Articles
New SRA Guidance on the Provision of Banking Facilities for ClientsMarch 17, 2023One of the most common compliance problems to arise in relation to the SRA Accounts Rules is the prohibition against providing banking facilities for clients and is something which has grown steadily in importance so far as the SRA are concerned in recent years. In this article we look at the requirement and at the new Warning Notice and Case Studies published by the SRA.Read More
Solicitor Ongoing CompetenceFebruary 20, 2023Following the LSB's "Statement of policy - ongoing competence" there had been some speculation that the SRA might feel itself obliged to return to a CPD hours or CPD points based system. Most will be relieved that, in its recent "Response to LSB Statement of Policy - ongoing competence", the SRA has not done so and has instead announced a series of actions that it will be taking to address the outcomes identified by the LSB.Read More
SRA Proposes Rules UpdatesFebruary 18, 2023The Solicitors Regulation Authority has published a consultation relating to proposed updates to a number of their rules and codes. The main body of changes relates to the operation of the SRA Solicitors Accounts Rules 2019, with several of those changes potentially having an implication for most firms. This article looks at those changes and what they are expected to achieve.Read More
LeO Revise Scheme RulesFebruary 16, 2023The Legal Ombudsman (LeO) has announced updates to its Scheme Rules, to take effect from 1 April 2023. The changes reduce the time limits in which a complainant can bring a complaint to the LeO, make changes to the Ombudsman's discretion to dismiss and discontinue complaints and various other minor changes. This article looks at what those changes are and at how they will impact upon solicitors in terms of revised complaint policies and terms of business.Read More
SRA Imposes Higher AML FinesJanuary 24, 2023The New Year has seen a growth in the number of investigations into AML processes within solicitors' firms and has produced some significant reports in the legal press regarding fines imposed by the SRA on firms failing to implement AML provisions adequately. In this article we look at some of those headline fines and discuss what firms should be doing in order to help ensure that they are AML compliant.Read More
The Problems with Beneficial OwnershipJanuary 23, 2023Confusion often arises as to who might qualify as being a beneficial owner and the degree of checking that is then required of them under anti-money laundering controls if they are identified as being such. This has become much more so since the amendments made to the Legal Sector Affinity Group AML Guidance Note (LSAG) in July 2022. In this article we look at the issues surrounding beneficial ownership and in particular how to identify beneficial owners and ultimate beneficial owners.Read More
Revised SRA Guidance on Sanctions ControlsDecember 14, 2022As many will testify, finding a client is listed on HM Treasury consolidated sanctions controls list will be one of the most frustrating compliance concerns they are likely to encounter. The SRA has recently published two revised guidance notes on this topic, "Impacts of Russia Sanctions" and "Sanctions Regime Guidance Helps Firms Stay Compliant". In this article we look at the sanctions regime and in particular at the revised guidance from the SRA and the new test for strict liability.Read More
To DBS or not to DBS? – that is the questionNovember 21, 2022An issue that often arises during AML checks where the firm has already been the subject of a monitoring inspection by the SRA is a failure to have maintained ongoing criminal records checks on relevant personnel as first became a requirement when the 2017 regulations took effect. This article looks at the need for DBS checks.Read More
Know your client – or elseNovember 18, 2022There is always the risk that the client onboarding process can be seen as being little more than a regulatory requirement of the SRA. However, the implications for firms in not checking carefully on who the client is and whether there are any issues such as lack of capacity go far wider than this.Read More
Client Interest PaymentsNovember 16, 2022The recent rise in interest rates means that many firms need to look again at the amount of interest that they are paying to clients on money held in the general client account. This article reviews the need to make a payment, what is a "fair sum" for which to account to clients and how and when clients should be advised of this.Read More