Contents Intro
PUBLISHER Ian Fletcher Benham Publishing Second Floor 3tc House, 16 Crosby Rd, Crosby, Liverpool L22 0NY Tel: 0151 236 4141 Facsimile: 0151 236 0440 email: admin@benhampublishing.com web: www.benhampublishing.com
4
List of officers 2013/14
5
President’s Jottings
6
CEO Report Local Issues
8-12
ADVERTISING AND FEATURES EDITOR Anna Woodhams
Local news Finance
STUDIO MANAGER Fern Badman ACCOUNTS Joanne Casey MEDIA No. 1353 PUBLISHED March 2014 © The Surrey Law Society - Benham Publishing
16
Budget changes to Annuities gives better value at last!
17
UK Global Law Summit 2015
19
“It’s the economy, stupid!” Or is it?
20
Seize the day
21
Financial challenges for the legal sector Review
22
LEGAL NOTICE © Benham Publishing. None of the editorial or photographs may be reproduced without prior written permission from the publishers. Benham Publishing would like to point out that all editorial comment and articles are the responsibility of the originators and may or may not reflect the opinions of Benham Publishing. No responsibility can be accepted for any inaccuracies that may occur, correct at time of going to press.
Property 23
Finlay Associates rebrands as Index Property Information
24
Recent flood events call us all into action
26
PSG in Surrey – The Local Face of a National Success
Benham Publishing cannot be held responsible for any inaccuracies in web or email links supplied to us. DISCLAIMER The Surrey Law Society welcomes all persons eligible for membership regardless of Sex, Race, Religion, Age or Sexual Orientation. All views expressed in this publication are the views of the individual writers and not the society unless specifically stated to be otherwise. All statements as to the law are for discussion between member and should not be relied upon as an accurate statement of the law, are of a general nature and do not constitute advice in any particular case or circumstance.
Employment Law 26
Employment and personal injury specialist strengthens AWB litigation team Family Law
27
Members of the public should not seek to rely on anything published in this magazine in court but seek qualified Legal Advice. COVER IMAGE This issue’s cover image “Flood Pub” was taken by Ismar Badzic. It is reproduced under the Creative Commons License 2.0 from www.flickr.com.
A Short Book of Bad Judges
Matrimonial Property, Needs and Agreements - the Law Commission’s proposals CPD
28
Surrey Law Society CPD Programme Management
Copy Deadlines Summer 2014 Issue Autumn 2014 Issue Winter 2014/15 Issue Spring 2015 Issue
23rd 22nd 21st 20th
May August November February
Anyone wishing to advertise in Surrey Lawyer please contact Anna Woodhams before copy deadline. Email:
anna@benhampublishing.com
Tel:
0151 236 4141
Anyone wishing to submit editorial for publication in Surrey Lawyer please contact Sue Seakens, before copy deadline. Email:
sueseakens@surreylawsociety.org.uk
Tel:
01344 860830
28
LawCare’s 2013 Statistics
29
Rules for Reporting Accidents at Work Change Is Your Business Up To Date?
30
Managing the risk
31
Legal Software Suppliers Association issues warning to law firms to be vigilant against cyber threats and to keep technology up to date
32
Time is of the essence
33
Iconic Dogs Trust slogan marks landmark anniversary Private Client
32
Paying for Care in Later Life Surrey Lawyer 3
Officers
PRESIDENT
COMMITTEE MEMBERS
LAW SOCIETY COUNCIL MEMBERS
MAREK BEDNARCZYK
WIN CUMMINS
Hart Brown
Mackrell Turner Garrett
DAVID STEED Harold Bell & Co 174 Kingston Road, Ewell KT19 0SD Tel: 0208 393 0231 Fax: 0208 393 0155 Email: ds@haroldbell.co.uk
21-25 Church Street West, Woking, Surrey GU21 6DJ
Resolution House, Riverview, Walnut Tree Close, Guildford, GU1 4UX DX 2403 Guildford 1
Tel: 01483 755609 Fax: 01483 755818 Email: win.cummins@mtg.uk.net
Tel: 01483 887704 Fax: 01483 887758
ELIZABETH EYRE Barlow Robbins LLP
Email: msb@hartbrown.co.uk
Church House, 30 Church Street, Godalming, Surrey, GU7 1EP
VICE PRESIDENT
DX 58351 Godalming 2
SUSHILA ABRAHAM
Tel: 01483 417121
S Abraham Solicitors
Fax: 01483 426836
290A Ewell Road, Surbiton KT6 7AQ
Email: elizabetheyre@barlowrobbins.com
Tel: 020 8390 0044 Email: office@sabrahamsolicitors.co.uk
MARK GOUGH Solicitor 22 Woodlands Road, Little Bookham,
DEPUTY VICE PRESIDENT
Surrey KT23 4HF
DANIEL CHURCH
Tel: 01372 230786
TWM Solicitors LLP
Email: mark@markgoughlaw.com
123 High Street, Epsom KT19 8AU
JOHN PERRY Palmers Solicitors 89-91 Clarence Street Kingston upon Thames, KT1 1QY DX 31524 Kingston upon Thames Tel: 020 8549 7444 Fax: 020 8547 2117 Email: john.perry@palmerssolicitors.co.uk CHIEF EXECUTIVE & MAGAZINE EDITOR Sue Seakens Surrey Law Society 18 Station Approach, Virginia Water GU25 4DW Web: www.surreylawsociety.org.uk DX 94652 Virginia Water Tel: 01344 860830 Fax: 01344 428511 Email: sueseakens@surreylawsociety.org.uk
GLORIA MCDERMOTT
DX 30710 Epsom
18 Station Approach, Virginia Water GU25 4DW
Tel: 01372 729555
SUB COMMITTEES
DX 94652 Virginia Water
Fax: 01372 742101
Email: gloria.mcdermott@virginmedia.com
Email: daniel.church@twmsolicitors.com JULIE ROWE HON SECRETARY
Palmers Solicitors
KIERAN BOWE
89-91 Clarence Street
QUO VADIS (Strategic Planning) Sushila Abraham (Chair) Nick Ball Marek Bednarczyk Daniel Church Ken Seakens
Kingston upon Thames KT1 1QY
Russell-Cooke Solicitors Bishops Palace House, Kingston Bridge, Kingston upon Thames, Surrey, KT1 1QN DX 31546 Kingston upon Thames
DX 31524 Kingston upon Thames Tel: 020 8549 7444 Fax: 020 8547 2117 Email: julie.rowe@palmerssolicitors.co.uk
Tel: 020 8541 2041
CONVEYANCING & LAND LAW Win Cummins (Chair) Gary Score* Maralyn Hutchinson* Ken Seakens Matthew Truelove*
KEN SEAKENS
Fax: 020 8541 2009 Email: kieran.bowe@russell-cooke.co.uk
Seakens Solicitors 18 Station Approach, Virginia Water GU25 4DW DX 94650 Virginia Water
HON TREASURER
Tel: 01344 843666
NICK BALL
Fax: 01344 844584
Howell Jones Solicitors
Email: ks@kseakens.co.uk
75 Surbiton Road, Kingston upon Thames, MELANIE WILLIAMS
Surrey, KT1 2AF
Senior Lecturer
DX: 57715 Surbiton
The University of Law, Braboeuf Manor,
Tel (Office): 020 8549 5186
Portsmouth Road, Guildford, Surrey GU3 1HA
Tel (Fax): 020 8549 3383
Tel: 0800 289997
Email: nick.ball@howell-jones.com
Email: Melanie.Williams@law.ac.uk
FINANCIAL Nick Ball (Chair) Kieran Bowe Mark Gough Ken Seakens Sushila Abraham SOCIAL Sarah Thomas* (Chair) Daniel Church Gloria McDermott John Perry* Julie Rowe Ken Seakens *Non-Committee Member.
membership details Annual Subscriptions:
£85 per person, per year.
Corporate Subscriptions:
(20+ fee earners) £1,700 per year
Solicitor
(not in private practice) £55
Solicitor
(not practising) £30
Honorary Membership:
free
Associate Membership:
free - no voting rights
4 Surrey Lawyer
To apply for membership please contact: Sue Seakens, Chief Executive Surrey Law Society, 18 Station Approach, Virginia Water GU25 4DW Web: www.surreylawsociety.org.uk DX 94652 Virginia Water Email: sueseakens@surreylawsociety.org.uk Tel: 01344 860830 Fax: 01344 428511
Editorial
President’s Jottings
I have now had the honour of being President of the Surrey Law Society for over three months and it has been a busy time for me and for the profession. I mentioned in my first set of “jottings” that the issue of legal aid, especially criminal legal aid, was an emotive issue. How right that was. The Special General Meeting on 17 December 2013 led to the passing of a vote of no confidence against the main Law Society’s current President. This triggered considerable activity in the main Law Society which has taken pains to canvass opinion and to keep in touch with its members. The Government meanwhile proceeds with its plans for saving money and reforming criminal legal aid without abatement. Inevitably, firms will have to close or amalgamate. Some criminal practitioners whilst dismayed at this state of affairs have become resigned to these changes. Others have decided to take in effect “industrial action” and the pressure on the main Law Society is mounting. Gauging how one should react to all of this is not easy. I attended on the 8 January 2014 a meeting of the Southern Area Association of Law Societies (SAALS). Representatives from seven local Law Societies attended. Our discussion on the issue of legal aid prompted a range of responses, but it was generally thought that the main Law Society needed to improve its communication with grass root members. Certainly it does appear that the main Law Society has recognised this and has changed its approach, but the issue remains both heated and potentially divisive.
If you have views about this please contact me or any other committee members and indeed you could also contact our county’s council members John Perry and David Steed The reform of legal training is another current “hot topic”. The SLS considered the SRA’s consultation paper “Training for Tomorrow” and lodged our own response to that paper before the deadline on the 25 February 2014. One of the members of our committee, Julie Rowe of Palmers Solicitors, worked very hard on our response and I am very grateful for her input. Be warned, however, that significant changes to our training will take place in the near future and all firms will need to look at their policies on training carefully as the SRA moves towards implementation of change in this area. Inevitably much of my work involves working on the SLS’s various sub-committees. It is always enjoyable to work on the social committee because we can focus on organising events which hopefully will bring pleasure to our members. We have a full programme of events this year. Do keep an eye on our website and on the emails from our CEO Sue Seakens which will provide further information on these events. One of our recent events, of course, was the “Legal Brain of Surrey Quiz” held at the University of Law in Guildford. It was a great success. 21 teams were involved. John Perry, one of our council members for Surrey and a former President of SLS, acted as a quizmaster and he enjoyed asking some devilish questions (drafted by the erudite Mr Mike Hughes) and we all enjoyed trying to answer them –although I might be guilty of stretching a point as far as the maths questions are concerned! Monies from the event will also go to my nominated charity Action against Medical Accidents (AvMA) so the event was not only a pleasure, but it was for a good cause too. Morrisons were the overall winners, but Gordons were a close second and also close behind them were Laytons. There was only a point between the top three places – competition was intense! In view of the positive responses received we will certainly be seeking to repeat the quiz next year. I would like to thank Melanie Williams of the University of Law in Guildford, who is also a SLS committee member, for her hard work in organising this event. The SLS Gala Dinner to be held on 3 April 2014 at the Radisson Hotel in Guildford should be another great SLS event. The event is being kindly sponsored by Index Property Information (who will be familiar to the conveyancers amongst you) and SLS is very grateful for their generous support. We expect a good turn out with local lawyers and guests attending in good numbers. Our guest speaker will be Andrew Caplin who is of course in line to be the next President of the main Law Society. I am sure it will be a very enjoyable evening and I look forward to seeing lots of SLS members there. Later in the year we will be holding other social events so do look out for further information and come and join us. We need and want your support and if you have issues which you want to discuss then come to our SLS events or contact me or any of my colleagues at the SLS. We want to hear from you and we want you to be involved. This is your local Law Society so do not be shy - come on in - our door is open! n
Surrey Lawyer 5
Editorial
CEO Report Spring 2014
Hopefully, after the wettest Winter since 1766, we are now starting to see real signs of Spring. Surrey has been among the hardest hit counties and I know that some of you have really been suffering... so bring on the sunshine and let’s enjoy the buds and blooms that are appearing everywhere.
In order to help our member firms keep abreast of all this change we have been putting on CPD and circulating updates via email and the website, some of which have not helped to raise the spirits but needs must when the devil drives…COLPs and COFAs beware! You will find an updated list of courses for the remainder of this CPD year on page 28 and on the SLS website at www.surreylawsociety.org.uk One bit of good news is that our subscriptions and fees for 2014 have been held at last year’s level and members will continue to benefit from 50% discounts, additional Season Ticket reductions and even some free CPD events hosted by our generous sponsors each year. One such course is being presented on 21st May in Farnham hosted by key sponsors Property Search Group (PSG) providing 4 CPD points for all your conveyancing staff. Full details are available on the website or on page 14 of this magazine. So it isn’t all doom and gloom and SLS is not just about CPD and government consultations. You will note the various social events mentioned in the President’s Jottings this quarter and I am confident that we have something for everyone in this year’s line-
Along with the endless downpours we seem to have had a flood of legislative and regulatory reviews and consultations about Legal Education & Training, the Courts Service, Criminal Legal Aid, the Land Registry and more. Your Committee members have been working hard to gain membership views and collate these into responses in time to meet the various deadlines. My thanks go to all who have taken part and contributed to these responses and to our two Law Society Council Members, John Perry and David Steed, for the invaluable conduit of information that they provide to assist with this process. I am only too aware that you all have ‘day jobs’ and that this is quite a commitment in these challenging times.
6 Surrey Lawyer
up…many of them for friends and family too. We hope we will see many of you at one, some or all of these events throughout the year. As always it is hard to be sure what our members want us to provide for them in terms of training, networking, support, services, social activities and so on. As one of the top ten local law societies in the country we are often held up as the most dynamic and innovative, but we are not resting on our laurels! This year we will be conducting a major research project, together with membership recruitment and retention specialists Hall Associates, to find out what legal professionals in Surrey really want. We have done online surveys in the past but responses are often disappointing – usually around 50 from a possible 1200 members. So this year’s approach will be quite different. We aim to speak directly to a sample number of current and lapsed members, potential new members from firms that are not currently engaged and also representatives from the new categories that have been added to our membership list since 2013 such as barristers, CILEx and licensed conveyancers. We hope that you will all help us in this research so that we can make sure that Surrey Law Society continues to lead the way in doing the
best it can for its membership in the coming years. n
Local Issues
Council Member’s Report March 2014
The proposals for change to the Criminal legal aid system have now been announced by the Ministry of Justice and the costs saving measures to be imposed come as a bitter blow to those practising in this field.
It is clear that this is not a victory, and quite frankly it never was going to be, as the Government was going to push the reductions through come what may, but at least the original proposals have been ameliorated somewhat.
It is probable that CQS may to a certain extent be absorbed into the Portal system.
Criminal Legal aid firms are going to be badly affected, but at least the damage has been limited, and although this may be cold comfort, simply proposing complete non engagement with the Ministry of Justice would in my view have made the situation much worse.
As I write this it has just been made public that Des Hudson is going to retire this year as CEO of the Law Society at the AGM in July, after having been in the post for some 8/9 years.
At the last Council meeting in February, the business case and budget for the proposed new conveyancing portal was approved, and negotiations are currently ongoing with the Society’s technology partner about the construction of the infrastructure. The portal is intended to be an online interactive forum whereby conveyancing professionals can communicate with others, conduct due diligence, undertake searches etc.
Despite what has been said by critics of the Law Society, and what was said at the Special General meeting in December at Chancery Lane, the truth is that the Society did in fact fight long and hard to oppose the cuts, and has managed to salvage something from the original proposals.
It will be open to all professionals, including licensed conveyancers, and not just solicitors.
The number of proposed contracts has been reduced, but not as much as was originally anticipated or expected, and firms will be able to join together as consortia to bid for work.
Research has shown that there will be general support for the portal from the profession and the system should be ready for a trial towards the end of 2014, going live generally in 2015.
Costs have not yet been established, but it is likely that there will be an annual licence fee, and a fee charged per transaction
In my opinion and in those of a lot of other people I know, he has been the best CEO we have ever had, and under his guidance and leadership the Law Society has progressed to become a well-respected and world renowned organisation, focussed on the needs of its members and the upholding of the rule of law. As a solicitor himself, he has always had a keen insight into the many problems and challenges faced by our diverse profession. He struck me as someone who always COULD be bothered, and he was always willing to discuss anything, even the sometimes trivial. I am sure that we shall all wish him well in retirement. As always if either John Perry or I can help or assist in any way, please do not hesitate to get in touch. n David Steed
The Great Legal Bake @ Mackrell Turner Garrett Access to Justice through baking
More than a baker’s dozen of the Woking office of Mackrell Turner Garrett staff donned aprons in support of the London Legal Support Trust to hold a “Great Legal Bake” on Tuesday 25th February 2014. The staff made dishes such as spanakopita, salmon en croute and coffee walnut cake and those that did not bake, came with an appetite! Star Baker was Sushila James who produced a spectacular pork pie with initials ‘MTG’ written on top in pastry. Even Paul Hollywood would have been impressed. After appetites were sated solicitor Richard Horth auctioned home-made marmalade to raise more funds. Mackrell Turner Garrett raised a total of £226.65 which has been donated equally to the London Legal Support Trust and the Surrey Law Centre. The firm wanted to play their part in supporting charities and others who provide access to justice for those who cannot afford to fund a lawyer privately. The event was supported by many firms of solicitors and barrister’s chambers across the nation and its profile was raised through social media, mainly via Twitter and Facebook. For Mackrell Turner Garrett it was a culinary triumph and one the firm plans to repeat. n
http://www.londonlegalsupporttrust.org.
8 Surrey Lawyer
uk/our-events/great-legal-bake-2014
Local Issues
The Value of a Legacy Did you know that legacy income in the UK is worth almost £2 billion a year to the work of charities? Many charities depend on gifts in Wills and would find it extremely difficult to exist without them. This certainly applies to The Royal Star & Garter Homes, a charity which is dedicated to providing therapeutic and nursing care to disabled ex-Service men and women. However, while 74 percent of the UK population supports charities, only seven percent currently leave a legacy to them when writing a Will. Many people do not realise that they can give to charity through their Will, and that every gift, large or small, makes a difference. Solicitors have an important role to play to ensure that their clients understand all the options available to them when writing their Will and to invite them to consider a charitable gift. A recent trial* found that people were three times more likely to include gifts to charity in their Wills if prompted by their solicitor. Legacy gifts have been vital to the work of The Royal Star & Garter Homes, enabling the Charity to look after thousands of disabled ex-Service men and women for almost 100 years. This essential care does not come cheaply as many of the residents have high care needs, requiring specialist treatment and nursing. In addition, the Charity offers a wide range of activities and outings to support the wellbeing and happiness of its residents. Take the case of Martin Sutcliffe, who served in the Border Regiment in Egypt during the Suez Crisis in 1951-53 and remained in the Army until 1967. Martin is now almost completely paralysed from the neck down. He lives at the Charity’s Surbiton Home, which has the facilities and experience to care for him, and five physiotherapy sessions a week are helping him to remain as active as possible. The specialist care that Martin receives is possible thanks to wonderful legacies from the Charity’s supporters.
Homes retain strong military connections and exceptional levels of care and recreation. Most charities ask their supporters if they will consider leaving a legacy; having this pledge of support is vital in helping a charity plan for the future. The Royal Star & Garter Homes’ Legacy Manager, John Ingram, writes to a percentage of the Charity’s most loyal supporters each year in this way, and always recommends that they seek advice from solicitors to draft their Will. He commented:
John Ingram is The Royal Star & Garter Homes’ Legacy Manager. John has been with the Charity for 15 years.
“Charities really appreciate the support of the legal profession in making a case for a legacy gift with their clients. If charities and solicitors continue to work together, asking people to consider leaving a charitable gift when writing their Will, the practice may eventually become standard and generate more income for worthwhile charitable causes.” n *conducted in partnership with Remember a Charity and Co-operative Legal Services
The Royal Star & Garter Homes does not receive any direct government funding and therefore it is only the donations from supporters and gifts in Wills that allow the Charity to continue its work. “Without the incredible generosity with which people have remembered us in their Wills, we would probably not be here today.” Vice Admiral Sir John Dunt KCB, Chairman, Body of Governors, The Royal Star & Garter Homes. In recent years, legacy income has enabled The Royal Star & Garter Homes to construct new, state-ofthe-art Homes in Surbiton and Solihull so that the Charity can offer specialist care to even more people. Each Home also incorporates a specialist wing to care for those living with dementia, for which there is an increasing demand. A new Home is planned for High Wycombe, extending the Charity’s capacity even further. The Resident Martin Sutcliffe
Surrey Lawyer 9
Local Issues
New Arrival for Hart Brown’s Trust Team The Hart Brown Trust team will benefit from Chris Thurlow’s new qualification as a Chartered Tax Advisor. A Chartered Tax Advisor is a member of the Chartered Institute of Taxation, which is the leading professional body in the UK for advisors dealing with all aspects of taxation. Chris is also a member of the Association of Tax Technicians. It is very unusual for a solicitor (or firm of solicitors) to have such a high level qualification (or tax qualification at all), so this will allow Chris, a Partner in the Trust team and based in the Firm’s Wimbledon office, to provide a more in-depth service to clients, by dealing directly with them and advising colleagues on the best tax solutions. “My main focus will be on inheritance and capital gains tax, together with general taxation of trusts,” added Chris of his recent achievement. “The qualification requires and provides a great depth of knowledge in how the taxes work and interact in practice and, importantly, options for planning to legally minimise the amount of tax payable by our clients.” Chris specialises in wills, estate administration, trusts, powers of attorney and tax planning, with a particular emphasis on inheritance tax, capital gains tax and the taxation of trusts. As well as being a qualified solicitor, Chris is a Chartered Tax Advisor and a member of the Association of Taxation Technicians. He is also a member of the Society of Trust and Estate Practitioners (STEP) which he passed in September 2010 with distinctions in every module. IT is a particular interest of his and he enjoys using IT to enhance the service he is able to give to his clients. His most memorable cases involve using trusts to make significant inheritance tax savings. On a number of occasions he has achieved savings of over £100k. Chris obtained a law degree at Exeter University followed by a distinction in the Legal Practice Course. He joined Hart Brown as a trainee in 2005 qualifying in 2007. n
Index Property Information announced as headline sponsor of Surrey Law Society Annual Charity Dinner Index Property Information was today unveiled as the ‘Gold’ sponsor of the Surrey Law Society 2014 Charity Gala Dinner to be held in the stylish Prelude Suite at the Radisson Blu Edwardian in Guildford on Thursday 3rd April. The Charity Gala Dinner, this year supporting President Marek Bednarczyk’s chosen charity AvMA (Action Against Medical Accidents), is the highlight of the Surrey Law Society social year and is sure to be a sparkling occasion. Index Property Information is a rapidly growing, unique, nationwide provider of conveyancing searches and reports to the property industry. With Surrey offices in Chessington and Bagshot, Index has a simple business philosophy centred on providing unrivalled personal service, whilst utilising modern technology. In a competitive marketplace, Index proudly boasts fast, efficient and accurate information provision, allowing its clients to save time, money and effort. Crucially, clients order from Index with confidence knowing that there is an individual that ‘owns’ the file and will be responsible for its successful conclusion.
10 Surrey Lawyer
Index believes in creating true partnership with its customers ensuring that they, in turn, can provide an efficient and cost effective service to their own clients. A measure of this partnership approach is manifest in Gold sponsorship of the Surrey Law Society Annual Charity Gala Dinner and Anne Lucking, Managing Director of Index, said: “We’re thrilled to support the Surrey Law Society, the sixth largest in the UK which is quite remarkable when you consider major conurbations such as London, Manchester and Birmingham. SLS is a powerful advocate for our industry and carries an effective voice for Surrey lawyers at a time when leadership is so crucial. Index and SLS have very similar values and we believe that this can be the start of a strong and lasting partnership that we can all benefit from as we move forward together.”
Sue Seakens, Chief Executive of the Surrey Law Society said: “We are delighted to welcome Index Property Information as a key sponsor for 2014 and especially for their generous support for our Annual Gala Charity Dinner this year. We look forward to working with them over the coming year”. Index Property Information was founded four years ago specifically to provide a bespoke search service for Solicitors, Conveyancers and Estate Agents. n For more details see www.indexpi.co.uk
Local Issues
Distinguished Alumni head up new scholarship scheme launched by University of Law The University of Law has launched the ‘University of Law Alumni Scholarship Awards’ fronted by Fiona Woolf CBE, Lord Mayor of London and University of Law Chancellor designate; Nic Coward, General Secretary to the Premier League; and John Pickering, Group Chief Executive and Partner at Irwin Mitchell. Fiona Woolf has built a highly successful international practice at CMS Cameron McKenna focusing on major energy reform and infrastructure projects. In November 2013 she became only the second woman to be elected Lord Mayor of London since 1189.
Fiona Woolf The University of Law is introducing new full fee scholarships in the names of three of its most eminent alumni to help the next generation of legal talent achieve their ambitions. The three scholarships are open to anyone who is planning to take either the Graduate Diploma in Law (GDL), the LL.M Legal Practice Course (LL.M LPC) or the Bar Professional Training Course (BPTC) commencing this September at The University of Law (ULaw). The GDL and LL.M LPC can be studied at any ULaw centre and the BPTC at the London Bloomsbury and Birmingham centres on a full- or part-time basis. The new alumni scholarships are in addition to the 95 scholarships for both undergraduate and postgraduate courses that ULaw has already announced for 2014, which are worth nearly £400,000. Professor Nigel Savage, President of The University of Law, said: “In the world of legal education, as in life, one is judged by the company one keeps and we are immensely proud to have helped put three such distinguished lawyers as Fiona, John and Nic on the path to success. “It’s a great honour to be able to put their names to our new scholarships and hearing the details of how they built their careers will hopefully inspire the next generation to follow in their footsteps. Our scholarships aim to attract the most talented and creative students into Law, irrespective of background or personal circumstances, and we now have one of the most comprehensive scholarship schemes in legal education.”
Speaking about her reaction to having a ULaw scholarship named after her she said: “I’m really thrilled about the scholarship scheme and being part of it because we want to attract the best and the brightest people into Law whatever their background. As a woman I am very keen on capturing the benefits of diversity and including everybody in the Law. It’s something I have worked on for years and it’s extremely close to my heart. I’m delighted that The University of Law is doing this.” Nic Coward became the Football Association’s first in-house lawyer after qualifying at international law firm Freshfields. After a period as the first CEO of the governing body of British horseracing, he returned to football in 2011 to join the Premier League. He said: “I’ve had a fantastic time working in sport and my legal training has made that happen for me so it’s a real honour and privilege to be involved in the scholarship programme. If I can help others to get involved in a career in Law then that’s something I’m really delighted to be part of.” John Pickering was the first member of his family to go to university, benefitting from a scholarship himself. He joined Irwin Mitchell after completing his legal training, became a partner aged 24 and headed up the firm’s personal injury division for more than 20 years, overseeing a period of dramatic growth in this specialism.
John Pickering He said: “It’s rather humbling to have your name attached to a scholarship and I am very proud. I have enjoyed a terrific career in the Law, which is an exciting and very rewarding profession. If this scholarship can help other people gain access to the profession then that is really good news.” Figures published by The Law Society show that career opportunities in Law are set to grow, with the number of legal professionals, including solicitors, barristers and judges, forecast to increase by nearly 20 per cent by 2020[i]. With median graduate starting salaries at £39,000[ii], the legal profession has one of the highest graduate salary profiles across all industry sectors, second only to investment banking. Developing students’ employability skills is key to ULaw’s ethos and 89%[iii] of full time students graduating from its LPC in 2012 had secured positions in the legal profession just a few months after graduating. In total 97% were in work, legal positions or continuing education. To apply for a University of Law Alumni Scholarship Award students must submit a written piece setting out why they are choosing Law. For more details on entering and to view videos of the alumni talking about their legal careers go to: www.chooselaw.co.uk. n
References
Nic Coward
[i] ‘The Legal Services Industry, Part 1 – an overview’ – published by The Law Society, January 18, 2013 http://www.lawsociety.org.uk/ news/press-releases/growth-forecast-forglobal-legal-services-but-tough-times-for-highstreet-lawyers [ii] High Fliers report, http://www.highfliers.co.uk/ download/GMReport14.pdf?utm_source=twitter &utm_campaign=cm [iii] The University of Law (based on figures for students whose destinations are known)
Surrey Lawyer 11
Local Issues
Legal Brain of Surrey Quiz in aid of AvMA Monday 10th March 2014 saw 24 teams converge on the University of Law in Guildford to compete for Legal Brain of Surrey.
One of the most popular events in the SLS social calendar, the Legal Brain of Surrey Quiz has absolutely nothing to do with legal knowledge. As always there were 10 rounds of general knowledge questions, including the devious Maths round devised by our own Mike Hughes MBE with sterling assistance this year from new Committee Member Melanie Williams. The top three teams this year were just a point apart. In third place with 75 points – Laytons Solicitors, in second place with 76 points – Gordons Solicitors and in first place once more, as the official Legal Brains of Surrey, Morrisons Solicitors with 77 points. The winning team were awarded the Mike Coverley Challenge Cup, which was presented to the Surrey Law Society in memory of Mike Coverley, a well-respected and liked local practitioner.
Congratulations to all the teams and our thanks for supporting the Society and our 2014 charity AvMA*. Our grateful thanks too to Melanie and Mike for their excellent organisation of the Quiz and the refreshments this year, and to our gallant Quizmaster John Perry. n *Our President Marek Bednarczyk’s chosen charity for 2014 is AvMA (Action against Medical Accidents) which provides advice and support to over 100,000 people affected by medical accidents, succeeding in bringing about major changes to the way that the legal system deals with clinical negligence and promoting patient safety.
Wilkins Kennedy LLP announce corporate sponsorship deal with Surrey Law Society Top 25 UK chartered accountancy and business advisory firm Wilkins Kennedy LLP has agreed a 12-month corporate sponsorship deal with the Surrey Law Society. The sponsorship deal covers a range of marketing initiatives for 2014, including advertising, branding of training events, and promotions.
concerning topical accounting, business advisory, taxation and SRA issues.
Wilkins Kennedy LLP has strong historical links to the legal profession across Surrey and four years ago launched the WK Law Solicitors’ Club across the south of England.
Sue Seakens, Chief Executive at Surrey Law Society, says, “Surrey Law Society are delighted to welcome Wilkins Kennedy as a corporate sponsor for our CPD Programme and Members’ events and we look forward to working with them in providing an excellent service to our members.”
The WK Law Solicitors’ Club breakfast seminars are CPD accredited and offer law practitioners the opportunity to network, attend presentations and ask questions
Tommy White, Partner at Wilkins Kennedy, says, “Following on from our support of the legal sector through our seminars, we are pleased to announce our
12 Surrey Lawyer
corporate sponsorship deal with the prestigious Surrey Law Society. We believe this further illustrates that, as a firm of top 25 chartered accountants, Wilkins Kennedy is committed to advising and working with law firms across the UK.” “Attending our ever popular CPD accredited events allows law practitioners to keep up to date with regulatory changes, including the SRA Accounts Rules, and other accountancy and business advisory topics such as structuring, taxation and corporate finance.” n For further information about WK Law please visit www.wilkinskennedy.com.
Local Issues
The Heart of Cardiac Care in Surrey Cardiac conditions are still the most common cause of death in the UK, and due to an ageing population; interventional and surgical procedures are becoming increasingly complex. It is therefore paramount that patients receive treatment at a centre of high expertise. St Anthony’s Hospital, Cheam, specialises in cardiac services and offers first-grade care to those needing diagnostic, interventional or surgical procedures. and in years gone by patients had to learn to cope with conditions or take numerous medications to control their symptoms. The associated risks and side-effects from longterm Warfarin have been widely documented and it is therefore advisable to avoid such treatment where possible.
Whether you are young or old, healthy or unhealthy you can still be at risk from heart problems. Genetic conditions and heart rhythm disorders (arrhythmias) can affect individuals of any age, gender or lifestyle, so it is important to develop a good understanding of different disorders and how they can affect your health. Cardiac arrhythmias are being diagnosed with increasing frequency across the UK,
With advances in medical technology, Cardiac Electrophysiology has been developed as a first-line alternative to longterm medical treatment for arrhythmia. The service is now available at St. Anthony’s with the support of experienced Cardiac Physiologists.
What is it? Cardiac Electrophysiology involves the diagnosis and treatment of heart arrhythmias. We use a minimally invasive procedure to measure the electrical activities of your heart. We do this by inserting a catheter via the groin which transmits radio-frequency energy to
targeted parts of the heart. Dysfunctional areas of the muscle are either frozen or heated in order to stop and prevent the reoccurrence of heart arrhythmias.
What are the benefits? The advancing field of electrophysiology offers patients alternatives to daily medication or implantable devices. Some patients can effectively be relieved of their previously debilitating symptoms through a single procedure. However, centres where the service is available remain few and far between, so it may be reassuring to know that the service provided at St. Anthony’s is underpinned by a number of highly experienced consultants who specialise in the treatment of Cardiac Arrhythmia. n For any further information or appointments please visit our website (www.stanthonys.org.uk) or contact our outpatient department on: 020 8335 4678/9.
Surrey Lawyer 13
Local Issues
East Molesey law firms KWW and Bosworths merge Two long-established East Molesey law firms have joined forces. KWW Solicitors in Walton Road and Bosworths Solicitors in Bridge Road are merging after almost 40 years of friendly local rivalry. The new firm, which will practise as KWW incorporating Bosworths, now has eight solicitors plus three legal executives and a licensed conveyancer. Rob Preece, senior partner at KWW (formerly known as Kenwright Walker Wyllie), said the merger with Bosworths would be welcome news to customers who value quality legal advice delivered in a friendly, jargon-free style and at a fair price. “It means we will be able to offer access to a broader range of experience and skills, provide even greater levels of support and communication and keep our prices among the most competitive in the area, and certainly far less expensive than anyone tempted to use a London law firm,” said Mr Preece. The merger makes commercial sense at a time when the administrative and compliance requirements on law firms are getting more and more demanding. Mr Preece said: “Gaining all the professional accreditations that any self-respecting full-service law firm needs to have in place takes time and effort and is extremely difficult for smaller firms with limited resources. “Bringing together two very capable teams will allow us to give the proper focus on our business procedures without compromising the time we spend actually looking after our clients.” James Osborne, senior partner at Bosworths since 2003 and now a consultant at KWW, said the merger was great news for local residents who wanted to deal with friendly experts on property, family and commercial matters. “KWW celebrated its 60th year as an East Molesey firm last year,
Better together: James Osborne (second from right) with KWW partners David Anstee (far left), Robert Preece and Gary Coleman. The new KWW/Bosworths firm will be based at 70 Walton Road, East Molesey
and ever since we opened at Bosworths in 1976 we have looked upon them as highly professional and affable competitors. It’s exciting to be part of an ongoing local success story.” Both KWW Solicitors and Bosworths hold the Conveyancing Quality Standard, and KWW is a member of Resolution, an organisation of family lawyers committed to non-confrontational divorce, separation and other family problems. n
Conveyancing Seminar Wednesday 21st May at Waverley Abbey House, Farnham Property Search Group (PSG) is delighted to announce a half-day CPD event on the 21st May. In partnership with the Surrey and Hampshire Law Societies, the seminar brings you up to date with key issues affecting Conveyancers today. Normally £50 + VAT this event is FREE to current SLS members. Registration from 11.45 Seminar from 1.00 - 5.30 4 hours CPD. Lunch will be provided. Session 1: Background of Development • • Culture - 1 hour CPD - DevAssist Solicitors are increasingly being expected to advise their clients on development related issues. DevAssist has created an informative CPD course which is accredited by the SRA. The objective of the session is to cover planning and development risks that your clients are exposed to, and elaborate on what guidance you should be offering. It includes recent case studies that demonstrate what is so often missed. Specifically looking at: • •
Development in the UK National planning policy framework
14 Surrey Lawyer
•
Advice to clients Examples of risk and hidden value How safe is that view?
Session 2: Practical look at conveyancing & avoiding the pitfalls 3 hours CPD - Andrew Crawford Andrew lectures extensively around the country on residential conveyancing issues and brings his experience in private practice to make the law relevant to practitioners. In this CPD, Andrew’s aim is to give a topical roundup of all matters of interest to residential conveyancers, including:
• • • • • • • • • •
Help to Buy Mortgages SDLT and Chattels Adverse Possession Gifts of Property Court of protection issues Joint ownership and declarations of trust Solar panels Build over agreements Late completion problems Leasehold problems. n
To secure your free place email sueseakens@surreylawsociety.org.uk by Thursday 10th April.
Local Issues
Firms pledge support for Legal Services Apprenticeship This week across the UK, law firms and legal departments including the BBC and Clyde & Co, are promoting their Legal Services Apprenticeship vacancies as part of National Apprenticeship Week. The Legal Services Apprenticeship frameworks are awarded by the Chartered Institute of Legal Executives (CILEx).
2014 Social Diary Dates Jasmine Cawkwell, Gordons LLP Legal Services Apprentice, holds her Higher Apprentice of the Year award
CILEx’s President Stephen Gowland, who began his own legal career as an apprentice, said: “Legal Services Apprentices have a bright future ahead of them. I urge the legal sector to follow these early adopters and realise the great potential these talented individuals can bring to your business.”
Thursday 3rd April Annual Gala Dinner at Radisson Hotel, Guildford - £60pp with tables of 8 or 10 available. The evening will begin with a Drinks Reception at 7.00pm followed by a splendid three course dinner with wine followed by dancing and a silent raffle…and some brilliant prizes. Sponsored by Index Property Information
National Apprenticeship Week celebrates apprenticeships and the positive impact they have on individuals, businesses and the wider economy. CILEx’s team of Regional Development Officers are attending careers and apprenticeship fairs and employerfocused events across England and Wales to promote the benefits of the Legal Services Apprenticeship route.
Tuesday 29th April
The BBC’s in-house legal team announced this week that it will take on three Legal Services Apprentices in their London office. The apprentices, in addition to their CILEx qualification, will gain experience working in the rights and business affairs teams within the BBC, learning about the BBC group’s commercial and corporate interests. The apprentices will be taught by CILEx Law School.
Monday 19th May
Sarah Jones, group general counsel for the BBC said: “We are delighted to be able to offer legal apprenticeships covering employment and commercial aspects of the BBC group’s work.”
Tuesday 3rd June
Lance Mason Solicitors in Blackburn have pledged to recruit eight Legal Services Apprentices as part of their growth plans for the future. Mark Fallon, chief operating officer at the firm said: “We want to attract and retain local talent and help them realise their potential while they grow with Lance Mason. For the right people, with the right attitude, the opportunities here are unlimited.” Legal practices Clyde & Co, Weightmans, Kennedys, Lodders, Lupton Fawcett Denison Till and Gordon Brown Law Firm also have Legal Services Apprenticeship vacancies for aspiring lawyers. Yorkshire law firm Gordons has so far employed ten Legal Services Apprentices who over a five-year period will train to become Chartered Legal Executive lawyers. In an award ceremony this week, their 20-year-old Legal Services Apprentice Jasmine Cawkwell, was named Higher Apprentice of the Year at the Leeds Apprenticeship Awards. Jasmine was praised by the judging panel after being the first non-solicitor to be appointed to the Leeds Junior Lawyers Division committee.
Kingston President’s Lunch at Sorrento Restaurant - £19.20pp for drinks and a two course meal followed by coffee and lots of networking with SLS officers and colleagues from the Kingston area.
7th annual Guildford Legal Sponsored Walk in aid of the Surrey Law Centre starts at 5.30 pm from Guildford Combined Court taking an 8 mile route and ending with a reception at Clyde & Co in Guildford. To enter e-mail Bob Nightingale, London Legal Support Trust: bob@llst.org.uk
Guildford President’s Lunch at Côte Brasserie - £19.20pp for drinks and a two course meal followed by coffee and lots of networking with SLS officers and colleagues from the Guildford area.
Saturday 7th June Watts Gallery & Walk near Compton, Guildford. Meeting at 12.00 at the Harrow Inn for a light lunch, arriving at the Gallery for 2.00pm and weather permitting to set out for a stroll along the Pilgrims Way at 3.00pm ending at the Withies Inn. Gallery entrance fee £7.00pp.
Saturday 13th September Wey Navigation Boat Trip from Farncombe to Guildford and back - £28.80pp to cover the boat hire. Everyone to bring a picnic and refreshments for the trip although we may stop off at a hostelry along the way (no pun intended)
Barbara Rollin, partner and head of Gordons’ apprenticeship programme said: “Progression opportunities for the apprentices are limitless and there is no reason why they should not be partners of the future or even become managing partner.” n
2014 SLS Five-A-Side Football Tournament
To find out more about Legal Services Apprenticeships visit www.cilex.org.uk
For details about any of the above events please email us admin@surreylawsociety.org.uk
This year’s tournament will run from June to September £50.00 entrance fee per team of five. n
Surrey Lawyer 15
Finance
Budget changes to Annuities gives better value at last! More choice now available to pensioners Daren O’Toole, director from pension specialist HFS Milbourne considers the impact of recent changes to rules on annuities Around half a million people who retire every year turn their pension savings into an income for life using an annuity. Given our ageing population, getting the best possible annuity rate is critical for consumers who may need to rely on that income into what could be a lengthy retirement. Once the decision has been made on which annuity to buy it is usually irreversible and will impact an individual’s retirement income for the rest of their lives. Of particular concern to the Government is the fact that when workers retire, the company that has managed their pension offers an annuity stating how much income they are willing to pay them. Frequently these are not the best pay outs especially for married couples, those with small pensions, smokers or those in ill-health. Many people will have signed up to these poor value deals assuming this was the only option open to them. The FCA study found that eight in 10 people that stuck with their insurer could get a better deal on the open market. More than one in 10 loses up to 15% and a staggering one in 20 lose around a fifth.
Daren O’Toole, director, HFS Milbourne 01483 468888 www.hfsmilbourne.co.uk
It seems like the recent Financial Conduct Authority (FCA) criticism of the pensions industry which it labelled as “fundamentally flawed” has had the desired effect. The FCA had reviewed 25 pension firms representing 98% of the UK annuities market and found that 8 out of 10 retirees bought an annuity from the provider which they used when saving for a pension. The FCA also found that 80% of those could have got a better deal and a more generous retirement income by shopping around and then buying the annuity from another provider. The Government has taken on board this criticism. In the Budget 2014 the Chancellor announced that for the first time retirees will be given the power to decide how to spend their life savings, rather than be forced into buying poor value annuities. From April 2015 anyone aged over 55 and not in a final salary scheme will be allowed to draw funds from their pension as and when they need it, without having to buy an annuity.
16 Surrey Lawyer
Drawing an income directly from your pension places additional responsibility and risks in the hands of the retiree. The pension funds remain invested and it is important to understand that unless the investment growth matches the income drawn out, the pension funds will gradually deplete. Mathematically the pension fund could run out of money altogether if proper financial advice is not taken. Continuing to manage risk in retirement this way may not be suitable for everyone, and annuities will still have their place for some individuals with lower tolerance for risk and limited assets. For those retirees where an annuity is suitable we have been able to achieve terms for clients on the open market that are between 15 and 20% better than those offered by their existing pension provider. This is especially relevant if a client has any medical or lifestyle conditions, for example they may have a specific medical problem such as high blood pressure or cancer, or perhaps they might be overweight or a smoker, these individuals may be eligible for an enhanced or impaired life annuity. For example: We recently advised a lady aged 68. The best terms offered by her existing pension provider gave an income of £5,485 pa. We were able to achieve £6,398pa for her, an increase of + 17%pa, which is over £900pa. Assuming she lives for another 20 years this gives her an additional £18,260. Her current pension company’s rates were low and they couldn’t offer any enhancement for her high blood pressure and mild diabetes. We used the “open market” to obtain better, impaired life annuity rates to increase her income. Increased Income - the Chancellor also announced that from 27th March 2014 the maximum income drawdown limit will increase to 150% of an equivalent annuity. This gives retirees even more flexibility with their pensions providing they are managed sensibly. Take advice –retirees now benefit from a much wider range of added value options, albeit things are now more complicated. For that reason, it is vital that individuals seek independent advice from a suitably qualified person before deciding whether or not an annuity or income drawdown would be best for them. HFS Milbourne Financial Services is authorised and regulated by the FSA, and specialises in wealth management; pensions; finance on divorce; employee benefits and corporate financial planning. n For further information, please visit www.hfsmilbourne.co.uk or call 01483 468888.
Finance
UK Global Law Summit 2015 Justice Secretary Chris Grayling has announced that the first ever UK Global Law Summit, showcasing Britain’s unrivalled legal expertise, will take place from the 23rd-25th February 2015 at the Queen Elizabeth II Conference Centre in London.
Bringing together Government, legal professional bodies and business, the Summit will champion the UK as global leader in legal services and as the destination of choice for global business in the 21st Century. In February 2015, international leaders in law will be brought together in London with the unique opportunity to commemorate, celebrate and debate 800 years of legal history, and encourage the development of relationships across markets and jurisdictions.
The UK financial services industry is the world’s largest and most successful. The legal services that underpin that industry also have to be world class. The UK’s legal sector was worth £20.9 billion or 1.6 per cent of the UK’s gross domestic product in 2011. Legal qualifications obtained in the UK are also internationally recognised and valued, with around 14,500 international students currently studying law in the UK. n
For further information please see www.GlobalLawSummit.com
Secretary of State for Justice Chris Grayling said: “The Global Law Summit 2015 will be a world class conference showcasing the UK’s unrivalled legal expertise, based on a long history of freedom and justice. “I am determined to help UK law firms and lawyers succeed in the global race and develop the business opportunities created by their world class reputation. “We will be working with legal professional bodies and business to champion one of the UK’s greatest exports, our legal system. The summit will also mark 800 years of the Magna Carta, a tradition that still provides the foundation for the best commercial and legal environment for business to flourish.”
Sir David Wootton, Co-Chair of the Global Law Summit Board and Lord Mayor of London 2011-12 said: “I am delighted to co-chair the Board, alongside Henry Bellingham MP, for the Global Law Summit, which will be a key event in the 2015 international legal calendar. The year 2015 represents a unique opportunity to celebrate 800 years of legal history, and the Global Law Summit will be a fantastic way of showcasing the UK as a world leader in legal services and business, and promoting the Rule of Law. “Working together with our partners, the Global Law Summit will be a world-class legal conference, which we are exceptionally proud to be hosting in our capital.” Today in the UK we have an unrivalled mix of judicial expertise in the fields of finance, business and property. The judgment of a Court in Britain comes with a cast-iron guarantee of impartiality, integrity and enforceability. Coming to Britain and using English law is also the way leading international businesses choose to arbitrate disputes. Global business chooses English law more and more as the basis of their commercial contracts, frequently coming to the UK to resolve their disputes. As a result, doing business and resolving disputes in the UK is quicker and cheaper, saving business up to £1.4 billion a year. It is also quicker, with disputes resolved more rapidly – 2 months faster than the global average.
Surrey Lawyer 17
Finance
“It’s the economy, Chris Marston, Head of Professional Practices, SME Banking at Lloyds Bank considers the prospects for law firms in 2014 Index tracks businesses’ views of expected sales, orders and profits for the coming six months and presents the overall “balance” of opinion, weighing up the percentage of firms that are positive in outlook against those that are negative. In this latest report, the confidence index has increased by 15 points to 45 per cent, from 30 per cent in the previous survey in July 2013. This is the fourth consecutive increase in the net balance of business confidence and is now just short of the survey high of 46 per cent recorded in January 1994. Companies also remain optimistic about prospects for the UK economy and the overall net balance of firms that are now more confident about the economic outlook is the highest it has been since January 2007. Just under two thirds of businesses (65 per cent) stated that they are currently more optimistic than they were six months ago, while less than a tenth (9 per cent) stated that they are less so. The overall net confidence balance of 56 per cent is a 33 point increase from July 2013, when the net balance was 23 per cent.
Sales, orders and profits likely to continue to rise Prospects for the first half of 2014 continue to look positive with expectations for total sales, orders and profits in the next six months – the three key indicators of business confidence – all increasing. The three indices remain well above their respective long-term averages and point to stronger economic growth in the first half of the year. Chris Marston, Head of Professional Practices, SME Banking, Lloyds Bank www.lloydsbank.com/solicitors
You may recall the election slogan of Bill Clinton’s successful presidential campaign in 1992, designed to reinforce the US economy as the battleground for that election. Over the past twenty years the phrase has been hijacked by political and business commentators and businesses, including law firms, have used it in recent times to explain their poor performance. With a new year now upon us I’ve taken a look at some recent trends and economic indicators for the UK in 2014.
Business confidence has hit a 20 year high That’s the key finding from the latest Business in Britain report from Lloyds Bank Commercial Banking. This twice yearly report, now in its 22nd year, canvasses the views of 1,500 UK businesses and shows that firms are continuing to grow in confidence, driven by expectations of stronger profits, orders and sales over the next six months. The survey’s key Business Confidence
18 Surrey Lawyer
More than half of businesses (55 per cent) said that they expect their orders to increase during the first half of the year; compared to just over one in 20 (six per cent) that think orders will fall. The resulting 49 per cent overall net balance represents a 12 point increase from July 2013. Six out of ten businesses (60 per cent) stated that they think their sales will increase in the next six months, while just under a tenth (9 per cent) expect a drop, leading to a 51 per cent overall balance. This is a 15 point increase from the second half of last year. The balance of firms anticipating greater scope for increasing prices over the next six months has also increased by ten points to 23 per cent. This is the highest balance since 2008. Firms’ hopes of rising prices may help to underpin their expectations of stronger profits over the next six months. The net balance of firms expecting rising profits increased for the third consecutive period, to 35 per cent and came close to the survey high of 38 per cent seen in 1993.
Renewed hope for investment and recruitment Firms are also becoming more hopeful about recruitment prospects with the fourth consecutive rise in the balance of businesses expecting to hire more staff over the coming six months. A quarter of businesses (27 per cent) said that they will increase staff numbers during the first half of the year and one in ten (10 per cent) said they planned reductions. This results in an overall net balance of 17 per cent expecting to boost staff numbers, which is a rise of five points from July last year and stands at a six year high. At the same time, the balance of companies reporting challenges in the recruitment of skilled workers continues its post-crisis recovery with a six point increase to 32 per cent. The recent increase suggests a potential strain in the market for skilled labour which could put pressure on pay growth, although the index is still well below its 1997-2007 readings which averaged 47 per cent. Expected capital expenditure is also on an ongoing upswing. The report shows that just over a quarter of businesses (27 per cent) expect to increase their capital expenditure over
Finance
stupid!” Or is it? the next six months while just one in ten (11 per cent) are planning cutbacks. This results in a net balance of 16 per cent planning to ramp up investment in the first half of the year, which is an increase of ten points from July last year and the highest level witnessed since 1994. The net balance has been in positive territory for three consecutive survey periods, for the first time since 2006.
UK demand and cashflow are less of a concern
Martin Ellis, Housing Economist, commented: “Low interest rates, improvements in consumer confidence and Government schemes, such as Help to Buy, all appear to have contributed to the rise in the number of first- time buyers.
Similarly, cashflow is now much less of concern for majority of British businesses. Eight out of ten (81 per cent) businesses stated that they are not currently experiencing cashflow problems - a twelve point increase from 69 per cent in July 2013.
“However, many potential first-time buyers continue to find raising the necessary deposit a problem. The Help to Buy mortgage guarantee scheme should enable more buyers to get on to the property ladder with smaller deposits. Continuing pressure on household finances during the next 12 months will no doubt remain a constraint.”
All company sizes set to do well
SO THE ECONOMY’S FINE, IS IT?
Business confidence increased particularly strongly for companies with a turnover between £1-£15m and for those turning over more than £15m. The net confidence balance for these firms is up eighteen and nineteen points respectively leaving both at 49 per cent. The overall net confidence balance for firms with a turnover below £1m is 34 per cent which is an increase of five points from the previous survey.
The past couple of years have seen unprecedented regulatory and competitive changes to the legal profession, and the economic backdrop has been challenging for many firms. However, the ‘new normal’ following the Legal Services Act and LASPO is now established and firms should by now be equipped for it.
In light of growing hopes for exports, weak UK demand is no longer such a worry for businesses. A third of businesses (31 per cent) have concerns about domestic markets, which is a significant drop from July 2013 when nearly half (45 per cent) of businesses stated it was the biggest challenge they faced.
Confidence continues to improve across all sectors in particular the retail and wholesale sector Business confidence rose in all sectors, for the third consecutive survey. All sectors reported double digit increases, with the exception of ‘business and other services’, which saw an eight point rise. The retail and wholesale sectors reported the largest increase in confidence – a 20 point jump to 44 per cent; followed by manufacturing, up by 19 points to 57 per cent; and transport and communication which rose 18 points to 46 per cent.
Business confidence improves across the UK Business confidence increased in all regions most notably in the North and West Midlands where the balances increased by 21 and 18 points respectively. The East Midlands & East of England saw the smallest improvement of 10 points.
Largest annual increase in first-time buyers since 2001 First-time buyers (FTBs) are on the rise with 2013 witnessing the biggest annual increase since 2001. The recently-published annual Halifax First-Time Buyer Review shows the number of FTBs grew by an estimated 22% in the year - the second consecutive annual increase following a 13% rise in 2012. There were an estimated 265,000 FTBs in 2013, up from 218,000 in 2012. While this was the highest annual total since 2007, it was still nearly 30% lower than the annual average between 2003 and 2007 (370,800). Mortgage affordability has improved in recent years, aided by record low mortgage rates. There has also been an increase in the proportion of areas that are affordable for FTBs since 2007. Close to half (45%) of all FTB purchases in 2013 were below the £125,000 Stamp Duty threshold. A similar proportion of properties bought by FTBs were priced between £125,000 and £250,000.
Time will tell whether we’re seeing the beginning of a sustainable recovery, but it does now seem that we’re seeing improvements and that a number of forward-looking indicators are favourable. Solicitors may be operating this year in a UK economy that is looking brighter than at any time since 2007. Success for law firms in 2014 will be determined by the way they address the business issues, and that means keeping the client at the heart of their business, managing risk effectively, embracing IT, developing an internal referrals culture and finding more efficient ways of working. Managing lock-up and cashflow will be critical because experience tells us that professionals can face cashflow pressures in an economic recovery, as they get busier and invest more in WIP and debtors. Our specialist relationship managers are working with their solicitor customers to help them take the right steps in order to equip themselves to be winners over the next few years. n
Surrey Lawyer 19
Finance
Advertising feature
Seize the day From pension savings to estate planning, the end of the tax year offers an array of opportunities to build and protect capital. The ageing population is perhaps the biggest challenge facing governments, financial institutions and savers today. People are living longer – many of us could spend a third of our lives in retirement. And we will require more savings to match our longevity. The cost of this demographic time bomb has already pushed Britain’s government to raise the state retirement age. As politicians look to contain pension budgets, individuals will need more than ever to take advantage of investment and tax-saving opportunities provided by pensions. A carefully drawn-up plan can help realise the twin objectives of reducing tax liability and saving for retirement. However, the new tax year will bring an extra pressure. The government has reduced the amount of pension benefits that can accrue, known as the ‘lifetime allowance’, to £1.25 million from £1.5 million. It is estimated that this will affect as many as 360,000 wealthier individuals, who could help to mitigate a 55% tax penalty by taking action before the end of the tax year (www.gov.uk, 11/12/12). The new tax year will also bring a reduction in the annual amount that can be contributed to a pension. The allowance will fall from £50,000 to £40,000, which makes it even more important to maximise the current year’s contribution. Individuals who have not fully funded their pension in the previous three years also have the opportunity to make those contributions before 6 April. (The end of the tax year is the last opportunity to use the 2010/11 allowance and offers a potential tax saving of £22,500.) Looking ahead to the next tax year 2014/15, making pension contributions up to the new annual allowance of £40,000 will be treated as today with tax relief given at the contributors marginal rate, however, it is important to be vigilant as to the value of any contributions in excess of £40,000 as the 55% tax penalty will be charged to the individual, notwithstanding the fact that the excess may arise due to an employer contribution.
‘Voluntary levy’ On its introduction in 1986, Labour politician Roy Jenkins famously observed that Inheritance Tax (IHT) was “a voluntary levy paid by those who distrust their heirs more than they dislike the Inland Revenue”.
20 Surrey Lawyer
Whilst this might have been a slight exaggeration, with the value of property and other assets on the rise, the UK government is looking to bring in larger sums from this posthumous tax. Government figures forecast receipts of £3.3 billion in this tax year, up nearly 14% from two years ago as recovering house prices boost estate values (www.parliament.uk, 20/06/13). The amount of money an individual can leave to his/her heirs free of Inheritance Tax is £325,000. (This does not include funds that pass to your spouse or civil partner and certain organisations.) Above this level, an individual’s estate is taxed at the rate of 40%. With the right planning and appropriate use of available exemptions, this liability can be substantially reduced and wealth can be passed on. The end of the tax year presents a ‘use it or lose it’ deadline for a number of these valuable exemptions. IHT planning largely revolves around reducing an individual’s estate by giving away assets. When a gift is made it requires the donor to live for seven years for the gift to be free of IHT. However, HMRC also allows any individual to make gifts each year that are immediately exempt from IHT if certain conditions are met. While some of these allowances may appear small, if they are used consistently over the years they can produce significant savings and benefits. The annual £3,000 gift exemption provides not just an opportunity to pass wealth to your heirs, but also an immediate IHT saving of £1,200. If the exemption hasn’t been used from the last tax year, this saving can increase to £2,400. That means a couple can potentially give away £12,000 that will be immediately outside their estate, saving tax of £4,800 in the process. Many individuals gain considerable satisfaction from being able to see their loved ones use and enjoy such gifts, as well as from the knowledge that they are increasing the proportion of their wealth passing to their family rather than the taxman. Surplus income which accumulates in an individual’s estate also adds to an IHT liability. But, provided certain conditions are met, there is no limit to the amount of income which can be given away each year and become exempt from IHT. Known as ‘normal expenditure out of income’, this relief offers an additional opportunity for individuals to pass wealth to their heirs during their lifetime through regular gifting. Retirement funding or simply the desire to pass on a larger inheritance can become that much more achievable by making lump-sum annual or regular contributions to savings accounts or pension plans, or as outright gifts. These valuable gift opportunities can provide ready and rewarding ways to help children and grandchildren with the many financial challenges they face, such as school fees, university funding and house deposits. The end of the tax year reminds us of the opportunity to take advantage of exemptions and reliefs and help keep more of your wealth in the family. n
To receive a complimentary guide covering Wealth Management, Retirement Planning or Inheritance Tax planning, produced by St. James’s Place Wealth Management, contact Fiona Davies of St. James’s Place Wealth Management on 020 7495 1771 or email Fiona.Davies@sjpp.co.uk. The value of an investment with St. James’s Place will be directly linked to the performance of the funds you select and the value can therefore go down as well as up. You may get back less than you invested. The levels and bases of taxation and reliefs from taxation can change at any time. The value of any tax relief depends on individual circumstances. “Fiona Davies represents only St. James’s Place Wealth Management plc (which is authorised and regulated by the Financial Conduct Authority) for the purpose of advising solely on the Group’s wealth management products and services, more details of which are set out on the Group’s website www.sjp.co.uk/products. The ‘St. James’s Place Partnership’ and the title ‘Partner’ are marketing terms used to describe St. James’s Place representatives.”
Finance
Financial challenges for the legal sector Solicitors could be forgiven for wondering where the next hammer blow will fall, after a challenging year since the introduction of the Jackson reforms to civil procedures in April 2013. The impact of this and savage legal aid cuts have triggered a wave of failures, a consolidation surge as larger firms like Slater & Gordon have gobbled up smaller players and rescues such as Penningtons’ acquisition of Manches. Then a professional indemnity insurance crisis broke last October, which led ultimately to the closure by the Solicitors Regulation Authority of well over 100 firms at the end of December. In the mid-market, a surreal form of merger mania has taken hold, with one survey revealing that 75% of such firms in
The concern these statistics should cause is that they are historic, relating to accounts for trading periods which mostly
Manchester had either made or received an approach in the
ended in 2012. As such they reflect a legal market damaged by
second half of 2013. Nationally, we have learnt of tie ups in just
four years of recession, but before the injurious effects of Jackson,
the past few months alone between Lawrence Graham/Wragge &
legal aid cutbacks, raised professional indemnity premiums and
Co, CMS Cameron McKenna/Dundas & Wilson, Bond
now the imminent cash outflows resulting from the change of the
Pearce/Dickinson Dees and Charles Russell/Speechly Bircham; the
partnership tax regime. What might the comparative figures look
list is seemingly endless and the failed merger discussions are
like in another year or eighteen months?
equally prolific. Now there is potentially the most serious threat of all, with the
The better news is that NatWest have announced that they are open for lending to personal injury law firms, reacting to concerns
HMRC tightening of the tax regime for LLPs or more specifically
about a cash flow crisis in that particular market. The reality of
their non-equity or ‘salaried members’. The cash flow strain for
this may of course be less encouraging, dependent as it will be on
their firms from the changes will be immediate, with PAYE and
due diligence, risk assessment and the lending terms they may
13.8% employer national insurance contributions on their
impose, but it is encouraging never-the-less. The last two years
drawings to account for each month. The professional press and
have also seen the arrival of some innovative lenders prepared to
social media have been overwhelmed with stories of prominent
provide funding for more routine costs in civil litigation,
firms forced to rush through substantial cash calls on partners.
augmenting the specialist third party funders who will support
The changes were only announced in December 2013 and come
major pieces of litigation.
into force with effect from 6 April 2014. The timing could hardly be worse for the UK legal profession. As recently as September 2013, research published by financial
In a curious way, this moment of financial crisis may be the making of the future legal profession as old practice methods are swept away by new efficiencies, much of it driven by the
health monitoring specialists, Company Watch showed how
technology which some more traditional firms have been slow to
fragile the finances of law firms were. The survey covered the
adopt. Alternative business structure alliances with outside
latest published accounts of 2,600 law firms operating as limited
investors and trade or professional services partners from
companies or LLPs. The results were startling. A third of the firms
different disciplines are developing apace, bringing new
(898) were in the Company Watch Warning Area, indicating that
management and commercial techniques to the law.
they had a one in four chance of failing or undergoing a financial restructuring during the next three years. Smaller law firms were the most vulnerable, with the research confirming that half (463 out of 932) of firms with assets of less than £100k were in the Warning Area.
Unfortunately, one thing is certain. There will be further casualties, but the impact on the partners and their staff will be substantially mitigated by the earliest possible recognition of financial problems and prompt action to seek specialist advice so
that positive options can be explored while they are still available. n
Additionally, 488 law firms (19% of the sample) had liabilities which were greater than their assets. A third of smaller firms fall into this category, which is the commercial equivalent of a house owner in negative equity. They were only surviving with the support of their creditors, but were technically insolvent on one of
Jo Rolls, Partner Opus Restructuring LLP
the two statutory tests. One leading London chambers was so
Tel: 020 7268 3333
struck by the publication of these financial data that it was
Email: jo.rolls@opusllp.com
prompted immediately to instigate a system of proactive credit
Web: www.opusllp.com
checking of solicitors introducing work to its barristers.
Surrey Lawyer 21
Review
A Short Book of Bad Judges A SHORT BOOK OF BAD JUDGES: THE TITLE SAYS IT ALL It is a rare pleasure to come across a book about judicial matters — in this case judges — which is (a) short and (b) thoroughly entertaining, erudite and a rattling good read. ‘A Short Book of Bad Judges’ by Graeme Williams QC displays these attributes in plenty and is to be highly recommended, especially to members of the Bar who have had to bear the brunt of rudeness —although not necessarily ‘badness’ — from the Bench all too often. “Badness” is not a word we are that familiar with, but in the context of this engaging book from Wildy, Simmonds & Hill, it’s certainly appropriate. “There are plenty of books about good English Judges,” remarks the author who is experienced in these matters, “so far as I or Google know. As yet,” he adds, “there is no book specifically about Bad Judges in this country, though there are quite a few in the United States.” (Bigger country; more judges and all that — and elected too!) So evidently this book has boldly gone where no other book has gone before, at least not in the UK — and it is perhaps a good sign that this compendium of anecdotes about the antics of ‘bad judges’ over the last 150 years or so, is so short, although, as the author warns, it is by no means complete. However, one can at least infer from this that ‘bad judges’ have mercifully been in the minority. By Graeme Williams QC
What the book does reveal though, is the havoc that can be wreaked by a few bad apples. One example (and not the worst example by any means) was the well known case
Wildy, Simmonds & Hill Publishing
of Lady Ida Sitwell, mother of Edith, Osbert and Sacheveral, on who was passed a sentence of imprisonment by Lord Darling “when she was clearly the victim and not the
ISBN: 978 0854 901 418
perpetrator of a fraud.” The portrait of this “Mr Charles Darling QC MP 1860, When Still at the Bar”… “looking
www.wildy.com
snooty” says the author — is one of the numerous illustrative portraits of ‘bad judges’ reproduced in the book. Similarly the ‘badness’ of this rogue’s gallery of bad judges —
An appreciation by Phillip Taylor MBE and Elizabeth Taylor of Richmond Green Chambers
nine men and one woman — is illustrated throughout. “Reading though the text, one can discern arrogance, impatience, discourtesy as their defining or perhaps typical characteristics. But crucially one element is missing,” says the author, “and that is corruption and for this, he remarks, one should be thankful. Public confidence in the judiciary, he concludes, is essential to democracy and warns that ‘the price of good justice is eternal vigilance”. With its wealth of anecdote, sometimes controversial opinions and startling revelations, this book does achieve that elusive un-put-downable quality for which all authors strive. One of its beauties is that it can be read in one sitting. Read it on a rainy day and you will be both enlightened and charmed.
22 Surrey Lawyer
Property
Finlay Associates rebrands as Index Property Information At the start of 2014 Finlay Associates took an important step towards providing its Solicitor clients with new technology and exceptional customer service by joining the Index Property Information brand. Founded in 2003 by Richard Norman, Finlay Associates had grown significantly to become one of the most professional search companies in the South of England. Delivering a powerful combination of the highest standards, real experience and local knowledge to its clients. They specialise in the provision of Local Authority Searches (Official and Personal) for solicitors, licensed conveyancers and property professionals alike. The Company is run by professionals for property professionals looking for accuracy, speed, high levels of customer service and competitiveness. However, as a small company in a competitive market place, Richard decided that further enhancements were needed to the Company’s customer service, product portfolio and technology offering. The only natural step was to go into partnership with Index Property Information. Based in Colchester, Essex, Index is the fastest growing Conveyancing Search Company in England & Wales with eleven other offices spread throughout the country.
Brenda Alleyne from SBP Law, a prestigious Law Firm in the City of London said: The move from Finlay Associates to Index Property Information has been seamless, and we cannot say enough regarding the online ordering platform and unrivalled customer service provided in comparison to the other search companies we have used in the past. Index Property Information has also been announced as the ‘Gold’ sponsor of the Surrey Law Society 2014 Charity Gala Dinner to be held in the stylish Prelude Suite at the Radisson Blu Edwardian in Guildford on Thursday 3rd April. The Charity Gala Dinner, this year supporting President Marek Bednarczyk’s chosen charity AvMA (Action Against Medical Accidents), is the highlight of the Surrey Law Society social year and is sure to be a sparkling occasion. n If you would like further information regarding the services Index can offer, a demonstration of their bespoke online ordering system or further details of the Surrey Law Society Gala Dinner then please contact Richard Norman on 01276 451203.
Index Property Information is a unique provider of conveyancing searches and reports to the property industry. By working closely with every Local Authority in England and Wales, we are able to provide both Regulated and Council Local Searches as well as all other reports required by solicitors and conveyancers. We have developed a simple business philosophy that is centred around providing an unrivalled personal service, whilst utilising modern technology. This enables us to provide fast, efficient and accurate information allowing our clients to save time, money and effort. We understand what conveyancing professionals require, and accordingly provide a bespoke service tailored to each individual client requirements. We believe in creating a true partnership with our customers and ensuring they, in turn can provide a more efficient and cost effective service to their own clients. A commodity needed more than ever in a rapidly growing property market. Index has developed a modern on-line ordering system specifically designed to be as simple to use as possible. We have done away with numerous page re-loads and lists of rarely used products and cumbersome mapping systems. Index has simplified the whole ordering process and boasts the most straightforward ordering platform currently available. Part of the technology offering from Index Property Information includes a free mapping system and a Search Alert System highlighting and recommending search requirements such as High Speed 2, Subsidence and Flood, obviously particularly pertinent with the recent issues in the Surrey area. But we also understand that not all clients wish to use on-line systems and so tailor our service to each customer’s individual needs and requirements. There are no telephone option messages and no voicemail messages; but there is always someone at the end of the phone able to answer queries and deal with enquiries honestly and efficiently. Anne Lucking, Managing Director of Index, said: “We’re thrilled that Richard and his dedicated team have joined the Index family and we know their professionalism and customer service will be a welcome addition to our growing network of offices.
Surrey Lawyer 23
Property
Recent flood events call us all into action The flooding may be subsiding, but we can’t afford to let the memories of its impact do the same There is no denying that in recent times the world has experienced some pretty extreme weather events. Last year was Australia’s hottest in living memory, in the Philippines Typhoon Haiyan became the strongest typhoon ever recorded, there were record high temperatures in Scandinavia, heatwaves and intense rainstorms across Europe and South America, and much of the US came under the grip of a polar vortex with a big freeze bringing many regions to a halt. Here in Britain we saw the stormiest December in 44 years. The hostile winter continued into January and February 2014 with high winds and storm surges causing widespread coastal, river and surface water flooding, substantially impacting on individuals, businesses and infrastructure. The Met Office confirmed at the end of February it was the wettest winter in England and Wales since records began 250 years ago. Although severe storms in the UK are not unknown, the relentlessness of recent events is certainly unusual with the full catalogue of flooding – tidal, fluvial, pluvial and groundwater flooding – all being experienced over a period of seven or eight weeks. Around 6,000 properties were flooded and politicians raised concerns about future flood strategy with the Prime Minister, David Cameron, calling the floods “a tragedy for all those affected” while urging the insurance industry to process claims as quickly as possible. We are all acutely aware from the extensive media coverage of the floods that the impact on residents and their property can be hugely detrimental, not to mention the potential blight on a home’s value, but as awareness grows around the potential for flooding do homebuyers know who is responsible for advising them on flood risk? A survey commissioned by Landmark Information Group revealed that only 42% of people investigated their flood risk before buying their home, while 55% of property owners in the UK expected solicitors to automatically investigate a property’s flood risk as part of the conveyancing process. Clearly there is an expectation from homebuyers to be assisted in discovering the level of risk, not least so they can look to mitigate this if required. It is imperative that buyers know about any potential flood risk as early as possible and have appropriate insurance in place before contracts are exchanged and they become fully responsible for the property. Until Flood Re comes into force in 2015, properties found to be ‘at significant risk’ of flooding may prove extremely expensive, if not impossible, to insure. If a property cannot be insured, the solicitor will be
24 Surrey Lawyer
unable to provide the necessary Certificate of Completion to the Lender to release the mortgage funds and therefore the buyer will be unable to complete the purchase.
Where does this leave the legal property professional in terms of required due diligence and compliance? According to the Law Society Practice Note launched last May, conveyancers have a key role to play. The Practice Note states that ‘In all conveyancing transactions, when acting for a prospective buyer, tenant or lender, you should mention the issue of flood risk to your client and, if appropriate, make further investigations’. There have been some concerns over what ‘appropriate’ means, but with 200,000 homes built on flood plains between 2001 and 2011 and surface water flooding meaning risk is not exclusive to properties near the river or sea, it seems that ‘appropriate’ is becoming an increasingly inclusive term. As the practice note concludes ‘it may not always be obvious that a property is at risk of flooding’. The cost of a desktop flood report (around £20), with a risk assessment by accredited consultants, is inexpensive and could save thousands, if not tens of thousands, of pounds in the long term. It will clarify your client’s level of risk and help them identify the measures they could take to protect their future exposure to flood, while at the same time satisfying the Law Society Practice Note. Let’s all hope that we have seen the back of the floods this year, in the meantime we can be working together to ensure we are playing our part in mitigating the risks for all stakeholders, especially the homebuyer. n
John Pickford, Searches Manager, Thames Water Property Searches Thames Water Property Searches are experienced national providers of due diligence searches and training to legal property professionals. They protect conveyancers and their clients with a comprehensive range of products and a proven dedication to quality customer service. A member of their team would be happy to discuss how they can assist you with your conveyancing search and training requirements. They can be contacted on 0845 070 9148 or by emailing twps@thameswater.co.uk. Alternatively, visit www.thameswater-propertysearches.co.uk.
Property
PSG in Surrey –
Employment and personal The Local Face of a National Success injury specialist strengthens Since 1997, PSG has been a leading provider of residential AWB litigation team
and commercial searches for legal and conveyancing professionals in England and Wales. Through their national network of local offices they are involved in 1 in 4 property transactions every year.
PSG in Surrey combines two successful offices covering the local area – PSG Guildford to the south headed by Maria & Paul Owen and PSG Kingston to the north headed by Jeremy Dorkins and Sarah Filsell. Both offices are part of a thriving network of inter-connected offices across England and Wales. PSG are well known in the industry for their ‘complete search service,’ a combination of the very best product range, in depth local knowledge and dedication to providing a level of service that is unrivalled in their field. Both offices are committed to building lasting relationships with local solicitors and conveyancers and are always ready to go the extra mile to ensure that their clients receive the best service possible.
Sharing the Knowledge As part of this ongoing commitment, PSG in Surrey are currently planning a series of CPD events looking at a variety of topical issues affecting the conveyancing community. The CPDs will feature expert speakers and topics relevant to all conveyancing solicitors and examine issues facing all practitioners today. These events are always popular and places get booked up quickly so do look out for them and book quickly. n For more information about PSG in Surrey: Call: 01730 812918 (Paul or Maria) or 01483 761500 (Jeremy or Sarah) Email: paulowen@propertysearchgroup.co.uk or sarahfilsell@propertysearchgroup.co.uk CPD & Events: https://www.psgconnect.co.uk/events
Civil and employment law specialist James Wilkes has joined Surrey law firm The AWB Partnership.
Working as part of AWB’s litigation team in Guildford, James will support AWB clients across both private client and company litigation. Among his key areas of expertise are a wide variety of contentious employment law matters acting for both respondents and claimants in the Employment Tribunal, County Court and High Court. Additionally, James frequently acts in a business advisory capacity for non-contentious employment law matters. James also has a significant amount of experience with contractual disputes relating to the provision of goods and services in addition to personal injury matters. James also offers particular expertise and insight in cases involving veterinary, equestrian and agricultural businesses or activities. He explains: “Rather unusually there are three vets in my immediate family. I also worked in an equine hospital before attending university, so in both these ways I have gained a fundamental understanding of small animal and large animal business models alike – and the challenges they face. “Away from work I am very much at home in the country. I was raised on a working farm and race horse yard in upstate New York, still ride regularly, have my own horse, and stay involved with the British Eventing calendar through my partner who competes regionally.” James joins a team that will be led by AWB Partner Jonathan Compton, newly appointed as Head of Litigation. Jonathan is both a barrister and a solicitor, working across areas including commercial disputes, shareholder disputes, company litigation, defamation (libel and slander) , trade mark, patent, copyright, design right infringement (and all aspects of contentious intellectual property work), employment and commercial practice at Queens Bench. He is accredited as an Arbitrator by the Chartered Institute of Arbitrators, and also holds a master’s degree in International and European law. Jonathan adds: “We are delighted to welcome someone of James’ ability to AWB’s litigation team. “As a team, our focus is on the rapid and effective dispute resolution is essential to anyone managing a business. We are particularly aware of the need for all business people to balance costs against risk – which is why, for example, we provide fixed budgets to enable clients to understand the bottom line from the outset.” n To contact James or Jonathan at AWB, email jonathan.compton@awb.co.uk or James.wilkes@awb.co.uk or call 01483 302 345.
26 Surrey Lawyer
Family Law
Matrimonial Property, Needs and Agreements the Law Commission’s proposals By Sarah Anticoni Following an appearance on BBC Radio 4’s Today Show Sarah Anticoni, Partner at Charles Russell LLP, comments on the Law Commission’s proposals on Matrimonial Property, Needs and Agreements, announced in February 2014. Sarah Anticoni, Partner at Charles Russell LLP comments: Pre and post marital agreements have now been rebranded as ‘qualifying nuptial agreements’. To be binding these agreements will be subject to safeguards to protect the financially weaker party. No document can exclude the responsibility to meet both parties’ needs and those of the children, from the families’ resources. Parties cannot leave their spouse without anything and expect the state to pick up the tab. The law will remain as it has been since 1973 with judges having the power to exercise discretion as to how the resources in any family are to be divided upon divorce to meet needs. What seems clear is that it will be possible to exclude all claims for compensation, or sharing of, pre-acquired or non-matrimonial property (inheritance; previous divorce settlements). If the bill succeeds, then pre and post marital agreements could become a commodity rather than a luxury.
For those international personnel residing in England, binding agreements will bring a sigh of relief. This may be a real opportunity for people to protect their assets, especially for second or subsequent marriages and may also ensure and encourage parties to think about the financial responsibilities they are entering into when they marry and have children and not leave such expenses to the state. Today may also start an extended period of research and consultation which could, if swiftly implemented, have far reaching consequences for couples divorcing in England and Wales. London might become not just the divorce capital of the world but its epicentre. n
For more information please contact Emma Lowde on emma.lowde@citigatedr.co.uk or 0207 282 1049.
Surrey Lawyer 27
CPD
Surrey Law Society CPD Programme from April to July 2014 April Wednesday 2nd In the spotlight and in the firing line - the unenviable role of COFAs and COLPs Tony Guise Wednesday 30th Data Protection for COLPs Peter Wright, Heather Anson
May Wednesday 14th Buying & Selling Small Businesses Keith Lewington
LawCare’s 2013 Statistics The legal advice and support organisation LawCare opened 515 new case files in 2013, a 36% increase on the number of new case files opened in 2012, and LawCare’s second busiest year ever. 1,810 further calls were made or received involving follow up related to these original calls, and 77 (reported) calls were made by LawCare supporters to lawyers they had been asked to assist.
Wednesday 21st Funding Care: asset protection & long term care Jon Wilkey
June Wednesday 4th Selling Land to a Developer Peta Dollar Wednesday 18th Dealing with your DJ: CPR reforms & best practice Stephen Parker
July
By far the most common issue callers reported was stress, at 74% of the calls. This was followed by depression (12%), Alcohol (6%) and other issues making up the remaining 8%. Those case files opened relating to alcohol abuse mostly concerned those qualified for ten years or more (71%) (87% in 2012). This compares with 42% of those complaining of stress that had been qualified for more than a decade (37% in 2012). LawCare has long theorised that law is a stressful profession which causes
Thursday 3rd Essential Guide to Building Regulations for Conveyancers Richard Snape
those starting out to turn to alcohol to unwind, resulting in an
Tuesday 15th Will Drafting Problems & Pitfalls John Thurston
misusing callers qualified fewer than five years or trainees, and
addiction problem later in their careers. However, this appears less marked in 2013 that in previous years, with 17% of alcohol 16% of stressed callers having 21+ years PQE. 347 (67%) of the callers were able to identify a specific cause for their problem, as follows:
The courses listed above are all half-day courses from 2.00pm to 5.15pm at Denbies Wine Estate in Dorking and carry 3 hours SRA Accredited CPD points.
•
Workload – 22%
•
Bullying – 19%
•
Financial problems – 17%
Course Fees:
•
Disciplinary issues – 16%
•
Ethical issues – 9%
•
Redundancy – 6%
•
Relationship problems – 6%
•
Bereavement – 3%
•
Other miscellaneous issues – 2%
£126.00 inc VAT (members) or £252.00 inc VAT (non-members)
Season Ticket: £100.80 inc VAT for bookings of 4 courses/delegates paid in advance Course fees include all costs for delegate packs, refreshments and on-site parking and must be paid in advance. Please check the Terms & Conditions on our website www.surreylawsociety.org.uk/terms before booking.
PRIVATE CLIENT CONFERENCE – THURSDAY, 18TH SEPTEMBER 2014 CONVEYANCING & LAND LAW CONFERENCE – THURSDAY, 23RD OCTOBER 2014 For further information about these events please visit our website www.surreylawsociety.org.uk or contact Elaine Jacobs at elaine@surreylawsociety.org.uk. n
28 Surrey Lawyer
Management
Rules for Reporting Accidents at Work Change Is Your Business Up To Date? As rules for reporting workplace accidents are amended, Stephensons Solicitors LLP, are urging company owners and decision makers to ensure that they are up to date. This is a higher level of bullying than has been seen in previous years. In 2011 and 2012 the number of callers citing bullying as the cause of their stress was 14%.
60% of callers were female and 40% male. 40% of callers were trainees or had been qualified five years or less. The professional breakdown was as follows: • • • • •
Barrister (England and Wales) – 11% Solicitor (England and Wales) – 65% Solicitor (Scotland) – 7% Chartered Legal Executives – 5% Solicitor (Republic of Ireland) – 5%
The remaining 7% was evenly split between the other jurisdictions covered by LawCare’s services. As regards practice area, those reporting stress came from the following: • • • • • • • •
General High Street/Private Client – 23% Litigation – 22% Commercial – 18% Criminal – 11% Family Law – 10% Conveyancing – 9% Employment – 4% Probate – 3%
LawCare is an advisory and support service designed to help lawyers, their immediate families and their staff to deal with issues such as stress, depression, addiction, eating disorders and related emotional difficulties. They offer the opportunity to discuss such problems which are interfering with, or have the potential to interfere with, work performance and/or family life and to seek help in resolving them in their early stages. The service is free and entirely confidential. Although LawCare is funded by professional bodies, it will not, in any circumstances, report back to those bodies about any calls received. n
As of 1 October 2013, two major sets of
FAR requires that employers provide
regulations have changed: the Health and
suitable training, equipment and facilities
Safety (First-Aid) Regulations 1981 (FAR)
to give first aid to staff members who are
and the Reporting of Injuries, Diseases and
injured or become ill at work. But now, the
Dangerous Occurrence Regulations 2013
HSE will not approve first aid providers,
(RIDDOR). The aim of these changes is to simplify the reporting requirements an organisation must meet in the event of an accident. RIDDOR states that employers must report all work related deaths and certain work related injuries, diseases and near
meaning that employers must ensure that training providers can prove their competence in relation to FAR. Training providers should be able to provide a First Aid at Work certificate, a documented quality assurance plan and a brief of what their training syllabus covers. Businesses which are looking for training
misses to the Health and Safety Executive
providers could consider choosing
(HSE).
previously approved training providers as a
While the mechanism for reporting incidents involving employees remains unchanged, there are significant changes to
first step. Employers should ensure that training providers can demonstrate that they work
RIDDOR which determine the incidents that
to accepted standards and that first aid
need to be reported and those that don’t. A
courses are relevant to the company’s
shorter list of ‘specified’ injuries has
industry. They should also make sure that
replaced the ‘classification of major
students receive appropriate certification
injuries’. A total of eight categories of ‘work related illnesses’ have replaced the 47
following the course. Failure to comply with health and safety
previously reportable industrial diseases.
regulations can land businesses in hot
There are also fewer dangerous occurrences
water, with fines for thousands of pounds
which require reporting.
from the HSE.
A copy of the latest updated RIDDOR legislation can be found at http://www.legislation.gov.uk/uksi/2013/ 1471/contents/made Health and safety representatives must
http://www.lawcare.org.uk
be aware of the changes and trained in the
Helpline: 0448002796888
new categories.
It is imperative that businesses are aware of the latest RIDDOR legislation and ensure that they report any incidents in a timely manner. Prosecutions under FAR are rare but could occur if companies fail to have appropriately trained first aiders on hand. They are essential for the safety and wellbeing of employees. n
Surrey Lawyer 29
Management
Managing the risk With Insurers facing ever escalating claims costs and clients demanding minimal premiums, it is inevitable that those firms who are able to demonstrate superior claims experience and high quality risk management procedures, are those who will be most sought after by insurers. Due to the limited number of rated providers and the quality of data retained by insurers, it is highly likely that many underwriters will have received risk presentations from the same clients or prospective clients year after year. In some cases this can be through a variety of brokers which enables them to build a historic risk profile. With this in mind it is more important to demonstrate to insurers that firms have robust procedures in place which will prevent claims from happening, rather than insurers assuming that a firm simply may have been fortuitous in avoiding claims to date. Claims are seen from a variety of areas such as administrative errors, routine clerical mistakes, pressures of work volume, poor recording of client instructions, client selection, giving advice in areas without sufficient expertise, and training. Insurers should be advised that not only have these risks have been identified by firms, but that there is a culture of embedded risk awareness throughout the firm, rather than as an after-thought. Partners should be aware of their responsibilities, that there are procedures
30 Surrey Lawyer
of risk management in place, and these are reviewed to ensure they are effective with a clear chain of responsibility with named individuals to ensure prevention. This may also assist in early recognition in circumstances which may give rise to a claim. A good quality insurance broker will not simply gather information to complete the proposal form. They will take the time to discuss and understand their clients and potential clients business, and pass these positive features on to the insurers. There is of course a Commercial consideration for doing this, because they are looking to present clients in the best possible light and differentiate themselves, not just from competing brokers but also from any previous information an insurer may hold for a firm. n For further information on any of the above content above please contact:Tristan Webb, Managing Director, Aspire Insurance Services Limited 0845 270 6720
Management
Legal Software Suppliers Association issues warning to law firms to be vigilant against cyber threats and to keep technology up to date Roger Jackson, Chair of the LSSA gives law firms advice to counter cybercrime threats and the withdrawal of support for Microsoft Windows XP which means continued use of Windows XP might not meet SRA data security requirements. Twice recently law firms have been the target of emails purporting to originate from the Solicitor’s Regulation Authority but which has not been the case. Spam emails such as these are known as “phishing” and these emails look very convincing and from a cursory glance look genuine. These malicious emails often carry attachments with malware and if not closely scrutinised can appear genuine. Julian Bryan, of LSSA member Company Quill, comments, “The recent email scam purporting to be from the SRA and targeting law firms demonstrates the need for constant vigilance and risk assessment amongst legal practices. The email concerned carried a cleverly named attachment which had all the hallmarks of an embedded virus. This incident demonstrates the ongoing battle between Microsoft and potentially malicious individuals who create viruses, malware & Phishing scams. Law firms in particular need to be sure that their Windows PCs and servers are constantly updated and protected from such issues. This process is facilitated by Microsoft who provide security updates to their supported operating systems. However, from 8th April 2014 - just days away - support for Windows XP will be withdrawn. This means that Windows XP users will no longer be protected from new security threats, potentially creating risk for law firms. Practices should audit their IT infrastructure and assess their exposure to such risk created by the ongoing use of Windows XP in their business.” Microsoft is withdrawing support for Windows XP on 8th April and is recommending users to move towards new platforms such as Microsoft 365. It is difficult for the firm to justify supporting an old version. The firm invests in new platforms, such as Microsoft 365, and as users attach new peripherals to old software it increases the risk for a consumer and increases the cost of support for the software vendor. However there are many law firms still using Windows XP who are not going to migrate overnight to new systems, and in many cases legacy software systems will need a lot of work to run on new systems, and continued use of Windows XP might not meet the SRA’s data security requirements. Another LSSA member, Dominic Cullis of Easy Convey comments, “This is a major milestone because the versions of Windows and Office have been widely used in the workplace. Many firms have not adopted later releases from Microsoft. One way forward is to subscribe to Microsoft 365. Subscribers receive future upgrades therefore ensuring out of date unsupported software becomes a thing of the past. Another option is to move your software on to a virtual server with Windows and Office
being provided by your legal software provider. With more and more solutions being delivered on a virtual server users are free to work wherever a computer has internet access, therefore enabling more flexible working options.” Phishing emails are not the only current cyber threat. Be very careful if you are logging into any public WiFi networks. You may not be logging in to the Starbucks or Costa Coffee network that you believe that you are connecting to. Hackers and cybercriminals have the capacity to create what is known as an “Evil Twin WiFi Hotspot” which looks exactly like the bona fide WiFi that you are intending to connect to, with the same name and virtually impossible to distinguish that it is a fake network. So, with unwittingly using a rogue network instead of the genuine one you are opening up your device, whether that be laptop, tablet or smartphone, to the vulnerabilities of the criminal fraternity. To the user the fake network acts supposedly normally, but to the criminal it allows access to eavesdrop on your network traffic, keystroke logging, stealing of account names/passwords or redirecting you to phishing/malware sites, fake financial websites etc. One way of protecting your data against an evil twin network is to use a Virtual Private Network (VPN), which historically has been limited to being used by large corporates due to the costs involved, but now there are personal VPN services available to End Users on a monthly subscription basis. Another way of combatting a fake hotspot is only logging on to your email and social networking sites using secure HTTPS encrypted pages. Be careful with yours and your clients’ data and we would recommend that you never use a public WiFi for your banking or online shopping purposes. The message from the LSSA is to be vigilant, make sure your IT security systems are properly up to date and take all reasonable precautions to keep your data safe. n
About the Legal Software Suppliers Association (LSSA) The Legal Software Suppliers Association (LSSA) is the UK industry body for legal systems developers and vendors. Representing most of the leading UK suppliers, the LSSA sets and maintains professional standards within the legal software industry, and also manages areas of mutual interest between lawyers and software providers. The Association has set up and actively contributes to a number of different working parties and forums, representing and lobbying on behalf of its members with HM Land Registry, HMRC, Court Service and the LAA. For more information please visit www.lssa.co.uk
Surrey Lawyer 31
Management
Time is of the essence Royal Mail’s aim to deliver 93% of First Class post by the next working day is not quick enough... at least for some. •
Tick boxes – accepting, for example, the terms and conditions of an online retailer;
•
Scanned signatures – a wet ink signature which is scanned and converted into digital format; and
•
Digital signatures – created using an electronic pen and pad. The Electronic Communications Act 2000 (in force since July 2000) provides that
electronic signatures and related certificates are admissible in evidence in legal proceedings in respect of any question regarding the authenticity or integrity of an electronic communication. What does this mean in practice? The Law Commission published an advice paper to the government in 2001. The Law Commission’s view was that changes are not necessary in relation to statutes requiring signatures, as the test for whether signature requirements are met is whether the conduct Sean Logan is a solicitor in the commercial property department of Hart Brown. He trained in Cheltenham before moving to Guildford to join the commercial property team in 2011. www.hartbrown.co.uk
of the would-be signatory indicates an authenticating intention to a reasonable person. To create a simple contract there must be offer, acceptance and an intention to create legal relations by the parties. The result of failing to satisfy these requirements is a contract that is not valid between the parties. It is therefore acceptable for an electronic signature to satisfy the requirement that a person must “sign” a document. Although possibly avoided in property transactions, it seems very likely that the demand for this method will increase as technology continues to develop.
Advances in mobile technology have
The above option should be distinguished from deeds and those documents requiring
increased the speed at which we
registration at the Land Registry. A transfer or creation of an interest in land must be
communicate and people are reluctant to
made by deed. In addition, in order to comply with the Law of Property (Miscellaneous
allow the requirement to sign a hard copy
Provisions) Act 1989, a contract for the disposition of land must be: in writing; signed by
of a document to slow them down.
or on behalf of each party; and incorporate all the terms that have been expressly agreed.
Welcome the electronic signature. An electronic signature, or e-signature, is
At present, it is unclear whether a deed can be validly executed using an electronic signature and as a result solicitors will continue to err on the side of caution. Additionally,
defined as anything in electronic form
the Land Registry does not currently accept documents (be that contracts or deeds)
which is incorporated into or logically
electronically signed and these must continue, therefore, to be made in hard copy and
associated with an electronic
signed by way of a wet ink signature.
communication and which purports to be
It seems this is another example of legislation having to catch up with the technology
used for the purposes of establishing the
available. However, with the time and cost benefits available from going paperless – and
communication’s authenticity or integrity.
the Land Registry’s aim to create an electronic conveyancing system – it may not be too
Common examples are:
long before the humble pen is gathering dust at the back of the desk draw. n
“It’s clear that electronic communications have affected and will continue to affect the use of the post. However, long-established practices mean that the legal sector, in particular, continues to be reliant on efficient postal services. Lawyers and their clients continue to be unsure of the legal validity of electronic communications and concerned about the information security and their data protection obligations. For this reason, DX has been developing electronic products that will help the legal profession use electronic communications both efficiently and securely, whilst providing the peace of mind they’re used to from physical postal services.” James Timberlake, Director at DX 32 Surrey Lawyer
Management
Iconic Dogs Trust slogan marks landmark anniversary ‘A dog is for life, not just for Christmas®’ honours 35 years of relevance Last autumn, the nation’s largest dog welfare Charity, Dogs Trust, commemorated thirty five years of its iconic slogan – ‘A dog is for life, not just for Christmas®’. The impactful slogan is one of the UK’s most memorable phrases of all time and is now firmly cemented in the public consciousness - perfectly delivering the powerful message of responsible dog ownership to the masses and continuing to significantly reduce the number of abandoned dogs after the festive period. In 1978 the Charity estimated that 20 per cent of dogs were given as gifts, which has since reduced to less than 2 per cent today. Although the figure has dropped significantly, it means that around 16,000 dogs are still being purchased as gifts every year. Sadly, with the rapid increase in dogs being bought on impulse online, it is clear that the slogan remains as relevant today as it did 35 years ago. The slogan was created in 1978 by Dogs Trust current CEO Clarissa Baldwin OBE unlike most other iconic slogans which are created by advertising agencies. One evening, Clarissa was sat at the kitchen table chatting to her husband about the urgent need for a campaign to stop puppies being gifted at any time of the year but specifically at Christmas when she had a light-bulb moment and the slogan was born - proving that charity really does begin at home! Clarissa has since been awarded an OBE in 2003 for her work in animal welfare. Her success with Dogs Trust, coupled with the longevity and popularity of the slogan, has meant a ‘paws-itive’ improvement in dog welfare across the nation. n
Surrey Lawyer 33
Private Client
Paying for Care in Later Life Brian Martin from law firm Hart Brown, looks at the options available when planning for Care in later life Whether to move into a care home or pay for care in your own home is a decision being made by more and more people as our population ages. Longevity is increasing at a time when the government is reviewing (a.k.a. reducing) state benefits. It’s no wonder that paying for care is a growing concern for families up and down the UK. Each individual situation is different. However, everyone should have a plan.
Check the availability of state benefits Although the news is full of stories about claimants who have had their benefits stopped or faced difficulties making claims, you should not be put off - many people do not claim benefits they are entitled to. Not all benefits are means tested. For example, attendance allowance is available to individuals aged 65 and over who do not qualify for local authority funding for their care, subject to an assessment of their care needs. You should not delay making a claim - payments are only back-dated to the date you call the enquiry line to request a claim form (provided you then return the form within six weeks).
partner) are remaining in your own home.
Work out what you will need
An ‘immediate needs annuity’
A cash flow forecast is useful if you are paying for care. This starts with listing your income and outgoings but then takes account of investment returns on your capital and the effect of inflation. The latter is generally higher when it comes to care costs (the effect of increasing demand) and over a number of years this can have a significant effect on the calculations. This analysis should tell you if your money is likely to run out at some point in the future and give you an indication of the return you will need on your investments. This should then inform your financial decisions (alongside a consideration of how much risk (if any) you are prepared to take).
Look at the options Once you have worked out if and when you will need to draw on your capital you can look at the options. Do you have the right asset allocation to diversify risk and meet your income requirements? Are your investments tax-efficient - for example, are you using your ISA allowances? Can you consolidate investments and save costs?
34 Surrey Lawyer
Specialist products may be helpful. Equity release may be an option if you (and/or your
Another option is an ‘immediate needs annuity’. These policies are individually underwritten based on your medical condition and provide a tax-free income (if benefits are paid direct to a registered care provider) for the remainder of your life. As with a normal annuity, whether you get back the initial capital outlay will depend on how long you live for (i.e. how long the annuity continues to pay you an income) although the loss suffered if you survive for only a short period after purchasing an annuity may be mitigated to the extent that the capital cost would otherwise have been capital subject to inheritance tax (it is advisable to consider mitigating inheritance tax alongside planning for the costs of care, as a secondary objective). However, the main reason for purchasing an annuity is to give ‘peace of mind’ where the cash flow has shown that there is insufficient capital or income to meet the on-going cost of care for the foreseeable future.
The Outlook Government reforms are unlikely to alter the landscape dramatically. The proposed cap on care costs does not apply to ‘accommodation’ costs, which form the bulk of care home fees. The hoped for rush of new providers bringing innovative products to the market has so far failed to materialise. It could be that a number of them are simply waiting for proposals to be finalised but my advice is: don’t hold your breath and make plans as soon
as possible. n
Brian Martin is a Chartered Financial Planner in the Financial Planning team at Hart Brown. For more information please visit www.hartbrown.co.uk