I don't know what's going on, but over the last couple of months we've been contacted out of the blue by 3 solicitors firms asking us to carry out a stress test on their compliance - so they are prepared should the SRA want to visit. No advertising. Fortunately we can cover all bases: AML, Solicitors Code of Conduct, SRA Accounts Rules and Data Protection.
Our expert on all things to do with AML and the Solicitors Code of Conduct/Rules. Paul also writes our OPM.
A national expert of the SRA Accounts Rules - an accountant with specific expertise in all things to do with the finances of solicitors. Also involved in preparing benchmarking reports.
Our Data Protection Officer, expert in all things to do with Data Protection, GDPR compliance and interactions with the ICO.
Founder of HCL, solicitor and ex-partner, department head and board member - brings an understanding of how your firm works and a commercial focus as compliance has to work within the environment of the commercial reality of running a business. Ingemar will lead and co-ordinate the projects.
Ingemar on 07887 524507 or [email protected]
Ingemar was recently interviewed for this radio show in which the presenter, Adrian Pryce, has a brief chat with various people in business. Here's a link to the podcast in case of interest. It's about 15 mins long.
Absolutely delighted to learn yesterday that one of our clients has completed and obtained the ISAME accreditation. This is based upon advice we gave several months ago and then through assistance we gave. It is actually a medico-legal firm.
IASME stands for “Information Assurance for Small and Medium Enterprises". It is the highest level of cyber-security accreditation that SMEs would normally go for. There are about 30,000 businesses and organisations (including public authorities and government bodies) which currently have the accreditation. Often organs of the state insist you have this if you are to work with them.
For more info about this, obtaining the lesser cyber security accreditations of Cyber Essentials or Cyber Essentials plus or indeed our external DPO Service (Data Protection Officer) then feel free to give us a shout.
Ingemar: 07887 524507 or [email protected]
Here is also a link to our External DPO Service. These data protection services are for all business, not just those in the Legal Services sector.
An Independent AML Audit for your firm is required by Regulation 21 of The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017.
Did you know this?
The SRA reviewed 74 solicitors’ firms between September 2019 to October 2020 and found that only about 20% had ever conducted an AML Audit.
The SRA have given notice that they will be increasing their programme of visits to assess AML compliance.
There is more AML legislation on the way in 2022.
Here is a link to more info & some assistance: https://hunningsconsultancy.co.uk/independent-aml-audit/
We can carry out an
Or contact Ingemar Hunnings on 07887 524507 or [email protected]
Delighted to be able to announce that we've had our 1st client's QWE approved by the SRA - possibly the first anywhere. I've developed a service as an External Confirming Solicitor to help those Aspiring Solicitors who do not have a solicitor in their organisation to confirm the QWE. Here's a link to the service: https://hunningsconsultancy.co.uk/external-qwe-certification-service-2/
I've been working with a number of Aspiring Solicitors since September 2020, both in the UK & overseas. I've been liaising closely with the SRA as they published forms and clarified their process and procedure. A great relief to learn that what we've done has been approved.
If you have any questions or want more info then get in touch.
+447887 524507
Here are answers to questions raised at a recent webinar Ingemar Hunnings ran for Aspiring Solicitors about the SQE & QWE. These have come from the SRA. We hope they will be helpful.
1. Do you have anything that sets out the format of each exam and the expected plan for the day. For example, SQE 1 is 10 hours – it that over 1 day or two, how will the day run etc
We are planning to launch a website shortly which will have all the information on it. It will also have the booking system on it. I understand that the website will launch soon, but I don’t have a date from IT as to when it will go live. The booking system will go live a few weeks after that.
In the interim, we have published this information to help candidates plan for the assessments. This information will be moved to the new website, and at that point we may have more details and may expand it.
https://www.sra.org.uk/globalassets/documents/sra/sqe1-what-happens-on-the-day.pdf?version=4ae646
2. Does one have to take the exams in sequence SQE1 first & passed before you can take the SQE2?
Yes – SQE1 has to be taken and passed before sitting SQE2.
The other steps to qualification (degree or equivalent, QWE) can be done in any order, and can be done before, during or after taking the SQE assessments
3. QWE - does the Confirming Solicitor have to have a current practicing certificate?
No, they do not need to hold a current practising certificate. That is because, as they are still on the Roll of Solicitors, we can still enforce the principles of professional ethics which apply to solicitors when they confirm QWE, such as honesty and integrity. Our website confirms that they do not need to hold a current practising certificate at https://www.sra.org.uk/trainees/qualifying-work-experience/qualifying-work-experience-candidates/
4. May an aspiring solicitor self-study for the SQE 1 & 2 – if so, can you point me to any materials that would help them
Our list of providers includes publishers of self-study materials. The publishers listed include Bloomsbury, City Law Series, Oxford University Press and Routledge. We don’t keep details of what they are publishing – candidates should contact them direct for details.
5. Is there a url you may point me to where aspiring solicitors may go to register for the exams (with Kaplan I assume). Do they pay through that as well?
That will be on the new website. The best way candidates can get notification is to subscribe to the SQE Update alerts, which will send them notification when booking live. The new website will also handle payment.
6. Overseas exam centres – I believe that Pearson Vue centres will be viewed, but I cannot find any detail on the SRA websites on this or how or where oversees aspiring solicitors can go to check this and book a centre (important as they may have to travel a long way still to get to a centre
Kaplan are still finalising venues with Pearson Vue. Currently, we know that the UK venues are planned to include London, Cardiff and Manchester, but we don’t yet have any details on the overseas venues. As soon as we have the details, we will publish them, and they will be listed on the new website. All the information we currently have is set out at https://www.sra.org.uk/students/sqe/sqe-assessments/#collapse_01fd
Making sure you are complying with the Solicitors Accounts Rules is a constant worry for law firm owners. If you are a small solicitors firm, when do you need to start having your Client Account Audited?
If you want to ask further questions then feel free to contact us. Our resident expert on the Solicitors Accounts Rules is Ian Johnson who is the current Chair of the ILFM and Vice Chair of the ICAEW Solicitors Advisory Group which issues guidance to all Reporting Accountants. He is also an accountant with a track record at KPMG, and director at Hazlewoods and Saffery Champness. He is also an expert on anything relating to Law Firm Finance.
If you need to find an account who has expertise in handling the accounts for solicitors firms and doing the Client Account Audit, then we can help with a recommendation.
Contact us: Ingemar: 07887 524507 or [email protected]
Or fill in the Contact Form below.
While you're here why not have a look at the top of this page of our website for our other services. We provide a 'One-Stop-Shop' for Business Support for Law Firms. Everything to allow a busy partner to get on with their client work.
This blog has been rewritten because the method for doing this has been changed by the SRA. No longer do you use the pdf form which they used to require.
Here is a link to a podcast if you prefer to listen to what to do: https://anchor.fm/ingemar9/episodes/How-to-register-your-QWE-with-the-SRA-SQE-route-e1dpjk3
Instead log onto your 'MySRA' account on the SRA website. From there you will see something like 'Notify us of your QWE'. You will need to write in the period of QWE you wish to have confirmed, the name of the organisation where you did the QWE, the name of the solicitor who will confirm the QWE to the SRA and their SRA reference number.
This will prompt the SRA to email that solicitor to ask them to confirm your QWE.
They will be asked to confirm:
"I confirm that in accordance with the SRA Authorisation of Individuals Regulations, the applicant has completed a period of qualifying work experience and:
Here is a link to a short podcast with info if you prefer to listen:
Or visit this page on the SRA website: candidate pages.
But there is no definitive definition. It is up to the judgment of the Confirming Solicitor. It is best to ask them.
We can help. Our lead consultant, Ingemar Hunnings, (SRA No. 156976) provides a service as an External QWE Confirmation Solicitor. Find more information here:
If you are an Aspiring Solicitor: https://hunningsconsultancy.co.uk/external-qwe-certification-service-2/
If you are an employer: https://hunningsconsultancy.co.uk/qwe-external-confirming-solicitor-service-for-employers/
There is quite a lot of resource for Aspiring Solicitors about the SQE & QWE on this website.
For information about the SQE see here: https://hunningsconsultancy.co.uk/the-new-sqe-exam-and-qualification-method/
Here is information on SQE Training Providers with their current charges for the training: https://hunningsconsultancy.co.uk/sqe-training-providers/
Fill in the form below
or by phone to Ingemar Hunnings: 07887 524507
or email: [email protected]
On 24th March 2021 the UK Government published it's annual survey of UK businesses, charities and education institutions as part of the National Cyber Security Programme. The findings help these organisations to understand the nature and significance of the cyber security threats they face, and what others are doing to stay secure. It is an official government statistic. It was carried out by Ipsos MORI.
It covers:
Below is an infographic summarising the findings.
Cyber_Security_Breaches_Survey_2021_Business_Infographic
Here is a link to the official report: https://www.gov.uk/government/statistics/cyber-security-breaches-survey-2021/cyber-security-breaches-survey-2021#fn:1
We can help you get the basic level: Cyber Essentials, or the next 2 levels up: Cyber Essentials plus or IASME. We also offer a DPO Service, where you can buy in time with our Data Protection Officer who will work with you on how you handle your data and liaise between you and the ICO, for example if there is a Data Breach. https://hunningsconsultancy.co.uk/dpo-service-data-protection-officer/ We can also help you with a local representative for GDPR in the EU if you are trading with them of in the UK if you are company wanting to trade in the UK.
Contact Ingemar on: 07887 524507 or [email protected]
Current The Goal
I could stop with the diagram and invite people to ‘Discuss’ like in an exam question – if I was being cheeky. But I won’t. I’ll unpack this. It’s something I’ve been thinking about over the last couple of years or so. I think that it has pretty universal application to business but I’ll have a focus on professional services and in particular solicitors firms.
My thoughts have arisen from analysing my own businesses. I run a management consultancy providing Business Support for Law Firms and other Professional Services businesses. A sort of ‘One-Stop-Shop’ for the busy partner, so they may get on with doing the client work. Before that I practiced as a solicitor for 24 years, 14 of which as an Equity Partner. I sat on the Board and ran a department of 60 staff.
For lawyers most fees are generated through transactional work. Indeed, most professional services businesses, my own included, generate most of their fees this way. The client instructs you to do a job for them, you agree a price, do the work and invoice them. You might invoice them before you do the work (or receive money on account) or at stages during the work or at the end on delivery. That’s good. You have a trading business. That is how most law firms operate and they do so very successfully. That’s how most businesses operate - mine included. No problem with this – except that income is not so predictable. When setting budgets, you’re doing so on the presumption that things will be as they were last year. Some matters might be long-running (for example litigation) and so, if you know the end date, you might be able to predict some income in the coming year. However, that’s still transactional work. It also doesn’t add much to the value of the business, for example when valuing it to sell.
Recurring work is one step better. It’s Transactional Work, but Recurring Transactional work. That gives a level of predictability. Accountants have the annual audit, accounts and recurring tax work, which would fall into this category. It can give you a base income for your business that you are fairly confident will be generated, because all things being equal, the client will instruct you to do this work on a recurring date. Solicitors firms don’t manage to craft much of this type of work. An example where they have is with Employment Law, where they might carry out an annual audit of contracts and operating records. If solicitors were able to be more creative it would give a bit more certainty to budgeting and income. It would involve them getting closer to their clients. It would seem to me that there are opportunities in Corporate, Commercial and Health & Safety areas to mention a few. In my business, I’ve been able to generate some compliance packages that operate on a recurring basis: a monthly COFA & COLP Review and external file reviews carried out for some firms. Another example is that some firms ask me to train new starters on their LEAP Case Management System (really a hybrid between transactional and recurring) or to do an annual review on LEAP or Proclaim usage, update of changes and revision on best use. That is true recurring work.
Retained Work – what do I mean by this? You have a retainer which the client pays to cover work that you will do within the agreed price, paid at agreed intervals (quarterly, yearly etc). Normally there is no end date other than termination of the contract. Income is guaranteed unless the contract is terminated. This is great for predictability of income. It also gives some solidity to allow for valuation of the business. Of course, you need to evaluate and define carefully the work that would be included in the price and price the contract so you don’t end up doing the work at a loss or suffer from mission creep. (Don’t forget that defining work at the outset doesn’t always translate into what you end up doing, especially where the work is complex, and so a proper periodic review may be required to deal with situations where the goalposts are moving.) I’ve seen retainers created for Employment Work. There are some large non-legal firms (Peninsular for example) doing this. Many employment firms or employment departments have followed suit. Once you have a set price this should drive a focus on how to deliver to the best standard and at the lowest cost of production so as to maintain or drive up profit. I’ve worked recently with a couple of small commercial solicitors firms where the majority of their work is done on a retained basis. It gives them great predictability. It does so also for their clients. That is a good selling point not to be under-estimated. Your client might welcome such a discussion. I have been able to develop some services offered on a retained basis. Our OPM Service (Office Procedures Manual) has a recurring annual fee paid by monthly instalments for which the firm gets an up-to-date OPM with quarterly updates which is maintained up to date by us. We are on a general Compliance Advice Retainer with some firms. This is a sort of hybrid with Transactional Work. The client requests our assistance at an agreed rate. We record the work and time spend and invoice every quarter. The retainer remains in place unless and until it is terminated.
Passive Income – the Holy Grail of fees. The money comes in while you sleep. All of the above methods require ongoing effort to generate the income. Passive income typically requires up-front effort to establish and crystalise the opportunity, but then no additional effort to harvest (other than invoicing, which should never be regarded as a chore in my opinion). You then have real value in the business which could be capitalised and sold. I would venture to advise that all business owners should invest significant time and effort in thinking how they can create and generate Passive Income. In my experience it is very seldom achieved in law firms. Some could be generated, and I would welcome the ability to work with Managing Partners to see how this could be done in their businesses. It is a strategic aim to do so for my business. I now track how much is generated this way each month and look for opportunities for how to add to this. It is an old adage ‘What gets Measured Gets Done’. I know there is criticism of this statement, but I still think there is a lot of value in it. By measuring it you maintain focus and track progress. I have to maintain balance. Building Passive income is often a long-term project that I hope will harvest sustainable passive income in the future. I have to balance the time and effort devoted to this against the other 3 methods of earning income which puts bread on the table NOW.
An Additional thought re Passive Income
Thinking some more about this, one could sub-divide Passive Income as follows:
a) Recurring Passive Income: a regular amount that will come in and
b) Variable Passive Income: the amount varies (for example: royalties or fees from training videos watched).
My Fees Pyramid is currently the traditional one, with Passive Income as a small pointy bit at the top. My AIM is to invert the Fees Pyramid. I may never achieve it, but any progress towards it strengthens my business and makes it more sustainable and drives sustainable value.
Food for thought.
Ingemar Hunnings is lead consultant at HCL a management consultancy providing Business Support to Law Firms, in-house legal departments and other organisations Everything to allow a busy partner get on with the client work. Previously he practiced as a solicitor for 24 years, as an equity partner for 14 years and ran a department of 60 staff. Since setting up his consultancy in 2014 HCL has worked with over 400 businesses.
Contact details: https://hunningsconsultancy.co.uk/ 07887 524507 & [email protected]
