BILL OF MIDDLESEX AUTUMN 2018

MIDDLESEX The BILL of

The Official Journal of THE MIDDLESEX LAW SOCIETY

AUTUMN 2018

Is ‘Social Media’ becoming a global disruptive force? (See Page 13)

Inside this issue:

■ PII ■ CiLS ■ Cost Transparency ■ LeO

www.middlesex-law.co.uk

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OUTS S SOURCING YO OUR CASHIERING? C ?

QU ILL IT! 0161 236 2910 info@quill.co.uk quill.co.uk/quillit

INTRODUCTION PUBLISHER Benham Publishing Limited Aintree Building, Aintree Way, Aintree Business Park Liverpool L9 5AQ Tel: 0151 236 4141 Facsimile: 0151 236 0440 email: admin@benhampublishing.com web: www.benhampublishing.com

Contents 5 5

Introduction

4 5 7

List of Officers President’s Review Editorial Board

8-9

PII proposals and increased risk in modern conveyancing Are the costs clear?

Council Members

ADVERTISING AND FEATURES EDITOR Anna Woodhams

10

STUDIO MANAGER

Legal News

John Barry

12

ACCOUNTS Joanne Casey

MEDIA No. 1587

8

EDITORIAL COMMITTEE Miles Sriharan Maralyn Hutchinson Professor Malcolm Davies Zulfiqar Ali Meerza

13 14

PUBLISHED

15 16-17

October 2018 © The Middlesex Law Society - Benham Publishing

Re-thinking the British Dream: Challenges with climbing the property ladder from a young professional’s perspective Is ‘Social Media’ becoming a global disruptive force? A personal view.

FAIRER, FASTER AND FIRMER IS IT PRACTICED BY THE HOME DEPARTMENT? The role of Chief Ombudsman Letter To The Legal Services Board

Law Society Report

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18

Law Society Report

Articles 19

12

20-21 21

Benham Publishing cannot be held responsible for any inaccuracies in web or email links supplied to us.

Community Infrastructure Levy vs Small Developers - A David and Goliath tale?

Becoming a Highly Successful Small Law Firm Free your mind...it’s time to think more objectively about structured products

Free Wills/ Legacies

DISCLAIMER

22 23

The Middlesex Law Society welcomes all persons eligible for membership regardless of Sex, Race, Religion, Age or Sexual Orientation.

24 25

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.

Where there’s a will, there’s a way A legacy for the future at the Royal Botanic Gardens, Kew WILL AID 30 years of changing lives A love that lasts forever

Property

13

27

Northern Rail Lose appeal in Japanese Knotweed Case

Probate

Members of the public should not seek to rely on anything published in this magazine in court but seek qualified Legal Advice.

31

How far back can I trace my ancestors?

32

Working outside office hours?

It could greatly put your employees’ mental health at risk

Health

COVER INFORMATION The cover image: Is ‘Social Media’ becoming a global disruptive force?

Outsourced Services

Copy Deadlines

33

24 Spring 2019 Issue Summer 2019 Issue

22nd March 27th September

Retirement 34

Email:

anna@benhampublishing.com

Tel:

0151 236 4141

Are you planning on retiring?

Auctions 37

Anyone wishing to advertise or submit editorial for publication in The Bill of Middlesex please contact Anna Woodhams before copy deadline.

Outsourcing your cashiering?

Why choose Quill?

Question & Answer interview with William Rouse

Book Review 38

The Rise and Fall of Legal Aid

The BILL of MIDDLESEX 3

OFFICERS COMMITTEE MEMBERS

PAST PRESIDENTS

Past President

R Garrod, J A S Nicholls, R C Politeyan, J Aylett, K Goodacre,

ARIYA SRIHARAN Sriharans Solicitors 223 The Broadway, Southall UB1 1ND (020 8843 9974) (DX 119583 Southall 3) e-mail: info@sriharanssolicitors.co.uk

OFFICERS FOR 2018/19

Professor Malcolm Davies

President:

Retired Professor, University of West London Law School c/o Oxford and Cambridge Club 71 Pall Mall, SW1 5HD (020 7930 5151) e-mail: profmjd1@gmail.com

ALBERTA TEVIE Sriharans Solicitors 223 The Broadway, Southall UB1 1ND (020 8843 9974) (DX 119583 Southall 3) e-mail: info@sriharanssolicitors.co.uk Vice President:

MILES SRIHARAN Sriharans Solicitors 223 The Broadway, Southall UB1 1ND (020 8843 9974) (DX 119583 Southall 3) e-mail: info@sriharanssolicitors.co.uk

H J B Cockshutt, W Gillham, L Lane Heardman, D Grove, L A Darke, C Beety, L E Vickers, H Hodge, E G B Taylor, A A M Wheatley, A H Kurtz, M J S Doran, H B Matthissen, G Parkinson, HHJ R D Connor, A Bates, J J Copeman-Hill, D B Kennett-Brown, S B Hammett, F A Shakespear, HHJ P E Copley, A M Harvey, H R Hodge, G R Stephenson, B S Regler, W J C Berry, AS Atchison, L M Oliver, S W Booth, D D P Debidin, R E J Hansom, E H Lock, A Taylor, N Desor,

Aneeqa Ali

M Hutchinson, M Guyer, R S Drepaul, A Sriharan,

Lecturer in Law/ Legal Practice, University of West London St Mary’s Road, Ealing W5 5RF (020 8231 2403) e-mail: aneeqa.ali@uwl.ac.uk

M Fernandes, A Darlington, S Chhokar, M Crowley, M Davies, S Hobbs, R Sriharan, S Scott Hunt, D Webb, G Kharaud, A Sriharan

Maralyn Hutchinson of Kagan Moss 22 The Causeway, Teddington, Middx TW11 0HF (020 8977 6633) (DX 35250 Teddington) e-mail: maralyn.hutchinson@kaganmoss.co.uk

Honorary Secretary

MAURICE GUYER Vickers & Co. 183 Uxbridge Road, Ealing W13 9AA (020 8579 2559) (DX 5104 Ealing) e-mail: mguyer@vickers-solicitors.co.uk

PARLIAMENTARY LIAISON Michael Garson

Renuka Sriharan of Sriharans 223 The Broadway, Southall UB1 1ND (020 8843 9974) (DX 119583 Southall 3) e-mail: info@sriharanssolicitors.co.uk

Honorary Treasurer:

ELISABETH VAN DER WEIT Hameed & Co. 4 Grand Parade, Forty Avenue, Wembley Park, HA9 9JS (020 8904 4900) e-mail: hameed@hameed.plus.com Council Members for the Middlesex Area: Central & South Middlesex Michael Garson of Kagan Moss 22 The Causeway, Teddington TW11 0HF (020 8977 6633) (DX 35250 Teddington) e-mail: michael.garson@kaganmoss.co.uk

Susan Scott-Hunt Principal Lecturer in Law, Middlesex University The Burroughs, Hendon NW4 4BT (020 8411 6019) Email: s.scott-hunt@mdx.ac.uk

Zulfiqar Ali Meerza of Serious Fraud Office (SFO) 2 – 4 Cockspur Street, London SW17 5BS (020 7084 4890) e-mail: zulfiqar.meerza@sfo.gsi.gov.uk Zahra Asghar of Asghar & Co

Central & South Middlesex Sundeep Bhatia of Beaumonde Law Practice Pentax House, South Hill Avenue, Northolt Road, Harrow HA2 0DU (020 8868 1614) email: sundeep.bhatia@beaumonde-law.co.uk

112-114 The Broadway, Southall UB1 1QT (020 8843 0010) (DX 119576) email: zasghar@asgharandco.com

Caroline Golden of Goldens Solicitors 343 Rayners Lane, Pinner HA5 5EN (020 8429 8282) (DX 48006 Rayners Lane) email: c.golden@goldenslaw.com

www.middlesex-law.co.uk

Friday 2 November 2018 7.15am - 12pm Novotel London Brentford, Great West Road, TW8 0GP

Breakfast Seminar Hosted by the Middlesex Law Society Join us for a brand new series of Breakfast Seminars.

This event will be informative as well as provide a great opportunity to network.

November Theme: The new SRA Requirements regarding price transparency The Seminar will include: • Presentations by sponsors • SRA Cost Transparency requirements lecture • Q&A 4 The BILL of MIDDLESEX

Complimentary Full English Breakfast served from 7.15am, seminar to commence at 8am until 12pm

INTRODUCTION

President’s Review A VISION FOR THE FUTURE AND A WORD OF WARNING

I

t has been a privilege to be part of the Middlesex Law Society and it will be an honour to serve as the Society’s President.

MLS is clear about our aim to promote the interests of member solicitors as well as trainees and law students in the Middlesex area.

The Middlesex Law Society will continue to work diligently to promote and uphold the interests and the well-being of our members.

We are all busy professional people so the challenge for us as a Society is how to respond to an existing member or a new potential member considers joining and asks the question ‘what can you do for me?’. My answer and that of my Committee members will be with actions not just words.

It will continue to be one of the main roles of the Society to ensure that we are at the table when decisions are being considered that directly and indirectly affect the legal community in our constituency whether it is at the Law Society, the SRA or Government departments. On 30 August I attended a meeting at Chancery Lane organised by the Law Society as part of the review of the effects of The Legal Aid, Sentencing and Punishment of Offender Act 2012 (LASPO). I’m aware that many practitioners believe the damage has already been done with LASPO with the curtailment of publicly funded service providers and the consequent injustice that is a daily occurrence. However, how can we impact change if we are absent and silent when issues are being discussed and decisions are being taken?

Firms that are embracing technology now market themselves as innovative and forward thinking. The use of technology within a firm is presented as an essential and positive tool to assist solicitors in their work.

The changes should be perceived as as a challenge to the way we work not to our very existence. Although the Trend report statistic appears frightening, I believe it should be seen as a call for the legal profession to embrace and adapt to change and not as the end of the legal profession as we know it. Those firms who do not adapt may find themselves unable to cope with their competitors and will struggle to stay afloat. As a Society, we too will embrace the changes required to maintain and enhance our offering to our members and to keep our focus fresh and relevant. To that end I urge all members and those who consider joining to make contact, tell us about your concerns, issues and how your Society can support your professional life.

Alberta Tevie President, Middlesex Law Society

My vision for the Society in the upcoming year with the support of all the Committee members is for us to make it painstakingly clear what benefits we as a Society can and do offer to our community.

We have started down the path of re-establishing and increasing our visibility. Marketing and an active presence on social media will be an important part of the process. Traditionally solicitors are reticent about openly and overtly marketing themselves with or without the use of technology, but we will champion and advocate for our members to promote their own profiles. In turn, as part of our increased profile we are planning a year of events aimed at supporting our members. We will be seeking the views and opinions of our members and wider afield to ensure that our activities continue to be as beneficial and relevant to our members as they have always been.

As we are all well aware the legal profession like many other industries and professions is facing an unprecedented challenge to the way we work through the use of automation, artificial intelligence and social media. The Law Society 2018 Trend Report indicated there will be a loss of 67,000 full-time jobs through automation by 2038. Nobody should be under any illusion about the disruption that technology has brought and will cause to the legal profession. As lawyers we must deal with matters quickly, efficiently and in a way that is cost effective for the client. Clients are now much more demanding about the way they are charged for legal work and what they are asked to pay for. Fixed fees have become a permanent feature of the legal landscape. Larger firms as part of the new horizon have already started making redundancies as they implement legal technology which has affected lower skilled functions. This has enabled them to deliver the quality of service their clients require and expect whilst maintaining and sometimes improving their profit margins.

Photograph: Past President Ariya Srihan hands over to his successor Alberta Tevie.

The BILL of MIDDLESEX 5

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EDITORIAL BOARD

Editorial Board MEET THE EDITORIAL BOARD OF THE BILL OF MIDDLESEX. Miles Sriharan Board Member Miles joined Sriharans Solicitors in 2011. He specialises in Property Finance and Commercial Litigation with a particular focus in Bridging Finance. Miles primarily acts for bridging lenders and mortgage institutions, having specialised in the same for a number of years he is widely considered a specialist in those areas.

After having his secondary education at Haberdashers' Aske's Boys' School in Elstree, Hertfordshire, Miles went on to study at the University of Nottingham and thereafter The College of Law, London. After successful completion of his training contract, Miles was admitted as a Solicitor of England & Wales by the Law Society and Solicitors Regulation Authority.

Miles' understanding of the extremely short timescales required for bridging finance combined with his strong knowledge of the full legal process underpinning bridging loans enables him and his team to efficiently deliver high quality work and service within super-fast times to bring transactions to completion swiftly.

Miles currently serves as Vice-President of the Middlesex Law Society and is due to be elected as Vice-President of Middlesex Law Society in May 2018.

Maralyn Hutchinson Board Member Partner since 1978 Past President of the Middlesex Law Society Member of 'Solicitors for the Elderly'

Maralyn trained at a City form and worked in the City for a couple of years before moving to her current firm where Maralyn is a partner dealing with private client work.

Past Company Secretary of Richmond Vountary Services and on Board of local charities Trustee of one charity which supports elderly people.

Professor Malcolm Davies Board Member Professor Davies studied at the Universities of Southampton, LSE and King's College Cambridge.

He was a visiting scholar at the law schools of the University of Helsinki, University of California, Berkeley and UC Davis and a senior research fellow in the Attorney General's office in California.

In 2009 / 10 he was President of the Middlesex Law Society. He has been an external examiner at Birmingham City University and Southampton Solent University. Currently he is Visiting Director of the Criminal Justice Unit at the think tank Civitas.

In recent years Professor Davies has broadcast on crime policy on Newsnight, Law in Action, World Tonight, You and Yours, Breakfast Television, Radio 5 Live, and Radio Wales. He has

been a presenter and consultant for 25 television programmes for the BBC, which includes the series Honourable Members, Politics of Pressure and The Living City.

His research is on sentencing policy and practice and comparative studies of law and criminal justice (California, China, Norway and Finland), with articles published in the British Journal of Criminology and the Criminal Law Review, and is co-author of a leading textbook, Criminal Justice.

His comparative research on law, judicial culture and criminal justice has included work in the following jurisdictions: California, Helsinki, Norway, Finland, Libya and China and conference participation in Holland, Ireland, USA and Qatar.

Zulfiqar Ali Meerza Board Member Key case lawyer in the investigation and current prosecution of Barclays Bank and 4 former senior executives, including the former CEO, in relation to fraud and unlawful financial assistance surrounding the £11.8bn recapitalisations of Barclays in 2008.

Also representing the SFO’s interests in parallel commercial litigation (PCP Capital Partners v Barclays), Financial Conduct Authority (FCA) and employment proceedings.

• Case lawyer in the investigation of liquidity auctions run by the Bank of England during the financial crisis of 2007 and 2008.

• Significant exposure to Mutual Legal Assistance (MLA) work, most notably assisting the Peruvian authorities in relation to its high profile bribery/corruption investigation into Brazil’s largest construction company, Odebrecht, which has implicated the former Peruvian President in wrongdoing.

• Active involvement in the Strategy and Policy Division of the SFO through assisting with updating the Operational Handbook and providing input into government policy consultations, including drafting proposals for legislative reform.

The BILL of MIDDLESEX 7

COUNCIL MEMBERS

PII proposals and increased risk in modern conveyancing T

Michael Garson outlines the importance of risk management for conveyancing firms, now that the Solicitors Regulation Authority has proposed its changes to professional indemnity insurance

8 The BILL of MIDDLESEX

he Solicitors Regulation Authority (SRA) is proposing to alter the minimum terms and conditions (MTC) of solicitors’ professional indemnity insurance (PII). Whatever the outcome, when you consider these proposals alongside recent case decisions and the growth in cybercrime and other fraud, they illustrate the financial exposure of conveyancers in stark terms.

Whether acting in a straightforward house purchase or more complicated development matters, conveyancers manage risk every day.

In reality, wherever the SRA fixes a minimum, this may not provide adequate protection for a client who suffers an uninsured loss where the firm held responsible does not have sufficient cover to meet all claims.

The minimum level of cover required by the MTC distracts from the overriding question conveyancers must address to safeguard the interests of their firm, employees and clients: what precautions should we adopt to protect our firm from the risks it faces?

The proposals SRA Code Outcome 7.13 states ‘you must assess and purchase the level of professional indemnity insurance cover that is appropriate for your current and past practice, taking into account potential levels of claim by your clients and others and any alternative arrangements you or your client may make.’

In the new SRA proposed codes, the standard for firms will be ‘you must ensure that the body takes out and maintains indemnity insurance that provides adequate and appropriate cover in respect of the services that you provide.’ The code for solicitors reflects the same standard.

The SRA proposes to reduce the minimum prescribed level of cover, from £2m / £3m for partnerships / alternative business structures and other entities, to £500,000, or a higher minimum of £1m, with no distinction for the type of business structure, but the higher level would apply for what is defined as ‘conveyancing’. This would include: ‘Dealing with transfers, conveyances, leases, contracts, deeds, grants, mortgages, charges, licences and other documents in connection with, and other services ancillary to, the disposition, acquisition or creation of estates or interests in or over land and the sale and purchase of companies whose primary asset is an estate or interest in land.’

The breadth of this definition means that in effect, most firms would require a policy addition for the upper minimum level of cover because of some aspect of the work they undertake.

Most firms would require a policy addition for some aspect of the work they undertake One of the unappreciated merits of the minimum sum required by SRA is that the regulatory system guarantees a minimum level of protection for future claims whenever a claim is made. Here also lies a deeper problem in the proposals: the level of cover maintained needs to be adequate at the point that the claim is made.

The SRA proposals suggest excluding cover for financial institutions and other large business with turnover above £2m per annum. This threshold is low and almost incapable of proper monitoring (save after the event) by the SRA, firms or clients.

Risk-aware clients would consider moving their business to larger firms with higher levels of cover.

The market would face a major challenge to maintain confidence in small firms and avert separate representation for lenders.

The minimum level of cover required for run-off is to remain at six years. There would, however, be a limit for total claims over this period: £3m for conveyancing firms and £1.5m for others.

Compare this with the current minimum of £2 / 3m for every claim during each year of the run-off period. The new proposed minimum may be insufficient for any substantial conveyancing firm.

There does, however, seem to be growing appreciation in the market that insurers should be more nuanced when pricing premiums for run-off, since a firm’s conduct and/or manner of closedown has a clear bearing on claims-handling during the run-off period.

The risks Solicitors have a primary obligation to protect money held in client accounts. The new, proposed SRA Code phrases this in terms of ‘safeguard[ing] money and assets entrusted to you by clients and others’. It is sobering to think that firms engaged in conveyancing, probate and administration will hold amounts in client accounts throughout the year far in excess of the minimum cover required by the SRA, and the entirety is at risk from cybercrime or fraud. (see the National Cyber Security Centre 2018 report).

Any doubts about the level of risk should be dispelled by the opening figures from SRA’s Risk Outlook of 25 July: •‘Money laundering reports up 67 per cent in 15 months •‘£47.4m reported losses linked to dubious investment schemes since 2015 •‘£20m of client money lost to cybercrime across two years.’

Recent case law makes it clear that assessing the amount of cover necessary for adequate protection will be far from simple.

Recent litigation has tended to focus on whether: 1. there is an insured party to meet the claim 2. there is sufficient insurance cover to meet the full amount of the claim in cases of breach of undertaking by reason of solicitor fraud, or some other negligence 3. a loss should fall on the seller’s or buyer’s conveyancers’ cover.

Bogus firms In a number of cases, conveyancers acting for a buyer have been tricked by someone impersonating the property owner. Schubert Murphy v The Law Society [2014] EWHC 4561 (QB), for example, concerned the loss of purchase money paid to a fake firm that obviously

COUNCIL MEMBERS did not have any cover and did not intend to deliver on its undertakings to discharge a mortgage. The buyer’s solicitors’ insurance bore the client buyer’s loss.

In Nationwide v Davisons [2012] EWCA Civ 1626, the buyer obtained registration, but again, a prior charge was not cleared off, as the purchase money had been sent to an imposter. Here, the court gave relief under section 61 of the Trustee Act 1925, so the buyer lost his claim against the solicitors for breach of trust. Claims brought by lenders against buyers’ solicitors succeed in some but not all cases (see Lloyds TSB Plc v Markandan & Uddin [2012] EWCA Civ 65; and Santander UK Plc v RA Legal Solicitors [2013] EWHC 1380 (QB)).

Conveyancers are now familiar with the need to check out their counterparty firm and may do this via more than one source. However, the point of risk has moved on, and hackers may just as commonly pose as a genuine firm or conveyancer.

Figures from the Law Commission report indicate frauds running at a value of around £11m each year (in these cases, fraud is uncovered after the money has been paid but before registration takes place).

the seller was an imposter pretending to be the property owner. The underlying question in all three cases was whether the seller’s or buyer’s solicitors’ insurance policy would respond.

The primary responsibility for identifying the true owner of a property to be sold rests with the seller’s conveyancer. It also now appears settled that the buyer’s conveyancer might be interested to be informed that the PII cover held by the seller’s conveyancer exceeds the purchase price. In every claim, interest and costs are incurred in addition to the sum claimed.

It is not unreasonable to speculate that, in Dreamvar , the purchase price plus costs might have been close to the minimum level of cover. The amount of cover available could have become an issue if more than one property had been included in the same transaction – or if the new, lower SRA minimum had been the only cover to respond.

Conveyancers need to consider each year a composite of risk factors:

However, the buyer will not know in what circumstances or which insurance year a claim might be made against the seller conveyancer’s Aggregation policy, or whether cover will be adequate when such a claim is made. Nor can they know whether the insurers will be in a position to seek to Aggregation – where insurers seek to group the claims and group the aggregate it with other claims, which might then result in cover proving to total sum claimed, to avoid paying each and every claim in full – raises be insufficient. numerous difficulties, leading in many cases to complicated settlements.

The SRA’s proposed MTC reduction provides insurers with an opportunity The profession should be familiar with the red flags in litigated cases involving high value, empty or tenanted property, expedited sales, to apply aggregation in many more cases than they presently do. payment of proceeds abroad and so on (see the Law Society mortgage Every firm needs to assess the potential risk from aggregation which fraud practice note, and the joint Law Society and HM Land Registry could exhaust the available level of cover. note). Also note the interim position issued by the Law Society following In conveyancing transactions, it is fundamental to understand the risks of accepting any undertakings to discharge mortgages upon completion. In the Dreamvar decision.

Very little of the circumstantial background detail (such as banking of the Godiva Mortgages Ltd v Travelers Insurance Company Ltd Willmett proceeds, the negotiation process, recovery or relationships between Solicitors and ors [2012] EWHC 3615 Comm), a rogue solicitor acting for sellers and buyers) was discussed in the judgments above. As fraud sellers failed to discharge undertakings relating to mortgages on a evolves – and if preventive measures are to be effective – conveyancers number of properties. When the insurers were successful in aggregating the claims, the MTC cover of the seller firm was exceeded, as was the top- may wish to collect more background information on all instructions.

There was a time when the owner of a property returned to the solicitor up insurance. who acted on the purchase. This established a nexus between ownership Firms should record and internally monitor their outstanding, aggregated and the possession of deeds. While land registration guarantees title for total liability to discharge money obligations in aggregate and by fee the person on the register, the process of registering a dealing follows earner, in order to identify possible problems at an early stage. However, after the physical completion, which leaves the burden firmly with the risks outside the conveyancer’s direct control are harder to mitigate. This buyer’s conveyancer. Land Registry policy of early completion also leaves is relevant when acting for buyers, who may rely on their conveyancer to ensure the seller delivers on the seller’s obligations. When mistakes occur, conveyancers with the risk of discharging prior charges. the buyer’s conveyancer will look to the firm that has breached its How to mitigate the risks for your firm – some undertaking (see Clark and another v Lucas Solicitors LLP [2009] EWHC practice points: 1952 (Ch), and Angel Solicitors v Jenkins O’Dowd & Barth [2009] 1 WLR 1. SRA minimum requirements do not determine the overriding objective 1220)) and the insurance cover held by that firm. of self-preservation to give protection for employees and clients.

A risk arises also in cases where conveyancers act for developers of an 2. Acting for the same client on multiple transactions in relation to an estate where any negligence or defect in title may affect all buyers, and estate increases the risk of multiple error. similarly, where the conveyancer for buyers acts on multiple purchases in 3. Acting for buyers in the same development attracts similar risks. the same development.

4. Ensuring that sale proceeds are sufficient to pay off all mortgages and When considering what may be regarded as one claim, each case turns that a credible undertaking is held remain fundamental. upon interpretation of the wording in clause 2.5 of the MTC: 5. Extend anti-money laundering diligence so that your firm has multiple ‘all claims against any one or more Insured arising from: one act or cross-checks even where clients present documents face-to-face. omission; one series of related acts or omissions; the same act or 6. As part of your risk assessment, challenge the background information omission in a series of related matters or transactions; similar acts or provided in relation to the transaction. If the sellers are in occupation and omissions in a series of related matters or transactions; and all claims meet with agents and buyers, this will provide a measure of assurance on against one or more Insured arising from one matter or transaction will be several red flags. regarded as one claim.’

7. Identify and evaluate not only clients but also validate other parties and The application of this clause is uncertain, as can be seen from the players in the transaction.

Supreme Court judgment in AIG v Woodman (AIG Europe Ltd v The warning is clear: in order to protect against claims from clients Woodman & Ors [2017] UKSC 18; AIG Europe Limited v OC320301 LLP past, present and future, conveyancers need to consider each year & Ors [2015] EWHC 2398 (Comm)). a composite of risk factors when fixing their insurance requirements.

Clearly, every firm needs to assess the potential risk from aggregation Michael Garson is a member of the Law Society Council, the Law which could exhaust the available level of cover. It is impossible for the Society Board, the Professional Indemnity Insurance Committee buyer’s conveyancer to second-guess what cover a seller’s firm would and the Property Section committee, and chair of the Professional need in the year when a claim might arise.

Standards and Ethics Committee.

Seller fraud

In the string of cases featuring Purrunsing v A’Court & Co [2016] EWHC 789 (Ch), and the appeals heard together of P&P Property Ltd v Owen White & Catlin LLP [2018] EWCA Civ 108 and Dreamvar (UK) Ltd v Mishcon De Reya [2018] EWCA Civ 1082, solicitors faced claims in which

Michael Garson Council Member

The BILL of MIDDLESEX 9

COUNCIL MEMBERS

Are the costs clear?

In August the Legal Services Board (LSB) approved Transparency Rules following a SRA consultation (www.sra.org.uk/sra/consultations/lttf-better-information-consultation.page#download) and the proposal to introduce new regulations from December 2018 - just two years after the CMA laid down their recommended action for the sector.

T

he SRA view is that ‘“People with legal problems often struggle to find clear, understandable information to help them choose the right service. All the evidence shows that they do not necessarily want the cheapest provider, but they do find having information on price helps with their choices” and “Better information will not only help the public and small businesses, but also provide opportunities for firms to promote their individual offer and the extra customer protections you get using a regulated law firm. It is a win-win for everyone.”

This contrasts with the ICAEW position for those they regulate, that “Voluntary transparency requirements can be introduced more quickly than mandatory ones because there will be less consultation required as there will be no need to amend the [ICAEW’s] legal services regulations”.

The SRA approach is to ensure consumers have relevant information when they are considering the purchase of legal services and to help small businesses make informed choices. As price displays vary considerably it is considered hard for consumers to find comparable information. The SRA aim is to accelerate the pace towards ‘universal price transparency’. The Law Society opposed the changes as being simplistic and unlikely to be effective.

Requirements to be introduced for business clients include debt recovery, Licensing applications and Employment Tribunal representation. For consumers, the areas of service covered are conveyancing of residential property (including freehold, leasehold and mortgages), the administration of Estates, applications to the Immigration and Asylum chamber of the First-Tier Tribunal, advice and representation in the Magistrates Court for summary Road Traffic offences and employee advice and representation at the Employment Tribunal.

All authorised firms and individual solicitors providing services to the public (outside authorised firms) are required to publish the prescribed minimum information. The rules should be read carefully as they set out information that must be included in a prominent place on any website. Similar cost information must be available from those without a website. The information must state the total costs and VAT, and include the basis of charging if not a fixed fee with information on disbursements and any introduction or referral fees. The services included (and limitations) should be clear and the qualifications of those carrying out work or supervising it are to be given.

In addition to this there are regulations concerning the information that must be published on websites regarding SRA authorisation and details of how and when a complaint can be made to the Legal Ombudsman (LeO) or to the SRA. The LSB believes the measures will help promote competition and improve access to justice. Whilst the rules are clear so far as they go there are grey areas, and room for confusion. The LSB have directed the SRA to ensure that their final guidance is clear and consistent with the approved regulations and written in a way that does not impose further regulatory compliance on firms. This guidance has yet to be introduced and may clarify the inter relationship of the costs information at the marketing stage (invitation to treat) with the terms of business and estimate of costs given when a firm offer to act. There are samples given in the SRA draft guidance but they are by no means exhaustive and, for example in conveyancing, do not include illustrations for the grant or extension of leaseholds or small business transfers. Care will need to be taken to ensure that disbursements are properly described and explained (see Practice Note www.lawsociety.org.uk/supportservices/advice/practice-notes/publicising-solicitors-charges).

Firms can choose to deal with requirements by following the principles laid out by the SRA: • The total cost should be shown where practicable and must include disbursements and VAT. • ‘Appropriate’ instant online calculators or quote generators can be used to provide price transparency in some areas of legal services.

• Where it is not practicable to give overall costs at the beginning, any costs that are known such as hourly rates, fixed fees for certain elements, the charging basis for any unbundled services etc. should be stated. It will be good practice to list factors that could increase or decrease overall costs.

• The cost of likely or typical disbursements should be stated, together with a brief description of what the disbursement covers (if this is not obvious). Where it is not practicable to give precise costs of disbursements at the estimate stage (e.g. expert reports) then the type of disbursement should be described and a range of costs provided if possible.

• Any likely exceptions to the prices shown should be explained.

• Where charges will attract VAT this must be stated.

• If a fixed price is quoted, it should be clear what the price includes and excludes, and in what circumstances (if any) it will be exceeded.

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• If conditional fee or damages-based agreements are available, then the circumstances in which clients may have to make payments themselves (including from any damages) should be explained.

• If an hourly rate is shown, then average costs or a range of average costs for the type of matter should be quoted where practicable and where to do so would not be misleading • Any variation of the hourly rates, for example, based on who provides the work at the firm should be set out.

The toolkit produced by the Law Society in December 2016 may also assist. (www.lawsociety.org.uk/support-services/advice/articles/price-and-servicetransparency-toolkit ) The SRA’s ‘Looking to the Future’ reforms currently await LSB approval. Although the decision has been delayed and may not arrive until early November it is anticipated that the changes proposed would trigger the transparency requirements on individual solicitors working as ‘freelancers’. Once approved solicitors working for unregulated businesses would be permitted to provide legal services that are not ‘reserved activities’ – such as debt collection , employment work and estate administration - but to avoid public confusion there will be requirements for disclosure to be made to consumers that indemnity insurance is not required (on the minimum terms and conditions) and that Compensation Fund protection will not be available to clients of the unregulated businesses.

Although any client of any solicitor would have the right under the proposed new SRA Codes to complain to LeO it is hard to see how compensation awards could be enforced against an unregulated business or a solicitor in it. The distinguishing feature for fully regulated solicitors would be a new SRA digital logo - yet to be unveiled.

In summary SRA guidance is urgently needed to enable firms to make decisions and implement website changes. Some may want to review the information they currently include in their website and decide whether to limit price information narrowly to the services specified in the rules (and introduce wide ranging exclusions) or deal with their approach to professional charges more comprehensively. There is no suggestion that there will be a prescribed template for all estimates which means that for consumers comparison between websites may not be as straightforward as the regulators suppose. The regulators’ belief is that once information is more widely available then the relatively small percentage of consumers who engage with this information prior to making their selection of legal services provider will increase and that with momentum consumers gradually become better informed.

Whilst most practitioners have no objection to including outline information in their marketing there is antipathy to the assumtion that detail must be published before the client has been introduced and made their requirements known. Firms feel this to be one sided and that it may lead to conflicts and disappointment. As matters presently stand it will be left to individual firms to address the consumer expectations that these rules create and may encourage. It will be for firms to set out the basis on which their estimates are given to internet visitors making clear that consideration may need to be given to other factors before a detailed estimate of costs is produced for any particular engagement. The constraints of any matter may not be evident until full instructions are taken and even then, later events can affect the outcome and consequently many estimates are set with limits and exclusions.

Further SRA guidance in this area will be of interest.

Some of the services selected (debt collection, conveyancing, licensing administration) are considered by the regulators to be largely process driven and as such fees ought not be subject to much variation or could be fixed at the outset. Whilst some commoditised services are offered by online providers, many have exclusions and offer a strictly defined level of service and may not be suitable to every consumer. As price transparency is a requirement only for the specified services offered, it is not clear what the position is where the firm steps outside the service advertised on their website.

Looking forward there is a clear prospect of complaints arising where detailed estimates that follow instructions do not conform precisely with the website information or if the cost of services turn out significantly different from advertised costs. Economists in the competition authority clearly believe that this is a price worth paying in order to bring about a situation where shopping with a solicitor aligns more closely to choosing a restaurant or hairdresser; arguably each of them carry risks. The difference perhaps being that in the case of legal services the impact of a bad choice may last somewhat longer.

Michael Garson Council Member

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LEGAL NEWS

Re-thinking the British Dream: Challenges with climbing the property ladder from a young professional’s perspective Perhaps a cherished British dream, owning your own property in Britain is widely considered to be one’s biggest achievement.

Many individuals in other countries such as France and the United States have a different outlook, where renting is perceived to offer a better more suited quality of life. Why then are we British so concerned with climbing the property ladder as early as possible?

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his Thatcherite philosophy has been embedded within our culture and way of life for a significant period of time, arguably passed down the generations. Yet, the fall in property ownership for today’s young professionals (especially those with middle incomes from less advantaged backgrounds) has been its sharpest to date. Reports show that between 2014 and 2017, only 30% of those aged 24 to 34 whose parents have lower skilled jobs were able to own a property, compared to 43% of those with parents in higher skilled jobs (such as lawyers and teachers). These percentages are alarmingly low, considering that we live in a society where ownership of property is regarded as the most significant investment and achievement in adult life.

One of the reasons why property ownership is on a downward slope is because of the rise in house prices, relative to household incomes. The rise of house prices adjusted with inflation suggests that there is a “housing crunch”, where prices have risen more than 150% in the last 20 years. This is in stark comparison to the 22% increase in the average income for 24-34-year olds (as established by the British Institute for Fiscal Studies). The availability of houses has also halved over 20 years.

Young professionals in the millennium are therefore being faced with a choice: either to rent for the majority of their 20s, or live with their parents to save enough money for a meaningful deposit to be able to purchase their own home and finally climb up that property ladder. It is no surprise that a higher percentage of young adults are now living with parents and this appears to be increasing with each successive generation.

Even then, in order to afford a home with a meaningful prospect that offers a long-term abode, today’s young adults are having to link-up (in their purchase) with their partners to ensure they can match the requirements of a mortgage – a step taken more quickly and far more freely these days, quite possibly without fully considering the implications.

This therefore begs the question as to whether property ownership can still be considered to be such a significant achievement of one’s life, particularly if the repayment of a mortgage will take Britain’s youth well into their retirement. Is it truly an achievement if we spend our entire lives tied into mortgage debt? If not, then what is the alternative?

It could be argued that renting is a possible and suitable alternative. While renting may seem cheaper initially, it is much easier to become caught in the cycle where expenditure exceeds income, resulting in the inability to save to “put down” that deposit. Reports have shown that a third of the young population are likely to rent into retirement unless there is a genuine change in the housing market, more flexibility within the private sector and a change in taxation. Whilst renting may be a short-term alternative for young professionals when they are childless, this option is unlikely to be acceptable in the long-term, particularly when matters of schooling and home security are at stake. Notwithstanding its inherent issues, renting could become a plausible alternative IF the government spends more time regularising rental income, increasing tenant rights and limiting the rate of rent increases. These arrangements would provide more security for the renting community and make it a more viable option for those who are not able to take on the commitment of a mortgage.

Even if we suppose that renting could be a viable alternative, it is unlikely to be seen as the end goal for many young, British individuals. Many will still aspire to jump on the ladder – to own their own home. There are clearly many hurdles to cross and it is unclear whether government incentives are helping. For example, Chancellor Phillip Hammond scrapped the stamp duty for first-time buyers on homes of up to £300,000.00 this year.

So far this decision has showed little sign of boosting the housing market. Further, the government’s aim to build 300,000 new properties by 2020 may be encouraging for young professionals, but it does not provide reassurance as to whether it will instigate affordability for property ownership.

It may be time to awaken from this British dream of ownership and face the harsh realities of today’s property market.

Bhoomika Beechouk Daddar Associate Solicitor, Sriharans Solicitors

LEGAL NEWS

Is ‘Social Media’ becoming a global disruptive force?

A personal view.

In this day and age when even world leaders like President Trump resort to daily use of social media to communicate with his thousands of followers, I ask myself if it is becoming a global disruptive force? Are Facebook, WhatsApp, Twitter, Viber, Instagram and Snapchat to name but a few being used to destabilise countries, governments, the judiciary and to induce hatred that could result in riots.

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believe they also compromise the privacy of individuals and their freedom. Recent events highlight that social media is hijacking, inciting or diverting the traditional forms of national and international media.

Stable countries have been adversely affected by social media. My view of the situation in Libya and Syria is that these countries were disrupted and destabilised in the name of the fight against dictatorship. In Egypt, division and hatred has been rife amongst ethnic minorities and diverse religious groups. This has resulted in a country in the grip of an authoritarian government which imposes its own version of stability and security.

In Sri Lanka, Whats App was used as a vehicle to increase minority hatred ill will and suspicion. The government eventually suspended and then banned WhatsApp attempting to rein in the situation with other measures included bringing criminal prosecutions against individuals and groups. Within weeks, certain international groups and self-appointed guardians of press freedom and expression created a media storm which led to a cave in and the lifting of the ban. Recently, addressing a defence conference the Sri Lankan Prime Minister said: “The new media including social media sites such as Facebook, Twitter and other websites are becoming global disruptive forces. We have seen the potential of this new media to destabilise nations and affect series of changes” I agree with his view and expect that many international leaders feel the same but are reluctant to express such a view forcefully as they risk criticism and attack as deniers of freedom of speech and expression.

As lawyers, I feel we have a duty to safeguard the freedom and liberty of individuals, the Rule of Law and the Judiciary. A terrible human example of this was seen in Tamil Nadu India, when a criminal took a female Whats app profile picture and morphed her head onto a naked body. The young girl suffered terrible shame and committed suicide when even her own parents refused to believe her.

The Commissioner of Police could only strongly condemn this crime at a press conference. Who was protecting her individual freedom and how was it so easily removed? The answer is out there - Social Media!. I believe we need new robust legislation to support the investigation, prosecution and punishment of the abusers, and the owners and controllers of the platforms. Even

that will be too late for the those who have already ended their suffering.

The recent US Congress questioning of Mark Zuckerberg, Facebook founder/CEO is a step in the right direction, but it is too little too late. The UK Parliamentary Select Committee invitation to him was soundly rejected.

In Britain 2018, democracy and even the judiciary are under attack. I am proud to be British and I still believe that the British Parliament is the Mother of world democracy. However, this has to be balanced against social media agitators using the platforms to attack the Judiciary and Justice. The knock on effect was evidenced in the traditional media which, when pushed, characterised members of the judiciary as “traitors” in their headlines. This was a clear attack on our judiciary and on our world famous judicial system I truly believe the fundamental cause arose from social media.

Government, the authorities and the judiciary must make this a priority, acknowledge the danger and take action. These money-making institutions should not be given the freedom of self-regulation.

Cressida Dick the new Met Police Commissioner referred this month to a current case in which the suspect has refused to cooperate. Her view is that when the police initiate an investigation and require Facebook access details/passwords these should be made available within minutes rather than months if at all.

So yes, I view social media as a potentially global disruptive force which I compare to Fire.

That can be used to light a candle in a religious setting, or to light the gas in the family home to cook a meal, or to bend and mould steel or clay.

However, fire can be used destructively to burn down a home, to start a forest fire to destroy villages and towns, to make an area infertile. The choice as ever is in the hands of the person holding the flame. The arsonist or fire starter can and should be prosecuted. So my call to action is for our government to step up and stop underestimating the power of the platforms.

Ariya Sriharan Past President - MLS Senior Partner, Sriharans Solicitors

The BILL of MIDDLESEX 13

LEGAL NEWS

FAIRER, FASTER AND FIRMER IS IT PRACTISED BY THE HOME DEPARTMENT?

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Stated in 1998 to be a modern approach to immigration and asylum, legislation was presented to Parliament by the then Secretary of State and yet twenty years later its policy has died a natural death. During its first decade, Home Office letterhead and correspondence carried the slogan “fairer, faster and firmer”. However, that is now nowhere to be seen.

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any involved in Immigration Practice wonder whether ‘Fairer’ has been contaminated and has in fact been replaced by the word “unfair”. There can be no doubt that the Home Office Immigration Department is implementing a policy of “Faster and Firmer” but a policy of “fairness” is very difficult to identify in their decisions. Looking at the reasons contained in refusal letters, the unfairness is strikingly obvious to both practitioners and lay clients. For example, to establish an asylum seeker’s faith, the person is asked biblical questions that would tax even an A* student of divinity. This has led to the asylum claims of some Christians of Pakistani, Syrian or Iraqi origin being regularly refused, on the basis of disbelief in the veracity of their stated Christian faith. Thanks to Immigration practitioners for their advice and extensive preparation, when cases reach the First Tier Tribunal, most of these refusals are dismissed following the production of witnesses and supporting documents from local Churches which establish that the appellant is a practicing Christian. The Home Office has been regularly criticised by the Tribunal Judges for unfair and unreasonable decisions.

The analysis of the decisions leads practitioners to wonder whether the Immigration Department makes its decisions without full and proper consideration as a function of meeting their targets for case disposal. In such cases the policy of “faster” is being certainly practiced at the expense of “fairness”.

To evidence my concerns as an Immigration Practitioner, I set out this extraordinary case which underlines extreme unfairness and ultra-firmness meted out by the Home Office.

An asylum seeking Sri Lankan widow of 78 years sought refuge in the UK following the civil war in Sri Lanka. This lady had various medical conditions. Her asylum claim failed simply because she was not involved in any political activity and she was not targeted by the Sri Lankan authorities. All her appeal rights were exhausted. Another unusual firmer action was taken whilst her case was being considered – monthly reporting conditions were imposed on her to attend the Immigration office. Generally, reporting conditions are imposed to avoid applicants absconding. This lady who was elderly and feeble was also considered to be a possible absconder. She complied with the reporting conditions without fail. In 2017, a letter including a S.120 Notice dated 3rd January was sent to her and received on 6th January requiring her to file additional grounds/representations. With the help of family members, she requested further time to make representations as the notice allowed only one working day to respond. However, on 10th January, when she attended at the reporting centre, she was unexpectedly detained. She was

illiterate and had not understood the removal notice served on her personally when detained. A relative spoke to the Immigration Office and only then was the lady was informed about the proposed removal. Following my appointment as her representative I requested the Home Office to release her on the basis of unlawful detention which I felt was contra the Home Office’s own policy relating to Adult at Risk in detention, her detention was maintained, and removal directions were set for the following day to Colombo, Sri Lanka. Despite my application for judicial review, the Immigration Office maintained their decision to remove my client. Following contact with the emergency Judge in the Divisional Court and Counsel’s oral telephone representations by telephone to the Honourable Judge an injunction was sought against the removal and for the immediate release of the Applicant.

It is a credit to the British judicial system, that the out of hours Judge ordered that removal be deferred and the release of the Applicant within 24 hours whilst the substantive application was under consideration. My office worked long after midnight to make ensure that the removal was deferred. My client was released within 24 hours. Subsequently, Honourable Judge Neil Cameron QC granted permission for a Judicial Review application declaring that the detention was unlawful.

What this case highlights is the Immigration Department practice of the policy of “Faster and Firmer” but that ‘Fairness’ has disappeared.

My client remains haunted by what happened to her whilst in detention and her failing health has deteriorated. Compensation was ordered against the Immigration office for her unlawful detention and to reimburse her legal costs, but the experience cannot be expunged from her memory.

Our new Home Secretary has promised to practice fairness abundantly. However, I cannot see any evidence of this as yet. Indeed, it appears that the application of fairness is only made after high level political lobbies and cases brought to public knowledge after media attention, such as the Windrush cases. There are thousands of other immigrants who miss out on receiving treatment of fairness.

As similar cases are picked up by Immigration practitioners and the judiciary at large, the British Government is not yet being accused of being draconian law makers or human rights abusers.

However, how long will it be before such accusations are made with justification based on a disrespect for humanity and abuse of vulnerable immigration clients.

Kiran Panesar Senior Accredited Supervisor in Immigration Law, Sriharans Solicitors

LEGAL NEWS

The role of Chief Ombudsman Rebecca Marsh is Chief Ombudsman at LeO.

I have spent the last 15 years of my working life focusing on ombudsmanry and complaints handling. In that time, my passion for getting to the right decisions in our case work has only grown. It is important that decisions are made in the right way and that lessons are shared from these experiences.

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aving worked at the Independent Police Complaints Commission and then the Parliamentary Health Service Ombudsman, I came to LeO in February just as it was publishing its annual business plan and was in the final stages of the development and implementation of a new case-management system, so you can imagine how busy my first few months have been. The focus of our business plan last year was modernising aspects of our work, such as IT and telephony.

Now these are in place, we are focused on improving performance and consistently demonstrating high-quality service to you and to consumers.

Some of you will also be aware that the main challenges for LeO over the past 12 months have been to get complaints investigated within a reasonable period of time, and to meet the high standards of service we set for ourselves. I know, and so do our Board and senior management, that this has to improve.

Legal service providers will be less likely to trust the decisions we make, or the feedback we offer, if we do not get it right ourselves.

So, quality including timeliness and clear decisionmaking are my priorities. This also means ensuring everyone knows what good and poor service look like, and that you can learn, and take confidence from, our casework.

To be clear, however, our work is not about imposing a decision on parties, but understanding the real source of conflict between people and helping to resolve this. I am encouraging our investigators to take this approach, emphasising the importance of bringing both parties with them on the casework journey. If, at the end of it, they do not agree with the decision, they at least understand how and why we came to it. You will see that I really enjoy the casework aspect of my role, and I take a particular interest in the quality and robustness of our decision-making.

Beyond the casework, I also firmly believe that ombudsman schemes have an important role in ensuring service providers understand what consumers hold to be good service. If the casework is done well, then we have the ability to provide you with relevant and timely feedback, backed up with evidence, which supports your

understanding of complaints handling. We already do some great work in this area, such as courses, presentations and guidance, but I would like us to do more. I believe that this is vital to the legal sector, not least so that providers can attract and retain customers.

In fact, research from the Legal Services Consumer Panel confirms this, highlighting that consumers’ trust of service providers is much lower than in other sectors, while our own research shows that consumers can be wary of raising concerns about their service providers.

Some are concerned about the potential negative impact on their own case; others get to the end of their instruction and wash their hands of it, even if they feel they have had a bad experience.

At the same time, it is a challenging environment for service providers. Complaints, though not always welcome, can tell us a lot about the areas of our businesses that may not be working well or need better explanation. We need to make sure you know what good service is, and the role it plays in retaining and attracting new customers.

At the same time, it is important that we continue to hear from legal service providers. You represent 50 per cent of our customers, and while we may occasionally have a difference of view in some areas, the most important thing to me is that we have a conversation about it. So, I look forward to working with you all, preferably through sharing learning and feedback rather than through our complaints process, and I look forward to some interesting discussions.

Rebecca Marsh Chief Ombudsman at Legal Ombudsman (LeO)

The BILL of MIDDLESEX 15

LEGAL NEWS The De-Regulation movement of the last decade, set out to encourage greater competition and increase access to legal services for the public, via the Alternative Business Structure - combining solicitors with non legal actors - but did not imply or require the abandonment of professional standards. Proposals currently before the Legal Services Board for approval recognise that the objectives of reform remain unmet and so take the process a step further and decouple the practice of the law from the ethics of the regulated law firm.

The letter below is written by the Law Society Council member for Central and South Middlesex expressing his view on the way reforms have impacted the way solicitors conduct their professional responsibilities. If you agree or disagree with his points we would welcome your comments as part of a wider dialogue amongst practitioners Dr Helen Phillips Chair, Legal Services Board One Kemble Street London WC2B 4AN

By email 2 September 2018

The Solicitors Regulation Authority (SRA) has made an application to you for approval of changes to the SRA’s Regulatory Arrangements relating to its ‘Looking to the Future’ proposals.

I strongly oppose these changes, which should be viewed in conjunction with ongoing proposals relating to training and qualification and to financial protection (professional indemnity insurance and the Solicitor's Compensation Fund) which are for future consideration and the Transparency Rules recently approved but not yet introduced. The measures should be viewed together as they together form a composite regulatory landscape and failing to do so is damaging to those currently serving the public daily. These proposals introduce new Codes of Practice and permit new service models that diminish and fail regulatory objectives under the Legal Services Act 2007 (LSA) and they do not represent best regulatory practice.

1. The legal profession has responded to market developments and whilst compelled to undergo a process of continuous change to regulatory measures adopted by the SRA since 2011. Continuous change has increased the cost of regulation to firms and the benefits to clients are not apparent and have not been researched; much of the so called ‘deregulation’ by SRA has reduced the activity of the regulator but not the obligations placed upon legal providers.

Changes have shifted the profession from operating under a clear 2007 Code of Practice to the SRA Handbook and outcome focused regulation. This accommodated the introduction of alternative business structures owned by non solicitors but operating within the same requirements of regulation as all authorised firms. The ‘Looking to the Future’ reforms mark another shift, this time away from outcomes to a reduced number of ‘standards’. These are intended to be interpreted by reference to ‘guidance’ that has not yet been produced or consulted upon. As such the current proposals are incomplete and, as they stand, not fit for purpose. The reduced scope of the standards are conceived simply to accommodate the structural changes proposed for employment of solicitors in nonregulated bodies and for solicitor s to operate on a freelance basis partially outside the regulatory net. It has not been demonstrated how this maintains the regulatory objectives or will improve access to justice; safeguards from risks to the public and the legal profession and rule of law are singularly lacking.

2. The hypothesis appears to be, that the cost of some but not all legal services may be reduced and access to services increased but there is little explanation or research as to how or why this is likely. Instead the evidence to support this theory is a re cast set of standards that, when read in isolation to necessary guidance, may be shorter than the current handbook. The objective for facilitating solicitors to deliver services in a way that avoids full regulation and thus to compete with unregulated organisations providing some legal services but also selling other non-legal services and products do es violence to the purpose of the LSA. It was parliament’s intention that non solicitors would work with solicitors as alternative business structure s (ABS) under the system of regulation (Lord Chancellor Falconer ‘business structures to enable lawyers and non-lawyers to work together on an equal footing to deliver legal and other services-external investment will also be possible’). Regulation by title was to be maintained through the introduction of alternative business structures and licensing that secured a level playing file for all authorised persons.

3. Reducing title to a shared badge for qualification purposes but not for delivery of services undermines the legislative purpose of the LSA and fundamentally misapplies it. This is illustrated by the position of a sole practitioner who would be subject to a set of requirements as an authorised body but a different set of requirements, if offering services to the public as a ‘freelancer’.

The limited requirements for indemnity insurance for freelance solicitors differ from those for authorised bodies and pre-empt changes to financial protection that have not yet been decided but are subject to consultation. Again this undermines the system of regulation and is driven by the regulator’s ambition to disrupt regulation by title and altering the legal services the public can expect from solicitors. Solicitors employed in non regulated bodies may offer no protections for consumer in relation to negligence, client account, fraud or complaints.

The proposals are not in the public interest and do not support the constitutional principle of the rule of law. On the contrary, their impact is to confuse, dilute and fragment regulated entities whose regulation was constructed and developed into a coherent body of norms that support the public interest. This fails the objective of encouraging an independent, strong, diverse and effective legal profession.

4. Fundamentally, the proposals fail to take account of legal services from the viewpoint of a user of legal services. What uses might wish for is reduced complexity in legal requirements, access to service with greater speed and better prices with protection from loss and poor service. None of these are made any more likely with the changes than they have been through the introduction of alternative business structures.

By offering a range of ways in which certain types of legal service can be accessed citizens will be disadvantaged. The public, including vulnerable users of services, may be offered the same type of service from regulated firms and solicitors employed in organisations where the objectives are not governed by the same requirements and principles and whose authorisation and protection may be different. For the user of services the extent of each provider offer will be different and carry differing consequences and risk. This will inevitably and predictably increase the complexity of services and delivery structures, the cases where vulnerable or unsophisticated consumers are let down and the number of complaints. This will be impenetrable to consumers and the reputation of the legal profession and its regulators will also be compromised. This fails the regulatory objectives of protecting and promoting the interests of consumers; and increasing public understanding of the citizen’s legal rights and duties.

The Legal Consumer Panel view should not be ignored: ‘The requirements for solicitors to have PII, and to contribute to a Compensation Fund offers protection to solicitors and consumers alike. Regulatory prescription for insurance cover safeguards solicitors and consumers against loss, allowing them to contract with greater confidence and peace of mind. Liabilities following

16 The BILL of MIDDLESEX

LEGAL NEWS mistakes can lose solicitors their business and their reputation, and consumers can suffer significant financial loss as a consequence of errors or omissions. In a changing landscape, with growing external uncertainties, new regulatory flexibilities and diverse partnerships, the risks are as significant as ever. A scandal affecting a single firm can erode public confidence in legal services if financial protection arrangements are not robust.’ The LSB has responsibility for this under the LSA and should not approve changes where there is such a strong and obvious likelihood that regulatory objectives will be put in jeopardy.

5. The proposals mark a further step in the deconstruction of regulation by title. The identity of a solicitor would in future be defined solely by a standard for entry and qualification and no longer be associated with a single set of regulatory requirements in relation to delivery of services into the market. Instead regulatory protection will rest upon the delivery model that may be adopted for the provision of one or more particular services to which more than one set of regulatory protections could apply dependent upon the supplier. The title solicitor would no longer stand as a proxy for regulated services.

As a result the outcome for the consumer, where a solicitor is operating within a regulated body, may be totally different in terms of standards and redress for services delivered through an unregulated body. In its current Risk Outlook SRA highlight risks to ‘Integrity and Ethics’ where solicitors do not put their client’s interest first. That is an increased risk where a newly qualified solicitor can be employed by a non regulated body advancing its own commercial interests and with no duty to uphold the principles of the SRA Code. Employed solicitors will not be in a position to shape the operating environment, risk management or marketing strategies of the organisation but will be employed to meet the targets set by the governance of that body. The SRA will have no reach into the employer organisations and will have no powers to investigate service design or operations out with the control of the employed solicitor.

Again the Consumer Panel offer an important and realistic perspective that should not be ignored by the LSB: ‘The Panel would like to emphasise that consumers find it hard to navigate the complexities of the legal services market, as consumers typically lack the knowledge and experience to understand it. We know that consumers do not readily comprehend the difference between regulated and unregulated providers or the difference in the types of lawyers they can procure services from. Some of the proposals in the SRA's consultation document will compound existing complexities. If implemented, there will be different levels of regulated solicitors with varying consumer protection liabilities.’ 6. The ultimate vision for the future is not clear and further steps along a path to an undisclosed destination should not be permitted. After 10 years of reforms since the passing of the LSA no qualitative evidence has been presented to suggest that the quality of regulation applied under the auspices of the SRA has enabled the profession to, grow its productivity more than it would have done, improve standards or to reduce the prices payable by consumers in real terms for legal services.

Priorities have been skewed. Most significantly, as the costs of regulation to the profession have increased, neither the reputation of the legal profession nor public legal education have been enhanced. Enforcement against those who breach standards and ethics remains characterised by slowness, opacity and indifference to those failings most in need of investigation. There is much that needs to be done but these changes are not it. It is the duty of the LSB to ensure that the SRA directs resources to priorities and enable legal professionals to overcome the challenges of continuous change and innovation, the demands of investment in technology and skills for the digital world and get on to deliver services better to all members of the public.

These are my personal views which I know to be shared by my lay clients and members of the local community and many members of my local constituency and law society.

I hope your Board will take these matters into consideration and I would be pleased to provide

Michael Garson

Solicitor, Law Society Council Member Central and South Middlesex 22 The Causeway Teddington TW11 OHF

TAILORED REGULATION OF SPECIALIST LAWYERS PROTECTING THE CONSUMER SUPPORTING INNOVATION, COMPETITION AND GROWTH

IT’S TIME TO THINK ABOUT THAT MOVE

To find out more about how your practice could benefit from transferring to the CLC, contact us on the details below.

www.clc-uk.org/Changing-Regulators or call ! &#' ' "

The BILL of MIDDLESEX 17

LAW SOCIETY REPORT

Law Society Report In this issue, I would like to take the opportunity to let you know about an aspect of our diversity and inclusion work being championed on behalf of our members.

Photograph: Bhavni Fowler

Women in leadership in law The Law Society of England and Wales is currently embarking on an ambitious project to ‘move the needle’ in order to level the playing field for women and ensure fair chances to progress into leadership positions.

Led by Law Society President, Christina Blacklaws, the ‘Women in leadership in Law’ project builds on work which began in 2008 to assess the role of women in law.

Christina commented: ‘The Law Society is committed to representing the legal profession, and diversity and inclusion is at the heart of this.’

Why now?

As we approach the first 100 years since women in England and Wales were allowed to practise as solicitors, it is necessary to take stock of the progress that has been made in the profession. Since the first female solicitor, Carrie Morrison, was admitted, it is fair to say that women have taken the profession by storm, with women making up over 60% of new law graduates and new admissions and 50.2% of practicing solicitors.

Statistics However, if we look at the statistics a little closer, it is clear that more still needs to be done regarding women’s representation in leadership levels.

Women are still not making it to partner status in equal numbers to men, accounting for only 28% of the 30,000 partners in private practice.

Businesses are losing talent as women from age 36 are leaving the profession, often at the point at which they have the skills and experience to become partners. We also know that equal pay remains a problem with pay differentials exceeding the national average.

Christina also pointed out that ‘it is essential that the legal community recognises the contribution women can make, and where they are losing

talented women, take steps to retain their knowledge and experience. For individuals and business to be truly successful – and desirable to work for – equal treatment and gender balance is a must, to the extent that it is becoming a generational issue.’

Next steps To better understand why women are not making it to the top of the profession at a rate comparable to the numbers who enter the profession, the Law Society decided to explore the issue further.

Starting in November 2017, a survey of women in law was launched to gather perceptions on the issues affecting women. Translated into French and Spanish, over 7,700 responses were collected in three months from men and women across the world. The three primary barriers to women’s progression were considered to be: 1. Unconscious bias (52%) 2. Unacceptable work/life balance demanded to reach senior levels (49%) 3. Traditional networks/routes to promotion are male orientated (46%) On a more positive note, the best practice highlighted by the survey was identified as: • Access to mainstreaming of flexible working for everyone at all levels • Mentoring and sponsorship • Networking opportunities • Engaging with men in the equality debate • Promotion and celebration/increased visibility of leading women in law • Role modelling But the Law Society isn’t stopping there. Acknowledging the importance of equal treatment and gender balance in the workplace, the Society has produced a toolkit which is aimed at helping all legal organisations, large and small alike, to accelerate the pace of change. The toolkit empowers women to become change makers in their organisations by including robust business cases for a number of areas as well as providing tangible actions which members can take to support gender equality.

The results of the international survey have also provided a launchpad for a series of events to raise awareness and address the barriers which need to be removed to achieve true gender equality.

A target of 100 focused roundtable discussions will take place across England and Wales this summer to gather qualitative information and lived experiences on the key issues identified in the survey. A guidance document has also been created to support those who would like to host their own roundtables for this purpose.

Between October and December, the Law Society will be hosting men’s roundtables for men in senior roles who have the ability to make an impact in their organisation. A number of international roundtables are also scheduled to take place over the next nine months.

And to celebrate the centenary of women in law, and to release the findings from the Women in leadership in Law project’s research, an International Symposium will be held in London in June 2019, tickets for which will be available from the Law Society later this year.

Anyone who would like to be part of the Women in leadership in Law Project, or who would like to receive copies of the toolkit and roundtable guidance, is asked to contact President@LawSociety.org.uk If you would like further information on our wider diversity & inclusion work, or any other areas of interest, please do not hesitate in contacting me.

Bhavni Fowler 18 The BILL of MIDDLESEX

Relationship Manager, The Law Society Email: bhavni.fowler@lawsociety.org.uk Tel - 07773 254 543

ARTICLE

Community Infrastructure Levy vs Small Developers – A David and Goliath tale?

Community Infrastructure Levy (‘CIL’) is a discretionary planning charge on new build developments aimed at funding local infrastructure, such as roads, schools, flood defences and medical facilities.

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or a small scale developer, CIL can often make development projects economically unviable. In an age where there is an increased demand for housing across the country, should the government not be incentivising small developers rather than imposing what is essentially, a heavy weight tax on development?

The relationship between development, infrastructure and CIL Britain needs more homes which in turn drives a demand for more infrastructure. The relationship can be demonstrated as follows:

CIL therefore marks a shift of devolving greater funding towards local planning authorities but for developers it can be a potential attack on profit margins and the economic viability of the development as a whole. The effect will particularly hit smaller developers as the onset liability of CIL may lead many to experience early cash flow problems.

Why do we need small developers?

The housing market needs a mix of small and large developers. It will often be the smaller developers who pursue the small overlooked sites that are able to be developed and put on the market quicker compared to larger strategic sites that can take many years to come to fruition.

Economic Viability A local charging authority must balance the desirability of gaining funding from CIL against the potential effects on the economic viability of development in their area. Economic viability can be assessed by: 1. Employing a consultant to analyse data on residential building costs and per square meter sales vales of recent developments in the area; 2. Conducting consultations with local developers and their agents; 3. Considering the rates lenders expect for investing in development projects; There is no exhaustive list of evidence the local charging authority may consider and it is debatable how such evidence will hold up against changing market conditions. It may be that one expert appraisal may vary considerably to another. For example, in R. (on the application of Fox Strategic Land and Property Ltd) v Chorley BC [2014] EWHC 1179, during the consultation stage of implementing the draft charging schedule for CIL, the consultant for the Council stated the density of dwellings to be 39 dwellings per hectare in the area whereas the defendant's consultant argued a more realistic density would be 31 dwellings per hectare. The difference in opinions could greatly impact profit margins particularly for the smaller developer.

Case Example Mr P, a small developer, owns a house in Harrow and obtains planning permission to demolish the house and build six new flats. The chargeable net floor space is 460 m². Harrow has a CIL rate of £110.00/sqm for residential development. The Mayoral CIL rate (only applies for London) is £35.00/sqm. The index figures (based on the national All-in tender price index) is 322/223 for the mayoral indexation and 322/224 for the Harrow indexation.

Mr P's CIL liability will be as follows:

This gives Mr P a considerable CIL liability of £95,985.03 which must be paid within 60 days of commencement of the development.

Reform and the future of CIL It is fair that developers, small and large alike, should contribute towards the infrastructure necessitated from new development in the local area but as discussed, the CIL system is not without criticism. Many local planning authorities recognise the effect CIL has on the economic viability of local developments so typically here is a larger CIL uptake in London and the South East where market and land values are higher.

The Department of Communities and Local Government ('DCLG') propose to replace CIL with a lower level tariff, the ‘Local Infrastructure Tariff' ('LIT'). LIT will apply to all developments and will be set at a considerably lower rate than CIL which DCLG believes will contribute to a less detrimental effect on the economic viability of local developments.

We await to hear from the Governments Autumn Budget on whether these proposals will be implemented.

Davina Puran Paralegal in the Development, Planning and Construction Department at Harold Benjamin Solicitors.

How CIL is calculated?

CIL is based on the below formula:

The BILL of MIDDLESEX 19

ARTICLE

Becoming a Highly Successful Small Law Firm Richard Hugo-Hamman, Executive Chairman of LEAP UK, gives his advice on how small law firms can become more successful

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uilding a successful law firm requires thought and planning but above all it requires action. 89% of all law firms have between one and five partners and, like many small businesses, they are often under-resourced with many lacking training in business or even rudimentary bookkeeping skills. What is not sufficiently recognised is the entrepreneurial nature of almost every law firm.

Many founders of law firms begin as sole practitioners or junior partners. They rely entirely on their own skills and determination, not just for success but for survival, and are dedicated to the calling of their profession.

Introducing change can be hard but adding some of these practical measures could transform a business.

1. Become efficient Successful small law firms with extremely price sensitive private clients understand that their very survival depends upon efficiency.

Contrary to arguments that time is better spent lawyering for clients than worrying about efficiencies, it is impossible to ‘lawyer’ confidently and well in a disorganised and inefficient environment. Technology provides tremendous but often unharnessed opportunities to create the most efficient and successful law firm in your area. Most lawyers seem to think that putting effort into compliance and bookkeeping is a good place to start, but bookkeeping is typically done by one, usually non-billable, person within a small firm. Revenue is generated by lawyers. It makes sense to make them as productive as possible and to give them the tools to provide wonderful client service.

Brief your lawyers on your plans and goals, and select areas where technology can instantly provide the biggest productivity boost

2. Enjoy practising law The lawyers working in the most successful small law firms enjoy what they do.

They have organised their firms and have made conscious choices about the work they want to do and the clients they enjoy working with. Stress is bad for business and can be eliminated by choosing areas of law that interest you and setting realistic expectations of success.

Time needs to be set aside to lead the firm, to manage firm affairs, to meet regularly with staff, and to work on practice development.

3. Employ smart people and look after them Your staff will be your biggest single expense aside from yourself. It does not make sense to treat staff badly, and yet in so many firms, staff are undervalued and not treated well by under pressure lawyers. Successful firms treat their staff better in a more holistic sense. Their staff have good chairs, up-to-date equipment and clean work areas. Happy and motivated staff will do better work, attract new clients and referrals.

Perhaps the biggest difference between the successful and unsuccessful is the attitude to staff training. Recruiting the best people you can afford and organising regular training will ensure they are happy and effective employees and will stay with the firm. Provide staff with the best tools to do their job, which applies to both hardware and software technologies, and with technology now so inexpensive any firm can afford the best systems. Mentor young lawyers (and paralegals), thereby constantly improving their skills.

4. Select areas of law you like For smaller law firms, particularly when starting out, there is the temptation to take on any work that becomes available.

The successful firm will develop expertise in defined areas of law – thereby supporting higher professional fees. Select areas of law that sit together comfortably, e.g. residential property, estate planning and probate and family law.

It is possible to take a specialisation too far. One of the great advantages that the legal profession has, is that it is possible to build a very recession-proof business. Successful firms have multiple revenue streams to cushion them when the economy changes.

Once chosen, focus all your marketing and training on your selected areas of law.

5. Dedicate time to building the firm as a business The leaders of successful firms understand that building a firm takes time. It is the leader who must do this. In many smaller firms, the principal is often the largest fee earner. But these leaders can get more done by delegating work

20 The BILL of MIDDLESEX

effectively and setting aside 20% of their time to work on building the business.

If you want more clients and matters, you need to promote your firm. Successful firms ensure that there is constant alignment between the legal services offered and what their marketing material and their staff say. It is this alignment and consistency of messaging that builds a firm’s reputation. Because they are empowered and happy, clients take notice and will become repeat customers.

A good leader will share their vision with staff and clients and ‘know their numbers’. A good practice management system will track how many new clients they get per month and what the average client is worth. Understanding cash flow and working capital requirements is important as is adopting encouraging employment policies and practices.

6. Adopt new technology The evolution of software has led to the development of solutions that help the owners of SME law firms become better leaders and build more successful firms. Just the act of using the software properly will transform a business, if a firm does not keep up with technology, it will quickly become uncompetitive.

Technology can provide better quality of service more efficiently and at a lower cost. Ways to do this are: • Focusing on having a single database of information for a firm, • Having productivity systems (practice and case management) and legal accounting and client accounting in one application • Having libraries of highly automated legal forms, letters and agreements to maintain consistency and produce accurate documents quickly without needing special typing skills; • Recording every activity on the go so that the firm can bill accurately while complying with legislated record-keeping obligations; • Using a compliant client accounting system which all staff can use.

By running operations on a low-cost, cloud-based system, tech-savvy law firms can use smartphones and tablets for mobility and save thousands of pounds otherwise wasted on traditional IT infrastructures and expensive IT support.

7. Confront the challenges of getting paid and solve them The leaders of highly successful firms confront money challenges head on. With good time recording and billing systems, it becomes easier to explain and depersonalise the fee process.

Ways to do this are: • Ensure there is an appropriate Retainer or Engagement/Costs Agreement in place for every matter and that it is signed. Good systems make this easy; • Whenever possible, get a deposit from the client, ideally sufficient to cover the next 30 days of work; • Where appropriate, set monthly payment arrangements from the start of a matter so that bills never get out of hand; • Make sure that the firm does precisely what the Retainer Agreement says it will do regarding billing and payment which may mean ceasing work beyond the scope of the Agreement; • Immediately provide a revised Retainer/Cost/Engagement Agreement when scope of work changes; • Make sure that every activity of every lawyer is contemporaneously recorded into a system so they can manage their matters properly, bill accurately and comply with their professional obligations.

• Bill regularly for small amounts, never letting the debt get out of hand; • Don’t operate under the illusion that WIP is income – it needs to be billed • Most importantly, stop work if the client stops paying without making alternative arrangements

8. Implement standard processes and procedures Many SME law firms are badly organised with files littering the office which does not impress clients.

A successful firm has systems and procedures needed for the efficient administration of the office and every matter throughout the firm, which all staff can pick up and understand. The certainty that organisation brings allows the lawyers to spend all their time doing law, not clerical work.

Ways to do this are:

ARTICLE • Having only one database of client and matter information. This requires a good software solution that combines time recording, document production and management, legal and client accounting and billing in one integrated application.

• Have one way of opening a new client file and apply that method for every member of staff and every client file.

• All standard documents electronically organised and easily available.

• All information about a matter can be accessed instantly and the matter can be shared with clients online • Have standard billing procedures that are adhered to religiously.

9. Make compliance a natural consequence of running a firm well.

The leaders of successful SME law firms implement systems with standard procedures, processes and checks and balances to ensure that compliance is a natural consequence of running a firm well.

Every law firm is required to appoint a Compliance Officer Legal Practice (COLP) and a Compliance Officer Financial Affairs.

Successful firms use modern systems and manage their firms diligently, so they do not face stressful disciplinary proceedings for failing to comply with ethical or regulatory compliance.

10. Become experts in customer service The bedrock of customer service is communication. Lawyers running successful firms effectively embed customer service throughout the culture of the firm. Happy clients mean repeat business and referrals.

With modern technology, lawyers can use new ways of communicating with clients, including self-service portals where clients can book appointments, pay bills and make deposits, view their matters and comment on documents.

Keeping in touch with clients throughout the year via a newsletter informing them of new legal issues and general news from the firm will further cement relationships.

11. Understand finances A successful SME law firm will understand the economics of the firm and the matters. To successfully grow a firm, understanding the sources of capital and effectively managing them is critical.

Ways to do this are: • Ensure that you have a deposit in place to cover initial fees and disbursements whenever possible • Ensure that every activity (in and out of the office) is accurately and contemporaneously recorded • Ensure that bills are generated as soon as it is appropriate • Ensure that everyone in the firm generates bills using the same system and sends them • Make it easy for clients to pay using modern online payment methods • Follow up debt to ensure it is paid on time Successful firms monitor performance daily through automatically generated performance reports identifying issues or problems as they arise. They are particularly careful about managing disbursements, which can easily be overlooked. This creates a well-run and financially efficient law firm.

With a good understanding of revenue, firms will understand which matters are profitable, and which work is worth pursuing. By keeping accurate time records for every matter, they can adjust their charge rates as needed to achieve the desired profitability level.

For further details visit: leap.co.uk/best-practice-standard

Free your mind... it's time to think more objectively about structured products ‘‘I’m trying to free your mind, Neo. But I can only show you the door.

You’re the one that has to walk through it. You have to let it all go. Fear, doubt, and disbelief. Free your mind.’’: Morpheus, The Matrix, 1999.

I

recently had a thought-provoking chat with Chris Taylor, global head of structured products at new provider Tempo, about the fundamental differences between mutual funds and structured products, including the unique merits and efficacy of ‘best of breed’ structured products and their ability to add value within investor portfolios.

Chris has a background in asset management, including active and passive funds, and is one of the UK’s ‘go to’ experts in the structured products sector, so he has a good understanding of the full investment landscape. It was hard to disagree with much of what he had to say, but, as he also said, it does seem to require some wealth managers and independent professional advisers, and investors, to ‘free their minds’ in order to engage objectively on the facts.

The fundamental fact that interested me was his explanation that active fund management is built around ‘aims and objectives’, that actually are simply ‘hopes’, or even just ‘wishful thinking’. The bottom line is that there are no obligations on fund managers to actually deliver anything that they ‘promise’.

If / when fund managers fail to achieve their stated aims and objectives, they know that they can simply provide an explanation to investors, usually blaming their performance on markets, perhaps offer an apology, promise to try harder next time, and suggest that investors just need to be patient and remain invested.

The bottom line is that the risks of active fund management are borne by investors, not the fund managers, and it is this that is fundamentally different from structured products.

Structured products are based on contractual legal obligations. As with active fund management, investors in structured products access marketing materials, for example a plan brochure, detailing what the structured product has been designed to provide, and the conditions and parameters for both returns and risks. However, unlike active fund management, structured products marketing creates contractual, legal obligations upon the investment bank standing behind the product, as the issuer / counterparty, to deliver what they stated.

Structured products allow investors to abdicate from various risks including market risk and fund management process risk, delegating these risks to investment banks

/ counterparties, who must deliver the terms of the bonds that they issue that back their products, with no wriggle room, no explanations, and no apologies, unless they are bust.

This is a significant USP benefit of structured products, that can serve investors well, in diversified and balanced portfolios.

This is a compelling and unique feature of structured products, and one that really needs to be understood and appreciated. Particularly as an increasing number of wealth managers, professional advisers and investors believe that the decade ahead may present a more challenging investment environment than the decade now behind us.

The investment environment ahead of us, in which the world moves from Quantitative Easing to Quantitative Tightening etc., is likely to see professional advisers, and their clients, wanting and needing to work their portfolios harder, including considering different types of investments for better portfolio diversification, instead of restricting their portfolio diversification planning to just asset class and geography.

Structured products can present a compelling portfolio option that can potentially add value alongside other funds, for objectively minded professional advisers and their clients, not least because there are some things that passive and active fund management just cannot do.

Structured products can help fill that gap, notably offering the potential for positive returns in range bound, possibly flat and / or falling markets, in addition to reducing and controlling exposure to downside market risk.

We think it is time (and timely) to think carefully about and understand the differences between active fund management and structured products and to recognise the merits and attributes of best of breed structured products. Many investors may be served well with the inclusion of structured products within their portfolios.

Tim McKechnie

The BILL of MIDDLESEX 21

Investment Director – S4 Financial Limited

FREE WILLS/ LEGACIES

Where there’s a will, there’s a way Wills and probate are not something people typically like to think about and discuss, which means marketing is a huge challenge.

U

nless you scare people into thinking about their impending death, how can you attract new clients?

Educate and inform – demonstrate you are a trusted adviser There are thousands of people on your doorstep without a will, and the worst offenders are in the 35-54 age group. Ironically, this group also has the most dependents and monetary commitments but they’re busy, working people who are very much living in the ‘here and now’ often too busy to plan ahead. Writing a will is on the ‘To do list’ which never gets done.

Target this group by finding ways to educate and inform them about the importance of writing a will and make the process as easy as possible. Use social media and local online websites as a way getting advice led blogs out there; 44% of this age group are avid digital content consumers.

Have a digital presence and utilise it wisely Staggeringly, over 20 million online searches are made for legal services each year in the UK alone and a third of clients now secure legal representation via the web.

This should present a huge opportunity for solicitor firms yet 60% aren't doing any digital marketing at all and 26% don’t even have a website.

A three or four page site can be built quickly and simply using tools such as Wordpress for a few thousand pounds and it’s also worth setting up a Google Business account so that local residents can find you.

While your site is being built, you could find yourself a few clients richer very quickly by signing up to an online legal marketplace. With access to thousands of “ready-to-buy” clients, new jobs are posted and then shared with lawyers signed up to the service who can then bid for the work.

There are no membership fees or costs to make a bid so it’s a very affordable way of generating a lot of lucrative new business.

Be innovative When looking at your marketing think what channels you can use to reach your target age group. As it’s a sensitive subject its often best conveyed face-to-face so consider local events which might attract this age group and take an information stand. How did your clients come to find you? If word of mouth is still a main driver perhaps think about how you can incentivise clients to spread the word about your services by offering a reduced rate to their friends and family.

Alex Boothman CEO of MyLegalAdviser

Help future generations survive pancreatic cancer

22 The BILL of MIDDLESEX

Each year, in the UK, almost 10,000 people are diagnosed with pancreatic cancer but shockingly the survival rates have barely changed in 50 years; just under 7% survive more than 5 years which is extremely low.

Pancreatic cancer has a chronic lack of awareness but if it is diagnosed in time for surgery the chance of surviving increases drastically.

Pancreatic Cancer are dedicated to improving the survival rate of pancreatic cancer by raising awareness of the disease which increases the chance of being diagnosed in time for surgery, currently the only cure. The charity funds research into developing early diagnostic methods, carries out nationwide awareness campaigns, develops and provide free elearning modules and resources to healthcare professionals and produces free information for patients and families they can trust.

By leaving a gift in your will to Pancreatic Cancer Action you can help insure that early detection of pancreatic cancer is a reality and we can reach a day where more patients survive the disease.

To find out more or support Pancreatic Cancer Action call 0303 040 1770 or visit www.panact.org/legacy.

FREESW ECTION ILLS/ LEGACIES HEADER

A legacy for the future at the Royal Botanic Gardens, Kew The Royal Botanic Gardens, Kew is a world-famous centre for botanical and mycological knowledge. Today, from its UNESCO World Heritage site at Kew and Wakehurst, its wild botanic garden in Sussex, it is finding innovative solutions to global challenges.

K

ew is famous for the beauty of its stunning gardens, which inspire and enrich lives. It is also recognised and acknowledged as a centre of scientific research, at the forefront of finding solutions to some of the most urgent challenges facing the world today: climate change, conservation of endangered species, and research into plants that can offer treatments for serious diseases.

Every legacy helps fund essential projects, from vital conservation and research work through to apprenticeships and community volunteer projects. Thanks to generous legacies and donations, Kew was able to complete the restoration of the Temperate House and reopen to the

public in May 2018. Built in 1863, this Grade I listed iconic building is the largest surviving Victorian glasshouse. It is integral to the story of Kew and is an example of an enduring legacy that is once again protecting some of the most threatened plants from around the world.

If your clients would like to make a difference to Kew’s vital plant science, global conservation work, and world class botanic gardens, they can help secure the future of Kew by leaving a gift in their Will.

Please contact Kew’s Legacy Team to learn more or to discuss their gift: legacies@kew.org or 020 8332 3249.

Leave a lasting legacy Kew is famous for its beautiful gardens. It is also a centre for scientific research, at the forefront of finding solutions to some of the most urgent global challenges: climate change, food security, human health, and loss of biodiversity.

By leaving a gift in their Will, your clients can help secure the future of Kew’s science and conservation work and world-class botanic gardens.

The Foundation and Friends of the Royal Botanic Gardens, Kew is a registered charity no. 803428. Registered in England and Wales.

Please contact the Legacy Team to learn more: 020 8332 3249 legacies@kew.org kew.org/legacies The BILL of MIDDLESEX 23

FREE WILLS/ LEGACIES

More than half of British adults have made no will, a new survey has revealed.

The study, carried out by Will Aid, the charity will-writing campaign that takes place every November, found that 53% of adults have not prepared this vital piece of paperwork, up from 51% in 2017.

And some regions are far worse than others.

In England, people from the North East and North West fared the worst, with 58% admitting they don’t have a will.

In Northern Ireland, more than 74% of those questioned admitted they had no will, revealing a dramatic increase of 10% since people were polled in 2017.

In fact, only three of the thirteen regions in the UK have scored better than when polled in 2017 about having this vital piece of paperwork in order.

Yorkshire is the most organised region with just 43% of people admitting they don’t have a will.

Peter de Vena Franks, campaign director for Will Aid, said: “Every year we carry out a poll to work out how many Britons have no will in place and the figures are always surprising.

“To see that the percentage of people without a will increased this year is all the more reason to stress the importance of taking the time to make a will.

“Will Aid is a fantastic way to tick this important piece of paperwork off your to-do list whilst also making a real difference with a charitable donation.”

“As well as making a donation, many people who make their wills through Will Aid, use this opportunity to provide support to their favourite charities through a gift in their will. These legacies make a great difference and we are very thankful for those who choose to support our work in this way.”

Will Aid Month, which takes place every November, encourages people to write a will with the help of a professional solicitor.

This is the 30th year of the campaign so solicitors are being urged to sign up to provide their time for free. Appointments to make a will through Will Aid are available throughout November and the general public are being urged to contact Will Aid as soon as possible to book a slot.

Law firms volunteer their time and expertise to write basic wills, waiving their fee, with clients being invited to make a voluntary donation to Will Aid instead. Donations support the vital work of the nine partner charities.

The suggested donation for your basic Will Aid will is £95 for a single will and £150 for a pair of mirror wills.

James Tarleton, Chair of Will Aid said:

Those who wish to book a will can make their November appointments from September onwards via our website or by calling us on 0300 0309 558.

“2018 marks 30 years since the start of Will Aid and this year’s statistics show that, even after three decades, there is still a need for this campaign and to encourage more people to make their will.

Last year Will Aid raised more than £1.25 million for its charity partners – ActionAid, Age UK, British Red Cross, Christian Aid, NSPCC, Save the Children, Sightsavers, SCIAF (Scotland) and Trocaire (Northern Ireland).

“Not only does making your will through Will Aid provide peace of mind, by using a professional solicitor, but the nine partner charities use the donations and legacies from will makers to reach people in crisis, both here in the UK and all around the world.

For more information visit www.willaid.org.uk.

24 The BILL of MIDDLESEX

FREE WILLS/ LEGACIES

A love that lasts forever Every year, we care for around 15,000 dogs at our 20 rehoming centres across the UK. It’s only with the help of our wonderful supporters that we can give these dogs the love, care and attention they deserve while finding them the right home.

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their married life rescuing and caring for neglected and unwanted dogs.

A third of our funds come from gifts included in supporters Wills. One such supporter, Dr Thomas Preston, has very kindly pledged to leave a legacy to Dogs Trust in his Will. He and his beloved wife, Pat spent 40 years of

Pat had always had a strong bond with dogs, having lived with them for much of her life.

She couldn’t bear to see them injured or illtreated. Sadly she passed away in 2014, leaving behind Tom and her darling dogs. It was their shared belief that every dog deserves a long, happy life that led to her making the incredibly generous decision to leave us a gift in her Will. Dogs Trust promises to never put down a healthy dog.

Please help us keep this promise by considering leaving us a gift in your will.

oviding expert veterinary care, specialist rehabilitation equipment and training facilities doesn’t come cheap. Not to mention all the vital everyday necessities like food, bedding and heating. Dogs Trust receives no government funding, which means we wouldn’t be able to run our 20 state-of-the-art rehoming centres without the generous donations from our supporters.

The BILL of MIDDLESEX 25

Premium Residential <0.25Ha

Environmental | Flood | Ground Stability | Energy & Infrastructure

Report Details

Subject Site

Address:

R uested by: Req

Grid Reference: E: 123456 | N: 123456

D te: Da

Report Reference:

R Repo rt ID:

Sample, Sample

Sample

S Sample

2 /04/2018 27 1 00085407 10

Professional Opinion on 1.ENVIRONMENTAL

PASS

2.FLOOD

PASS

3.GROUND STABILITY

PASS

4.ENERGY & INFRASTRUCTUR TURE

PASS

No further recommendations

No further recommendations

No further recommendations

Consideration(s):

4.20 Power Stations

uted Areas Air Quality Index: Some Pollut (See 1.25)

This page should always be read in conjunctio on with the full report. The Professional Opinion indicates the potential risks and any other potential issues associated d with the property. The results should be disclosed to client and/or lender and/or insurer as appropriate.

A ‘Pass’ is g given if no p potential p property p y spec p cific risk has been identified.

A ‘Pass with Considerations’ is given where there are potential hazards in the locality to bear in mind d, or if there are features nearby which some clients might consider could affect them.

A ‘Further Action’ is given if there is a potential t property specific risk and a further action is advised.

In the event of a request to review the Professio ional Opinion based on additional information, or if there are e any technical queries, the professional advisor who ordered the report should contact us at info@futureclimateinfo.co om, or call us on 01732 755 180.

Regulated by RICS If you rre equire assistance, please contact your Search Provider or alternatively contact FCI directly with your Report ID. Tel: 01732 755 180 | Email: info@futureclimateinfo info.com | Web: www.futureclimateinfo.com

AFFILIATE MEMBER

PROPERTY

Network Rail

Lose Appeal in Japanese Knotweed Case

On the 3rd July 2018, the Court of Appeal handed down its judgment in the case of Williams & Waistell v Network Rail Infrastructure Ltd [2018] EWCA Civ 1514, and in doing so set a landmark legal precedent for the control of Japanese knotweed.

Decision of the County Court he County Court judgment was the result of private nuisance claims filed in 2015 against Network Rail by Mr Robin Waistell and Mr Stephen Williams. Neighbours Waistell and Williams, who own adjoining semi-detached bungalows in Maesteg, south Wales, had argued that Japanese knotweed on neighbouring Network Rail land was causing an actional actionable private nuisance by (1) encroaching upon their properties; and (2) by being within seven metres of their properties, interfering with their quiet enjoyment of, and causing a loss of amenity in respect of, their properties by reducing their market value.

The County Court found in favour of the Claimants. It was held that they had no claim on the basis of encroachment as there had been no physical damage to the property but that the mere presence of Japanese knotweed within 7 metres of their properties was sufficient to constitute private nuisance. The County Court awarded the Claimants compensation for the cost of treatment of the Japanese knotweed and the residual diminution in value to the properties.

Grounds for Appeal Network Rail appealed the decision on a few grounds including that the presence of knotweed on Network Rail’s land within seven metres of the claimants’ properties was incapable of causing an actionable nuisance merely because it diminished the market value of the claimants’ respective properties.

The Claimants cross appealed on the basis that as the knotweed had encroached onto a neighbouring property that owner did not need to prove that the knotweed had caused physical damage to the property for the encroachment to constitute a private nuisance.

Dismissal of Appeal The Court of Appeal dismissed Network Rail’s appeal and upheld in most part the ruling made in February 2017 at Cardiff County Court, albeit on different grounds.

Interference with Land’s Amenity Value The Court of Appeal held that the Claimants could not claim for private nuisance merely because of the diminution in the properties’ market value due to Japanese knotweed within 7 metres of the property. This is because the purpose of the tort of nuisance is not to protect the value of property as an investment or a financial asset, its purpose is to protect the land’s

T

intangible amenity value which concerns landowners’ use and enjoyment of the land.

Therefore, the Court of Appeal judgement found that the mere presence of knotweed in an adjoining property is not in itself capable of being an actionable nuisance, unless it threatens to encroach, or has already encroached. However, the Court of Appeal held that once encroachment or imminent encroachment is established damage is assumed and claimants can succeed in their claims for private nuisance and be compensated for both the cost of treatment and the loss of amenity caused by the Japanese knotweed. The Court of Appeal found that the loss of amenity value was the same as the diminution in value found by the County Court and upheld the award. The result of this case has far reaching consequences; it solidifies the fact that Japanese knotweed is an actionable nuisance for which damages can be claimed. This means its presence imposes an immediate burden on landowners who not only face the existing difficulties and expense of eradicating Japanese knotweed from the affected land, but now also face the concern of being liable to others if their knotweed threatens to encroach, or has already encroached, onto another’s land.

Charles Lyndon Solicitors Comment Charles Lyndon Solicitors, who acted for Mr Waistell said “hopefully now organisations like Network Rail will take their responsibilities seriously and remove the knotweed on their properties. As one of the few firms specialising in Japanese knotweed, we have successfully represented a huge number of clients affected by Japanese knotweed and ensured they are compensated for the cost of treating the Japanese knotweed and the impact of it on the value of their properties.”

Japanese Knotweed Ltd undertook a Japanese knotweed property risk survey for the Waistell private nuisance claim, and work closely with Charles Lyndon and other solicitors involved in knotweed claims.

Expert Help is at Hand Here, at Japanese Knotweed Ltd, we provide expert knotweed consultancy and contracting, delivering surveys, treatment and excavation programmes throughout the UK. We have an in-house team able to help and support with knotweed legal issues. If you require Part 35 compliant legal knotweed reports with a detailed knotweed remediation plan, please contact us.

Helping you get on with the matter in hand Affordable expert guidance

View sample pages at lawsociety.org.uk/books

Sharing our expertise.

CPD

CPD from Geodesys. All you need to know.

Geodesys offers a range of conveyancing CPD options including housing industry updates, regional housing analysis, legislation updates and product training. Look out for our regional events and donâ&#x20AC;&#x2122;t forget that we also organise in-house training to suit the needs of your team.

Find out more: call Geodesys customer services on 0800 085 8050.

www.geodesys.com/events

PROBATE

How far back can I trace my ancestors?

The first port of call when it comes to finding out the basics about your relatives, even if your interest in family history is minimal – is through the use of census records. Bursting with useful information that can see your family tree grow within minutes, the most popular genealogy sites store these, enabling you to reach names at speed.

T

hat said, you may reach a certain point where you’re looking for facts before the Census began.

General registration of records of birth, deaths and marriages began in 1837, and the first useful Census was collected in 1841. (The first ever Census actually dates back to 1801, but has no useful information – it’s essentially just a list of names!) What about before that?

What are your options then?

Winding the clock back further, records can be found in the main parish registers. It was Henry VIII who decreed that each of the 11,000 parishes should keep a record of baptisms, marriages and burials from 1538 onwards.

Although these don’t hold as much information as the Census gives us, they’re a useful and reasonably reliable source to look at. Britain actually has some of the greatest in the world, in terms of accessibility and detail.

Parish registers can be found in county archives, but it’s worth remembering that whereas a Census would tell you where your relative was born, a parish register will only tell you about their baptism. This is a small but potentially vital detail, which could have a huge impact on your research.

When you come to look through these registers, you’ll be looking for specific entries for particular people. This

means you need a name to go from. Equally, it’s important to remember you may need to physically visit a church or record office as there’s no central archive that holds all this information. The information available, even then, is likely to be sparse, as it all depends on the vicar who recorded it at the time. Some only mention the facts, whereas others might have included more details such as wedding preparations.

Fraser and Fraser, as heir hunters, we very rarely have to use records predating the census records. For probate researchers, Parish records are mostly used when working on a Trust case, which may have been going on for some time. Even in this instance, it’s usually only helpful to determine someone’s age. That said, for those interested in ancestry and family history, Parish records are incredibly helpful, and we would recommend delving that bit deeper if you’re wanting the full works.

If you are a solicitor, trustee of an estate or an individual having trouble with finding an heir to a Will, get in touch today to find out how Fraser and Fraser can help you.

We have our own library, access to various records, specialist software and national and international connections that can help us help you. Call us on 020 7832 1400 or email lega@fraserandfraser.co.uk

The BILL of MIDDLESEX 31

HEALTH

Working outside office hours?

It could greatly put your employees’ mental health at risk Photo: Sally Woolston

The legal and financial sectors are rapidly evolving into a fast-paced and increasingly digital world, and, as such, new ways of working (including hours outside of the nine-to-five) are more and more becoming the norm.

32 The BILL of MIDDLESEX

S

ally Woolston, Business Development Manager at unoccupied property insurance specialist Unoccupied Direct, compiles recent figures from the new Global Benefits Forum Survey: • 89% of large law firms contractually oblige staff to be available outside of office hours • One in four employees (26%) in the legal sector believe their mental wellbeing is at risk by working outside office hours • 20% of employees in the legal sector believe working outside of office opening hours negatively affects their productivity Lack of downtime affects productivity With around 41% of multi-national law firms currently offering mental health resilience support for their employees (and a further 22% expecting to do so in the next decade), it’s clear that maintaining the wellbeing of staff is increasingly becoming a priority for the legal sector.

However, this seems to be somewhat undermined by the fact that 89% of law firms still contractually oblige their employees to be available outside of working hours.

The short-term gains of having employees available constantly could end up being

outweighed by the longer-term impacts of not allowing employees to fully ‘switch off’ from work.

Retaining talent: long-term employees The pressure of long, irregular or on call type working hours can mean many employees have to blur the lines between their work and home lives, meaning firms could increasingly expect see a quick turnover rate.

Many potential employees (81% of those surveyed) would be put off applying for jobs that have expectations to be on call outside of the usual working week. By contrast, 44% of HR directors at law firms say that this is an expected role at their company. As well as proving difficult to keep long-term staff, this disconnect could affect future talent acquisition too.

Senior Vice UK President of Lockton, Chris Rofe, comments: “Many employers are ‘not walking the talk’ when it comes to work life balance. With employers spending millions on health and wellbeing initiatives, many are failing to acknowledge one of the biggest risks to their employees’ health and wellbeing. ■

Sally Woolston Business Development Manager

OUTSOURCED SERVICES

Outsourcing your cashiering?

Why choose Quill?

Photograph: Julian Bryan

Once you’ve decided to outsource your legal cashiering, any supplier will do, right? After all, the way these outsourcing providers manage your accounts and support your business is the same, isn’t it? Surely the only difference will be the price you pay for the service, won’t it?

T

he answer to these conundrums is a resounding ‘no’! There are an increasing number of outsourced cashiering suppliers – legal software companies are forming partnerships with outsourcing bureaus to expand their offerings; new bureaus are being established; freelancers are setting up as virtual cashiers to work from home – so you’ve certainly got plenty of choice when it comes to outsourcing your back office accounts function.

While there are some familiar threads running between these various suppliers, in comparison to Quill, they’re poles apart. We’re going to show you why…

Commonality: Shared use of Interactive Have a quick browse through the ILFM’s Software Guide and you’ll see the long list of legal accounts systems available in the market. This isn’t an exhaustive list either. These competitive systems contain effective tools to help legal cashiers maintain accounts in a compliant, secure, due diligent manner.

But the way you perform an accounting task on one, let’s say posting your daily transactions, will vary on another.

Also, not all systems will contain warnings and notifications for actual and potential breaches of legal accounts rules. The range of functionality makes one system a very different beast to another.

As well as being the toolkit for in-house cashiers, these same systems are operated by outsourcing providers too. And, as any workman knows, his work is only as good as his tools. In other words, the ensuing service you receive will fluctuate pretty drastically from one supplier to the next, depending upon the legal accounts system opted for. The inconsistencies between them can be fairly extreme.

In terms of our software, Interactive is backed by a dedicated software development team based in our Brighton office so new and enhanced functionality is constantly being rolled out, benefiting end users whose daily work is made easier, more efficient and categorically compliant as a result.

Interactive’s also a recognised market leader, having been around for 40+ years and boasting two ILFM software awards.

Not only is our software high quality, which enables us to work better than other outsourcing providers, it’s used universally by Quill cashiers. It’s a common platform, facilitating common procedures, maintaining common standards, empowering a common experience for all users of our Pinpoint outsourcing service. No deviations. No inconsistencies.

Overseers: Monitoring by senior staff As an additional guarantee of quality service provision, our cashiering operation is closely monitored by experienced, knowledgeable team members who cast a trained eye over completed tasks, checking for accuracy, speed, volume and consistency, reinforced by metrics from our powerful quality and performance management Interactive system, interpreting data processed by all the cashiers. Our cashiers work in teams of six with a supervisor heading up each group. Any anomalies or discrepancies, including items highlighted by Interactive, are spotted and resolved straightaway, giving you confidence in error-free bookkeeping. No other cashiering bureau can boast access to such management information intelligence drawn from one central software platform.

Where speed’s concerned, any law firm knows about the strictly enforced deadlines for filing month and year-end accounts, including those all-important VAT returns. Our system also holds key compliance dates specified by each firm’s designated regulator (SRA, CLC or Law Society of Scotland) to generate management alerts of overdue tasks. For example, we can identify sites not being closed quickly enough at month end which is set as the 7th of each

month by the CLC and track that VAT submissions are lodged in time for the relevant quarter. Close monitoring, and intervention if needed, ensures accounts are submitted on time, every time.

On the volume side of things, this behind-the-scenes management information also tells us how many e-chits are being processed by each cashier. This helps us to allocate the right mix of sites to our cashiers so everyone’s got a similar balanced workload and no one’s being overworked. For end users, you can be reassured that your assigned cashier’s got the capacity to give your accounts their proper attention. By not being stretched too thinly, we’ve got your back.

There are a plethora of reports within Interactive, accessed by the Pinpoint management team, supporting the delivery of consistency across hundreds of clients. This starkly contrasts with other bureaus which lack the same control mechanisms thereby compromising consistent standards, and allowing opportunities for mistakes and bad habits to creep in.

Collaboration: It’s a team effort Pinpoint is a close alliance between you and us. We’re connected together by Interactive. You enter daily e-chits into Interactive – which is essentially a daily record of monies in and out to your client and office accounts – and we pick up from there. We literally do everything else – billing, reporting, VAT returns, ledger and bank account management.

It’s likely you’ll interact with your named cashier every working day. As such, you build a strong relationship. Pinpoint clients repeatedly tell us how their cashier feels like another employee, just someone not based in the same office. We rely on you to log all transactions. You rely on us to keep your accounts in order. By each fulfilling our side of the bargain, it’s a successful partnership.

There’s a point to be made about team working within Pinpoint as well. You see, our cashiers don’t operate in isolation. If your assigned cashier doesn’t know how to rectify any accounts-related problem, he/she will simply call upon the help of his/her colleagues and supervisor. As the largest outsourced cashiering bureau in the UK employing some 50 legal cashiers, they possess a combined total of approximately 300 years’ experience. And that’s a conservative guess. We’ve seen it all before. No issue is novel. You can bet your bottom dollar that we know the solution.

Automatic absence cover is provided with the service too. If your cashier is off work on holiday, sickness, maternity, paternity or other leave, as everyone is from time to time, his/her designated deputy will manage your accounts instead. Obviously you don’t get these advantages with a one-man-band type bureau.

Next step: Find out more If we’ve sharpened your appetite for more, read our earlier articles on the subject of outsourced cashiering, published on the Internet Newsletter for Lawyers website. There’s ‘Outsourced cashiering and your bottom line’, ’Ten reasons to outsource your cashiering’ and ‘How outsourced cashiering works’ for beginners.

To find out more on our Pinpoint outsourced legal cashiering service, please visit www.quill.co.uk/Outsourced-Legal-Cashiering, email info@quill.co.uk or call 0161 236 2910. ■

By Julian Bryan Managing Director, Quill

The BILL of MIDDLESEX 33

RETIREMENT

Are you planning on retiring?

Just because saving for retirement is difficult, it doesn’t mean you should give up; and the current reliefs and allowances on pension contributions should give cause for optimism.

I

f you expect to retire on a final-salary pension and with no mortgage, your perspective on retirement may well be rosy; if you are grappling with debt and worried about having insufficient pension savings, it may be a different picture.

For some, the question is not how to retire successfully, but how to retire at all, given that there may be precious little in the way of a state safety net to fall back on.

Research from the Financial Conduct Authority reveals that around 15 million individuals are not saving anything towards their retirement and will have to rely entirely on the State Pension in their later years.1 Of particular concern is the group of pre-retirees aged 55–64, only half of whom have given thought to how they will manage in retirement; and only a quarter know how much they have in their pension pot.2 These people may only have a few working years left to build their nest egg.

Why do so many people fail to plan their retirement? This could be

partly due to massively underestimating the amount of money they need to save. According to BlackRock, those who were asked to calculate how much they would need for their desired retirement income of £26,000 a year estimated they would require £233,000 in savings; and yet they would need a pot of £525,000 for this income, even including the State Pension.3 People also underestimate longevity and therefore how long retirement could last. Only 7% of people aged 55–64 today expect to live to 90, but research indicates that half of them can expect to live that long. 4The obvious implication is that many retirement pots will run out too soon.

Many experts are warning that the end of final-salary pension schemes, chronic underfunding of defined contribution pensions, and increasing life expectancy are creating a perfect storm that threatens to destabilize 11:23 the financial wellbeing of the coming generation of retirees.

The solution is to plan You have to ask yourself: how much will I need, and how much can I afford to put away? Then you need to factor in any other sources of retirement income and you can see the size of the gap you are trying to fill.

Obviously, the younger you are, the longer the investment time horizon and the most you will have to gain when thinking ahead. However, middle age is a time when incomes are at or near their peak, so there are significant opportunities to catch up; and the end of the tax year presents an ideal opportunity to do so.

Subject to limitations, people in the UK can make pension contributions of up to 100% of their earnings or £40,000, whichever is lower. While paying the maximum may seem a tall order, remember that the government rewards you for saving into a pension in the form of tax relief.

Worryingly, according to BlackRock’s research, 50% of people are unaware that the government boosts pension contributions; the research also showed that fewer than a third of people are aware of ‘pension freedoms’ changes and how these impact on their retirement prospects.6This is further evidence that lack of awareness remains one of the key barriers to making adequate retirement provision.

It’s vital savers know and understand all their options for using their pension; but also that they make the most of the current tax breaks while building one.

The end of the tax year is often seen as a crucial time, as it provides the final opportunity for individuals and couples to take advantage of reliefs and allowances that would otherwise be lost.

Now is a good time to take advice also. You may find unclaimed allowances waiting for you.

To receive a complimentary guide covering wealth management, retirement planning or Inheritance Tax planning, contact Kella Thomai Wealth Solutions Ltd on 07933 395401 or email

kella.thomai@sjpp.co.uk.

34 The BILL of MIDDLESEX

1,2,4,5 Financial Conduct Authority,Financial Lives Survey 2017 3, 6 BlackRock, Global Investor Pulse Survey 2017

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AUCTIONS

Question & Answer interview with William Rouse Managing Director Chiswick Auctions When did your auctioneering career start?

I was working for a prop-hiring company and found the antiques we were hiring were very interesting, so I got a job working at the antiques firm that supplied us. It was very chaotic and I thought â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;m sure I could do this betterâ&#x20AC;?, so I decided Iâ&#x20AC;&#x2122;d have a go myself and set up on my own.

What was it about antiques in particular you liked?

Iâ&#x20AC;&#x2122;ve always been interested in the history of things, where theyâ&#x20AC;&#x2122;ve come from and who theyâ&#x20AC;&#x2122;ve been owned by. I wanted to be in a business where I could be hands-on in researching and handling these fascinating objects.

What gets you out of bed in the morning/whatâ&#x20AC;&#x2122;s your passion?

The objects we sell, make this a business like no other and seeing beautiful things is a such a privilege. Now that weâ&#x20AC;&#x2122;re selling better quality items, I look forward to spending more time around even more beautiful things. I donâ&#x20AC;&#x2122;t feel the need to own them all, but thankfully other people do!

What is your proudest achievement?

Chiswick Auctions started from humble beginnings and has become a serious contender in the art & antiques industry. While other auction houses have been going for 100 -200 years, weâ&#x20AC;&#x2122;ve only be going for 25 years and yet weâ&#x20AC;&#x2122;ve already made huge strides.

Can you describe a typical day?

A small amount of my time is spent on the rostrum, but an important part of what I do is seeing clients out of the building, meeting solicitors about deceased estates and doing private evaluations. The interesting thing is that you have no idea what youâ&#x20AC;&#x2122;re going to see. Sometimes you are bitterly disappointed and sometimes youâ&#x20AC;&#x2122;re completely surprised by an amazing collection. Private estates are complicated and I try to deal sensitively with grieving relatives. Sometimes you are dealing with family members who all want â&#x20AC;&#x2DC;a piece of the pieâ&#x20AC;&#x2122;. Families also require the valuations to be kept low, to keep the inheritance tax low, but items can often sell well at auction and well above the probate value.

Whatâ&#x20AC;&#x2122;s the biggest challenge?

Getting the right people on board. The company has been striving over the last five years to better itself, which has meant having to let go of some people, so that we can afford the right people. An auction house trades on itsâ&#x20AC;&#x2122; expertise, so this is crucial to the business. We now feel assured that we have the right people in place to take the company to new heights.

The benefits of buying at auction One of the benefits is that you can come in and handle museum-quality items out of interest, or to learn, or to preview, should you wish to buy.

How has the auction industry adapted to changes in technology and what impact has it had on the auction industry?

Weâ&#x20AC;&#x2122;ve embraced technology as it has changed â&#x20AC;&#x201C; we now employ 5 full time photographers, which enables us to create hi definition imagery, aiding clients to see exactly what they are buying before they bid. Bidding is another thing thatâ&#x20AC;&#x2122;s changed, you no longer have to be in the room, or on a telephone.

Should you wish to, you can see the auction unfolding live online, as well as bid and pay online, from wherever you are in the world.

If you could have another profession - what would it be?

A car mechanic, as I have a passion for mechanical things!

What would you tell someone considering a career as an auctioneer?

Thereâ&#x20AC;&#x2122;s no substitute for starting at the bottom and working your way up â&#x20AC;&#x201C; by handling the items day to day you become remarkably knowledgeable and eventually you are able to genuinely advise customers Where would you like Chiswick Auctions to be in 10 years time?

I would like Chiswick auctions to have continued its reputation as a credible, trustworthy company that people enjoy doing business with.

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+44 (0)20 8992 4442 chiswickauctions.co.uk 1 Colville Road, London W3 8BL 127 Fulham Road, London SW3 6RT The BILL of MIDDLESEX 37

BOOK REVIEW

Twentieth & Twenty First chapters in the series of extracts from the...

The Rise and Fall of Legal Aid

by Alured Darlington

“I truly hope this book is published - there was a time when everybody was entitled to be represented and put forward their defence, innocent until proved guilty. Without legal aid to give clients the representation everyone deserves, what will become of our society? I honestly dread to think.

This book will be a reminder of the ‘good old days’ and an insight to young ones into the legal aid system as it was and how it should remain” Foreward by Jean Brathwaite, Legal Secretary

Chapter Twenty

Imprisonment for passport offences

G

overnment policy of imprisonment for passport offences has long struck me as being misguided and indeed in many cases as inhuman. A letter from myself published in the Times newspaper on February 16 2005, which summarised my objections, is set out below.

‘The sentencing guidelines for using a false passport have recently been doubled to a period of between one year and eighteen months imprisonment, even on a guilty plea. This is the Court of Appeal’s response to the need for greater vigilance since 9/11.

Last week I represented three such offenders at Isleworth Crown Court. Two were young Ukrainian women and one a man from Pakistan. All were of good character, all were seeking new and better lives for themselves and/or their families in Canada, and all, to my untrained eye, were a million miles from being a terrorist suspect.

The Crown Court Judges were more merciful than I had dared to hope but, as each offender was led to the cells, I could not help but consider the futility and needless cruelty of these guidelines.

If they were supposed to be a deterrent none of the three offenders, who spoke no English, could possibly have known of them. If they were terrorists, prepared to risk their lives, any increase in prison sentences would not deter them.

Could not the Courts find a less unjust way to fill our prisons than this kneejerk response to the terrorist threat?’

The position was to some extent eased by the decision in R v Uxbridge Magistrates Court ex parte Adimi, which held that where the illegal entry or use of false passports could be attributed to a bona fide desire to seek asylum that conduct was covered by article 31 of the United Nations Convention relating to the status of refugees which commenced ‘the contracting states shall not impose penalties in such cases’. This decision recognised the practical reality that persons fleeing from oppressive regimes would be unlikely to have or be able to use genuine travel documents. The decision followed research by a Middlesex probation officer Liz Hales and pressure from the Joint Council for the welfare of immigrants. The immediate result of the decision was the virtual closing down of the foreign national’s wing at HM prison Wormwood Scrubs as no longer being necessary.

The Government responded to the decision by the imposition of section 31 of the Immigration and Asylum Act 1999 which, while paying lip service to the Adimi decision, limited its effect by its insistence on strict time limits for making asylum claims.

The comments in this letter were expanded into some articles I wrote, one of which is reprinted here from the Justice of the Peace.

Chapter Twenty One

The CPS and Rights of Audience

A

s it encapsulates my views on this subject I also set out below a letter from myself, published in the Times, in June 2004.

‘With concepts of fairness and independence of which any young person should be proud the Crown Prosecution Service, like the American prosecution system, should be a much prized career opportunity.

However those responsible appear to be keeping the CPS in a strait jacket. Talented lawyers are restricted to trial in the magistrate’s courts or a career in management in which they may have no interest.

What other country forbids it prosecution lawyers to practice in its higher courts? How can a prosecution lawyer get the feel of those courts if he is not allowed to practice in them?

The answer must be to permit CPS lawyers rights of audience in the higher courts. Any concern that prosecution lawyers in a career

service might become too prosecution minded could be met by means of sabbaticals at barrister’s chambers, undertaking only defence work, and the allocation of more judicial appointments to those who make the grade’.

I wrote this letter because of my concern that good lawyers were leaving the CPS because of the lack of career opportunities and this would not change unless they were given a much greater chance to practise advocacy in jury trials.

I wrote on the above subject published in the New Law Journal on 26 September 1997. Some progress has been made to remedy the situation but I believe the contents of that article still apply in that involvement by CPS staff as advocates in Crown Court cases is essential if that organisation is to thrive.

...other pages will be published in the forthcoming Bill of Middlesex or if you can’t wait, go online: http://issuu.com/benham/docs/the-rise-and-fall-of-legal-aid 38 The BILL of MIDDLESEX

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