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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64855 So Inspire Me Barrister Magazine 1 Back 2015/03/14 00:32:25
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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
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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
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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
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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
1 1
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
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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.
Wise investments for clever people Explore forestry investment at honourcapital.com
Coloma Wealth Management, 2nd Floor, Mitre House, 12-14 Mitre Street, London EC3A 5BU
t: 020 3603 5910
f: 020 3603 5911
www.coloma-uk.com
Authorised and regulated by the Financial Conduct Authority. Financial Conduct Authority Register Number 563449
Wealth in a World of Change
AUTO ENROLMENT INTO WORK PLACE PENSIONS HAS ARRIVED �������������������������������������������������������������������������������������������������������������� ��������������������������������������������������������������������������������������������������������� ���������������������������������������������������������������������������������������������� �������������������������������������������������������������
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43920 RC The Barrister half page ad V4_Layout 1 18/08/2014 16:48 Page 1
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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
22
Wealth Management
Independent Financial Planners | Discretionary Asset Managers | Tax Advisers
By Listening
WE UNDERSTAND
64855 So Inspire Me Barrister Magazine 11 Back 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. 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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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 �������������������������������������������������������������������������������������������������������������������������������������������������������������������������
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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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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�. 43920 RC The Barrister half page ad V4_Layout 1 18/08/2014 16:48 Page 1
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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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£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
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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.
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In its consultation document, HMRC illustrates the point by
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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
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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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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
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56
www.coloma-uk.com
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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
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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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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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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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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
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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
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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
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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
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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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
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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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. The careful management of the risks around loss of data is key - but insurance protection is also available through TLO Insurance Services. TLO’s Excess Indemnity (or “Top-up”) cover provides an automatic extension covering investigation costs and any legally insurable fine following a data loss. Cover can also be arranged for wider Privacy and Media risks and liabilities - including the costs of notifying those affected by lost data and any ongoing monitoring costs. This cover can be arranged on an individual basis - or at a discounted rate when purchased collectively as a Chambers.
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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Barrister_OctoberDraft.indd 1
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* Source www.ico.org.uk 5th August 2014
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