since the British brought colonisation, and with it a healthy dose of homophobia, to East Africa.

Commonwealth

countries

laws Act

same-sex in

attacking is

a

couple

prison.

62

punishable

Meanwhile

63

27

the barrister

cannot be sure of the facts. What we do

acts. Only recently in India a gay doctor

felons’. Their rights - to equality before

know is that on 10 January 2014, aged

was blackmailed by a number of men

the law; non-discrimination; privacy;

34, he died. It is important that we keep

who had filmed him having consensual

freedom from inhuman and degrading

his story alive, reminding ourselves

gay sex. While the men were eventually

treatment; dignity; expression, assembly

constantly of the human reality behind

arrested for extortion, the fact remains

and association; freedom from arbitrary

the dry statistics.

that without the existence of those

detention; and freedom from persecution

criminal provisions the blackmail would

- are routinely ignored. This in turn does

have been reported to the police sooner.

much to normalise homophobic cultural

As a result of the case being brought to

attitudes and exposes LGBTI individuals

According to the United Nations (UN),

police, reports suggest that the doctor

to an increased risk of violence. States

Examples can be found around the

will also be charged.

are notoriously slow to respond to

What Impact?

world of individuals being arrested,

this violence and to protect the LGBTI

64855 So Inspire Me Barrister Magazine 32 Front 2015/03/14 00:32:27

blackmailed and extorted because they

Anti-gay

international

community from it. It was only this

are LGBTI, even in those countries

human rights standards. In jurisdictions

year that the African Commission on

that claim not to enforce their criminal

that criminalise gay sex LGBTI people live

Human and Peoples’ Rights adopted

provisions banning consensual same sex

a fractured existence as ‘unapprehended

its first resolution on the protection of

laws

breach

sexual and trans minorities. In calling for increased state action to protect LGBTI individuals, it recognised the ‘increasing

incidence[s]

of

violence

and other human rights violations, including arbitrary

murder,

rape,

imprisonment

and

assault, other

forms of persecution of persons on the basis of their imputed or real sexual orientation or gender identity’. With this welcome resolution the African human rights system is taking its human rights responsibilities towards LGBTI

Africans

seriously.

Similar

resolutions have been adopted by the Inter-American

Commission,

United

Nations and European Parliament, with the latter explicitly recognising that anti-gay laws, even when affecting only gay men, create an environment that encourages violence against women.

Legal recognition of the relationship between anti-gay legal provisions and violence is just one of the many emerging developments

in

the

international

community’s consciousness. In a recent panel discussion organised by the World Bank, the economic impact of homophobia was discussed in detail. At that meeting, the cost of homophobia in

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the barrister

India alone was estimated to be as high

figures in business, to sign a declaration

ruling, it was reported in the press that

as 1.7% of the Indian Gross Domestic

calling for the decriminalisation of

Nepal are seeking to defy rulings of the

Product (GDP), the equivalent of 31

consensual same-sex acts.

Nepalese Supreme Court and reintroduce

billion dollars. Fabrice Houdart, the team lead of Sexual Orientation, Gender

legislation that would impose a three Not something we can ignore

year prison sentence on those convicted

Identity and Development at the World Bank, commented:

of sodomy. In Tanzania MPs have been

64855 So Inspire Me Barrister Magazine 32 Back 2015/03/14 00:32:27

The criminalisation of homosexuality

working towards a criminal law bill with

is a serious and systemic human rights

provisions materially similar to those

violation; that much is clear. It directly

enacted in Uganda and Nigeria. So too,

‘[E]very time a man who has sex with

impacts LGBTI individuals in real and

in Kenya, an “Anti-Homosexuality Bill”

another man gets HIV... society pays a

tangible ways and does so regardless

was recently presented to the National

heavy price. Excluding sexual minorities

of whether the laws are enforced. In

Assembly, although to the credit of the

is not only a human tragedy but it is

2013 the importance of this point was

Kenyan authorities, it has been heavily

also a significant self-inflicted economic

demonstrated in Ghana, where the

criticised.

wound... we at the World Bank need to

current Attorney General (AG) stated

decision, and those too made by courts

listen to their voices.’

to an appointment committee that:

in Kenya and India (which both recently

‘the Criminal Offences Act of Ghana

recognised

says that unnatural canal knowledge

persons) should be celebrated, but we

As the documentation of abuses of

is a criminal offence... that will be my

can’t afford to take these victories for

LGBTI individuals increases, so too

advice to government’. This comment

human rights for granted. The decision of

does the international recognition of the

was made in spite of the previous AG’s

the Supreme Court in India in December

varying forms of abuse to which they

insistence that LGBT individuals would

2013 to recriminalise homosexuality

are exposed. In particular, research

not be pursued for actions committed in

after a temporary reprieve was granted

into the relationship between HIV and

private.

by the Delhi High Court demonstrates

AIDS and legal provisions criminalising

That said, the Uganda

certain

rights

of

trans

well the fragility of the rope on which

consensual same-sex sexual conduct

The demise of Uganda AHA was a

sexual minorities must walk: one frayed

is demonstrating the danger in which

welcome step. But the road to end the

string away from snapping.

gay (and straight) individuals are being

persecution of the LGBTI community

placed. Of all the countries included

is long and steep. After all, under the

in a 2012 UNAIDS HIV prevalence

Ugandan Penal Code consensual same-

1 Global Commission on HIV and the Law,

study, the top ten are current or former

sex sexual relations continues to carry

Final Report of the Global Commission

Commonwealth countries. In Caribbean

a sentence of life imprisonment and

on HIV and the Law, (2012), at 45

countries that criminalise, 1 in 4 men

that provision remains in force. The

2

who have sex with men (MSM) are living

ruling of the Constitutional Court in

Commonwealth of the People: Time for

with HIV. In those that do not, that figure is 1 in 15.1 The Commonwealth

the challenge to the AHA provides no

Urgent Reform, Report of the Eminent

comfort for Jackson Mukasa and Kim

Persons Group to Commonwealth Heads

makes up 60% of all people living

Mukisa, two gay men subjected to forced

of Government, London (2011), pp. 98-

with HIV, despite only amounting to 30% of the world’s population.2 The

anal examinations who are currently

102. It should be noted, this statistic was

awaiting trial in Uganda for the crime

first presented by the UNDP in 2008-9.

Commonwealth

LGBTI

of ‘unnatural offences’. They brought

In that period the Gambia has left the

people and the Commonwealth is most

attention to themselves because they live

Commonwealth.

affected by the AIDS crisis. The link

together. Nor will it impact the countless

is straightforward. It is figures of this

others

kind that led, at the meeting of the

abused in the 81 jurisdictions around

Melbourne World Aids Conference in

the world that continue to criminalise

July this year, health groups, civil society

acts of love and intimacy between same-

organisations, as well as high profile

sex couples. Just days after the Uganda

criminalises

arrested,

blackmailed,

64

and

Commonwealth

Secretariat,

A

65

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29

A paralegal life The Chartered Institute of Legal Executives (CILEx) has launched an Enquiry into paralegals, who they are, how many there are, what do they do and how they fit into the legal services market. Polly Botsford reports:

64855 So Inspire Me Barrister Magazine 33 Front 2015/03/14 00:32:27

T

his autumn sees the

community; some estimate as many

of the qualification or experience of the

first steps of a major

as eighty thousand, which amounts to

person holding that title, nor exactly

new research initiative

around two-thirds of the workforce of

what type of legal work they are doing;

being run by CILEx

the legal services market, an astonishing

if numbers are set to grow to the extent

into ‘the paralegal’,

figure.

expected, we need to understand what

the undefined member

of the legal community of whom there are very many and yet about which

they are doing.”

But what is clear is that the numbers are set to grow. Predictions drawn from

There is lots of good research already being done around various aspects of legal services which CILEx hopes to build on. For instance, the IPPR published a report earlier this year into jobs, skills and the importance of vocational education which predicts substantial growth in numbers of medium-skilled professionals (such as paralegals) in a more “professionalised” world.

The Law Society is also looking into the structure of law firms, which will help enlighten the market on which roles are currently, and will in the future, fit best into that structure. But until this Enquiry there has been no specific research on paralegals. As Mr Gowland explained

the market knows very little. CILEx’s ‘Paralegal Enquiry: Can paralegals meet future market needs?’ is the first of its kind in the legal services market. It will commission research designed to deliver an all-encompassing view of the place of paralegals now and into the future.

Paralegal uprising?

work by the Institute for Public Policy Research (the IPPR) estimate that what are categorised as “legal associate professionals” will grow by around 17% over the next decade, so almost one-fifth as many as now by 2024.

at the launch, the now completed Legal Education and Training Review (LETR) has made “useful in roads” into this area and the Review itself recognised the dearth of information out there (to quote the Review: “There is little evidence of the scale of the paralegal workforce”).

As CILEx president (now immediate past-president),

Stephen

Gowland,

What’s in a name

told the audience gathered for the launch of the Paralegal Enquiry at DWF

It is not only that there is a clear need to

There are no actual figures on how many

Fishburn’s offices in the City last month:

find out more about their numbers, but

‘paralegals’ are operating in the legal

“The term ‘paralegal’ tells you nothing

also the term ‘paralegal’ is ill-defined

65

66

30

the barrister

University, which, Ms Panter confirms, will be participating in the Enquiry, observes: “The legal services sector is undergoing unprecedented change because of issues such as the Legal Services

Act,

Legal

Aid

reforms,

Jackson, general economic conditions and changes in the way that legal services are delivered, such as the use of technology. The traditional role of the paralegal is now more wide ranging than ever before. Paralegals carry out

64855 So Inspire Me Barrister Magazine 33 Back 2015/03/14 00:32:27

such differing roles within the sector.

The Enquiry should capture that range of work, the market needs and how those needs are best supported. and this leads to a lack of understanding

Mr Gowland said that this type of

of what paralegals do and where their

attitude is going to sit uncomfortably

IPS

future lies in the next-generation legal

with

have

wholeheartedly agrees saying that:

services market.

greater expectations from their jobs:

“The market is heading towards a

“Paralegals,

younger

shake-out of roles. Legal services is

people, Generation Y, are not looking

not alone. This has happened in other

for that degree of boredom. They

professions.”

Gimhani Eriyagolla, a paralegal at Bhatt Murphy, a legal aid firm in east London, and a committee member of the Association of Young Legal Aid Lawyers, says: “The Enquiry will be really useful for adding transparency to this growing profession. The aims

younger in

people

who

particular

difference, input, change, flexibility, more work/life balance than money ... recognition and progression.”

to defining structure.”

to see: “regulation to a role that is still quite opaque.” “We don’t know what

understanding

what

paralegals do, the Enquiry will examine how the role sits within someone’s legal career. These are not easy answers as the needs of firms often fit uneasily with the aspirations of young lawyers.

At the launch, Mr Gowland highlighted

What it will be

The Enquiry will start by building a database of people and organisations

Ms Eriyagolla for one says she wants

as

Kershaw,

training, and if you want them to stay,

‘paralegal’ will hopefully be beneficial

well

Alan

are looking for interest, making a

of the Enquiry to define the title of

As

Chairman,

the answers are yet and we are not going to prejudge the Enquiry”, CILEx’s chief executive, Diane Burleigh OBE, said at the launch, “but this is certainly the sort of problem that the Enquiry is intended to investigate.”

which have registered an interest in participating in it. Out of that, CILEx will organise a series of focus groups and

roundtables

with

particular

subsectors of legal services: large law firms, smaller firms, training providers, regulators as well as the paralegals themselves. These focus groups will be taking place across England and Wales, to include specialist firms and also reaching out to black, Asian and

Change everywhere

minority ethnic firms.

who are prepared to do the same thing

Changes in the legal market are also

The Enquiry will examine who this

100 times over and over again and are

driving the Enquiry, as Jackie Panter,

large contingent of the workforce is,

happy to be really good at that for 50

Associate Head at Manchester Law

what paralegals do, what skills and

years.”

School at Manchester Metropolitan

competencies they have and what they

a comment made by an employer during the LETR: “I want technicians

66

67

31

the barrister

will need in the future. It will look at

grass roots Enquiry and CILEx wants

how the public view them, how firms

a cross-section of the legal community

view them and how they, paralegals,

to get involved: “They should take part

Any stakeholder can express their

view themselves. It will investigate

because legal services is incredibly

interest

the current training, progression and

important

the

to the address below as well as

support which are being offered to

public.

The future lies in everyone

joining the conversation on twitter

them and what needs to be offered

talking to each other. We need to build

going forward, as well as the role the

relationships with each other.” Though

professional and regulatory bodies.

focus groups will be by interest group,

The research will be looking into these

provider, regulator and so on, later

questions in the context of a legal

on during the life of the Enquiry it is

market from 2020.

anticipated that it: “will put some

64855 So Inspire Me Barrister Magazine 34 Front 2015/03/14 00:32:28

“The Enquiry will start by trying to identify the right questions, ask those questions and eventually answer them,” says CILEx’s Public Affairs Officer, Richard Doughty. The work of the focus groups, under Chatham House Rules, will then be taken away and digested by

for

firms

and

for

regulator over here, training provider there, firms there; no one part of the sector on its own can move the whole sector ahead. Nor should it. That would not be good for any of us nor for the public.”

with the Enquiry needs to be broad to be effective: “Participation will be needed from

a

widespread

demographic of firms Above all, it is about time that paralegals

and employees for a

were given some attention, says Ms

rounded perspective of

are, so that we can get firms to value them, we need to find a way to train them, represent them, in order to help them. They could have a professional underpinning, they could be regulated (we are often told that our members prefer being regulated; it gives them status and legitimacy). We don’t know what the right path is but we need to find out.”

The Enquiry needs you

the current position.”

And

as

points

Ms

out

Panter

there

is

not even one type of employer

to

engage

with here: “There is such

a

very

broad

range of legal service employers

-

high-street

small firms,

global firms, in-house legal

teams

and

diverse

alternative

business

structures.

There are so many Ms Burleigh emphasises that this is a

by

emailing

(#paralegalenquiry).

Register

your

interest:

paralegal.

enquiry@cilex.org.uk.

the CILEx Journal, August 2014.

Ms Erigoyalla agrees that engagement

who they are, what their aspirations

time

Burleigh. “We can’t just be in silos,

in due course.

airing”, she says. “We need to find out

any

This article was originally featured in

of the research team will be announced

Burleigh: “We need to give them an

at

of these people together,” says Ms

a specialist research team. The identity

A little understanding

about the role of a paralegal.”

different

perceptions

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the barrister

Email Confidentiality – 12 Months On -Time to show leadership in protecting confidential information

By Simon Freeman, CEO Fresh Skies

64855 So Inspire Me Barrister Magazine 34 Back 2015/03/14 00:32:28

I

t was around a year ago when

crime is rising. This is a worrying trend

1)

I first published my article

and one that is unlikely to diminish in

to commit than most other crimes. The

‘Email

the near future if the last 12 months are

defences of the victims are often low

anything to go by.

and the general population is poorly

Confidentiality

A

Technical or Cultural issue?’ in The Barrister where I introduced

the

subject

Cyber crime is an easier crime

educated in these risks.

Most people

of

Discussion of criminal activity with a

do not know what the online equivalent

email security (or lack thereof) and the

readership made almost entirely of

of a ‘dark alley’ is and regularly walk

history and reasons behind where we

legal professionals is a risky endeavor,

down them.

found ourselves at the time.

Twelve

one would think, but in fact I have

months on it is worth reflecting on

found that the knowledge in this area

progress.

amongst the barristers I have discussed these matters with is worryingly low.

A lot has been learnt over the last year and things are starting to accelerate.

Cyber crime is rising.

Sadly, not in terms of how we defend

are a several things that underpin this

ourselves, but at the rate in which cyber

change.

Why? There

2)

The crime can be committed

remotely

from

anywhere

on

the

planet. This globalisation of crime is taking advantage of the technology improvements that we have long been chasing in business.

3)

Probability of being caught

is very low. Theft of IP can be almost undetectable. Even if fraud or theft of monies or goods is committed the ability to trace the culprits is beyond the average police force. The centralised online fraud units are simply not able to keep up with the volume of sophistication. Even if crime is noticed, reported and investigated the difficulties of jurisdiction come into play.

With

much of the crime emanating from foreign countries, the cost of getting the right levels of cooperation, which would lead to effective prosecution is high.

4) Technology

to

almost

completely hide one’s tracks in any online activity is now commodity.

What all this adds up to is simple.

Cyber criminals are now technology

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the barrister

savvy, well-equipped and technologically

viruses and Trojan horses (malware)

advanced.

high.

that will infect your PC if you open the

The ease of the crime is low. And the

email. You may not even realise it has

probability of getting caught (if you do

happened.

this from abroad) is almost nil.

machines is not designed to disrupt

The

rewards

are

The malware on modern

your machine, it simply sits and listens

64855 So Inspire Me Barrister Magazine 35 Front 2015/03/14 00:32:28

In the last twelve months we have started

to what you type and captures things

to see ever-increasing sophistication in

like your user IDs and passwords, and

the attacks on people and businesses,

passes them back to the cyber criminals.

but the level of improvement in general

The sophistication of the emails with

attitude is still very poor. This trend (gap

these attachments is alarming.

between attacker and victim) is growing

will all have encountered the Nigerian

too rapidly for comfort.

Prince or businessman who has $100

You

million dollars he needs to move and

Do not publish data online publically.

There are two basic ways to attack

requires your help.

Do not send emails with private or

someone online.

moved on since then.

hack.

The first is a direct

But things have Now there are

confidential

information

in

clear

Surprisingly, that is still quite

socially engineered emails designed to

(unencrypted).

hard. Think of it as trying to break into

make you click on links or open infected

allow it, banks don’t allow it, financial

a modern car to steal it. Modern car

attachments. They are cleverly designed

advisors are not allowed to do it. But

protection is quite sophisticated to the

to trick you. For example, a recent spurt

the accountancy and legal industry?

point that many top end cars are all but

of fake FedEx and UPS emails have gone

Maybe it’s time to show some leadership

theft-proof without the keys. So thieves

out saying they tried to deliver a parcel

from an industry that owes a great

now focus on getting the keys. The same

to you, but you were out. It is very clever

deal of its livelihood from handling

is true online. Direct access is hard and

because it applies to so many people

the consequences of crime - start to

so focus must go to obtaining the keys to

and is such a run-of-the-mill event that

show how such crime can be reduced

the doors. This is generally achieved in

many people are fooled into clicking on

through simple information protection

one of two ways.

the link or opening the attachment.

techniques.

The first is that they will target websites

Data leakage is playing a big part of this

which have large numbers of users with

problem. It is not unusual to be able

Simon Freeman, CEO Fresh Skies,

high numbers of user accounts. Ebay

to quickly (within 20 minutes if done

www.freshskies.com

for example lost millions and millions

manually) find your full name, address,

of client accounts recently. In my view,

date

the only scandal was that there was no

relatives, car you drive, hobbies, where

outrage from the users. The criminals

you bank, what your mortgage is etc.

will often try and obtain your keys in

all online. That is publically available

this way so they can use them to access

data.

higher value targets. It is still surprising

I want you to click on a link or open an

to hear that most people only have

attachment, the more realistic the email

two or three passwords for everything.

and the more personal it is the better.

of

birth,

business

interests,

Why is this a problem? Well, if

Including banking.

Education is the only defence. Online The second way they will try and get your

fraud is unstoppable and the only thing

keys is through email. They will attach

we can do is take sensible precautions.

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Government does not

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the barrister

Direct Marketing for Direct Access In 2007 Peter Rosenwald, Managing Director, Chartered Developments wrote an article for The Barrister outlining how telephone marketing could significantly help grow the client base of a barristers chambers through a systematic and disciplined approach to referral work. With key changes in the law in 2004 another exciting marketing opportunity presents itself through Direct Access (DA). Peter will revisit the role of marketing to gain new clients without the need to be referred work through an intermediary. Whilst the role of the barrister has remained fundamentally unchanged, this has dramatically changed the industry landscape.

64855 So Inspire Me Barrister Magazine 35 Back 2015/03/14 00:32:28

D

A is undoubtedly a

become clients. In order to do this one

“Anything that means I can get an

growth sector and

should first identify and isolate the

opinion more quickly will help our

is creating exciting

businesses to target. These targets are

business”

opportunities

for

best defined by their needs being well-

chambers to forge

suited to the specialist attributes and

Whilst there will always be a few decision

new initiatives and

services of the chamber. A chamber

makers who resent being contacted

professional

might be differentiating itself based on

directly, in general the responses we’ve

groups, businesses and individuals at a

an extensive history of working in a

had have been overwhelmingly positive.

time of rapid change in the legal services

particular sector, or the factor may be as

However, whilst the value of direct

environment. For many chambers it is

simple as its proximity to the prospect.

marketing

the largest growth area, but this comes

For example, this could be the 50 largest

instructing directly is common practice

with the acknowledgement that to gain

care home groups, or the 200 largest

in all businesses, the resonance of the

the greatest value from this marketplace

logistics firms, or even just 300 firms

marketing message is all the stronger

requires skills and expertise that have

of a particular size within a particular

when you are amongst the first to

not previously been in employed within

region. Once the firms are identified the

market. The fabled ‘Early Bird’ is still

the profession. The competition for

next step is to establish who the decision

out there, and is still the greatest menace

first instance leads is growing rapidly,

maker is. Although the Head of Legal is

to worms everywhere. To highlight

and taking the highest possible share

a start, the Finance Director is often a

this one can look at past examples.

requires an investment.

more senior figure, and frequently has

In the 1980s-90s telemarketing was

authority over decisions within this

engaged for the first time on behalf

area.

of accountants. Many in the industry

collaborate

with

other

The problem for chambers is that their

will

not

be

lost

once

snubbed the idea. Those that invested

model of working is often ill suited to sharing the marketing costs of joint

For many barristers Direct Access is not

in the marketing machine realised an

lead generation. Finding a cost effective

a “new” concept. However, the direct

excellent return on investment. This

solution to this has often proved to

marketing needed to engage is very

has, in fact, been so successful that

be a stumbling block to innovative

much new territory. A primary question

almost all larger accountancy practices,

new

enhance

that we have encountered when talking

as well as many smaller ones, are now

the reputation of chambers overall

to barristers is ‘how do the decision-

employing it as standard practice within

regarding Direct Access, rather than

makers receive these contacts?’ Our

the marketing mix.

just an individual barrister. However,

experience thus far in this industry has

when weighed up against the potential

been targeting larger SMEs and AIM

A decade ago solicitors went through

benefits, the spreading of costs across

listed firms, but not FTSE prospects. A

the same process. The idea was initially

a chamber should become a viable

few of the responses we hear most often

shunned by the majority, whilst the more

proposition.

are:

vigilant forged strong client relationships

“…pleased to be contacted”

for future instructions. Fast forward ten

methods

that

could

years and it is a staple activity within

The strategy to employ is simple. The aim is to meet the key decision makers

“I didn’t know that we could instruct

industry marketing strategies. Whilst

at businesses with the potential to

directly”

the laws regarding public access to

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the barrister

collateral

ready

as

PDF

direction of each must focus on the same

barristers were relaxed ten years ago,

marketing

there has been only minimal uptake

documents. This will probably include

on the proactive engagement of this

a PDF for each chamber specialism, as

marketplace as yet. Therefore the market

well as a general introduction to your

3.

is still in its infancy, and returns on

chamber and some recent or relevant

campaign where the caller is well-placed

investment are still at the highest level.

successes – possibly in the form of a case

to represent the values of your chambers,

key points.

Decide upon a telemarketing

study. When a request is put to you or your

and possesses all of the necessary skills

Having established that telemarketing

agency for further information in writing

and knowledge.

is an excellent route to market, one of

this should be done instantaneously.

the first questions is whether or not to

If the information can be sent out and

4.

employ an in-house marketer who could

received whilst the prospect is still on the

from a reputable supplier, and ensure

encompass calling within their wider

phone the response can be remarkable.

that it is fully licenced (multi-use).

role, or to outsource this function. The

This simple action could be seen as

issue that many businesses have with

a microcosm of the fast service you

employing an in-house telemarketing

provide.

5.

Purchase a database. Do so

Clean your database. It’s always

worth checking through and making sure everybody on there is a viable target

and lead generation agent is that the

64855 So Inspire Me Barrister Magazine 36 Front 2015/03/14 00:32:28

35

and, most importantly, not a client!

same overheads and additional activities

The marketing strategy turns into sales at

apply to a one-person activity as do to

what is probably the most critical phase

a business centred round the activity.

of the business development process:

6.

Data has to be sourced, purchased,

the appointment. Having invested time

Before you start heading off to meetings

cleaned and managed; the telephone

and money in getting to this stage it is

make sure that you are ready to sign the

and mail preference services need to

vital to do everything in your power to

business that appears in front of you.

be

Refine your sales technique.

marketing-focused

make this a success. You will be looking

Don’t waste a meeting – secure sales

CRM needs to be put in place; staff

to start building a long term relationship

training if necessary.

must be trained, and the quality of

that

their work monitored; reporting suites

instructions at the first meeting. Before

7.

need to be created and utilised in order

meeting with a prospect you should

literature is up to date. If a prospect asks

to understand and enhance activities.

garner a thorough understanding of the

for more information to be sent across it

For large organisations with large and

business and the market in which they

needs to be done right away.

experienced

operate, ensuring you are prepared

considered;

a

marketing

departments

won’t

a

necessarily

proper,

convert

in-depth

into

discussion.

8.

Literature.

Make

sure

your

Go! Secure new instructions

this can, on occasion, prove to be the

for

best route to market. For the majority of

Asking the right questions, responding

and build new business relationships for

businesses, however, it will consistently

knowledgeably to theirs, and building

future prosperity.

prove to be both cheaper in terms of real

a rapport could well be the difference

costs and more successful in terms of the

between a fleeting interest and a strong

quality and quantity of results achieved

relationship.

Peter Rosenwald Sales & Marketing Director at Chartered

to outsource these activities.

To summarise, a chamber marketing

Developments

In order to get the most out of a marketing

strategy to secure the full potential of DA

campaign it is important for the chamber

could follow these lines:

www.chartdev.co.uk

you are selling your chamber as having a

1.

Further questions or comments to:

specialism then this needs to be obvious

Look at what you offer, and consider

on LinkedIn and the chamber website.

why a prospect would choose you over

After a telephone introduction people

another firm.

to fully support their marketing efforts. If Decide upon your target market.

will enter you and your chambers into a search engine, and what comes up could

2.

make the difference between interest

message. Think of the strategy in

Decide upon your marketing

and disinterest. You need to have your

terms of campaigns – the literature and

71

peter@chartdev.co.uk

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72

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the barrister

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64855 So Inspire Me Barrister Magazine 36 Back 2015/03/14 00:32:28

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the barrister

the barrister

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We have over 18 years experience of providing an Expert Witness service in the field of health and safety working with the Courts in both England and Scotland David Wood has become well known by many of the larger legal practices for his focused and incisive reporting, many of whom will provide references on request

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73

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64855 So Inspire Me Barrister Magazine 37 Front 2015/03/14 00:32:28

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the barrister

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64855 So Inspire Me Barrister Magazine 37 Back 2015/03/14 00:32:28

Chris has 30 years of experience in the field of orthotics and over 18 years of medical legal reporting experience. As well as his in-depth knowledge of orthotic principles and practice he has specific expertise in:  Post trauma orthotic rehabilitation  Neuro-rehabilitation  Complex disabilities  Orthopaedic conditions  Adult and paediatric orthotics  Lower limb biomechanics  Lower limb orthotics  Complex foot and ankle conditions  Foot orthotics  Specialised orthopaedic and bespoke footwear He has a wealth of experience acting as Orthotic Expert for the claimant, defendant and as a single joint expert. He has undergone full Expert Witness training with Bond Solon and holds the: Certificate of Expert Witness Accreditation (CUEW) issued by Bond Solon and Cardiff University Law School is a member of The Expert Witness Institute and registered with the Health & Care Professions Council (HCPC).

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74

Barr

Are you alarmed by the risk of data loss?

The Information Commissioner’s Office has issued a warning to barristers and solicitors to keep personal information secure* The warning came as a result of 15 incidents involving members of the legal profession having been reported to the ICO between May and July 2014. The ICO can serve a monetary penalty of up to £500,000 for a serious breach of the Data Protection Act provided the incident has the potential to cause substantial damage or substantial distress to affected individuals.

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IN

For more information on Data Risks and also the products available please contact us on 020 7839 0472

SU

RANC

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64855 So Inspire Me Barrister Magazine 38 Front 2015/03/14 00:32:28

75

TLO SE

RV I C E S

TLO Insurance Services Limited, 40 St James’s Place, London, SW1A 1NS www.barristersindemnity.co.uk TLO Insurance Services is authorised and regulated by the Financial Conduct Authority

Barrister_OctoberDraft.indd 1

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* Source www.ico.org.uk 5th August 2014

29/08/2014 09:26

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