The Legal Sector Affinity Group (LSAG) guidance regarding compliance has recently been approved by HM Treasury and was published on 23 April. Please see a link below to where you may view and download the guidance. We are digesting this and will publish a summary of the main points.
https://www.sra.org.uk/solicitors/resources/money-laundering/guidance-support
We provide a lot of AML support to businesses in the Legal Sector. Please see below for a summary and links for further information. (Watch this space for assistance coming for certain businesses in the Financial Services sector as well.)
(Sanctions Regime compliance - see separate services for this on our website.)
Feel free to contact us, ideally by using the 'How can we help you?' form below.
We asked the SRA if the SQE2 exemption, once granted has an expiry date. We have been asked this several aspiring solicitors. They have written to us to say that it does NOT expire.
Assistance with SQE2 Exemption Applications - Qualified Lawyers
https://hunningsconsultancy.co.uk/sqe2-exemption-for-foreign-lawyers-review-advice/
External QWE Confirmation Service
This is relevant to people who are NOT qualified as lawyers already. If you know of someone who needs an SRA regulated solicitor to confirm their QWE but have no-one in their organisation to do so - we can help. This service would apply to someone who is NOT qualified as a lawyer. Please see the link below and feel free to signpost them to us: https://hunningsconsultancy.co.uk/external-qwe-certification-service-2/
YouTube Videos on SQE, SQE2 Exemptions & QWE:
https://www.youtube.com/@hunningsconsultancy999/videos
Please feel free to subscribe!
The SRA commissioned an independent report to better understand the high-risk market developments that law firms identify and how they mitigate these, where relevant.
Here is a link to the report: https://www.sra.org.uk/sra/research-publications/risk-legal-profession/
Firms were asked to select from a list the top 3 concerns as risk to the organisation over the coming year. The top 3 chosen all related to compliance: AML & Sanctions compliance, cybercrime and other regulatory compliance. An interesting read and good to see what other lawyers are thinking. With regard to opportunities, people identified better use of lawtech and AI as a major one.
Help We Offer
We help firms with regulatory compliance, AML & Sanctions, including reviewing current policies & practice & training. https://hunningsconsultancy.co.uk/compliance-services/
We also help firms improve their usage of the following case management systems: LEAP, Clio, eclipse Proclaim & Actionstep. https://hunningsconsultancy.co.uk/case-management-system-support/
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It seems that the SRA reviewed 25 law firms (we helped at least 1 of these through this). In general, they found that things were being done well. 21 of them had a written policy and/or procedure on how the firm would account to clients for interest on money held. (If you don't, we can help you.) Most did appropriate training but whilst that covered technical legal aspects well, they often missed other areas of client care. 2 of the firms failed to obtain or submit qualified accountant's reports. (If you don't & need someone, we can recommend someone to you.) 1 firm failed to comply with its AML obligations (again we can help train & advise on this).
Here is a link to the SRA report: https://www.sra.org.uk/sra/research-publications/probate-administration-thematic-review/
Help with Thematic Reviews & Inspections & Audits
We regularly help firms through SRA Audits, Inspections & Thematic Reviews and the SRA Client Account Spot Check. This includes AML & Sanctions audits. See the ink below for information. Contact us by completing the form below. Best contact use early - as soon as you heard from the SRA. We will always offer a free, no obligation initial consultation to assess your needs. We will need to see the communication from the SRA and often all relevant documentation that you have, such as your relevant policies & procedure documents.
https://hunningsconsultancy.co.uk/sra-audits-inspections-assistance/
Italian lawyers who want to work inhouse have to de-register as avvocatos. It's a thing in the Italian jurisdiction. On the face of it, it would create a problem with them meeting the requirements for being able to apply for exemption from the SQE2 exam (part of the SQE route to qualify as a solicitor of England & Wales).
We asked the SRA if that meant that Italian lawyers working inhouse could not apply for exemption from the SQE2 exam unless they left inhouse employment & re-registered as avvocatos. We've heard from the SRA that they do not need to do that. It would appear that this would apply to other jurisdictions with similar circumstances.
Here is the wording of their reply:
"Dear Ingemar Hunnings
Thank you for your email of 6 January 2025.
Qualified lawyers working in-house will not have to re-register to be able to make an application for exemption. The evidence required remains the same as for qualified lawyers, as detailed on our website.
I hope this information is helpful. If you have any further questions, let us know.
Yours sincerely
Karen Williams (she/her)
Authorisation Officer
Authorisation Directorate
Solicitors Regulation Authority /Awdurdod Rheoleiddio Cyfreithwyr"
Help we offer
For general advice & assistance with applications for exemption from the SQE2 exam:
https://hunningsconsultancy.co.uk/sqe2-exemption-for-foreign-lawyers-review-advice/
For Videos about SQE2 exemptions & QWE:
https://www.youtube.com/@hunningsconsultancy999/videos
External Solicitor QWE Confirmation Service
If you are NOT qualified as a lawyer in any jurisdiction, you will have to have a minimum of 2 years' Qualifying Work Experience confirmed to a the SRA by an SRA regulated solicitor. If you do not have anyone in your company to do this, we can help.
https://hunningsconsultancy.co.uk/external-qwe-certification-service-2/
The Home Office has published guidance on the Failure to Prevent Fraud offence. Here is the link: https://www.gov.uk/government/publications/offence-of-failure-to-prevent-fraud-introduced-by-eccta
Under the offence large organisations may be held criminally liable where an employee, agent, subsidiary, or other “associated person”, commits a fraud intending to benefit the organisation.
The offence is intended to encourage organisations to build an anti-fraud culture, in the same way that failure to prevent bribery legislation has helped reshape corporate culture since its introduction in 2010.
In the event of prosecution, an organisation would have to demonstrate to the court that it had reasonable fraud prevention measures in place at the time that the fraud was committed.
Compliance Assistance from Us
We have a wide range of compliance support services. Mostly, but not exclusively, these are aimed at the legal services sector. Here is a link where you may explore: https://hunningsconsultancy.co.uk/compliance-services/
The Law Society has published a report on this topic. Here is a link to where you may read a summary and download the full report: https://www.lawsociety.org.uk/topics/research/international-data-insights-2024#download
In short the influence of English law continues to grow. It is seen as the law of choice for international trade. We do a lot of work assisting people wishing to qualify as solicitors of England & Wales. Those who are outside of the UK are usually doing so exactly because English law is the law of choice for international trade and so to be qualified as a solicitor of England & Wales is seen as a career advantage.
External QWE Confirmation Service
This is relevant to people who are NOT qualified as lawyers already. If you know of someone who needs an SRA regulated solicitor to confirm their QWE but have no-one in their organisation to do so - we can help. This service would apply to someone who is NOT qualified as a lawyer. Please see the link below and feel free to signpost them to us: https://hunningsconsultancy.co.uk/external-qwe-certification-service-2/
Assistance with SQE2 Exemption Applications - Qualified Lawyers
https://hunningsconsultancy.co.uk/sqe2-exemption-for-foreign-lawyers-review-advice/
YouTube Videos on SQE, SQE2 Exemptions & QWE:
https://www.youtube.com/@hunningsconsultancy999/videos
Please feel free to subscribe!
In the November 2024 COLP & COFA Conference the SRA gave notice that it would be starting spot checks in 2025 on firms to check that Client Account Audits were being carried out when they were supposed to be. We've just received notification from one of our law firm clients that they have received an email from the SRA notifying them that they have been picked. The SRA will send them a questionnaire in January for them to complete in prep for this.
Here is a link to an anonymised copy of the email: https://hunningsconsultancy.co.uk/wp-content/uploads/2024/12/Email-from-SRA-re-Client-Account-Spot-Check.pdf
Help
If you need help with this let us know. We are frequently helping solicitors firms through SRA Inspections, investigations & thematic reviews.
Need an Accountant to carry out a Client Account Audit?
Reach out to us. We can put you in touch with someone who can do this for you.
Other help with SRA Accounts Rules Compliance & Law Firm Finance
Following a thematic review in 2023 and consultation, the SRA has issued guidn=ance for the 34,5000 inhouse solicitors that it regulates. The include practical examples, resources and checklists.
Here's a link to the page on their website: https://www.sra.org.uk/sra/news/press/support-in-house-solicitors/
The Guidance:
Assistance from us
We support businesses in the legal profession with compliance - with SRA regualtions, AML & Sanctions & Data Protection obligations (both in the UK & overseas): https://hunningsconsultancy.co.uk/compliance-services/
QWE Confirmation: Acting as External Solicitors to confirm the QWE of Aspiring Solicitors who do not have a solicitr in their organisation to do the confirmation. Many of these are acting as an inhouse legal resource in companies. https://hunningsconsultancy.co.uk/external-qwe-certification-service-2/
Assistance with application for exemption from the SQE2 exam. If you are qualified as a lawyer and wish to cross apply to become a solicitor of Engalnd & Wales you may be able to apply for exemption from the SQE2 exam. We have advised & assisted many such people. https://hunningsconsultancy.co.uk/sqe2-exemption-for-foreign-lawyers-review-advice/
Contact Us
Fillin the form below or email: ingemar:hunningsconsultancy.co.uk
On 30th September the SRA published new Guidance on how it expects firms to comply with the Transparency Rules. There is no change to the rules, but they have published new and updated resources. Whereas before the information was a little difficult to follow, now it is more detailed with templates. It should be easier for smaller law firms to follow.
Here is a link to -
What should you do?
Review your website in the light of this. They have a dedicated team looking at websites. It is a easy thing for them to inspect. They list that they have fined over 400 firms since 2023. Remember that the Transparency Rules doesn't just involve putting Pricing Information onto the website correctly, but also your Complaints Procedure and having the SRA Clickable badge.
How can we help?
We have a package to review your website for compliance with the Transparency Rules: https://hunningsconsultancy.co.uk/sra-transparency-rules-sra-asks-for-declaration-of-compliance/
What we will do
| Review your website and produce a report of what you need to do to be compliant. We will also review your Client Care Letter/Engagement/Terms of Business letters and Complaints Policies. All work is carried out remotely. |
£500 + VAT
fill in the web form below
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or email: [email protected]
