Norfolk Law Magazine of the Norfolk & Norwich Law Society - www.nnls.org - Spring 2021
Life in Lock-Down...
A specially commisioned cover image by a local lawyer
Norfolk Law - Contents - 3
This issue... As we all adapt, which for many is an online existence, to a world with Covid 19, the NNLS keeps on working. We have a stronger CPD programme than we have ever had, and more uptake of places with have plans to get out and about at events as soon as we can! With CPD, in-depth interviews and articles, this edition is as full as ever. Fewer people pics but we have squeezed some archive images in!
Contents 19
CPD Booming Online!
5 Committee
20
Saving Time and Working Together
6
Excellence Awards Open
23
Conquering the Mountains of Suffolk!
8
Partnering with Index can help with your compliance
24
Revised Anti-Money Laundering guidance now in force
10
Book Review
26
Bell vs. Tavistock - Informed Consent vs. Autonomy?
11
Parental Alienation Awareness Day
28
Landmark Planning: A Clearer View of Future Plans
12
Obituary - Anne kirby
31
Expert searches and products in the Conveyancing sector
14
Interview - Domestic Abuse, Our Hidden Epidemic.
32
Covid-19 Survey results and SRA Rules
18
Law Walk ‘21
34
Anti Money Laundering back in the spotlight
18
Annual Dinner DAy
38
Top 10 Compliance Mistakes and how to avoid them
4
President’s Report
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4 - Norfolk Law - President’s Report
President’s Report Firstly, I hope that everyone continues to be safe and well. By now, many of us will have had at least the first vaccine – some of us both – and as I write these remarks, non-essential shops, gyms, hairdressers and pubs are re-opening. I’m looking forward to a haircut and a pint (not necessarily in that order!) The last year of the pandemic has been incredibly challenging for all of our members in Norwich and Norfolk as well as the legal sector in general but from conversations I’ve had with members and further afield, law firms have certainly risen to the challenge and as the financial year for many has ended many firms are reporting a far more successful year that most had dared hope for in March 2020. That being said, for individual lawyers the last year has been and continues to be personally challenging and it goes without saying that if the Norfolk and Norwich Law Society can do anything to assist, please do get in touch. Through the hard work of Claire Clarke and Carla Morphett we have continued to be able to provide a great programme of online professional development events and these have been very well attended and a lot of value gained from them. A particular success was our very own
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Richard Barr’s seminar discussing how lawyers should look after themselves. April and May 2021 have some really good further events and I’d encourage you all to sign up. July 2021 will be soon be upon us and time for membership renewal and I hope that as many lawyers and law firms do so. The professional development events are more than worth the membership subscription alone! Finally, I’m delighted that progress out of lockdown means that we have been able to plan for the Annual Dinner 2021 and this will be taking place at the Assembly House on Friday 15th October 2021. This will be a fantastic opportunity for us to gather together as a community and tickets will be going on sale soon. To go alongside the Annual Dinner we will once again be hosting our Annual Awards and you can find the details of those awards in this edition of the magazine. There are new categories this year and these are all open to individuals, teams and firms as a whole so please do make sure to get your entries in. Take care and I look forward to seeing all of you again soon. Thomas Bailey President, Norfolk & Norwich Law Society
Norfolk Law - Committee - 5
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6 - Norfolk Law - Awards for Excellence
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Norfolk Law - Awards for Excellence - 7
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8 - Norfolk Law - Advertorial
Partnering with Index can help with your compliance At Index, we understand that legal professionals need quick and consistent access to a whole range of tools to support them in providing an excellent service to their clients, whilst following compliance protocols. Property searches are at the core of what we do, but it is the added benefits of being an Index partner that really makes us different. Virtual working is now commonplace and is set to continue to some extent, on a permanent basis. Where technology enables teams to work from home at a certain level, there have also been challenges and it has opened-up opportunities for cyber criminals to take advantage of altered processes.
technology space to provide tried, tested and trusted solutions to our clients.
According to the SRA: “Criminals are taking advantage of the disruption caused by Covid-19 and the economic downturn. Firms are now more exposed than ever to the risk of being used for money laundering. Conveyancing is currently at further risk because the stamp duty land tax (SDLT) holiday aims to increase the number and value of property transactions.”
Using Thirdfort’s innovative mobile app, consumers are able to upload copies of photo ID which are automatically analysed to confirm the document provided is genuine. Consumers are also prompted to take a selfie and record a short video (a ‘liveness’ test) to ensure the individual completing the app journey matches the information provided on the ID document.
The disruption caused by working from home has certainly increased the challenges faced by those responsible for compliance. This is in part due to the lack of technology and processes needed to support the remote environment from a compliance perspective.
Thirdfort’s latest product also incorporates the use of ‘NFC’ technology that complies with the Land Registry’s Digital ID Standard. This allows consumers to instead scan the chip in their passport using their mobile phone, automatically extracting and validating the relevant information.
To respond to the rapidly changing situation, new LSAG Draft AML Guidance has recently been published to support legal professionals in complying with the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (as amended). It includes a new section on technology which addresses the need for firms to understand the technology they have, in order to use it effectively. According to The Law Society: “A legal practice must now have clearly documented Policies, Controls and Procedures (PCPs) based on their practice-wide risk assessment which include: • taken when new technology is adopted to protect against ML or TF risks. • Where practices use electronic identification and verification (EID&V) tools they should document the role of the tool, the data sources it uses, and in what circumstances (clients/matters) it is appropriate to use the solution.” At Index, we adopt an agile approach, where technology becomes an enabler for those responsible for compliance and with changing working patterns, we aim to help our legal clients to implement solutions to solve common issues. For example: we work with best-in-class industry leaders in the
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One example is the integration of our Index Platform with Thirdfort (www.thirdfort.com). Thirdfort is a leading Digital ID verification, AML and Source of Funds provider.
Open Banking technology allows consumers to connect their bank account(s) to Thirdfort’s app, providing solicitors with 6 months of bank statements and details of the largest ingoing and outgoing transactions. This data is provided along with the ID and AML information in a clear and easy to understand PDF report enabling solicitors to comply with all relevant regulations swiftly and remotely. All Thirdfort ID, AML and Source of Funds checks can be initiated and managed via the Index platform. Olly Thornton-Berry director, Thirdfort confirms: “Although the move to digital has been accelerated in the past 12 months, around 80% of all legal client onboarding is still completed manually. However, it costs just £30 to buy false bank statements online! Therefore, using the most advanced digital practices through the Thirdfort app integrated with Index’ platform, now means the whole client onboarding process can become digitalised and completed in a few minutes rather than weeks.” At Index, our goal is to bring the very latest solutions to our clients and importantly, supply the support and team behind the tech as this is what ultimately ensures it works. Our locally based, experienced
team understand the challenges faced by legal professionals and offer dedicated support to ensure technology integrations through our Index Platform are always as smooth as possible. In addition to solutions such as the integration with Thirdfort, we help legal professionals with their due diligence through providing risk management solutions such as Lawyer Checker which ensures client funds are sent to a legitimate bank account associated with the seller’s solicitors. We also work closely with Lexsure offering: LENDERmonitor - Enables lawyers to stay on top of lenders’ policy requirements as set out in Part 2 of their Handbook instructions. With 25% of all negligence claims against solicitors being brought by lenders, LENDERmonitor is an essential yet simple risk-mitigation tool. COMPLETIONmonitor - Intelligent, interactive online checklist and risk management system used by property lawyers, which can assist with securing or reducing law firms’ indemnity insurance and with securing/ retaining membership of lender panels. Finally, Index are proud to support the Law Society Conveyancing Quality Scheme (CQS). By working with Index and our partners we will help you to monitor and react to CQS standards thus ensuring compliance and confidence if audited. Not only will you be able to prove to lender panels that you adhere to the Law Society’s quality standards but put an attractive case to PI insurers that your firm is actively managing and mitigating risks. These are just a few examples of how we help employ the right solution enabled by the right technology all brought together through our user-friendly platform and supported by our dedicated teams, to enable legal professionals to focus on providing a better service for their clients. By Stuart Whaley, Director, INDEX East Anglia To find out more, call Index East Anglia on 01485 524320 or email eastanglia@indexpi.co.uk
10 - Norfolk Law - Book Review
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Norfolk Law - Campaigns - 11
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12 - Norfolk Law - Obituary
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Norfolk Law - Wellbeing - 13
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14 - Norfolk Law - Interview
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Norfolk Law - Interview - 15
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18 - Norfolk Law - Event Preview
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Norfolk Law - Events - 19
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20 - Norfolk Law - Advertorial
Saving time has never been more important, nor has working together. ‘Time is precious, more valuable than money’, is the old adage, though the meaning of time in a property transaction can be very different depending on your stakeholder role. A clients’ view of time is often based on outside factors, which, if misjudged, can lead to a great deal of frustration. I also don’t think there are many property professionals in the UK that are happy with the current process, pipeline conversion rates or time to completion. Cases can always complete sooner. It’s clear that every party in the process would love to save time on property transactions – but how? In an industry of paper, pens and high street solicitor offices, the clients often have no technology available to them during a transaction, so are most easily pleased and ready to embrace change. You can understand client frustrations, too.
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Unless you work in the industry, you can’t understand the legalese, track a process through a combination of post-it notes, spreadsheets, emails and sporadic phone calls. It’s no surprise that home moving is one of the most stressful experiences in life, for these reasons. So how do we change things for the better? In my view, the only way to meaningfully save time in the process is by creating an ecosystem that connects our community together and avoids bringing more complexity to the process with bit part solutions. From the outset, we have taken this approach with DigitalMove. From property listing, all the way through to legal completion, we are laser focused on how every interaction can be communicated to every stakeholder. I am sure I speak for all conveyancers when I say nobody wants “yet another log in” – by focusing on the touchpoints and interactions, we can
have a holistic view of every transaction and remove these sorts of barriers from the technology solution. This relies on all parties buying in to the solution. Many businesses are hostages to habit and their internal systems, and some firms have developed their own technology in-house, believing it will give them greater control. However, very few businesses have the resources to develop and maintain in-house systems, making our solution, DigitalMove, a much more attractive proposition. The future for property technology lies in companies becoming open and willing to engage with others in the transaction community. We are bringing that future into near focus, and we’d love to speak to you about how it will benefit your firm. Tim Price, Head of Business Development at DigitalMove
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Conquering the mountains of Suffolk: Home office worker security shredding service launched Suffolk isn’t normally known for its mountains – but one local firm believes that increasing numbers of our homes are full of them – piles of confidential items that they don’t know what to do with. According to Jules Shorrock, founder of Citrus Shredding, a leading confidential waste company: “Our research suggest that there are likely to be thousands of households in Suffolk, including a growing number of businesses being run from home, with mountains and mountains of confidential paperwork & other items, some that have been steadily growing for years.” “People frequently store such sensitive documents, including legal & financial ones, & appliances such as passports and bank cards in boxes in lofts, conservatories and on sideboards. As well as being a waste of valuable space, such storage
comes with a number of security risks, including identity theft.” Although the company has collected from Lawyers, Accountants & other professionals practicing from their homes for a few years, this growing demand has prompted Citrus Shredding to launched 2 completely new services, tailor-made to the requirements & budgets of resident home workers. We are offering an online service, posting out sacks & tags, collecting when customer is ready. We are also offering a secure, attractively designed panier (340mm x 400mm x 235mm) that comes in three colours (blue, green and yellow) & can be discreetly stored out of sight. Citrus Shredding will make a certified collection of the panier once every four months & will securely dispose of the content each & every time. Citrus security shredding are independently owned, & fully accredited to ISO 27001 Security Techniques &
Information Security Management & is regularly audited by ISO assessors. In addition, all staff are regularly CRB (Criminal Record Bureau) and DBS (Disclosure and Barring Service) security checked & carry ID. Vehicles are locked at all times & collections are monitored. “We’ve built up a really strong reputation among our commercial customers across Suffolk, being shortlisted in EADT Business of 2020, in Customer Care category. I hope that this new household security service helps give home workers & residents peace of mind – as well as a getting rid of those domestic mountains!” added Jules. The cost of the new security services are £95 per year. For panier service, or £45.00 to collect 5 std sacks. Citrus also collect boxes and provide bins for archive clearances
For further information please visit the citrus website: www.citrussecurityshredding.co.uk, or call Jules on 077 6969 8833 to discuss your requirement.
This is what w e are here for. Citrus de stroy millions of confidentia l documents for residents & businesses in East Anglia NNLS Rader sp ecial offer. Just £45.00+ vat for 5 std sa cks picked up & sh redded
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24 - Norfolk Law - Advertorial
Revised Anti-Money Laundering Professional Guidance now in Force first very clear “to do” item for those firms subject to the regulations. You should set out to undertake the review of your “Policies Controls and Procedures” as now required by section 5. This is also likely to be a timely step since it is now just over a year since the SRA demanded of firms that they should certify to them that they had undertaken such a risk assessment, and since the need to keep this under constant review is stressed the review should be seen as the first step to take now in a review of each firm’s policy and procedures.
The SRA, acting in conjunction with all of the other legal regulatory bodies in the UK as part of the “Affinity Group”, has now published its updated professional guidance on how those affected by the Money Laundering Regulations must ensure compliance with them. Noticeably longer and more detailed than the previous guidance, the clear message is that compliance is not optional, and that ignorance of what is now required of firms will not stand in the way of regulatory, and quite possibly, criminal sanctions. There is an important cautionary note here if you are one of those many sole practitioners or smaller firms that regard themselves as being outside the scope of the Regulations. The position here changed some 12 months ago when the Amendment Regulations took effect, mostly in order to give effect to the Fifth EU Directive. One of the more significant changes made then was to the definition of who would be regarded as being a “tax adviser”, and as explained by the SRA in their guidance note from late last year. The revised definition is now described by the regulator as being “broad” and extending “beyond providing advice and includes assistance and material aid”. The net effect of this is that even if the firm excludes liability for questions of taxation in the work that it undertakes it will still now be regarded as being a tax adviser if, for
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example, it advises a client that there are possible tax implications to what is being planned and suggests that the client should seek specialist help on the issue from elsewhere. This may well mean that smaller firms focusing on such areas as family or employment work may now be seen to be regulated firms, and so will need to ensure that the regulatory requirements are now being met. For the most part the revised guidance does not change the regime that those who have been regulated for some time will be familiar with. Rather, it provides more guidance on some of the more troublesome elements that have been part of the regime for many years. Still, however, the main practical problem is that there is no one standard approach that will guarantee that all firms are compliant with what is now expected of them. The levels of funds that might seem standard in large commercial departments are quite likely to seem anything but for a specialist commercial law adviser more used to lower value transactions. For this reason the importance of the firmwide risk analysis exercise that is required by r.18 of the Money Laundering Regulations and its importance in shaping each firm’s individual AML policy and procedures is again stressed. The risk assessment process is explained in more detail at section 5 of the new note and should probably now be seen as the
Throughout the revised guidance there is a greater degree of explanation on the various aspects that have long formed part of the overall AML regime, such as the attempt made to clarify the operation of the law of privilege in the reporting of suspicions to the National Crime Agency. Elsewhere there are also updates covering other provisions which have taken effect since the last edition of the guidance note appeared in 2019. Amongst such content see those dealing the requirements of BOOMs (beneficial owners, officers and managers) at 4.2.1-3 and the new section 7 on technology. It is recognised that checking the identity and address details of individual clients without having met them in person has now become more commonplace, but that technological advances can serve to reduce the increased risk of not being able to do so. Finally, private client lawyers in particular should note the relatively new provisions on the registration of taxable trusts at section 12.4. In summary, the challenge now is to ensure that the necessary systems are not just in place, but that they are also proving to be effective. In the meantime law firms large and small can expect greater regulatory attention in this regard, and a less sympathetic response when problems arise. Matthew Moore is a solicitor and one of the directors of Infolegal Ltd which provides compliance support on this and other regulatory topics: mattmoore@infolegal.co.uk.
26 - Norfolk Law - Advertorial
Bell vs Tavistock: Does informed consent stand in the way of autonomy? In a landmark court case, judges ruled that children under 16 years of age could no longer be prescribed puberty blockers unless this has been authorised by the court. The reason: under 16s are not likely to be competent enough to “understand and weigh the long-term risks and consequences of the administration of puberty blockers” 1. The judgement did not stop there, though. It also ruled that where persons over 16 years of age are involved, “clinicians may well regard these as cases where the authorisation of the court should be sought prior to commencing the clinical treatment”. The legal challenge was brought against the Tavistock and Portman NHS Trust in London. One of the claimants was Keira Bell, who was prescribed puberty blockers at 16 by the Trust’s GIDS (Gender Identity Development Service) clinic, but later regretted transitioning 2. The High Court ruling was not quite the outcome people expected and, naturally, led to a polarised reaction. While some welcomed it as “a victory for common sense”, others were concerned it would curb young trans people’s rights 3. The issue of informed consent was a fundamental part of the judges’ final decision. However, it also begs the question: Could informed consent stand in the way of young individuals’ autonomy over matters regarding their health? In medicine, informed consent has been a cornerstone for a long time. It rests on the principle that patients need to understand the possible consequences of their decision, prior to agreeing to or refusing certain treatment. It is “permission granted in the knowledge of possible circumstances” 4 rather than a simple “permission for something to happen or agreement to do something” 5. In DNA testing, too, we must have “appropriate and qualifying” consent for each sample to be tested. Consent is required from each adult party that is to be tested. If the test involves a child under 16, then consent must also be obtained from a person with Parental Responsibility for that child. This is where it gets interesting: if the mother were under 16, she could give consent for her child to be tested. However, someone with Parental Responsibility for the mother would have to consent on her behalf for her own sample to be collected...which is a fascinating paradox we shall go back to in another article!
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Although in the Bell vs Tavistock case treatment with puberty blockers would not be undertaken solely on parental consent, it was argued that “if the child’s consent was rendered invalid, the treatment would continue to be lawful if the parents had consented.” Case law offers a mixed bag of conclusions on that matter. In Gillick vs West Norfolk and Wisbech Health Authority [1986], the House of Lords reached a majority that a doctor could lawfully give contraceptive advice and treatment to a girl under 16, without the consent of her parents 6. But this could only be done if she demonstrates sufficient maturity and intelligence to understand the nature of the treatment.
whether such medication should be prescribed must not be rash or emotional. With that being said, young people’s ability to make decisions regarding their own health must not be taken away from them. However, institutions also have a responsibility to safeguard children’s wellbeing and step in, if and when absolutely necessary. It is a delicate balance to strike and an individual approach would be required in each case. But when the consequences are likely to be very serious and much remains unclear about the long-term side effects of a treatment, the informed in “informed consent” can become elusive and further scrutiny is required to protect vulnerable children.
In Re W (a Minor) (Medical Treatment: Court’s Jurisdiction) [1993] Fam.64, the court ordered that a girl under 16, who was suffering from anorexia nervosa, be transferred to hospital specialising in eating disorders 7. This was against the girl’s wishes. Although she was considered to have sufficient intelligence and understanding to make informed decisions, it was ruled that she should still receive treatment. The court emphasised that due to the nature of anorexia nervosa the patient does not wish to be cured but fulfilling such wishes could lead to severe consequences or even death.
About the author:
Unlike contraceptive treatment and anorexia - or even DNA testing - not enough is yet known about the long-term effects of puberty blockers. This arguably makes achieving informed consent almost impossible both for parents and children, as the information given to either party would not be exhaustive. Therefore, it is not only the patient’s age that impacts on their ability to make an informed decision - it is the quality of the information, too. Clinicians must not be blamed for this, however, since they can only provide what is currently available from research and the literature. Every scientist would agree there is always more to explore on any topic, but when the knowledge gaps about a treatment are so significant, access to it should be regulated with the utmost strictness.
Puberty blockers, also known as hormone blockers, are used to delay puberty. They supress the release of sex hormones, including testosterone and oestrogen, and stop the body from developing breasts, periods, facial hair or deeper voice 8. The medication is prescribed to young people experiencing gender dysphoria, as well as to treat premature puberty in children. It is described as physically reversible, if stopped, but it is not known what the psychological effects may be. It is also unclear if puberty blockers affect the development of the teenage brain or children’s bones 9.
Of course, age cannot be entirely ignored either. Adolescents’ ability to assess the long-term consequences of certain treatments may come under scrutiny. A child’s experience of gender dysphoria must not be invalidated, but when the remedy could have irreversible effects on a person’s fertility and sexuality – experiences someone under 16 may not have been through yet – deciding
Dr. Neil Sullivan is General Manager of Complement Genomics Ltd (trading as dadcheck®gold). The latter is a company accredited by the Ministry of Justice as a body that may carry out parentage tests as directed by the civil courts in England and Wales under section 20 of the Family Law Reform Act 1969. Please see: www.dadcheckgold.com Tel: 0191 543 6334 e-mail: sales@dadcheckgold.com Explanation of terms
Gender dysphoria is a “sense of unease that a person may have because of a mismatch between their biological sex and their gender identity” 10. It could be so intense that it leads to feelings of depression and anxiety. According to the NHS, other signs of gender dysphoria include low self-esteem, becoming withdrawn or socially isolated and taking unnecessary risks 11. Transgender describes a diverse group of people whose internal sense of gender is different to the one they were assigned
Norfolk Law - Advertorial - 27
Poppy’s When Poppy’s Dog Guardian conta
at birth. To attain transgender status in the law, an individual must be diagnosed with gender dysphoria by a professional and then apply for a gender recognition certificate under the Gender Recognition Act, 2004 12. Notes 1
Bell -v- Tavistock judgment (judiciary.uk)
2
uberty blockers: Under-16s 'unlikely to be able to give informed P consent' - BBC News
3
uberty blockers ruling: curbing trans rights or a victory for P common sense? | Society | The Guardian
4
I nformed Consent | Definition of Informed Consent by Oxford Dictionary on Lexico.com also meaning of Informed Consent
5
onsent | Definition of Consent by Oxford Dictionary on Lexico. C com also meaning of Consent
6
K, Gillick v. West Norfolk and Wisbech Area Health Authority U (hrcr.org)
7
R e W (A Minor) (Medical Treatment) - PubMed (nih.gov)
8
What are puberty blockers? - BBC News
9
ender dysphoria - Treatment G - NHS (www.nhs.uk)
10
G ender dysphoria - NHS (www.nhs.uk)
11
G ender dysphoria - Signs - NHS (www.nhs.uk)
12
ender Recognition Act 2004 G (legislation.gov.uk)
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28 - Norfolk Law - Advertorial
Landmark Planning: A Clearer View of Future Plans Here at Landmark Information, we have provided planning application insights and data for residential property conveyancing through for many years. I recall the now legendry Bird & Bird transaction case, in which the conclusion found that ‘Changes to the surrounding environment, brought about through development are an important factor in protecting a client’s investment pre-acquisition’. Of course, a preference or indifference to planning proposals in its various forms is very much a personal view. Property lawyers and conveyancers may air on the side of caution following guidance, preferring to simply understand the proposed purchase property and to rely on the seller’s information. Homebuyers, however, have a right to understand any impact, positive or negative, that a nearby development may have before they commit to a purchase. It is important to be aware of any potential changes within the surrounding area that would affect the use, enjoyment or even value of a property from planning and building regulation decisions. But how do you make the extent of a development application clearly understood? As part of Landmark’s ever-evolving data and technology provision, we have recently merged our Plansearch reports into a newly enhanced Landmark Planning. Uniquely, the report displays data on the majority of the UK’s large planning applications, such as a new housing estate, as polygons (boundaries). This means both conveyancer and client will benefit from a visually clearer, more realistic view and understanding of the extent or potential impact of larger planning applications, rather than relying on a list, single mapped point or buffer to work it out. The report not only delivers details of planning applications from extensions to large developments but also provides information on what future uses of land are being proposed for the surrounding area, alongside the Local Authority policies and constraints. It also includes key neighbourhood information such as: • Housing • Demographics • Schools • Local amenities • Rights of way To help both property conveyancer and client, all the data within the report is supported by easy-to-understand guidance and next steps.
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Determining what is important to the home buyer with regards to planning can be difficult and can lead to large amounts of time being spent on reviewing data which is not of interest or concern to the home buyer. Large volumes of data can also lead to the homebuyer missing important information about their purchase. Landmark’s gold standard all in one enviro-report RiskView Residential removes this pain for the legal conveyancer and home buyer by presenting planning applications, including the large sites as polygons and constraints through its advanced, simple to use, dynamic online viewer. The viewer includes a date filter which allows the homebuyer reduce the amount of data presented and helps to provide focus on what really matters to them. In some cases, reducing hundreds of applications down to just three or four. The Riskview viewer includes (where possible) a clickable weblink for each recent planning application. The homebuyer can then look further into the application via the authority planning portal. Together, RiskView’s unique timesaving features help the property professional add value to their home-buying client whilst reducing time spent dealing with planning related enquiries. The Government is still committed to 300,000 new homes per year even these unprecedented times. The Prime Minister’s ‘Build, Build, Build’ speech in July last year was followed by a series of new laws that came into effect on 1 September 2020. The aim is to deliver new homes and revitalise town centres across England alongside a permanent extension to the existing permitted development rights. In the current climate, who can guess the impact of these laws? To what extent will they change the places we live, or want to live? Whatever the future holds, surely the best outcome for conveyancers and homebuyers is a more transparent transaction, which provides the insights needed for informed decisions. Selecting the Landmark Planning report or Riskview Residential demonstrates good due diligence in taking all practicable steps to reasonably identify information that the client would want to know. Allie Parsons, Customer Success Consultant, Landmark Information (Legal) www.landmark.co.uk
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Providing innovative products and expert searches for the ever-busy conveyancing sector X-Press Legal Services Norfolk & Suffolk is a property search company that provides expert reports to solicitors and conveyancing professionals across the region. The company has been supporting the conveyancing sector throughout the past year, as the property market boom has seen increased demand and pressure across the sector.
“Our products are constantly being innovated, ensuring your data is absolutely safe in our hands. Many new clients who came onboard during the pandemic were attracted by our range of digital services and our security innovations, including being the first search company to achieve a Cyber Essentials Plus accreditation and a Gold Standard partnership with FormEvo and SDLT.co.uk.
Owner of the company, Ashley Peters comments: “We have been working flat out due to the increased demand for our searches, which are a real measure of demand in the property market generally. We have seen higher levels of searches than ever before, increasing 50% since the stamp duty holiday started.”
“We pride ourselves on making it as easy as possible for conveyancers to deliver legal services to their clients, providing a ‘one-stop shop’ for all your search needs. We save our clients time and money with our product range and specialist reports, helping to ensure property transactions reach completion with the minimum of fuss.”
Part of a 27-office network across England and Wales, X-Press Legal Services Norfolk & Suffolk provides a complete range of property searches and reports. Ashley continues: “Law firms are increasingly turning to us as we can provide all the same products and services as larger search companies, but also provide the customer service of a local company. We are able to get to know our clients personally and form strong relationships, an important factor during an increasingly digital age.
With over 20 years’ experience, X-Press Legal Services is one of the top ten search providers in the UK. Trusted by more than 500 legal practices in England and Wales, the firm produces a staggering 400,000+ conveyancing searches and reports each year. For more information about X-Press Legal Services Norfolk and Suffolk visit www.xpresslegal.co.uk/offices/norfolk-suffolk/ or please call Ashley Peters on 0330 159 5358.
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Legal sector COVID-19 survey results and SRA Rules It’s well over a year since the new SRA Accounts Rules came into force. Legal practices should be familiar with these now, and any changes to internal procedures should have been documented. Couple that with nearly a year of dealing with lockdown restrictions, and practices will no doubt have had to adapt again. However, we mustn’t forget the fundamentals and compliance with the SRA rules needs be maintained. The SRA accepts that adaptations to firms’ procedures have been needed to adjust the shift in working practices due to COVID-19. So long as the tailored systems are in the spirit of the rules and they are documented, the SRA should not deem you in breach of the rules. For example, if due to lockdown your definition of “prompt banking of client money” is twice weekly rather than daily, that is plausible so long as it marries to your procedures and your clients are aware.
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We’ve identified several areas of common non-compliance in the past year and as a reminder, suggest that you make sure you have the following areas in hand: • Make sure you are not providing your clients’ banking facilities, and in conjunction, you are dealing with residual client balances accordingly (rule 3.3 and 2.5). • Conduct reconciliations of clients’ own accounts operated by you as sole signatory at least every five weeks (rule 10). A reconciliation is more than annotating the bank statement! • Review your procedures around transferring money for your fees and disbursements to confirm this is in line with rule 4.3 and updated guidance. • Make sure your staff are adequately trained and know their role in keeping client money safe. The Larking Gowen legal team ran an SRA Accounts webinar on 9 March which touched on the results of a recent benchmarking report. You can watch a recording of the webinar on our YouTube channel.
We continue to look at the impact of COVID-19 on the legal sector and how it has influenced future plans. We’ve analysed and compared the results of two surveys undertaken in the past nine months which focus on four key business areas: • Fees and profitability • Staffing • Cashflow • Business strategy You can read this analysis on our website: https://rebrand.ly/legalsurvey This information is a valuable benchmark for your practice against other firms locally, as well as nationally, and looking at the next steps you should be taking for 2021. Visit our website to find out more or alternatively, call 0330 024 0888 or email enquiry@larking-gowen.co.uk to get in touch with our specialist team. Ellis Lake Senior Accountant MHA Larking Gowen
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Anti-money laundering back in the spotlight for conveyancers Recent AML audits by the SRA have once again highlighted the challenges of AML compliance for the conveyancing industry. As we know, conveyancing is one of the highest risk areas for AML so, if your practice hasn’t yet been audited by the SRA, the chances are that it will happen at some point in the future. With that in mind, we’ve put together a quick update for conveyancers with some practical tips to help with AML compliance. • Automates your risk assessment based on multiple checks (number of checks depends on different profiles). • Provides automated screening of sanctions, PEPs and alert lists • Automates record keeping and audits, removing expired data • Offers both simplified and enhanced due diligence • Monitors compliance of clients and the firm, with downloadable reports • Ensures on-going due diligence, creating alerts for non-compliant documents or data
What have the SRA audits identified? Although emphasising that most law firms take AML very seriously, as a result of the audits, the SRA has identified that there can often be a difference between a firm’s AML policies and procedures and what actually happens in practice. Nearly two thirds of firms reviewed needed some form of engagement with the SRA and a further nine were referred to the SRA’s AML investigation team. The SRA team found that half of the files they reviewed had issues such as lack of due diligence – examples included the client being known to the partners, expired documents and client due diligence records not being accessible to appropriate staff. Additionally half of the firms the SRA dealt with were failing to carry out effective audits. For example, although the MLRO / MLCO can contribute to the audit, it needs to be overseen by an independent party. A full report on the findings can be found on the SRA website(i). To view the most up-to-date AML guidance compiled by the Legal Sector Affinity Group, please visit the Law Society website(ii). This guidance replaces the Law Society practice note on AML. How an electronic AML check can help Although an electronic AML service can’t do all the work for you, it can certainly help your conveyancing team to meet many of the Directives’ requirements. The key features of an online service are that it:
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Please note, however, that it isn’t sufficient to merely rely upon an automated service to meet AML requirements. Law firms and more specifically, Money Laundering Compliance Officers, are still responsible for ensuring that clients are who they claim to be. This means ensuring a risk assessment policy is in place (and reflected in the AML service being used), that the automated service meets all your requirements and being aware of the sources of data used in assessments. The world of identity checking is changing very quickly so, if you already use an automated service, we recommend checking the latest features with your supplier. The Geodesys AML service offers you all of the above features through a single AML dashboard that’s incorporated into our ordering site. You can carry out both a simplified or enhanced search and we can help you with setting up your risk profiles. For further information of our AML service and to arrange a demo, please contact Kay Toon, Geodesys Account Manager on 07764 987259 or email kay.toon@geodesys.com (i) https://www.sra.org.uk/globalassets/documents/sra/research/antimoney-laundering-aml-visits-2019-2020.pdf (ii) Legal Sector Affinity Group anti-money laundering guidance for the legal sector https://www.lawsociety.org.uk/en/topics/anti-moneylaundering/anti-money-laundering-guidance
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The Poppy’s When Poppy’s Dog Guardian conta
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Top 10 compliance mistakes and how to avoid them understand how it impacts your accounts function. The best thing to do is follow the SRA news and adopt a compliance-centric approach to your business in order to avoid serious SRA Accounts Rules breaches. 2. Incorrectly operating a client account: Ensure your client account includes the required level of information and that you don’t provide banking facilities to clients or third parties. It’s essential that your staff are aware of the relevant money laundering regulations and what constitutes provision of banking facilities. On the same point, don’t suffer lack of understanding about how to operate without a separate client account, should you choose this route. SRA’s Rule 2.2 is all-ornothing. It gives you the choice of exemption from having a client account (across the whole practice, not on a client-by-client basis). Whilst this may sound like an easier option (and cheaper as you don’t need accountants’ reports), it could create more work by asking clients to pay third parties directly and subsequently making sure these payments have been made.
Compliance should be neither an afterthought nor a burden – it should be a natural consequence of running your law firm and managing your accounts well. The SRA will tell you that anti-money laundering and mishandling client money are the two most common mistakes law firms make. So how do you avoid the SRA’s intervention? Here are 10 compliance mistakes law firms most often fall foul of: 1. Not paying attention to the latest SRA Accounts Rules: The SRA regularly updates its rules, and it’s up to you to be aware of these changes and
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Alternatively, another option permitted by the SRA is Third Party Managed Accounts which can provide client onboarding checks, card processing and outsourced client account services within one solution. You must decide what makes the most sense for your business. 3. Not maintaining a clear breach register: You and your employees must be suitably trained to spot suspected breaches, and you must document how discovered breaches will be rectified and keep a register of this information. 4. Not having a payment of interest policy: Your policy of interest should clearly state how money held in
your client account will be handled, including when it becomes due and the rates you’ll use.
low you to streamline compliance procedures and ensure you’re constantly protected.
5. Not thoroughly checking your residual and suspense balances: Analyse which of these monies you currently hold, determine if you should be holding them, return to the proper recipients where possible, and log what you’ve done if these people can’t be located.
10. Not collaborating and communicating effectively: Compliance is not a one-person task. It’s the duty of everyone in your organisation from your cashiers and compliance officers to senior leaders and solicitors. Seek input from all stakeholders when reviewing compliance-related policy documents and roll out updated documentation with appropriate training company-wide. Keep your accountant informed always so audits can be done quickly and efficiently.
6. Not defining ‘promptly’: This word is dotted throughout the revised SRA Accounts Rules. What ‘promptly’ means to one person is different to another. Choose suitable timeframes for your firm and clarify in your office policies. 7. Not setting realistic service level agreements (SLAs): There’s no point in setting impossible-to-meet timescales. For example, if you’re a rural practice with no easy access to a local bank or building society, don’t set tight timings regarding paying in cheques. Instead, be honest and upfront about what’s feasible for your unique circumstances and incorporate that into your contracts and policies. 8. Not supporting your COFA: Your accounting system should allow you to produce a tri-balance comparison of your client bank, cashbook and client ledger balances. By checking and signing a report of this nature, your COFA can meet his / her SRA obligations and you’ll have the visibility you need to make sure compliance measures are being met. 9. Purchasing the wrong legal accounts software: Ask for recommendations from trusted peers of what works best for them. Be sure to probe any potential software provider about how they handle system enhancements to address everchanging rules. Your supplier should be rolling out new and enhanced functionalities which al-
Summary: Hopefully our tips will help you fulfil your regulatory compliance responsibilities with ease. This excerpt is taken from our ‘15-Step Guide to Starting Your Own Law Firm’. To download our guide in its entirety, and learn how to keep client money safe and avoid money laundering scams, please visit www.quill.co.uk/Legalpracticemanagementforstartups.
Julian Bryan is the Managing Director of Quill, which helps law firms streamline, and run their practice better and compliantly by providing simple and easy-touse legal accounting and case management software, as well as outsourced legal cashiering services. Julian is an advocate for quality software standards and served as the Chair of the Legal Software Suppliers Association from 2016 to 2019. He can be reached at j.bryan@quill.co.uk.
