LAWYER SURREY
The Official Journal of THE SURREY LAW SOCIETY
100 Years of Women In Law
Inside this issue:
■ CONVEYANCING ■ ACCOUNTANCY ■ COMPLIANCE ■ WOMEN IN LEADERSHIP IN LAW REPORT ■ NEWS
SPRING 2019
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Contents 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
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Local News Past President’s Champions Cup Event
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SLS Insight- John Perry
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Young Surrey Lawyers
Local Issues Spotlight On
ADVERTISING AND FEATURES EDITOR Anna Woodhams
Junior Lawyers Division
STUDIO MANAGER John Barry
ACCOUNTS
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Joanne Casey
MEDIA No.
Reports 18 19
1643
PUBLISHED
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April 2019 © The Surrey Law Society - Benham Publishing
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Benham Publishing cannot be held responsible for any inaccuracies in web or email links supplied to us. The Surrey Law Society welcomes all persons eligible for membership regardless of Sex, Race, Religion, Age or Sexual Orientation.
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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.
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anna@benhampublishing.com
Tel:
0151 236 4141
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All change (again!) for the SRA Accounts Rules
Compliance 38
New SRA rules – the problem with ‘guidance’
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Nothing Endures But Change
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A call to all Will Writer’s
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When is an asset search needed?
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Unoccupied Property Insurance – We include all of the Covers Required, as Standard
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What might 2019 have in store for the SIPP market?
Property Wills/ Legacies
COVER INFORMATION The cover image: 100 Years of Women in Law
Email:
How Millennials are reshaping the conveyancing sector Flood searches more important than ever due to climate change “Save Time with GCS Online”
Accountancy
Members of the public should not seek to rely on anything published in this magazine in court but seek qualified Legal Advice.
3rd June Summer 2019 Issue Autumn 2019 Issue 2nd September Winter 2019 Issue 5th December Anyone wishing to advertise in Surrey Lawyer please contact Anna Woodhams before copy deadline.
This Too Will Pass Recent Developments in Employment Law Our survey says... Understanding Residential ATED, the annual tax paid by companies that own UK residential property Prioritise and delegate – to achieve more and avoid burnout From trainee solicitor to Lawyer of the Year! Dealing with stress Cashflow is King!
Conveyancing 32
DISCLAIMER
Copy Deadlines
Council Member’s Report How well women do in legal careers may depend on where they live Women in Leadershio in Law report: Law Society Report
Articles 21 22-23 24 25
LEGAL NOTICE © Benham Publishing. None of the editorial or photographs may be reproduced without prior written permission from the publishers. Benham Publishing would like to point out that all editorial comment and articles are the responsibility of the originators and may or may not reflect the opinions of Benham Publishing. No responsibility can be accepted for any inaccuracies that may occur, correct at time of going to press.
Introduction List of Officers President’s Jottings & Legal Brain of Surrey Quiz SLS CPD PROGRAMME 2019 Interim CEO Report
Probate Property Insurance
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Finance
Anyone wishing to submit editorial for publication in Surrey Lawyer please contact Hilary Underwood, before copy deadline. Email:
hilary.underwood@surreylawsociety.org.uk
Tel:
0333 577 3830
SURREY LAWYER 3
OFFICERS
KEY OFFICERS
COMMITTEE MEMBERS
LAW SOCIETY COUNCIL MEMBERS
President
DANIEL CHURCH
VICTORIA CLARKE
Kingston Smith LLP
Stowe Family Law LLP
Devonshire House,
SUSHILA ABRAHAM S Abraham Solicitors 290A Ewell Road, Surbiton KT6 7AQ Tel: 020 8390 0044 Email: office@sabrahamsolicitors.co.uk
The Bellbourne
60 Goswell Road,
103, High Street
London, EC1M 7AD
Esher, KT10 9QE
Email: DChurch@kingstonsmith.co.uk
Tel: 01372 571126 Email: Victoria.Clarke@stowefamilylaw.co.uk
MUMTAZ HUSSAIN The Legal Consultant M: 07983 488 351
Vice President
mumtaz@thelegalconsultant.org.uk
NICK BALL MARALYN HUTCHINSON Kagan Moss & Co 22 The Causeway Teddington TW11 0HF Tel: 020 8977 6633 Fax: 020 8977 0183 Email: maralyn.hutchinson@kaganmoss.co.uk
TWM Solicitors LLP 65 Woodbridge Road, Guildford, Surrey GU1 4RD Tel : 01483 752700 Email: Nick.Ball@twmsolicitors.com
Deputy Vice President MADELEINE GOODING TWM Solicitors LLP 65 Woodbridge Road, Guildford, Surrey GU1 4RD Tel : 01483 752742 Email : madeleine.gooding@TWMSolicitors.com
Hon Secretary KIERAN BOWE Russell-Cooke Solicitors Bishops Palace House, Kingston Bridge,
GLORIA MCDERMOTT Surrey Law Society, c/o Russell-Cooke Solicitors, Bishop's Palace House, Kingston Bridge, Kingston-upon-Thames, Surrey KT1 1QN DX 94652 Virginia Water Email: gloria.mcdermott@virginmedia.com GERARD SANDERS Hart Brown Resolution House, Riverview, Walnut Tree Close, Guildford, GU1 4UX DX 2403 Guildford 1 Tel: 01483 887704 Fax: 01483 887758 Email: gts@hartbrown.co.uk
Kingston upon Thames, IAN WILKINSON The Castle Partnership
Surrey, KT1 1QN DX 31546 Kingston upon Thames
2 Wey Court, Mary Road, Guildford,
Tel: 020 8541 2041
Surrey GU1 4QU
Fax: 020 8541 2009
Tel: 01483 300905
Email: kieran.bowe@russell-cooke.co.uk
Email: ian@castlepartnership.co.uk JAMES SCOZZI (Immediate Past President)
Hon Treasurer
Elite Law Solicitors
NICK BALL
1 Fetter Lane London
TWM Solicitors LLP
EC4A 1BR
65 Woodbridge Road,
DX: 14 London Chancery Lane
Guildford, Surrey GU1 4RD
Tel: 020 3440 5506
Tel : 01483 752700
Fax: 01923 219416
Email: Nick.Ball@twmsolicitors.com
Email: jscozzi@elitelawsolicitors.co.uk
JOHN PERRY Palmers Solicitors 89-91 Clarence Street Kingston upon Thames, KT1 1QY DX 31524 Kingston upon Thames Tel: 020 8549 7444 Fax: 020 8547 2117 Email: john.perry@palmerssolicitors.co.uk Interim Chief Executive & Magazine Editor HILARY UNDERWOOD Surrey Law Society c/o Russell-Cooke Solicitors, Bishop's Palace House, Kingston Bridge, Kingston-upon-Thames, KT1 1QN Web: www.surreylawsociety.org.uk Tel: 0333 577 3830 Email: hilary.underwood@surreylawsociety.org.uk
SUB COMMITTEES CONVEYANCING & LAND LAW Gloria McDermott Maralyn Hutchinson STRATEGIC PLANNING & FINANCE Kieran Bowe Nick Ball Daniel Church James Scozzi SOCIAL Daniel Church (Chair) Gloria McDermott James Scozzi John Perry* *Non-Committee Member.
YOUNG SURREY LAWYERS Madeleine Gooding (Chair) Imogen Heywood Jessica Morton Will De Fazio-Saunders Alexander Bishop Victoria Clarke Email: youngsurreylawyers@hotmail.com Twitter: @YSL_Live LinkedIn: linkedin.com/groups/4515609
membership details Annual Subscriptions:
£98 per person, per year.
Corporate Subscriptions:
£1,850 per year (20+ fee earners)
Solicitor
£60 (not in private practice)
Solicitor
£35 (not practising)
Honorary Membership:
free
Associate Membership:
free - no voting rights
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To apply for membership please contact: Hilary Underwood, Interim Chief Executive Surrey Law Society, c/o Russell-Cook Solicitors, Bishop's Palace House, Kingston Bridge, Kingston-upon-Thames, KT1 1QN Web: www.surreylawsociety.org.uk Email: hilary.underwood@surreylawsociety.org.uk Tel: 0333 577 3830
EDITORIAL
President’s Jottings Spring 2019 We are already five months into my Presidential year, and I am really enjoying being part of our excellent team and trying to make Surrey Law Society the best it can be.
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s this is the 100-year anniversary of Women in Law, we have been looking at how Surrey Law Society can engage with its members in exploring gender equality in the workplace. Following on from Law Society President Christina Blacklaw’s highly successful roundtables last year with women lawyers, she is continuing this practice this year with male lawyers and we hope to host our own roundtable to take part in that exercise. Details will follow soon about how you can take part and contribute to the discussion that the Law Society is having generally on gender equality. Plans are well underway for our second year of Law Awards and we look forward to receiving all of your nominations soon. We will be sending out information shortly on this. Our CPD events have been a huge success so far this year and we hope everyone has enjoyed the events they have attended. Many thanks go to our sponsors Index and HFS Milbourne for
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helping us to host these events for the benefit of our members. Without their kind generosity we would not be able to provide such a wide array of subjects for everyone at such an affordable cost. We are also very excited about our modern updating of the format of the Past President’s event. Instead of sitting down for the usual formal lunch, we will be racing around the go-kart track at Daytona (sadly in Esher and not the US) to celebrate James’ excellent year as President in 2018. Details will follow soon but I have no doubt there will be some healthy competition for the winning trophy. Finally we will be hosting our annual Legal Brain of Surrey Quiz in April this year, and we look forward to seeing you all there! ■
Victoria Clarke SLS President 2018/19
PRESENTS
your firm have what it takes to win the HDoes Legal Brain of Surrey Quiz 2019 trophy?
Why not enter a team or two and find out? This popular annual event will be held on Monday 29th April 2019 at the University of Law, Guildford, arrival from 6.30pm for a 7pm start. Teams of three will pool their brain cells in a bid to outwit their competitors, answering questions on subjects such as music, movies, science, nature and geography to win the coveted trophy, whilst at the same time raising money for the President’s Charity, St Luke’s Cancer Centre. If you would like to enter a team into the quiz, please contact Interim CEO Hilary Underwood on 07597 582400 or email : hilary.underwood@surreylawsociety.org.uk
H H H
SURREY LAWYER 5
CPD EVENTS
S L S
C P D P R O G R A M M E 2 0 1 9
All half-day courses will be held at Denbies Wine Estate, London Road, Dorking RH5 6AA from 2.00pm - 5.15pm (But please note that the venue may be subject to change.)
AREA
DAY, DATE & TIME
TOPIC
SPEAKER
PC
Wed 27th March 2019 (pm)
Contentious Probate Update 2019
Owen White & Caplin LLP
Man
Wed 3rd April 2019 (pm)
Cyber Security & Best Practice for Defence
Property
Wed 15th May 2019 (pm)
Residential Landlord & Tenant Update 2019
Property
Wed 29th May 2019 (pm)
Restrictive & Positive Covenants in Freehold Land
CoCo
Wed 5th June 2019 (pm)
Company & Commercial Law Update 2019
Property
Wed 3rd July 2019 (pm)
The Toolkit for Managing a Successful Conveyancing Team
Family
Wed 10th July 2019 (pm)
Focus on Family Law – A Review of the Year
Man
How to get more clients and Wed 25th September 2019 (pm) increase profits without working more hours!
Man
Wed 9th October 2019 (pm)
MLRO Masterclass/AML Essential Compliance Update
PC
Wed 23rd October 2019 (pm)
Will Drafting Masterclass
Richard Land Peter Wright DigitalLawUk
SPONSOR
HFS Milbourne
David Smith Anthony Gold
Richard Snape
Keith Lewington Excello Law Tom Horrocks Boiled Frog Ltd
Elissa Da CostaWaldman
New Court Chambers
Michelle Peters
The Business Instructor
Amy Bell Teal Compliance
HFS Milbourne
HFS Milbourne HFS Milbourne
Prof Lesley King
Further details on courses, speakers and online bookings are on the SLS website: www.surreylawsociety.org.uk Course Fees: £126 inc VAT for SLS Members or £252 inc VAT for Non-Members or Book four or more courses and receive a 20% discount on each
2019 CONFERENCE DATES PRIVATE CLIENT CONFERENCE – THURSDAY, 26th SEPTEMBER 2019 – 6 HOURS CPD
CONVEYANCING & LAND LAW CONFERENCE –
THURSDAY, 26th SEPTEMBER 2019 – 6 HOURS CPD (Further details to follow)
2019 SLS LEGAL AWARDS
following the very successful launch last year, the Awards will again be taking place at The Mandolay Hotel, Guildford on Thursday, 19th September. We hope to see you there to celebrate the exceptional legal talent within the county.
2019 SOCIAL EVENTS
LEGAL BRAIN OF SURREY QUIZ - University of Law, Guildford - Monday, 29th April PRESIDENT’S EVENT - further details to follow PAST PRESIDENT’S CHAMPIONSHIP CUP GO KARTING EVENT Daytona, Sandown Park - Thursday, 16th May GUILDFORD LEGAL WALK - Monday, 8th July
For further details or to book on any of the above, please email hilary.underwood@surreylawsociety.org.uk. Please check our website at www.surreylawsociety.org.uk/terms-conditions for Terms & Conditions before booking 6 SURREY LAWYER
EDITORIAL
CEO ReportSpring 2019
TH S E AV DA E TE !
It is difficult to believe that we are already one-quarter of the way through 2019…. it barely seems five minutes since Christmas! Isn’t it lovely though to finally enjoy lighter evenings and all the beautiful flowers and wildlife that tell us that spring is finally here!
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ere at SLS, we hope that the first few months of this new year have been kind to you both personally and professionally. We know that you are continually being challenged within your practices by ongoing regulatory changes, economic pressures, evolving technology, not to mention the dreaded ‘B’ word! We hope that the Law Society guidance may help you in these areas and you can read more about this in Bhavni Fowler’s report. We have been thrilled by the number of you attending our 2019 Training & Development Programme and hope that you are all benefiting from the excellent speakers who deliver top quality training right here on our doorstep, which we hope makes it easier for you to fit them in around busy lives! For those of you who haven’t managed to make it along to a seminar yet, do take a look at what is still to come during the remainder of the year and join us! The seminars are not only a great and convenient way to keep up to date with practice areas and management/regulatory issues but are also a fabulous opportunity for peer-to-peer networking. On a personal level, I have thoroughly enjoyed meeting many of you face to face and getting to know you a little better. We have some incredibly exciting social events in the pipeline, which you can read more about elsewhere in the magazine – let’s just say, the heat is on! For the first time, we have also decided to run our annual Private Client and Conveyancing & Land Law Conferences simultaneously on 26th September 2019, which will again provide an opportunity for you to meet up with fellow members and we hope to see as many of you there as possible. We are also excited to announce that the second year of the SLS Legal Awards and Annual Gala Dinner will be held on Thursday 19th September 2019, so pop the date in your diaries now. We will be announcing details of categories for entries very shortly and following last year’s overwhelming success, our second year promises to be a bigger and better event than ever and is not to be missed!
You will be able to read in this issue from John Perry, Council Member, about his role and what it entails – John will be stepping back from Council later this year after serving the Society incredibly faithfully and with a great deal of commitment for the past 8 years. Please do contact him if you think you may be interested in standing for election in his place. Please don’t forget to keep an eye on our social media posts – they are a valuable way in which we can keep in touch with you between emails and the quarterly issues of the magazine and a great forum for members to communicate with one another. We also now have a designated SLS LinkedIn Group so please do join it to ensure you are kept in the loop with all our latest news and developments. We love to hear from you, so if you have any news items for the website, suggestions for Training & Development, or views on how we can improve upon the benefits of your membership, please do drop me a line. If you would like to come along and observe one of our Committee meetings, please do get in touch with me – we would love to have you with us to see what goes on behind the scenes and who knows…..we may be able to persuade you to jump on board?! Details of all our social media accounts and my contact details can be found below. It only remains for me to say that I am thoroughly enjoying working with such a friendly local law society and look forward to meeting many more of you during the coming months. Happy reading and best wishes! ■
Hilary Underwood Interim Chief Executive & magazine editor t: 0333 577 3830 e: hilary.underwood@surreylawsociety.org.uk @SurreyLawSoc @surreylawsociety Hilary Underwood (Interim Chief Executive at Surrey Law Society) LinkedIn SLS Group https://www.linkedin.com/groups/8731473/
The 2019 SLS LEGAL AWARDS
will take place on Thursday 19th September 2019 – Nominations will be opening on 15th April 2019 and we invite all firms, large or small, practising in Surrey to submit nominations in categories relevant to their firm. Full details of categories and how to submit your nominations will be issued to each member firm prior to the opening date. SURREY LAWYER 7
LOCAL NEWS
Barlow Robbins expands family law practice with the acquisition of Hendersons Leading Surrey law firm Barlow Robbins announces the strategic integration of Hendersons as part of Barlow Robbins from 1 March 2019, with Lynn Henderson, former head of Hendersons, joining as a consultant in the firm’s family team. Photograph: Lynn Henderson
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ynn specialises in all aspects of private family law, with particular emphasis on the financial consequences of relationship breakdowns including cases where there are substantial assets, trusts, pensions and family businesses. Lynn also has experience resolving disputes regarding children and supporting parties in family law arbitration cases. In her new role at Barlow Robbins, Lynn will continue to oversee and retain responsibility for the relationship of her existing clients, whilst being supported by the firm’s now 10strong family practice. Barlow Robbins’ family law team is top-ranked by both Legal 500 and Chambers legal directories. The firm has also been commended and recommended for their Private Client work by The Times Best Law Firm Guide.
‘The integration of Lynn into the Barlow Robbins team will provide Hendersons’ existing clients with a significantly enhanced team of specialists and advisors with the expertise to meet a much wider range of client needs – from tax and property, to probate and disputes.” Lynn Henderson added: “Barlow Robbins is known for its commitment to excellence, culture, and absolute dedication to client service and the synergies between the two practices made this partnership a natural choice. I look forward to this exciting new chapter and working alongside Judith and the team.”
Judith Ball, Partner and Head of Family at Barlow Robbins, said: “The relationship between Barlow Robbins and Hendersons goes back many years and Lynn’s breadth of experience in family law very much aligns with our existing local offering and areas of expertise.
GBH Law expands its corporate capabilities GBH Law, a niche legal practice which specialises in advising business clients, are delighted to announce the appointment of Kate Doody as a director/shareholder, strengthening the practice’s capability in corporate work. Kate joins experienced corporate lawyers Denise Herrington and Christine Goodyear and assistant solicitor Clare Stephens. Photograph: Kate Doody
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ate graduated from the University of Manchester with a degree in English Law and French Law. She trained with Ashurst in the City, qualifying in 2010 and spent her early post-qualification years in the corporate team, working on a range of high value matters including equity capital markets transactions. After several years in the City, Kate decided that her interests lay in advising private limited companies and owner managed businesses and she joined asb Law to undertake more of that type of work whilst also retaining her specialist knowledge and experience of the AIM market.
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Kate said “GBH has an excellent reputation for the service it offers business clients and Denise and Christine are well regarded for their work. I am looking forward to expanding GBH’s corporate capabilities and getting to know corporate finance professionals in the local area”. For more information contact Christine Goodyear (01483 239270 christine@gbhlaw.co.uk).
LOCAL NEWS
CHARLES RUSSELL SPEECHLYS’ CORPORATE TEAM SHORTLISTED FOR FOUR SOUTH EAST DEALMAKERS AWARDS Charles Russell Speechlys in Guildford has been shortlisted for four Insider South East Dealmakers Awards 2019 including Corporate Law Firm of the Year, Corporate Lawyer of the Year and Private Equity Deal of the Year (with two deals in this category). Photograph: Duncan Elson
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he awards celebrate the region’s corporate finance transactions across the legal, accountancy, banking and finance communities, with winners announced at a ceremony on 7 February 2019. Rebecca Burford, shortlisted for Corporate Lawyer of the Year, led both of the deals nominated for Private Equity Deal of Year and has also recently been listed as ‘Associate to Watch’ by Chambers & Partners, and ranked as ‘Next Generation Lawyer’ in the Legal 500. The two deals selected as finalists for Private Equity Deal of the Year – Xstrahl and Trusted Housesitters - both relate to management buyouts. Xstrahl, a medical devices business that designs and delivers effective clinical and research solutions to advance radiation oncology, was acquired by private equity firm, Risk Capital Partners, with Charles Russell Speechlys acting as legal advisers to the company’s former CEO and majority shareholder, Martin Robinson. In terms of Trusted Housesitters, the world’s largest house and pet sitting community, Charles Russell Speechlys advised the management team on a significant investment into the company by private equity firm Rockpool Investments to support the management buyout. Duncan Elson, Partner and Head of Charles Russell Speechlys in Guildford, commented, “We are all thrilled that the hard work, professionalism and insight of our corporate team has been recognised by the judges of the Insider South East Dealmakers Awards. In particular, I am delighted that we have been shortlisted for Corporate Law Firm of the Year. This is a significant achievement in a highly competitive industry and reflects the success of the whole team over the last year. I would also like to congratulate Rebecca Burford on her outstanding success – she is an asset to the firm and extremely highly regarded by her clients.”
The Guildford team has advised on a number of notable deals over the last year including: • The sale of Edge Case Games to Wargaming • The acquisition of Santon Group (via holding company EWAC Holdings BV) by discoverIE Group • The investment by Business Growth Fund into health and wellness retailer Revital Limited • The acquisition of Davison (Chemist) Limited and Dhesi Healthcare Limited by Juno Health pharmacy group • The sale of Bedford based veterinary practice Acorn House Veterinary Hospital to The Royal Veterinary College • The acquisition of an agricultural spraying machinery company based in the UK by Spanish Co-operative Goizper S. Coop Charles Russell Speechlys’ corporate team in Guildford is Tier 1 ranked by The Legal 500 for M&A transactions up to £50m based. It is led by Geoff Sparks who was also recently ranked as Band 1 corporate lawyer in Chambers & Partners in the South. The team has expanded over the last year with new recruits Tertius Alberts and Matthew Carter who joined partners Geoff Sparks, Tim Jenkins, Catherine Drew, Senior Associates Rebecca Burford and Jonathan Steele, and Associates Samuel Milne, Nizmeara Khatun and Abbie Tarrant. Charles Russell Speechlys employs over 160 staff in its Guildford office at One London Square and provides a full range of services to businesses and private clients in the region, backed by the resources of an international law firm. For further information, please visit www.charlesrussellspeechlys.com
SURREY LAWYER 9
LOCAL NEWS
The ongoing “referral fee” David Knapp, Partner and head of residential property at law firm Hart Brown, comments on the ongoing “referral fee” debate
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he subject of referral fees in conveyancing is a subject I have commented on a number of times in recent years, and the frustration that the Governments’ ban in certain areas of law has not extended to conveyancing continues to cause many lawyers real concern. I am pretty certain that if a poll was taken of all solicitors as to whether referral fees should be outlawed in conveyancing there would be an overwhelming majority in favour of a ban. So where are we now? Is the public becoming wise to why some property lawyers have to pay referral fees to estate agents for new residential conveyancing business? Although it is difficult to pin point exactly when referral fees initially became utilised by solicitors desperate for residential property work it was some years ago and is now widely used by lawyers finding it difficult, if not impossible, to earn business on a meritocracy basis. Interestingly we have reached the point where the property sale cycle has come full circle and more and more of the buyers who bought properties using lawyers recommended by agents for the payment of a fee are looking to sell. On a very regular basis we are finding that a great deal of sellers are shunning the referral fee route on the basis of poor service at the point of purchase, and the geographical location of the lawyers. Many of those lawyers paying referral fees are many miles from the towns in which the properties are being sold. There
seems to be a near zero incidence of repeat business for those “winning” business in this way. As an example, one agent close to some of our offices refers a firm of lawyers based in Yorkshire and another refers work to lawyers on the south coast. The savvy sellers are realising that they cannot just call in on spec to see their referred lawyer and that the only interest that the agent has in making the referral is financial. Ironically, even this is fallacious as the agents lose the support of the local lawyer and the stream of business that a solicitor can provide to the local agent. Instead an independent agent will receive the work. Sellers are also beginning to avoid using the agents who dealt with the property when they purchased as the referral of a poor, remote and uncommunicative lawyer all those years ago has tainted their view of the agent. As the government has promised to look into the whole issue of referral fees, with the majority hoping that they will be banned, there seems to be a consensus of opinion that referral fees increases the likelihood of poor client service in what is always going to be by far and away the largest expense any property owner in the UK will ever make. Go local and on a recommendation, merit or after having carried out review research on the web rather than following the referral of an agent who is just looking to supplement their fee.■
HFS Milbourne further commits to Surrey’s lawyers HFS Milbourne, the Surrey based financial specialist has consolidated a long-standing association with the local legal profession by announcing plans to sponsor Guildford Chambers, the multi-disciplinary barristers who provide advocacy for individuals and businesses across the South East. Photograph: (L-R) Rod Milne, joint managing director, HFS Milbourne, Dominque Gillan, deputy head Guildford Chambers
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he agreement will see HFS Milbourne support Guildford Chambers’ continuing professional development (CPD) programme which provides specialist workshops for lawyers looking to continue their education. HFS Milbourne will also provide updates on the ever-changing financial landscape, most importantly, the impact of new legislation as it comes into force. The move is a ‘natural fit’ for HFS Milbourne as Rod Milne, joint managing director explains “Our work providing advice on the division of finances when a marriage breaks down brings us into close contact with family lawyers. This new association will provide an opportunity to cement existing relationships whilst helping lawyers maintain an understanding of current legislation which can be very complex.” “We are committed to supporting local lawyers, many of whom will be aware that we are also a long-standing sponsor of the Surrey Law Society, the professional association that represents Surrey’s legal community.” 10 SURREY LAWYER
Dominique Gillan, deputy head of Guildford Chambers added “We are extremely grateful to HFS Milbourne for their support of the CPD events which we host for the benefit of the region’s legal teams. “This is a very positive move for the Chambers and HFS Milbourne and we are looking forward to a long and mutually beneficial relationship.” HFS Milbourne Financial Services is authorised and regulated by the Financial Conduct Authority (FCA) and specialises in wealth management, pensions, finance on divorce, mortgages, employee benefits and corporate financial planning.■ For further information:
www.hfsmilbourne.co.uk or tel 01483 468888
LOCAL NEWS
Barlow Robbins
announces fourth partner appointment for 2018 Leading Surrey law firm Barlow Robbins announced, on 21st December 2018, the promotion of Daisy Waldren to its partnership, the fourth partner appointment for the firm in 2018.
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aisy joined Barlow Robbins in May 2013 as a Solicitor. As a commercial property specialist, she provides end-toend advice for a wide variety of clients including private individuals, pension funds, banks, owner manager businesses and SMEs. She has extensive experience in landlord and tenant related matters, development, property finance and securities work, freehold and leasehold sales, and acquisitions and portfolio management. Daisy is also experienced in dealing with 1954 Act lease renewals, dilapidations, conditional contracts and option agreements. Barlow Robbins are consistently recognised as a prominent law firm in the South for commercial property work, with the team being awarded Tier 1 status in the latest Legal 500 rankings. Daisy is also recognised
as a leading individual in Chambers 2019. Daisy’s appointment follows a year of sustained growth for Barlow Robbins. To support this growth, the firm recruited corporate specialist Tim Matthews in May 2018, and promoted Sara Abou-Jaoude (Residential Property) and Scott Taylor (Dispute Resolution) to the partnership in June 2018. It also appointed Andrew Speers as a new Non-Executive Director in July 2018. Ray Black, Chief Executive of Barlow Robbins, comments: “Daisy has proven herself an invaluable member of the firm and exemplifies our values, culture and calibre of talent, providing clients with top-quality advice as well as indepth local knowledge. It is a pleasure to announce her promotion and welcome Daisy to the partnership.”■
Barlow Robbins
boosts Town & Country offering with expansion in their residential property team
Senior Associate Charlotte Brackley brings significant experience in advising landed and agricultural estates
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eading Surrey law firm Barlow Robbins has appointed Charlotte Brackley as a Senior Associate in the firm’s residential property team. Charlotte specialises in rural property matters including buying and selling farms, agricultural land and country houses as well as farming tenancies, sporting leases and minerals agreements. She also has significant experience acting for banks in connection with lending to estates, high value rural and residential purchases and strategic refinancing. She joins Barlow Robbins from Forsters LLP, where she was a Senior Associate in its Tax Trusts and Estates Departments specialising in Landed Estates and residential property matters. During her time at Forsters, she advised on high value transactions such as the acquisition and disposal of large agricultural estates and country houses, easements and
covenants, single payment and agricultural tenancies. Earlier in her career, she spent nearly a decade at Withers LLP. Charlotte joins Barlow Robbins in the midst of a period of sustained growth, most recently underscored by a series of partner promotions. These included Scott Taylor in the dispute resolution team and Sara AbouJaoude in the residential team. Commenting on the appointment, Clare Andrews Head of Residential Property at Barlow Robbins said: “Charlotte’s breadth of experience in the sector will prove invaluable to the firm, especially as we continue to build on our residential and agricultural client offering. Charlotte’s commitment to client services meant that she was an ideal choice for Barlow Robbins, and we are thrilled to welcome her to the team.”
Charlotte Brackley added: “I am delighted to be joining Barlow Robbins’ growing and highly skilled residential team. I am looking forward to bringing to bear my expertise in the landed estates and agricultural areas of the property sector to further enhance their already first-class service.” ■ SURREY LAWYER 11
LOCAL NEWS
The London Legal Walk returns on June 17th T
The London Legal Support Trust is holding its 15th annual London Legal Walk, and is calling for teams from the legal sector to sign up and participate in the event.
his fun 10km sponsored walk through central London is held each year to raise money for over 100 free legal advice charities and organisations in London and the South East. The funds they receive from the walk enable them to assist vulnerable people needing good quality, free legal advice. The after work walk has two routes, both starting on Carey Street, next to the iconic Royal Courts of Justice. Choose either the Parks Route, or the River route, and start the walk anytime between 4pm and 7pm on the day itself. The walk finishes with a lively street party back on Carey Street, where there will be food vendors, fire jugglers and musicians waiting to celebrate your arrival! Each walker will also receive a free drinks token. The London Legal Walk is the biggest event of the legal calendar; as such, it is a busy and exciting event to spend with coworkers and friends! Last year 13,000 people across 750 teams walked to raise funds for this extremely worthwhile cause,
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raising a record breaking £830,000. In 2019, the London Legal Support Trust hope to break this record again with the support of those working in the legal sector in and around London. Will you join the Lord Chief Justice, Lady Hale, and thousands of others from chambers, courts, firms, and advice agencies, and walk on June 17th? There is no sign up fee, and no minimum fundraising target, so it couldn’t be easier to take part. Join in with your firm and enjoy a great summer walk, all to raise money for a meaningful cause. Simply sign up your team at: tinyurl.com/LLSTLLW19 Save the date: just three weeks after the London Legal Walk, the Guildford Legal Walk will take place on July 8th. This 10km picturesque walk, led by Surrey’s judges, raises funds for local advice centres in Surrey; a service that is desperately needed. Find out more and register at: tinyurl.com/GuildfordLW19.
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LOCAL NEWS
Gordons Partnership Solicitors LLP’s latest addition The Family Department at Gordons Partnership Solicitors LLP in Guildford gets stronger with the addition of a senior family law solicitor. The average age at divorce has risen by almost seven years in recent decades to reach around 44 years for men and 41 years for women. Figures from the Ministry of Justice show a 43% increase in the number of pensionsharing orders made by the family courts atvinder Sokhal joins Julia Frimond and in 2017 namely where divorcing couples her talented team from a London seek to split their pension pots as rising based firm and she brings with her over asset values make it increasingly attractive 17 years’ worth of experience. Satvinder option for divorcees. The number of specialises in HNW financial remedy ‘pension-sharing orders’ rose to 11,503 in matters and has been looking at the the year to March 2017 which is an recent increase in pension sharing orders increase of 8,027 from the previous year. being made by the family courts. Experts say that the rise could be down to Most family lawyers will agree that more the increasing value of pension pots over and more people are looking to share their recent years, as rising share and property pensions due to a lack of other assets prices; coupled with greater flexibility over being available and due to the average what can be placed in a pension. With age of divorcing couples rising. more couples separating in their fifties, Furthermore, as older couples divorce, they are more likely to have built up a pension funds are increasingly likely to be bigger pension making the pension pot the the biggest source of wealth to be divided. parties’ largest matrimonial asset.
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DAYTONA SANDOWN PARK THURSDAY 16TH MAY 2019 6PM
SURREY LAW SOCIETY PAST PRESIDENT’S CHAMPIONS CUP Which law firms have got the skills to stay on track? Join us and find out at Surrey Law Society’s first ever inter-firm go-karting Team Endurance Race hosted at London and Surrey’s premier karting venue! Complete with a 1.5 hour race, podium presentation, all-inclusive BBQ and networking of the ‘racier’ kind, this is an event that you don’t want to miss!
However, it does mean that one spouse could have a lot less money to live on in old age than they had been expecting. Despite a fall in divorces in the UK, the fact that pension sharing order have increased shows just how central pensions have become when splitting wealth. It has been almost 20 years since spouses were for the first time entitled to half of the main earner’s occupational pension (not state pension) on divorce when the family courts divided their assets. In most cases, the pot is divided into two new funds at the time of the divorce in order to achieve a clean break. Since 2015, the pension freedom reforms have given over-55’s greater control over ho they use their savings. Prior to this, people were effectively forced to buy annuity that paid a monthly income in retirement, but now they have the option to make one of a number of cash withdrawals whenever they wish. This has caused the importance of pension pots to grow. ■
TEAMS OF THREE WILL GO HEAD TO HEAD ON THE 900m GP CIRCUIT TO WIN THE CHAMPION’S CUP ITINERARY: 18:00 Arrival 18:30 Safety briefing 19:00 Practice/qualifying 19:30 1.5hr Race Start 21:00 Chequered flag 21:10 Photographed Podium presentation and celebratory drinks 21.30 Depart
To Register Your Interest In This Space-Limited Event Please Contact Interim CEO HILARY UNDERWOOD:
Tel : 07597 582400 Email : hilary.underwood@surreylawsociety.org.uk 14 SURREY LAWYER
SPOTLIGHT ON
SLS Insight In this edition, we ask some probing questions of John Perry, Council Member for Surrey Law Society whose term will be ending this summer. Photograph: John Perry
1. How Long have you been a Law Society Council Member for? Council Members are elected by solicitors within their geographical constituency for a period of 4 years, after which there is an election. I am pleased to say that elections in Surrey have been contested traditionally and I have been fortunate to be elected twice so am just completing my eighth (and final!) year on the Council. 2. What made you stand as Council Member? I have a long tradition of supporting the local law society and have always believed in giving back to the profession what the profession has given me over more than 40 years since I qualified. My predecessor, Paul Marsh was clearly an excellent Council Member and reached the dizzy heights of President of the Law Society of England and Wales. When he retired, it was suggested by some that knowing Paul so well and what he did I would make an adequate replacement. 3. Describe a typical ‘day in the life’ of a Council Member No such thing really. 5 or 6 times a year there is a full Council Meeting, one of which is a two day affair, including Saturday. The agenda is huge and detailed because to get all the members in one place from all over England and Wales is an expensive process, so more regular meetings would be far too costly for the profession. Thus the meetings start at 9.30 in the morning and rarely finish before 5pm. The Council is the overarching decision maker for the profession and debates are detailed and often of very high quality. Much of the Council Member’s work is done in committee. There are many committees! There is Council representation on them all and each one will have other solicitors with technical expertise in the particular subject and indeed lay members where required. Each committee meets about every 6 to 8 weeks for 3 hours in the middle of the day. I sit on the Law Society’s Scrutiny and Performance Review Committee to make sure the process is properly observed at Chancery Lane and as Council Member on the Wills and Equity Committee and I observe for them on the Private Client Committee and occasionally the Mental Health and Disability Committee. I also chair the independent Law Society National Charity. Sub committees and working parties are formed within this structure for individual problems which arise from time to time. 4. How much time would you say is taken up by the Role? Difficult one because it varies a lot. When committees coincide and there is an adjacent Council Meeting I can be at Chancery Lane 3 days in a week. Other weeks I am not there at all, but there is always a large number of emails with on-going working papers etc to read which are sent to my office. 5. How do Council Members effect change/can they effect change? In a sense Council Members are change because they run the profession in the same constitutional way as Parliament is supposed to run the country. All major decisions relating to the profession go through Council. There is an individual electronic voting system at each council seat in the Council Chamber. In their individual capacity and as part of the committee
structure above they are also involved in lobbying just about every outside institution from the SRA to the Ministry of Justice etc and members are often heard in their locality being interviewed on radio stations, providing articles for newspapers or indeed acting as advisors to Government to assist parliamentarians to understand the profession and the needs of the clients better. 6. How do you measure success as a Council Member? Standing for a further 4 year period would take me up to 70 years of age, by which time I would probably be not as up to date with the everyday workings of the profession as I am now. There have been debates anyway about limiting Council Members’ tenure in order to make sure that there is a reasonable turnover and new blood being introduced, especially for the younger end of the profession. New members will have new ideas and I am always around to give advice on procedure, etc if anybody is interested. In addition, I will be keeping my hand in by continuing to sit on some of the specialist committees until my tenure runs out in a year or two’s time. 7. What is your proudest achievement as Council Member? Confidentiality forbids a full response to this but I suppose it is being part of the body that really can make a difference on behalf of the profession at national level. 8. Why have you decided not to stand again as Council Member? Standing for a further 4 year period would take me up to 70 years of age, by which time I would probably be not as up to date with the everyday workings of the profession as I am now. There have been debates anyway about limiting Council Members’ tenure in order to make sure that there is a reasonable turnover and new blood being introduced, especially for the younger end of the profession. New members will have new ideas and I am always around to give advice on procedure, etc if anybody is interested. In addition, I will be keeping my hand in by continuing to sit on some of the specialist committees until my tenure runs out in a year or two’s time. 9. What is the one thing you will miss the most? Council Members are a diverse and interesting bunch, but every single one of them is there to uphold the rule of law and to contribute their own efforts with whatever talents they have in whichever direction is appropriate. It is good to know that solicitors in Carlisle, Tenby or Truro are suffering exactly the same problems as we are in Surrey and to pool resources and expertise to fight our cause. The fellowship is immense and I have made very many first class friends over my time from elected members, committee members and indeed staff at the Law Society who support us all. The rare but necessary purely social functions are good fun too. 10. What are the attributes of a good Council Member? An open mind, patience, resilience, stamina, an ability to listen and learn from others and above all an extremely keen sense of humour. ■.
Would you be interested in joining the Surrey Law Society Committee? We meet approximately 4 times a year, alternating between Guildford and Kingston, plus the AGM in November. The main role of the Committee is to oversee the strategic and practical management of the Society. The Officers and Members of the Board work together with the Interim CEO, Hilary Underwood to deliver a programme of CPD and Social Events throughout the year. The Board is responsible for responding to consultations and for lobbying on behalf of the wider Surrey membership. We provide support for members experiencing problems, help them with job searches and assist with complaints.
There are also a number of Sub Committees that report to the Board including: Quo Vadis Strategy Group, Conveyancing & Land Law, Financial and Social. You do not have to be a full Committee member to serve on a Sub Committee. To find out how you can get involved and how you might contribute to the work of the Society, we invite you to come along as an observer to 2 meetings before making any decisions. If you would like to find out more about the work of the Committee or the Society, please do not hesitate to contact Hilary Underwood at hilary.underwood@surreylawsociety.org.uk or complete the application form overleaf.
SURREY LAWYER 15
JUNIOR LAWYERS DIVISION
Young Surrey LawyersLooking forward to 2019
At Young Surrey Lawyers, we are looking forward to a full calendar of events this year, kicking off with a presentation by Chadwick Nott on 11th April at Stevens & Bolton in Guildford.
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he evening will focus on personal branding in the legal market. It will offer advice and guidance for trainees approaching qualification, including how to build your profile and market yourself to prospective employers – whether at your current firm or elsewhere. We will discuss how to prepare for qualification in terms of deciding on your practice area as well as tips for life as a NQ. The talk will be followed by drinks and nibbles. This event is free to attend, but spaces are limited so please contact us on the email address below if you would like to attend.
We are also pleased to announce that we are looking for new members of the committee, with a variety of roles available. If you are interested in joining us, please get in touch. If you are interested in receiving details of our future events or joining the committee, please contact us at youngsurreylawyers@hotmail.com ■
Joint Winner of the
Client Interviewing Competition Sophie Griffiths of the University of Law, joint winner of the Client Interviewing Competition, sponsored by Surrey Law Society on 24th November 2018 reflects on her experience:
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articipating in the client interviewing competition, kindly sponsored by the Surrey Law Society, was a very rewarding and enjoyable experience. It gave me the opportunity to practice and gain valuable feedback on a crucial skill which I would be assessed on during the LPC, as well as encounter in my daily life as a future solicitor. Through this experience I feel much more confident in my ability to interview clients and tailor my advice to their needs. In addition to the practical
Photograph: Sophie Griffiths
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experience of interviewing different clients on a varied range of issues, the competition also provided me with an opportunity to network with other students and members of the Surrey Law Society. This exciting experience was made even better by the fact that everyone in attendance was friendly, approachable and more than happy to answer my questions regarding life in the legal profession and offer advice. ■
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REPORTS
Council Member’s Report – How are you doing with Brexit? No, nor am I. Photograph: John Perry
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t is fruitless making comments in this article as by the time you read it a great deal of water will have flowed under the bridge, or at least across the Irish Sea. Suffice it to say that the Law Society has been working extremely hard to unravel all the difficulties that arise from the unholy mess that has occurred. You will know that the Law Society has an office in Brussels and they themselves do not know whether they are in or out and many solicitors around the world have not yet got a clue as to whether they will be able to practise where they do now or not. So many legal issues arise not only on an international level but domestically as well. The final Act of Parliament will be the biggest single piece of legislation ever enacted. Think of all the law which is now based around European jurisdiction which will have to be incorporated in the Law of England and Wales. I have had it said to me “I don’t deal with international law so it will not affect me”. Make no mistake, it will. We have businesses stock piling imports, we have the immigration issue, Wills with assets abroad; you name it, all will
have to be revisited and quickly. As far as they are able Council has been kept up to date with excellent presentations from Mikael Laurans the Head of International at the Law Society; and the President’s weekly updates, which I hope you all receive, keep us abreast of the situation on a daily basis. The attempt is to have plans in place for whatever happens, but the nuances are so great in number that that is almost impossible. Good luck everybody and see you the other side; but whatever does happen we will still have to do business with each other; even people who have a completely entrenched opposite view to yourselves about Europe so we must all remember that we are upholding the rule of law above all else and do it in a civil and professional manner. Meanwhile back at home (as if intended to be buried in the Brexit mess), the new probate fees “stealth tax” is upon us causing yet another scramble by probate practitioners to get applications in before deadlines; thus putting impossible amounts of pressure on individual solicitors through no fault of their own. The Law
Society is fighting every inch of the way and again as I write we have no way of knowing how the matter will pan out but I have not met anybody, solicitor or otherwise, who does not regard the imposition of the new probate fees as a heinous and cynical act disguised as an inflationary increase to cover costs. I could go on about other subjects but you hear about them anyway so suffice it to say that as previously announced I will be leaving Council this summer after 8 years and it would be embarrassing if a search committee had to be formed to find a suitable replacement candidate and, indeed, to force a contested election which is healthy for the profession. Think on it and if you want any information at all about the role of Council Member (see elsewhere in this excellent publication) and if you want me to elaborate on any of the points made I will be very happy to do so.■
John Perry Council Member
Surrey Law Society Application Form for Committee or Board Membership
If you would like to apply to join the SLS Board and/or one of our Sub Committees we would be delighted to receive your completed application form (below). Please send to Hilary Underwood, Surrey Law Society, c/o Russell Cooke Solicitors, Bishop’s Palace House, Kingston Bridge, Kingston upon Thames, Surrey KT1 1QN or scan and email to hilary.underwood@surreylawsociety.org.uk. Name
Firm’s Name Postcode
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Qualification (solicitor, Legal Executive)* Specialism(s)
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Are You a member of SLS?**
Do you want to join the Board as a Director or serve on a Sub Committee? (please indicate) What area of SLS’s work/which committee(s) particularly interest you? (see Guidance Notes) What particular skills, qualities and experience could you bring to that committee? Whilst it is not essential to know an existing member, do you know anyone on the Board or a Sub Committee? Please provide the emails and/or telephone numbers of two current members of the SLS with whom we may discuss your application.
❑ Yes
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18 SURREY LAWYER
Sub Committee Only (Please state)
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**You must be a full SLS member to join the Board Date:
Board & Sub Committee
SECTIONREPORTS HEADER
How well women do in legal careers may depend on where they live Law Society research How far senior women can go in their legal careers may well depend on where they live, new research released by the Law Society of England and Wales to mark 2019 International Women’s Day suggests. “2019 is the centenary of the Sex Disqualification (Removal) Act, which allowed women to train as solicitors, serve as magistrates and sit on juries,” said Law Society president Christina Blacklaws. I am sure that you will all have made good stead in complying with the new rules. If you are looking for best practice and ways in which you can refine your compliance, we have made available a number of resources, including: “The profession has made great strides over the past hundred years but there is still a long journey to gender equality, particularly at senior levels in certain regions of England and Wales. “We hope our new Women in Leadership in Law report will assist legal businesses with the insight and tools to drive diversity - right up to the most senior levels - and create equal opportunities for all.” Country-wide, 62.2% of new solicitors in 2018 were women but only 30.8% of partners in private practice were women. In the East Midlands, Wales, East and South East, firms have a higher than average proportion of female partners. Perhaps surprisingly, London has the lowest proportion of partners who are women.* With so many smart, talented women entering the profession, it simply does not add up that female solicitors across the country are struggling to reach senior leadership positions. Men’s perception of progress towards gender equality is strikingly different from their female counterparts’. Christina Blacklaws said: “More than half of the respondents we interviewed in our survey on women in the law cited perceived unconscious bias as the greatest barrier to women’s career
progression with an overwhelming 91% saying flexible working is critical to improving diversity.** “As a profession which endeavours to uphold justice, the legal profession needs to lead the way in the fight for equality in the workplace. “To create a more diverse senior leadership, diversity and gender equality must be placed at the heart of business decisions. The profession needs to come together to combat unconscious bias, encourage flexible working and meet both men and women’s working needs.” Key findings from the 2018 women in law survey: • 74% of men and 48% of women reported progress on gender equality in the last five years • main barriers to career progression perceived as: • unconscious bias (52%); however, only 11% said unconscious bias training is consistently carried out in their organisation • unacceptable work/life balance demanded to reach senior levels (49%) • traditional networks/routes to promotion are male orientated (46%) • current resistance to flexible working practices (41%) • 91% of respondents said flexible working is critical to improving diversity • 52% work in an organisation where flexible working is in place You can read more about women in leadership in the law and see statistics about the survey here: https://www.lawsociety.org.uk/support-services/practicemanagement/diversity-inclusion/women-in-leadership-in-law/ ■
Women in Leadership in Law report: The need for gender equality in the legal profession Women have made up over half of practising solicitors since 2018, but the profession continues to be led predominantly by men.
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round the globe, the senior levels of law firms do not truly reflect the reality of a profession with a significant female majority at the point of entry. The Women in Leadership in Law project aims to provide a solid foundation of qualitative evidence about the position of women in law, raise awareness of the challenges we face in tackling inequality and promoting creative solutions, empower women to become changemakers and leaders in their organisation, and to channel the support of male champions for change. To better understand the key issues that affect women working in law, we conducted a survey that ran from November 2017 to January 2018 and captured 7,781 responses from men and women. Using these key findings, we hosted or supported 225 roundtable discussions domestically, and in 13 jurisdictions, with women from across the legal profession.
Roundtable participants were asked to focus on the key perceived issues that were identified in the survey - unconscious bias, the gender pay gap and flexible working - along with examples of best practice which can help to overcome the barriers to women's progression. This report includes the top findings of the women's roundtables and includes extracts from the comprehensive international literature review of the research we commissioned. You can read the full report ‘Influencing for Impact: The need for gender equality in the legal profession: Women in Leadership in Law Report – Findings from the women’s roundtables’ here: https://www.lawsociety.org.uk/support-services/researchtrends/gender-equality-in-the-legal-profession/ ■
SURREY LAWYER 19
REPORTS
Law Society Report Photograph: Bhavni Fowler
March 2019 Brexit
The first quarter of this year has certainly been busy, with developments in a number of areas that will have an impact on our members. Opposite, I provide a summary of some of the key areas that will be of interest:
As we fast approach 29 March, and the political landscapes twists and turns on a daily basis, we have been working hard to keep members informed of our lobbying activities in the UK & Brussels and understand the evolving challenges you and your clients face. With the growing concern that the we could exit the EU without a deal, we (The Law Society) have published a series of papers giving our members guidance so you can take steps to mitigate some of the risks. Law cuts through every area of life – family, data, disputes between businesses – and therefore, we have produced guidance in the following areas: • Civil and commercial cooperation • Criminal justice and security co-operation • Data protection • Family law • Intellectual property • Providing legal services in the EU • VAT We are also arranging a number of Brexit events. If you would like to find out more details, please contact me.
LASPO The government published its review of LASPO early February. Along with the review document they also published a plan for future legal support outlining the main actions the government will take forward as a result of the Review. Richard Miller, Head of Justice at The Law Society, commented: “In my 20 years in legal aid policy, this is the first time I have been faced with a package of measures from the Government that unequivocally proposes changes that improve the current situation.” The proposals reflect a considerable number of the recommendations we put forward. The Ministry has accepted the case for changes in relation to the legal aid means test, exceptional case funding and early legal advice, and has committed to further work as to what those changes should look like. There are also to be specific changes immediately in relation to migrant children, special guardianship orders and the telephone gateway for discrimination, debt and special educational needs.
Technology – Research Last month we published our ‘Lawtech Adoption Research report’, which shows a rise in the number of lawtech companies in recent years.
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However, this increase is not reflected in the rate of lawtech adoption among legal practitioners. Our research explores what types of lawtech providers are gaining traction in different sectors of the profession and the drivers behind this, with a view to how adoption rates might impact the future shape of legal process and delivery. The report provides invaluable insights into the use of technology and the future of the profession and skills required. A copy of the report is available here.
Recommended minimum salary for trainees increase The minimum salary for trainee solicitors recommended by the Law Society has increased by 2.6% to £19,619 outside London and £22,121 in London. The new rate comes into effect on 1 May 2019. Based on previous guidance, employers are encouraged to implement the increase as soon as they can, on or after this date, and at least within six months. The JLD was integral to the development and introduction of a minimum recommended salary to trainees as best practice. Visit the JLD website for further information.
Civil Litigation In the last edition, I highlighted our Civil Litigation Section which is the community for civil litigators and mediators. The section provides specific support and guidance in relation to this practice area. The Civil Litigation Section have recently published an article on how reliable witness statements are and whether AI can improve them - read the article to learn how false memories evolve and if technology can help us to spot them. In addition, the Section have also recorded a new podcast on the Right to be forgotten: a whistlestop of recent developments to the right to be forgotten. Listen to his podcast and others in the series here. If you would like further information on the activities mentioned above, or any other areas of interest, please do not hesitate in contacting me ■
Bhavni Fowler Relationship Manager, The Law Society Email: bhavni.fowler@lawsociety.org.uk Tel - 07773 254 543
ARTICLE
This Too Will Pass Photo: Paul Gilbert
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n the last few years it would be impossible to be unaware of issues of well-being and mental health. We are all lucky that there is more understanding, more resources and more acceptance than perhaps at any time before. However if we have made such good progress why do we need yet another book? I am certain that this is not just “another book” and my hope is that you will read it, change because of it, and then recommend that others read it so that they may change too.
“This Too Will Pass” is a new book by Richard Martin describing his personal struggle with anxiety and depression.
Before becoming ill, Richard was a city based employment lawyer for 20 years, a partner at Gouldens/Jones Day before joining Speechly Bircham where he ran the employment team and sat on the firm’s managing committee. In some respects Richard’s story is not so remarkable - Professional man suffers burn out, gets therapy and recovers – but Richard’s story is absolutely compelling. The autobiographical style is raw, honest, funny, human, real, charming, emotional, sad and hopeful. The narrative draws you in, it is both comfortable and unsettling at the same time, it informs but never lectures and it provides a space to think deeply, but not to dwell helplessly. Richard writes beautifully and if you know him already you know he is a lovely man; however a beautifully written book by a nice man, may still not be a reason enough to buy it, so let me say this one thing to try and persuade you. We are all vulnerable and we all love people who are vulnerable too. Despite there being more awareness now than ever before, we are still in the foothills of understanding with a mountain to climb. If you are not sure how precious and fragile your mental health might be, or the mental health of people you care about; if you are not sure where to look to know more, or how to start the conversation with friends or colleagues or loved ones; and if you need something real and not theoretical to help clarify your own thoughts, then please, please read this book. A remarkable man, a compelling story and truly important contribution to one of the most important issues of our time.
Paul Gilbert LBC Wise Counsel is a leading and hugely respected coach, mentor and adviser to the in-house legal profession
SURREY LAWYER 21
FEATURE ARTICLE
Recent Developments Photograph: Rachel O’Connell
There have been a number of changes to employment law recently which will affect both individuals and employers. This article is intended to be a brief summary of the changes, together with some proposed changes.
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in Employment Law A
recent survey by the Law Society’s Junior Lawyers Division (JLD) has found that almost half of junior lawyers are oblivious to the benefits of lawtech - or completely unaware of its existence. As someone heavily involved in the sector – and therefore aware of how critical it is to success - this set alarm bells ringing.
be offered a suitable alternative vacancy, assuming there is one. The terms and conditions of this new job should be broadly similar to her original job and it should be offered to her in preference to any other workers who are being made redundant.
The government is currently carrying a consultation into extending this protected period to cover the six months after the Gender Pay Gap Reports new mother returns to work. The Public sector employers, with 250 employers consultation closes on 5 April 2019 and or more, must publish their reports by 30 also considers whether to give parents March 2019. returning from shared parental leave or Private and voluntary sector employers (where adoption leave the same rights. they have at least 250 employees) must Itemised Pay Slips publish their reports by 4 April 2019. Starting on 6 April 2019, all employees Statutory Sick Pay (SSP) including workers will be entitled to an With effect from 6 April 2019, the rate for SSP itemised pay slip. This should show the total will increase to £94.25 per week. To be eligible number of hours worked if the pay rate varies for SSP you must be employed; have been ill according to the number of hours worked. for a minimum of 4 days in a row which can include non-working days such as weekends; Statement of Employment Particulars earn a minimum average weekly salary of Whilst not technically a change as this £116, and inform your employer within 7 days obligation is currently in force, it is worth of your sickness or by their deadline if they reminding employers that employees should have one. be provided with a written statement of employment particulars if they have been Statutory Maternity Pay (SMP), Statutory continuously employed for at least one month. Paternity Pay (SPP), Shared Parental Pay (ShPP) and Statutory Adoption Pay (SAP) This statement should be provided to the employee before they reach two months’ of With effect from 6 April 2019 SMP, SPP, continuous employment. ShPP and SAP rates will increase to With effect from 6 April 2020 all workers will £148.68 per week. be entitled to statement of employment Pregnancy Protection Consultation particulars from day one of their employment. Currently if a new mother is at risk of Increase in employer penalties redundancy during her maternity leave (or for Currently an employment tribunal can award a the period of two weeks after the child’s birth if there is no right to maternity leave) she must penalty of up to £5,000 if an employer has breached an employee’s rights and done so
FEATURE ARTICLE
in an aggravated way. This includes repeatedly breaching the employee’s rights or acting deliberately in breach. On 6 April 2019 the maximum penalty will increase to £20,000. Tribunal compensation limits With effect from 6 April 2019 the limits will be: • A week’s pay (for calculating redundancy pay and the unfair dismissal basic award) will be capped at £525 • The maximum statutory redundancy payment will increase to £15,750 • The maximum basic award for unfair dismissal will increase to £15,750 • The minimum basic award for dismissal due to trade union; health and safety; occupational pension scheme trustee; employee representative ,or working time grounds will be £6,408 • The maximum compensatory award for unfair dismissal will be capped at £86,444, or one year’s gross pay depending on which is lower.
We hope that this has given a good overview of the changes. If you would like any further details or have any questions on how they affect you, please do not hesitate to contact us. ■
Rachel O’Connell Director of JE Solicitors
Agency Workers opt-out (“Swedish derogation”) From 6 April 2020 businesses will no longer be able to opt out of equal pay requirements when using agency workers instead of permanent staff. Annual leave From 6 April 2020 the reference period for calculating the average week’s pay will be increased from 12 weeks to 52 weeks. This is to help improve the holiday pay conditions for seasonal workers. Taxation of termination payments From 6 April 2020, employers will have to pay National Insurance contributions on any termination payments over £30,000. Parental bereavement provision Employed parents are currently entitled to take a reasonable amount of time off to deal with an emergency involving a dependant, including dealing with their death, from day one of their employment. In 2020, we expect a new law to come into force entitling an employee to two weeks’ unpaid leave in the event they lose a child under the age of 18 or suffer a stillbirth from the 24th week of pregnancy. The exact date is yet to be confirmed but the right will apply from day one of their employment. National Minimum Wage / Living Wage Increase On 1 April 2019 the NMW / LW will increase to: • £4.35 per hour for workers aged 16 – 17 years old. • £6.15 per hour for workers aged 18 – 20 years old. • £7.70 per hour for workers aged 21 – 24 years old. • £8.21 per hour for workers aged 25 and older. SURREY LAWYER 23
ARTICLE
Our survey says… It’s time for junior lawyers to embrace lawtech A
Craig Matthews, Vice-Chair of the LSSA warns that with ever increasing compliance and regulation, a lack of understanding of lawtech is not an option.
recent survey by the Law Society’s Junior Lawyers Division (JLD) has found that almost half of junior lawyers are oblivious to the benefits of lawtech - or completely unaware of its existence. As someone heavily involved in the sector – and therefore aware of how critical it is to success - this set alarm bells ringing. When I left school, many years ago, I opted out of IT as part of my further studies. It was a move I was soon to regret: the first role I landed was with a law firm, where the department head tasked me with helping to set up a new case management system. His view was that as I was the youngest there, I was bound to understand it all. threw myself into the challenge, which turned out to be a good move, as it eventually led to my career in legal technology. Now, I spend a good deal of my time exploring new tech opportunities both for our own business and more pertinently for our client law firms. Whilst law may have deep routes, with centuries old cases still being quoted, the tech that is available for law firms evolves alongside the great strides made in technology generally. The research also highlighted that the lack of understanding may come from an absence of education and training. While 61% of respondents claimed to have received “little
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or no information/training on lawtech” whilst on the Legal Practice Course (LPC), just 2% said they were given all the information and training they needed from their law school. With ever increasing compliance and regulation to deal with, a lack of understanding of lawtech is not an option. It has the potential to revolutionise the way we work and therefore needs to be understood from graduate level upwards, so that lawyers can benefit from increased productivity, enhanced and accurately billed hours, and happier clients. It’s true to say that it is an increasing trend for clients to expect more from their lawyers in terms of customer care and ready access to information, and not just the provision of core legal services. Ultimately, those firms and lawyers who embrace lawtech will achieve a better and more manageable work/life balance. Surely that’s a good thing? ■
Craig Matthews CEO of Pracctice Ltd and Vice-Chair of the LSSA
SECTION ARTICLE HEADER
Understanding Residential ATED, the annual tax paid by companies that own UK residential property Roderick Campbell, Partner and Head of Commercial Property at law firm Hart Brown, explains how ATED works, and what reliefs and exemptions apply.
ATED is an annual tax payable mainly by companies that own UK residential property. Until 1 April 2016, ATED was only applicable to residential properties valued at over £1m. This is where residential properties were held (“enveloped”) by a company or a partnership with a company member or a collective investment scheme. The valuation threshold for properties subject to ATED is now only £500,000. The valuation date for properties subject to ATED has been updated from 1 April 2012 (or the date of acquisition, if later), to 1 April 2017 (or the date of acquisition, if later). This has brought a large number of properties, which were previously below the threshold, into the scope of this annual tax. The ATED is calculated by using a banding system and the annual chargeable amount for 2018/19 has risen to £3,600 for dwellings valued at between £500,001 to £1m. However, there are a number of reliefs and exemptions that apply. The main reliefs are for dwellings: • being redeveloped or held as stock for resale by a property developer. • held by property rental businesses where the building is let out to a third party on a commercial basis. • that are open to the public for at least 28 days per year or are used to provide accommodation or other services to the general public on a commercial basis. • that are farmhouses occupied by working farmers. • held by trading companies for the use of employees in the trade. • owned by providers of social housing. • acquired by financial institutions in the course of lending.
• held by property rental businesses for occupation by employees. • held by property management companies for occupation by a caretaker. • held by a regular home reversion plan provider (such as an equity release scheme). The main exemptions relate to exempt bodies such as charities, public bodies and bodies established for national purposes. Properties need to be single dwellings to be liable to this charge. Hotels, guest houses, boarding school accommodation, hospitals, student halls of residence, military accommodation, care homes and prisons are not single dwellings. Capital gains : When a property subject to ATED is sold, a special ATED related capital gains tax will be payable. The amount of CGT payable will depend upon the length of time that the property has been owned and the length of time the property was subject to ATED. Planning ahead : Although ATED is based on property values as at 1 April 2017 (or the later acquisition date) a new valuation will be required on 1 April 2022 and that valuation will form the basis for the tax calculation in subsequent years. ■
Roderick Campbell, Partner and Head of Commercial Property Hart Brown
SURREY LAWYER 25
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ARTICLE
Prioritise and delegate – to achieve more and avoid burnout
The recent report about a law firm leader standing down due to exhaustion should have been a sharp reminder to every leader of a professional firm that it is not possible to do it all (at least not alone and without delegating). Otherwise something will give and that may be both the leader’s wellbeing and that of the firm.
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Important Vs Urgent? Differentiating the important from the urgent is not always easy and as James Caan (of Dragons Den fame) has said “Being ruthlessly focused means you have the ability to cancel out noise [i.e. something that seems so much more important than the actual task] and focus on what is important. It’s a strength in itself to be able to say something is not critical” And many urgent matters only become urgent because they have not been dealt with earlier when they should have been. Take a blank sheet of paper and list all the matters you are currently dealing with. They will probably fall into one or more of these categories: - Strategic - People - Operational - Financial - Reputational Using the chart below, plot where each of those matters should be placed in terms of importance and urgency.
LOW
IMPORTANCE
HIGH
any of us have difficulty prioritising how to most effectively use our time. If you are managing a business such as a professional firm you will be faced every day with making decisions as to how you should best employ your time for the good of your business – and your own wellbeing. You will have a multitude of initiatives on the go and problems to solve. How do you prioritise them and which do you delegate? If you are unsure how you should best focus your time as a professional firm leader then I set out below some ideas for you to use which may help you to more effectively employ your time as you work to achieve your goals – and, importantly for the sake of your wellbeing and that of your business, avoid burnout. What issues do you have in your in-tray at the moment and how are you going to prioritise and delegate them? Some matters may be important while others may have less importance. There may also be matters which are urgent but may or may not be important. How will you prioritise dealing with these to achieve the best for your firm and do so in a way that helps you avoid burnout?
LOW
URGENCY
Using the chart in this way will enable you to better prioritise your work by deciding whether the tasks in hand are of: - High importance / high urgency - High importance / low urgency - High urgency / low importance - Low urgency / low importance
To delegate or not to delegate? You should then ask yourself who should be dealing with each of those tasks. Each matter you have plotted on the chart should be tested to decide which you should deal with and which should be delegated to others. For example, should you as a Managing Partner be involved with every single ‘people’ issue or should you limit your involvement to only those people matters which are of high importance to the firm as they may raise serious reputational or financial risks? Everything else should be delegated. When I was a Managing Partner I gathered together my professional team (Finance, HR, Marketing, IT, Risk and Facilities) and said this to them: “Even though my door is always open to you, I do not want each of you coming in here every five minutes asking me for my decision on something.
HIGH
Each of you is a highly experienced professional and I only want you to come to ask me something when you really consider you are not able to deal with it yourself.” Saying that empowered them, and thereafter they carried out their roles more effectively and without asking me for decisions on everything. However, they also knew that when they needed to involve me I would be there to help. Importantly, taking that step allowed me to focus my time on the most important aspects of my role for the good of the firm – and for my own wellbeing. Filtering matters in an in-tray in this way will work not only to clarify for a Managing Partner and a firm what is important and must be dealt with as a priority but will also help a Managing Partner to ensure his or her continued wellbeing, which itself should also be a priority for a firm. Are you and your firm prioritising your wellbeing?
Peter Scott Peter Scott Consulting 2018
SURREY LAWYER 27
ARTICLE
From trainee solicitor to Lawyer of the Year!
SLS 2018/19’s Lawyer of the Year, Daphne Robertson, shares her journey from trainee to business owner
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I joined Freshfields in 1990, straight from St Andrew’s University and the College of Law. I remember working incredibly hard, frequently right through the night. It certainly meant that I had a more limited social life than many of my friends at the time. Looking back though, it was incredibly good experience and probably the best introduction to the law I could have got. I learnt a huge amount in a very short time from a lot of very bright and experienced people. A highlight of my early career was a 1 year secondment to Moscow shortly after the fall of communism. The Moscow office was newly opened and it was a little like the wild west. The change from the very formal London culture was stark, and I learnt that working with the law can play an important role in the development of a country and its institutions. I still have many friends from my time in both London and Moscow.
because for the first year ever, the winner was chosen by public vote. We were shortlisted against some much larger, national firms so it is illustrative of our client’s loyalty that they took the time to vote for us. Building the firm has been hard work – my working days are still very long. But I have a fantastic team of lawyers and support staff working with me, allowing me more recently to focus on business development.
My chosen business model of flexible working allows us to contract with some exceptionally talented lawyers. The majority come from magic circle firms and have 15+ years experience. They enjoy working with us because of the high quality of work and because our work is so interesting and topical – the NHS is rarely out of the news! Flexible working also enables us to offer ‘out of hours’ advice to our clients, many of whom are in clinic, As my career developed, I realised that seeing patients during the day. I needed a change of direction. With the DR Solicitors is a modern, specialist launch of the new GMS contract in 2004, I and client-focused firm with a team I’m saw an opportunity to build lasting incredibly proud of. It’s incredibly satisfying relationships with GP practices, dentists & to help our clients find commercial other medical professionals and set up my solutions to the very complex problems own firm, DR Solicitors, in 2003. We they face. I can honestly say that I enjoy specialise in advising medical going to work every day, and I am acutely professionals and I am incredibly proud of aware that this puts me in a very what we have achieved over the years. We fortunate position. have grown into a renowned niche practice, and are now the largest provider of legal services to primary care practitioners in the country. The firm is Daphne Robertson highly ranked in Chambers, and I am the DR Solicitors only Tier 1 solicitor in medical partnerships. Most importantly, we also widely recognised within the primary care industry as one of the leading firms of professional advisers. We have recently been awarded Northants LMC’s award for ‘Outstanding Service to General Practice’ and at the end of 2018 we won the General Practice Awards’ legal advisor of the year category, which was of particular significance
SECTION ARTICLE HEADER
Dealing with stress At LawCare we know that life in the law can be challenging and sometimes things can get on top of you.
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e’ve been supporting lawyers for 20 years and we’ve seen first hand the effects long hours, high billing targets, and a competitive work environment can have on lawyers, many of whom become stressed. In addition to this we often see certain personality traits in lawyers: an analytical mind, impatience, extremely driven, perfectionism, a constant feeling a sense of urgency, and overly self-critical. These can all be very useful in the workplace but destructive in your private life. Often lawyers find it hard to admit they are having a difficult time and not coping for fear of showing weakness or losing face at work. It is important that both firms and individuals take action to manage stress before it becomes too much to deal with. Stress is a normal response to a demanding work environment but chronic stress increases the risk of addictive and damaging behaviour, of developing anxiety, depression and other mental and physical health problems.
What can firms do to create a mentally healthy workplace Depression, anxiety and stress are now the leading cause of sickness absence at work costing the UK economy over £70bn per year. Lawyers were found to be the third most stressed profession in a Health & Safety Executive study. The legal profession absolutely needs to make a shift towards a culture that better supports good mental health and wellbeing. Senior managers need to take a leadership role on the issue of wellbeing. It is important to normalise discussions about mental health and wellbeing in the workplace, senior leaders should talk about their own experiences and how they overcame difficult situations. For many people the way they are treated at work and the behaviour and role-modelling of their managers makes an enormous difference to how they feel about themselves and their work. Senior leaders need to do more to train, support and mentor junior lawyers and help build their resilience. Some firms choose to nominate wellbeing champions or train staff in mental health first aid. These individuals are available to talk to staff about anything that is concerning them. It is crucial that these people are senior, visible people in the organisation who can correctly signpost staff in the direction of further support if needed. The value of providing emotional support to staff to individuals and to the business cannot be overstated.
Firms should also encourage staff to work healthy hours and keep track of their workloads as working long hours can lead to stress and reduce staff performance and morale. Staff should be urged to take all their holiday and discouraged from working at weekends. Evidence suggests that consistently working long hours will damage an individual’s health over time, as well as their home and social relationships. The legal profession needs to move with the times in offering more flexible working hours and arrangements.
Signs that you may be stressed • Trouble sleeping: A vicious circle: worries about work lead to lack of sleep, which makes it difficult to perform well at work. • Physical changes: Headaches, skin complaints, frequent colds, aching muscles and digestive problems. • Drinking and smoking: Turning to drinking and smoking to cope with the demands of work. • Eating: Comfort eating or skipping meals. • Mood swings: Feeling irritated and frustrated, angry one minute and feel fine the next. • Panic attacks: These can happen suddenly, for no clear reason. It can mean feeling sick, short of breath, shaking, sweating and experiencing a sense of unreality.
What to do if you are feeling stressed • Talking your problems through makes a real difference and provides reassurance you are not alone. Call the safe, free, independent and confidential LawCare helpline on 0800 279 8888 for support and advice, and visit www.lawcare.org.uk for tips on stress and wellbeing. LawCare also has a network of Peer Supporters, people who work in the legal profession who may have been through difficult times themselves and can offer one-to-one support, friendship and mentoring to helpline callers referred to them. • Talk informally to a trusted colleague or your supervisor if you feel they might be helpful. Refer to your diary notes of triggers for stress or aspects of work you are finding overwhelming. • If you feel you can’t talk to anyone at work talk to a friend or family about how you are feeling. • Make an appointment to see your GP.. ■
Elizabeth Rimmer LawCare
SURREY LAWYER 29
ARTICLE
Cashflow is King! N Payments on account in litigation – Sue Nash of Elite Costs Solicitors gives us the lowdown.
ow more than ever, all firms particularly those dealing with PI litigation -need regular income to stay afloat. Yet the vast majority of personal injury, employers’ liability or public liability claims are conducted under CFAs meaning, in most instances, no payment of legal costs until the end of the proceedings – and that’s assuming your client’s claim succeeds. At the same time, these areas are subject to portal and/or fixed recoverable costs with the small claims limit set to rise. It is therefore vital that higher value cases not only ‘pay their way’ but bring in regular payments to protect that all-important cashflow. Obviously, if you can secure payments on account during the life of the case – for example, when an interlocutory application succeeds – so much the better. In most cases however the issue is more one of ensuring that at least some costs are paid as soon as possible. So how do you do this? The following is very much a case of Good News/Bad News. At the end of a case Under CPR Rule 44.2(8): Where the court orders a party to pay costs subject to detailed assessment, it will order that party to pay a reasonable sum on account of costs, unless there is good reason not to do so. Therefore, where an issued case goes to a hearing you should always ask for a payment on account of your costs. All is not lost though if you forget to do so (although your cashflow position won’t have been improved) as the recent case of Culliford & Anor v Thorpe [2018] EWHC 2532 (Ch) shows https://www.bailii.org/ew/cases/EWHC/Ch/ 2018/2532.html
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Here the court ruled: “In my judgment, it is not the law that, once an order for costs has been made, drawn up and sealed, no further application can be made to the court for an order for a payment of a sum on account of those costs. There is nothing in the rules which so requires, and there may be good reason why payment of the sum on account is not considered at the time the order was made.” So you have two opportunities to obtain a payment before the matter goes for costs drafting/assessment (more below about the procedure in assessment proceedings). How much should you seek? This is easier to ascertain in a case which has been budgeted. The case of Thomas Pink Ltd v Victoria's Secret UK Ltd [2014] EWHC 3258 (Ch) is much cited. In that case Birss J ordered a payment on account of 90% of the whole budget i.e. of both incurred and forecast costs. However, since then we have had the case of Cleveland BridgeUK Ltd v Sarens (UK) Ltd [2018] EWHC 827 (TCC) https://www.bailii.org/ew/cases/EWHC/TC C/2018/827.html Here the judge distinguished incurred costs (i.e. incurred as at the date of the budget) from approved, budgeted (aka forecast) costs saying, “I do not accept that this [90%] is necessarily the approach that the court should adopt to incurred costs, which are, by definition, not approved costs.” The judge, rightly, pointed out that those costs remain subject to detailed assessment and that the correct test is the one which would also apply in a non-budgeted case: “…. a reasonable sum in respect of incurred costs will often be one that is an estimate of the likely level of recovery subject to an appropriate margin to allow for error.”
SECTION ARTICLE HEADER
In Cleveland the figure she reached was approximately 70% but, as she was careful to point out, this will always be a case specific figure. A receiving party should usually be able to obtain a payment of at least 50% and I suspect 60%-70% would be the range in most cases. Part 36 However, a recent case has, potentially, shut off the above route to payment in a great many cases. In Finnegan v Spiers [2018] EWHC 3064 (Ch) https://www.bailii.org/ew/cases/EWHC/Ch/2018/3064.html Mr Justice Birss concluded that the court has no power to order a payment on account of costs after a party has accepted a Part 36 offer. This was on appeal from the county court where the judge decided that the court had no power to make an order for a payment on account, essentially because Part 36 is a complete code and the rules make no provision for a payment on account in these circumstances. Birss J agreed and dismissed the appeal. It is not known whether leave to appeal to the Court of Appeal is being sought. Hopefully the Civil Procedure Rule Committee will correct the situation by a swift amendment to Part 36 (see further below about the situation in non-issued cases). During the assessment process The full assessment process can take a considerable length of time, particularly where a case is costed at over £75,000 and therefore is going to be subject to detailed assessment. The relevant provisions for obtaining costs during assessment proceedings can be found in Rule 47.16 (1) The court may at any time after the receiving party has filed a request for a detailed assessment hearing – (a) issue an interim costs certificate for such sum as it considers appropriate (b) (2) An interim certificate will include an order to pay the costs to which it relates, unless the court orders otherwise. The earliest that a request for a hearing can be filed is after service of Points of Dispute to the bill of costs but, assuming you are going to serve optional Replies, such an application would usually be made after those have been served. An application for an Interim Costs Certificate can be made at the same time and payment, when ordered, is usually within 14 days.
Voluntary PoAs/Part 8 You – or probably your costs representatives – can of course seek a voluntary payment on account of costs where one hasn’t already been made or, if one has but is deemed to be too low, a further payment. Paying parties will often make one to reduce their interest liability where a case has been litigated. However, there has always been an issue where a case has settled pre-issue as there is no statutory entitlement to interest on your costs. Unless the paying party is prepared to make one anyway your only option is to first issue Part 8 costs-only proceedings (Rule 46.14). Not only does this cause delay in getting some much needed monies in, you will be criticised – rightly – for going down this route without first attempting to negotiate settlement. This of course builds in more potential delay. The situation is now exacerbated by the ruling in Finnegan v Spiers. A large number of cases settle pre-issue on acceptance of a Part 36 offer so there is no deemed order for costs. As the Part 8 order for detailed assessment will be made pursuant to acceptance of the Part 36 offer, presumably no order for payment on account can be made. Conclusions Although there is a mechanism for getting timely payments on account, as things stand if you settle under Part 36 you cannot use it. Absent a voluntary payment you will have to wait until you can apply for an interim costs certificate. Put another way, to get paid more quickly the case will have to have gone to trial which may well not be in your client’s interests and, furthermore, is against the spirit of CPR 1.1. This cannot have been the intention of those who drafted Part 36 and it is surprising that this has not come up before. Here’s hoping for (yet) another Rule change. Until then you will, in ‘Part 36 cases’, have to ensure that strict deadlines are adhered to in the assessment process in order to get an interim costs certificate as soon as possible. ■
Sue Nash Elite Cost Lawyers
SURREY LAWYER 31
CONVEYANCING
How Millennials are reshaping the conveyancing sector There’s a wave of change happening within the conveyancing sector at present. From regulatory changes and technological advancements to a new generation of home movers and conveyancers, things are looking a little different in the industry.
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recently read an article from Valerie Holmes reflecting on the conveyancing sector. One point she made really resonated, and that was the industry heading toward a skills shortage, specifically a shortage of conveyancers. We are on the cusp of a major shift for the industry attributed primarily to a new age workforce, and the habits of the clients they are servicing, but firms need to employ the right tools to appeal to a new generation of conveyancer. By 2020, millennials will form 50% of the global workforce, and these numbers are also reflected by the modern home mover. The Financial Times reported first-time buyers made up 51% of the market in 2018, and the average first-time buyer is now 31. This very generation, synonymous with taking technology and rapid advancement in their stride, will be influential in evolving both the consumer and business sides. So, how do firms address this new era? It begins with what millennials expect in employment. Despite the ideals Silicon Valley start-ups have made us believe, they aren’t only looking for free breakfast, slides in the office and yoga retreats. As digital natives, millennials are early adopters of new technologies and implement these daily to make menial tasks more efficient. Whether that’s booking appointments with their doctor via an app or preparing for the day by asking their voice assistant for the weather forecast, they’ve come to expect solutions facilitated by technology. These expectations have carried into their working lives and the focus from firms must be on providing products and solutions that meet these expectations, both for their millennial employees and customers. Particularly in a procedure heavy industry like conveyancing, great technology can mitigate many of the frustrations that arise from inefficient processes and can make the industry more attractive to a new generation of conveyancers, while retaining them for years to come. A recent report from the SRA has recognised that artificial intelligence will
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not replace staff in firms, but instead free up solicitors’ time to focus on the more enjoyable aspects of their role; guiding people through the biggest, and often most stressful, purchase of their lives. The enjoyment of using said technologies doesn’t end with the solicitor, the benefits can also be experienced by the end user; the home mover. Providing access to complete compulsory home-moving forms via an online portal will exponentially improve the client experience. When everything else they do is accessible online, they don’t want to wait to action elements of their home moving process by post. And that is just one example, there are many areas of conveyancing that can be improved by the introduction of technology, I am sure you can think of a few immediately. Millennials are already the majority of firsttime buyers, and soon they will be the majority of our workforce and the next generation will be even more digitally lead. They will utilise technology to their advantage to better communicate and build relationships with their customers. There will always be a place for human-tohuman service, it’s just about harnessing technology to better facilitate more time to achieve it. Providing this generation with the right tools to generate positive user and customer experiences will ensure the skill of conveyancing is not a lost art and overall align the home moving process with the digital age. ■
Adam Bullion General Manager of Marketing, InfoTrack
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Flood searches more important than ever due to climate change In these days of digitised property information, conveyancers have a wide choice of search reports at their fingertips when considering how to best identify risk for their client’s chosen property.
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hat is surprising, however, is that only about 29% of orders placed with Geodesys include a full flood assessment, meaning a large proportion of homebuyers are unaware of potential flood risk. With a growing population, increased demand for housing, ageing infrastructure and severe impacts on climate change, flooding is a significant problem which will inevitably threaten more communities across the UK. Ranging in impact from minor inconvenience to major disruption, every year millions of UK homes, businesses and people are affected by floods. According to the latest information from the Environment Agency, the UK currently has 5.9 million properties at risk of flooding, equating to one in six homes being at risk – an increase of 400,000 properties since 2013. Put into monetary figures, the statistics are even more startling with the effects of flooding and managing flood risk costing the UK approximately £2.2bn a year. Conveyancers have a vital role in informing their clients about the possibility of flooding to ensure they understand the potential risks and are armed with the right information to take steps to mitigate them ahead of the transaction. Home buyers need to be aware that flooding can happen anywhere, even if a property is not next to the sea or a river. There are many different types which property purchasers should be made aware of, including surface water flooding, river flooding, drain and sewer flooding, coastal flooding and
flash floods. All have potential to wreak havoc on a homebuyer’s property and life. In recent years, floods have made the headlines on several occasions. Statistics from the Met Office revealed December 2015 as the wettest month ever recorded in the UK, with almost double the average rain fall due to temperatures 4.1c higher than normal. Amazingly, although homeowners tend to have both insurance and warning systems in place to protect themselves against fire and burglary, very few take steps to reduce the chances of their property being flooded. This is rather concerning given that the average cost to rectify flood damage stands at £28,000 compared to the average £7,200 to fix fire damage, and £1,000 on resolving damage after a burglary. When advising clients conveyancers should look for a residential property search that provides a full assessment on the different types of flooding, plus information on insurability. For information on sewer flooding conveyancers should refer to the CON29DW Drainage and Water report, which is also an essential part of the conveyancing process. Geodesys offers a number of flood searches and the CON29DW, providing conveyancers with sound knowledge of any flood risks to their client, enabling them to make better, informed decisions about their purchase before proceeding further. To find out more visit: http://www.geodesys.com. By Jonny Davey Product Manager at Geodesys
*29% quoted is based on an analysis of Geodesys orders for search reports January 2018 – December 2018
SURREY LAWYER 35
CONVEYANCING
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Users of GCS Online have 24/7 access to their personal account whereby they can browse and issue policies and / or save quotes for later use. All policy documentation, including IPIDs, key facts and confirmation of orders are electronically sent straightaway. Whether you decide to use our ‘Pack’ or ‘GCS Online’ system, you can be assured that all GCS policies are comprehensively worded and supported by highly experienced and friendly underwriters who are keen to help all conveyancers to help their clients. To find out more about GCS Online and to set up your FREE, no-obligation account, please visit www.gcsonline.gcs-title.co.uk. Alternatively, visit https://gcs-title.co.uk/orderpack to order your own personal GCS Insurance Pack. ■
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SECTION ACCOUNTANCY HEADER
All change (again!) for the SRA Accounts Rules Where the SRA Accounts Rules are concerned, law firms are no strangers to change. The past few years have brought several phased changes including to the format of accountants’ reports, role of the reporting accountant and exemptions for firms requiring an accountant.
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n a continued concerted effort to simplify and modernise the legal system, the SRA is once again making changes to the rules with the current draft being just 7 pages long and containing only 13 rules. This is a significant departure from the existing 52 rules, several appendices and 80 pages. With 25th November 2019 as the implementation date, there’s no time to lose in getting prepared for the new rules. That’s why here we’re going to cover the why, when, what and how…
Why the need for change? As already intimated, it’s all about simplification but retaining an essential emphasis on protecting client monies. The SRA’s intention is to allow legal practices greater flexibility over how they operate, the ability to judge independently and make legal services more accessible to the public. To quote Paul Philip, SRA Chief Executive: “Our reforms focus on what matters: the high professional standards that offer real public protection rather than unnecessary bureaucracy that generates costs, constrains firms and hinders access to legal services. We believe that the changes will make it easier for firms and solicitors to do business and to meet the needs of those who need their services.”
6. There’s no definition of office money. This means it’s either client monies or not client monies. 7. There’s no distinction between professional and nonprofessional disbursements. Plus, fees and disbursements can only be paid when a bill is raised. 8. Monies incoming from the Legal Aid Agency are no longer covered in the rules. This money can be held in the office account in future. 9. Bank accounts must still be reconciled every 5 weeks. This requirement has been extended to client’s own accounts or “passbooks”. 10. Although the exemption limits for accountants’ reports are unchanged, definitions of statements or passbook balances has changed and includes joint or client’s own accounts. As a result, firms currently exempt may not be exempt.
How can you prepare for change? Ahead of implementation, the SRA has provided much-needed clarification on these important changes to empower legal practices to prepare accordingly.
In simple terms, if you’re compliant with the current rules, complying with the new rules will be relatively easy. It could be a straightforward case of stating the new rules in your policies. An Can’t say fairer than that. So, while the short term may cause you internal audit is advisable too. A few minor tweaks to procedures some pain as you begin to adopt the new rules, unless your here and there may be all that’s needed. At this review stage, existing set up already meets the new requirements, in the long define “promptly”, document your systems and controls, and term you’ll be able to manage your accounts and run your ensure everyone is aware of your processes – your cashiers, business in a less prescriptive way. COFA, new starters and reporting accountants.
When do the new rules come into force?
Guidance notes are likely to be circulated before the rules become mandatory. These notes will act as a toolkit. No official date has been set for the former – guidance notes – but 25th November has been confirmed for the latter – accounts rules.
What are the main changes? At a glance, the 10 primary points of difference from the old to new rules are:1. Its much-abridged format means each of the remaining 13 rules are considerably condensed. 2. With no time deadlines, you’ve got the freedom to decide your own timeframes. 3. Following on from #1 and #2, the new rules are principle based rather than prescriptive and contain less definitions. Interpret how you wish and do what’s reasonable. 4. A notable addition is the ability to use a third-party managed account as an alternative to the traditional client account. 5. Guidance notes, if made available, will be separate, not attached to the rules, and released any time.
If you’ve been considering outsourcing your cashiering, these new rules are the ideal time to do so. By outsourcing your accounts function to specialists in the field, such as Quill, your supplier keeps abreast of ever-changing solicitors’ accounts rules so you don’t have to. Become a Quill client and we’ll manage your accounts in a compliant and timely manner, while you focus on other pressing business matters. To find out more on Quill, please visit www.quill.co.uk/outsourced-legal-cashiering, email info@quill.co.uk or call 0161 236 2910. For further details on the SRA’s new regulatory model, go to www.sra.org.uk/sra/news/press/standards-regulationsstart-date-2019.page. By Julian Bryan Managing Director, Quill
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COMPLIANCE
New SRA rules – the problem with ‘guidance’ I
We know that the new SRA rule book (‘Standards and Regulations’) will be with us sometime this year, probably the Spring.
t will be massively slimmed-down and simplified, with two separate codes of conduct for individuals and firms. However, the main substance of the conduct rules is largely unchanged. The format of the new rulebook is the next logical step in the drive towards principles based regulation. PBR is polarising: you either love it for the flexibility of interpretation, or hate it because of the inherent lack of certainty. Although it is an impressive feat of pruning and editing, the regulator’s obsession with reducing pages necessarily means losing all incorporated guidance. The SRA says that it intends to publish a whole suite of new guidance (e.g. ethics guidance, checklists, case studies, toolkits and videos) to accompany the rules, which will sit outside the rules. This could cause practical headaches. Firstly, our search for ‘the truth’ will be more of a challenge. We will have to look in multiple locations for the right answer. It will also be less certain - how will we know we have found all of the relevant guidance? For example, the 14-day rule in the current Accounts Rules is going. Great news, on the face of it. But what if the SRA issues guidance that money earmarked for costs should be transferred within 14 days? You could take the view that it’s just guidance, and so not mandatory. But would you really want to argue that position to an SRA investigator, or tribunal? If the guidance sets the SRA’s expectations, then firms will be reluctant to depart from that. In effect, creating a de facto rule.
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Most solicitors will want to check whether there is a corresponding piece of guidance to a rule. Does that mean trawling through entire toolkits? How do we know that something pertinent is not hiding somewhere at the end of a webinar? Have you missed an important tweet on the topic? The SRA may also decide to amend guidance at a moment’s notice, and since it is not a rule change, it can entirely sidestep the consultation process. So we'll always have to keep up to speed with guidance changes. And perhaps print or save anything of particular use, in case it disappears. Separate guidance that look like rules will make things much less certain for practitioners. By Jonathon Bray Jonathon Bray advises law firms on risk management and compliance, and helps ABSs get authorised www.jonathonbray.com
PROPERTY
Nothing Endures But Change by Kevin Johnson
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nutrition, vitamins, minerals and all of those other components that eraclitus, the pre-Socractic Greek philosopher, said that we rely on for a healthy lifestyle. “Change is the only constant in life” to highlight the need for all of us to always plan for and be ready for change in every aspect of We recently hosted a small dinner party and, rebelling against the our lives. He knew a thing or two! ‘norm’ we bought locally sourced fresh ingredients from artisan stores. I wanted to cook a Beef Wellington and paid nearly £50 for a Consolidation, merger, takeover and acquisition in business are centre fillet of beef that the butcher prepared with such love and care terms that we frequently hear and, individually, we probably simply that it was a joy to watch. We bought fresh mushrooms and shallots shrug our shoulders and stoically go about our day to day activities. to make a duxelles and continued in this vein, buying only fresh local Until, that is, we are personally affected. In the property conveyancing space, never has change been so dramatic produce for the rest of our meal. Fortunately, I did all of these fine ingredients great justice and, without wishing to sound immodest, and frequent as it is today; towards the end of 2018, it was reported that the meal that we had was spectacular! 700 firms have disappeared through mergers, acquisitions, periods of A small business owner typically needs a diverse dormancy or have exited the market set of skills to succeed, including deep market altogether. Big business has been seen to We live in a world knowledge, effective management of business actively swallow the smaller competition. In of constant change operations and hard work. Our butcher has these 2017 / 2018 very nearly 100 businesses were in abundance and, as a result, there is regularly a lost, probably forever. and uncertainty; queue out of his door! The same research reported that, over the last scenarios unfold Index Property Information has been built on five years, the number of firms handling up to similar artisan philosophies and foundations and 25 transactions a month fell by 10% from daily that would we have an enviable and growing reputation for 3,662 to 3,278. During the same period larger delivering great service in support of our players in the market – those handling more have been unheard customers. But we’re all susceptible to change than 50 transactions per month – increased by of in the not too and an announcement on 11th March saw the 31%, from 268 to 353. founders of Index sell their 100% stake in the distant past when The Local Authorities themselves are going franchisor business to Dye & Durham. I personally through massive change. As the Land there were still think that this is a very exciting development Registry starts to migrate the Local Land because far from being a ‘trade sale’, Dye & Charges into its portfolio (albeit over ‘jobs for life’. Durham bring something very different to probably a seven year period!); LAs are compliment precisely what Index has at its core also outsourcing more and more core and puts us firmly on a trajectory to be one of those ‘few’ significant Local activities (such as Building Control) and face the challenges of Authority search providers that I spoke of earlier without compromise to making dwindling budgets deliver public service that is fit for purpose. This change, for them too, will only continue to gather pace the artisan qualities that has made us great. Dye & Durham (UK) Ltd are a leading developer of software and and intensity. technology solutions designed to maximize efficiency and increase In the space that I occupy, as a small business owner within a much productivity for legal and business professionals. With a commitment larger franchise operation, delivering Local Authority (and other) searches, the pace of change is equally dramatic. STL is now owned to innovation, the company has grown to 200 employees in Canada and the United Kingdom and consolidating Index Property by Infotrack; Searchflow is part of the Daily Mail Group (which also owns Landmark and Intelliworks / Ochresoft) and Geodesys is a part Information into the mix makes perfect sense. Index offices, such as mine, will continue to grow their reputation and relationships within of Anglian Water! their local market from offices that are at the centre of those And there is no question in my mind that, probably in a relatively communities (mine is in Chessington) but we will also be able to short space of time, the choice for conveyancing solicitors will be draw upon a whole new range of tools, products and services that reduced to a small number of key operators that will be using smart technology to deliver fast, accurate results as we pursue the utopian were inaccessible previously. Not only will we be able to deliver the local support and service that sets us apart from the national ‘hubs’ solution to transferring property ownership swiftly and efficiently. but we just added ‘clout’ in the form of technology and innovation. Some of the most dramatic change in the 20th and 21st Century, This can only make our offering better, more relevant and supportive through business merger and consolidation, is experienced by all of in all of those areas necessary to our customers. us at some point in time when we go to do our food shopping. At the end of the day, if you can have your Beef Wellington, and eat it, Supermarkets, hypermarkets and everything under one roof has become the norm but whilst it might have added some ‘convenience’ why wouldn’t you! ■ and reduced costs, we seem to be paying a different price by consuming very bland imitations of vital foodstuffs that we rely on for
Kevin Johnson Index Property Information
SURREY LAWYER 39
WILLS/ LEGACIES
A call to all Will Writer’s T Pic: L-R Matthew Brennan and Ken Brennan (My Paper Vault)
My Paper Vault has a way to enhance your offering to your clients. The following case study of Byrne Memorial Library highlights a few key issues that we can resolve on your behalf.
he Byrne Memorial Library was built in the 1950’s and had a capacity for 100 000 volumes of literature. By 2002 the capacity was at 171 000 books and the overflow was affecting the staff and the books were becoming damaged because the library was unable to store them in the correct manner. “Books were piled on top of each other, held at the circulation desk waiting for room, and stored on windowsills and in stairwells. Books were so tightly jammed in the stacks that some were damaged when pulling them off the shelf”, Mark Vagas described. Initially the library tried using the available space better, by replacing old prints with newer reprints, but this did not resolve the issue, it just replaced one book with another. The library could not simply remove books, because they could not decide on what should stay or go and there was pressure from the student body not to destroy any of the volumes. The library employed a new director who proposed off-site storage. The files were catalogued and barcoded to find them if needed and the volumes were packaged up for safe keeping and stored well above the standards set about by the university. The storage came with internet access so the library could access and catalogue any file they required at any time. The cost was primarily covered by making the process of storing information on microfilm redundant. This process of rethinking the way the library stored their files saved them money, reduced the damage to the files themselves, and improved morale in the workplace. My Paper Vault is a way of storing your client’s Wills and related documents. Our online storage lets your clients access all their documents held in storage with us. To see the full service we offer, please visit www.mypapervault.co.uk or call our office on 01252 759846. The case study reference is https://journals.tdl.org/llm/index.php/llm/article/viewFile/15 12/792
The MyPaperVault Team
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PROBATE
When is an asset search needed? Is there a situation in which it is justified not to do an Asset Search on a probate matter? If there is a will, you need to be sure that all assets have been identified and distributed; but this is also true where there is no will to be found.
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ealistically, you can never be certain about what assets your client actually holds until you have undertaken a thorough and comprehensive search. This applies equally whether a will already refers to multiple accounts and shareholdings, or if your client seems to be a less fortunate elderly person in a home, or in sheltered housing with no sign of any assets at all. What is to say that some of a wealthy client’s shares didn’t fall by the wayside on a share conversion or when the building society became a bank? How can you tell if, whilst in sheltered housing, your client’s forgotten high yield savings account hasn’t been accruing a healthy interest? Many solicitors currently approach asset tracing as an additional service to seek out in those circumstances in which there have been whispers of a particularly broad portfolio of accounts and/or shareholdings, or perhaps when there is evidence of a property having recently been disposed of prior to a client’s death, but the funds do not show in the most recent current account statement. There are many circumstances where a client may not have updated their address with the bank or closed an account upon opening a new one, and this is exactly why there is such a need to ensure that assets have not been forgotten or missed. An executor’s duties, as defined by s25 of the Administration of Estates Act 1925, include a duty of care to collect all of a deceased’s assets and to pay all liabilities. However, there are few firms offering a single search bringing together dormant bank accounts, shares, the Land Registry, postal redirections and even credit searching; Fraser and Fraser claims to have
the only comprehensive service on the market. “It is surprising how often we find assets which no one else – the solicitor, the family or the home – knew about, and with so many categories of assets possible, it is hardly news that something might go amiss to even the most organised Testator or solicitor. All you have to do is fill in one simple form with as much information as you have at your disposal and leave the rest to us�, says Neil Fraser, a partner at Fraser and Fraser. “Having had the contacts established already for our own work, it made sense to open this service up to all solicitors, not just those we are working with. We are confident that there is no one else on the market offering quite the same coverage – and we look forward to sharing the knowledge�. At a time when beneficiaries are increasingly keen to ensure full value is extracted from their inheritance or to hold someone liable for a failure to do so, it would be reasonable to consider making commissioning a comprehensive asset trace a habitual part of the probate routine. It stands to reason that ensuring that all the assets brought together for a probate, really does mean that all of the assets have been identified and located, and this should become a standard part of administrating an estate; and in the case of a will, a quick search might ensure that all of a Testator’s property is successfully allocated, without leaving any partial intestacies or other surprises lurking later on. For further information about Asset Search, contact Fraser and Fraser on 020 7832 1400 or email legal@fraserandfraser.co.uk
Research and E Estate Administration n Services 50 years of providing specialist research and estate administration support services. 7UDFLQJ PLVVLQJ EHQHČ´FLDULHV LV WKH KHDUW RI RXU EXVLQHVV 7KURXJK H[SHUW NQRZOHGJH DQG ZLWK LQWHUQDWLRQDO FRQQHFWLRQV ZH FDQ Č´QG WKH PLVVLQJ QH[W RI NLQ DQG DVVLVW ZLWK DOO DVSHFWV RI HVWDWH DGPLQLVWUDWLRQ ZLWK VSHHG DQG DFFXUDF\ Contact us today to see how Fraser and Fraser can assist you.
fraserandfraser.co.uk or call: 0207 832 1400
SURREY LAWYER 41
PROPERTY INSURANCE
Unoccupied Property Insurance – We Include all of the Covers Required, as Standard
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We’ve tailored our Unoccupied Property Insurance to fit perfectly with the requirements of solicitors, executors, powers of attorney or deputies.
e work with law firms and private client solicitors, as well as organisations such as STEP, SFE, Professional Conferences and various regional Law Societies, to make sure our product works perfectly for those who use it, and provides the best cover available for unoccupied properties. Due to our involvement with our legal contacts, we’re aware of what makes things easier for solicitors when it comes to protecting their clients’ assets. As the home is often the most valuable part of the estate, it makes sense to be sure that it’s as protected as possible, especially in the period of unoccupancy during probate and estate administration. We include a wide range of covers for unoccupied properties in all of our standard premiums. This means there’s no need for adding optional extras for covers that may increase the premium, and the client isn’t paying for covers that don’t apply to an unoccupied property. Some of our covers that are particularly notable include; Theft, Malicious Damage, Storm, Flood and Subsidence, as well as Falling Trees, Lampposts or Telephone Poles. We include all of these most commonly claimed for risks, including Escape of Water and Full Accidental Damage cover.
We include all of our covers with ÂŁ1,000,000 Buildings cover and ÂŁ10,000 Contents cover, included for free, within our standard premium. This means there’s less chance of underinsurance, as long as these sums are adequate for the property and contents, and contents can be increased. Plus, as we include all of the above covers and much more, there’s also no forgetting to add covers that may be required, should something happen. All of the properties we cover come with the added features of: • No excess to pay on any claims with us • Excellent customer service team on hand to help with any queries • Pro-rata returns on all 9 and 12 month policies • Credit accounts and a Business Development Executive for solicitors, to insure all of your clients’ properties, in one place, with one provider • No inspection requirements Get in touch with our team for more information, by calling 0800 015 2211, or emailing: enquiries@unoccupieddirect.co.uk. As always, terms and conditions apply, and you can view all of our policy documents and more information regarding our product and services online, at: www.unoccupieddirect.co.uk. â–
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FIND OUT MORE: www.unoccupieddir w ect.c co.uk Unoccupied Direct is a trading name of Unoccupied Direct Limited. Un noccupied Direct Limited is authorised and regulated by the Financial Conduct Authority. ority. Firm Reference Number: 797627. 5HJLVWHUHG 2IĂ€FH 7KH :DOEURRN %XLOGLQJ :DOEURRN /RQGRQ (& 1 $: : 5HJLVWHUHG LQ (QJODQG :DOHV &RPSDQ\ 1XPEHU 8QRFFXSLHG 'LUHFW /LPLWHG LV SDUW RI WKH *DOODJKHU JURXS of companies.
42 SURREY LAWYER
FINANCE
What might 2019 have in store for the SIPP market? The government is focused on delivering Brexit and has little time to consider significant legislative changes in the short term. However, if the economy takes a turn for the worse, the Chancellor may feel the need to follow his predecessors and return to pensions for another slice of the pie.
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f that happens, we might see, further cuts to the Annual Allowance and Lifetime Allowance. In the longer term, we might also see the introduction of a system of flat-rate tax relief, although this is far harder to achieve than many of its supporters readily admit. Our wish list of changes would include: 1. The removal of the tapering of the Annual Allowance; it significantly impacts on the amount high earners can save for retirement and introduces massive complexity 2. An end to the Lifetime Allowance; it’s horribly complex and the range of protections (also equally impenetrable to the average investor) mean the amount of tax raised is limited anyway; in 2016/17 the Lifetime Allowance raised just £102 million (Source: HMRC / FT Adviser) small change compared to the £41 billion spent on pension tax-relief (Source: HMRC / FT Adviser). One thing firmly on the agenda in 2019 though is Automatic Enrolment. April will see contributions from both employers and employees rise a final time (for now at least). Furthermore, many businesses are approaching the third anniversary of their staging date. This means people who previously opted out of the scheme are automatically re-enrolled. For many, this will be a timely nudge to reconsider their retirement provision. For others, who have reduced Annual Allowances or protection from the Lifetime Allowance preventing them from accruing future pension benefits, being re-enrolled and failing to opt out (something easily overlooked) could have significant unintended consequences. If needed, it’s another example of where professional advice will add significant value and prevent clients from making potentially costly mistakes.
Something you may not know about SIPP’s Almost all financial advisers know that a SIPP can buy an office block, a factory or industrial unit and also have a good knowledge of the types of property that a SIPP can’t buy. However, there’s a grey area. One where some advisers are unsure of the rules. What are we referring to? - Land. S4 discussed this matter with Jonathan Lochery at I.P.M. SIPP Administration and they scoured there book of properties to find seven examples of unusual land that can be bought in a SIPP. 1. Fishing lakes: The adviser’s client works in the fisheries industry. His SIPP purchased land with a lake. It then signed a lease (with rent set at a market rate) with the client’s company for use of the land. 2. Woodland: We administer SIPPs that own woodland, which is subsequently used for diverse activities such as paintballing and growing Christmas trees. 3. Farmland: The most common type of land we purchase, either on the open market or from the farmers themselves, releasing money from their pension scheme while allowing them to retain control of the land. 4. Equestrian use / stables: We work with several jockeys who own stables and fields in their SIPP, which are then leased back to their equestrian business.
5. Polo club: Continuing the equine theme, we recently purchased a polo club. 6. Golf club: We also have a client whose SIPP owns a golf course and clubhouse, which is leased back to his business, again for a market rate rent. 7. Sports facilities: In the past, we have worked with a client whose SIPP included a small stadium and other open spaces. Most investors won’t want to buy a fishing lake, stables or a golf course in their SIPP. However, those who do might not think using their SIPP is an option but they could. It’s also worth remembering that a SIPP can purchase land jointly, perhaps with the client themselves, their company or another pension. As you may know, a
SIPP can also borrow money to help fund the purchase;
Rules for purchasing land in a SIPP In the meantime, here are four things to remember when purchasing land in a SIPP: 1. The land must be income producing: The SIPP must be able to generate a rental yield from the land and a formal lease needs to be in place. Furthermore, the rent must be set at a market value rate, even if the tenant is connected to the SIPP member. 2. It must have access to a public highway: Often overlooked, especially when it comes to farmland, this rule helps preserve the land’s resale value on the open market and avoids a SIPP acquiring a landlocked asset. 3. No residential usage: Unsurprisingly, land purchased in a SIPP can’t have any element of residential usage. So, land close to a member’s main residence must have an independent commercial value that will benefit the SIPP. It is important to note that we would not agree to the purchase of land, for example, at the side of the SIPP member’s house, to personally use as a paddock as genuine commercial use (even if a market rent is set). 4. Beware potential contamination: Land near any kind of industrial sites, such as a coal mine, refinery, fuel storage etc, should be considered at risk of contamination. While it is unusual for a purchase not to proceed, environmental tests may be required to satisfy HMRC requirements before the purchase can be completed. Naturally, this increases costs and could delay the purchase. SIPP rules mean there will always be types of property which can’t be bought in a SIPP. An Advisers job is to ensure that investor’s needs are met within HMRC’s rules. As always take professional advice to see what your options could be, decisions taken are then taken from an informed position.
Steven Vallery S4 Financial Limited – steven.vallery@s4financial.co.uk and Jonathan Lochery I.P.M. SIPP Administration Limited – jonathan.lochery@ipm-pensions.co.uk
SURREY LAWYER 43