Let me tell you a story.

Some while ago, in a province in India, there was a problem with too many cobra snakes. Too many people were being bitten. So, the local officials decided to offer a price on the head of every cobra brought in dead to them. The policy seemed to be very successful and soon lots of dead cobras were being delivered to them. There were some clever people who looked at this and saw an opportunity. Instead of hoping they might find one of the dwindling supply of cobras, they decided to set up a business to breed cobras. They then would have a guaranteed supply of income. Smart business move. However, the local authorities were not impressed when they found out. Using tax-payers money to enrich a local business was not what they had intended. So, they shut down the scheme. Deprived of their income, the people running the cobra business also shut down – and released the cobras from their farm. Result: there were then More cobras in that province than when this all started.

I love this story and have had it earmarked for this article for some time. It so perfectly illustrates the point. I’m sure you can think of other examples from your working or home life when you’ve proceeded with the best of intentions with the aim of achieving an objective, but with less success than you’d hoped. It’s hard enough when you are dealing with inanimate objects, processes and suchlike. When you start dealing with people it moves to a completely new level.

What can you do to try to mitigate against the operation of this ‘Law’? Here are a few bullet-pointed suggestions

• Clearly defined goals – work out what you want to achieve. Do you all agree on what the problem is that you are trying to fix? If not hammer that out or you will be fighting each other Make sure there is buy-in to make the pain and effort worthwhile.

• Visualise the outcome – here I’m talking a bit more practical than the theoretical outcome when setting the goals. What will it look, smell and feel like? What is atmosphere in the business going to like once you have reached the end? Then you have a chance of defining what success looks like. What would you intend to do next?

• Think through the journey – it might be that what you are proposing is a simple change in policy – or it might be a project or a process change. Whatever it is, walk yourself through it: as yourself, as the person you are asking to do this, as colleagues who might be affected. Then think it through again asking yourself if there might be any unintended consequences that might work counter to your objectives (there could be some that might be collateral benefits – let’s not forget the potential positives)

• Take it too the Streets – by this I mean that, bright as you are, you may not see all the angles. You are nearly always stronger working as a team. Be sure to bring into the testing people from all levels of the organisation. You might be surprised by the insight that they bring. It could also be your best way of picking up potential damaging unintended consequences that could cause collateral damage. Much of this might be perception. It might seem a wrong perception, but if it’s there, it is real and its impact will need to be considered when assessing how to proceed. Better you know before than after it has wrecked your chances of success.

• Measure & Learn – how do you know how you’re doing if you don’t measure? So, you’ll need to define parameters against which you can measure. You’ll need to decide how you will gather the data to measure. There may be verification issues. There may be data storage issues. How often do you measure? How do you present the data? You should think this all through before you start. If gathering the data is going to be a very onerous, you are likely to get less data and less good data. I’m a great believer in evidenced-based decision making. Otherwise, where is the objectivity? Will you just be doing this at the end, or will you be doing this at intermediary stages? Once you have analysed the data, build into your process a time for reflection and learning to improve. Take the time & effort to write it up and reflect on it. I appreciate that this is quite a scientific approach. Normally lawyers shy away from this sort of thing. But I would argue that the rigour is important for your business. Then take the learnings, discuss and ask ‘How can we improve’. That’s when the work starts. Tedious, but it’s how you get yourself into a ‘Continuous Improvement Loop’.

Here is the URL for the UK:

https://www.gov.uk/order-coronavirus-rapid-lateral-flow-tests

You need a degree or equivalent to sit the SQE exams. It can be obtained outside the UK. Either way it has to be checked by the SRA’s 3^rd party validating service (they use Atlantic Data).

You will need to give Atlantic Data this information:

• university/institute
• course
• classification (result)
• qualification
• enrolment and graduation years

Atlantic Data will ask for your degree/qualification certificate or student ID number.

To start the process you log into your MySRA account and select 'Start new applications' and 'Apply to check that your qualification or work experience is equivalent to a degree'.

There is a fee (currently, 2023, £160 for UK applicants). If overseas qualifications, Atlantic Data will use UK ENIC. Here’s a link to information: https://enic.org.uk/Qualifications/SOC/Default.aspx

The SRA page giving this info may be accessed here: https://www.sra.org.uk/become-solicitor/sqe/degree-equivalent/check-validate-qualification/

Why not use the search to find other information in the blogs about the SQE & QWE.

Should you not have a solicitor who can 'Confirm' your QWE then

WE CAN HELP

Our ‘External QWE Confirmation Service’

If you are looking for help with an application for exemption from the SQE2 exam

WE CAN HELP

Also lots of info on our YouTube Channel: https://www.youtube.com/@hunningsconsultancy999/videos

There’s a quiet revolution happening which I think has the potential to bring about quite some change in how many solicitors firms operate and affect their economic model.

Many firms seek to drive down the cost of production and drive up profit by employing paralegals to do less complex and lower value work. I know. When I was in practice we did that. They were usually law graduates who had passed their LPC. Often people were enticed with the potential to be considered for a Training Contract after they had worked in the firm for a while. We all knew that the Aspiring Solicitors had to obtain a Training Contract in order to proceed with their career to become a solicitor. That gave the solicitors firms power and control and pick of the bunch. They held all the cards. Many firms operate now with several or indeed large numbers of paralegals. That’s their business model.

I think this will change. The SRA has changed the way that people qualify as solicitors. The LPC method is being phased out. In its place the SRA has introduced the SQE. An Aspiring Solicitor still needs a law degree. However, instead of following in a linear fashion to take their LPC and then obtain and complete a training contract, each stage dependent on completing the former, now they have 2 exams to take: SQE1 & if they pass it SQE2. Instead of the Training Contract, they have to acquire and have signed off 2 years Full Time Equivalent (FTE) Qualifying Work Experience (QWE). The idea is that this is done BEFORE they sit the SQE2, as it prepares them for this exam (which tests them for 16 hours on real life scenarios, applying law, practice, ethics & conduct). Importantly, they can reach back in time for QWE already done. QWE does not need to be done in a formal training contract. It can be acquired working as a paralegal. Indeed, it the work does not even need to have been done in a law firm, in England & Wales or even working on English & Welsh law. The QWE is all about acquiring the competencies & skills the SRA believes one needs to acquire to be a good solicitor.

This is game changing. You may employ paralegals who are paid less, but no longer may a firm hold them there dangling the possible prospect of a Training Contract. Whilst working they are gaining their QWE. They can qualify. Ah, you might say – they need me to confirm their QWE. I could refuse to do that and so there’s no change. I control their career progression. This question was raised at a webinar I attended when the SRA were speaking. The person from the SRA paused and then said “in that scenario we might be interested in speaking with the solicitor about THEIR conduct”. That is seismic. The message I took from this is that it is not acting in accordance with good conduct as a solicitor for you to hold back the progression of an Aspiring Solicitor to qualification.

This is one point. A second is that the SRA has specifically allowed Aspiring Solicitors to go to a solicitor outside their organisation to have their QWE confirmed. [I have helped several Aspiring Solicitors by acting as External Confirming Solicitor so that their QWE has been accepted by the SRA.] Thirdly, there is nothing stopping the Aspiring Solicitor going to another firm more willing to support them.

The dynamic and power balance is changing. Does that mean that paralegal will disappear? I don’t think so. All is not gloom and doom. Aspiring Solicitors will still need to get their QWE. However, they will perhaps be more discerning. They may be more willing to vote with their feet. They may well be moving on or qualifying after about 2.5 years whether you want them to or not. (I write 2.5 years because most will be studying for their SQE exams at the same time as working. If they take 1 day out a week to study that equates to about 2.5 years to get their 2 years FTE QWE.) That might be something to build into your financial planning.

Churn hurts the profitability of your firm. A colleague & I once worked out that it cost the firm in lost turnover at least £60,000 each time a fee earner left and had to be replaced. That was without the recruitment costs. So, how to reduce churn as much as possible. The SRA has been very careful to design the SQE top fit with the government’s Apprenticeship Scheme. You could put your paralegals through this as Graduate Apprentices. That would mean that 95% of their study costs and their exam costs would be paid for by the government. The other 5% you, the firm, would have to pay (by my calculation roughly £2,000). It’s 100% if your firm is large enough to pay the apprenticeship levy (few solicitors firms are).

Feel free to contact our lead consultant, Ingemar Hunnings, for more info about the SQE & QWE. There is a Contact Form below. If you search 'QWE' or 'SQE' in the blog search you will find several articles giving information about this.

If you have or are a consultant solicitor the IR35 will be high on your agenda. We are not experts on this but have come across this resource for expert advice to ensure that you are compliant. Expert advice and insurance against HMRC investigations. This has been recommended to us, so we thought we'd share in case this might be of help.

https://www.ir35shield.co.uk/

(Please note we are not endorsing this and you should carry out your own due diligence and seek advice on accounting & tax matters from your accountants.)

For advice about running your law firm, please feel free to contact us. There is a Contact Form below on this screen.

Whilst here, may we invite you to have a look at our services, accessed from the top of this page, or browse or search our other blogs. They tend to be to provide information & assistance to the legal, business & professional services sectors. Mostly about the business of running your business.

The government has decided that the Fast Track will be extended to cases valued up £100,000 and thus that Fixed Recoverable Costs will be extended accordingly. Clin Neg are excluded because they are the subject of a separate review. There are 4 categories of complexity which will determine the level of costs allowed.

In case you missed it, below is a link to the LS Gazette article which sets out some detail with the suggested figures. Also below is a link to the full Impact Assessment and Government Response, should you wish to read it.

It doesn’t say when this will be brought in, but they are at the rules-drafting stage. You’ll need to do some prep and modelling to see how this will impact your business.

Links: 

Law Society Gazette article: Click here

Original Papers: Click here for access

Contact:

Should you wish to explore how this might affect your firm finances feel free to contact us for a chat. One of our consultants is an expert in Law Firm Finance and Ingemar is an ex-litigator. [email protected] or 07887 524507

We provide AML training both for businesses in the Legal Sector and for FCA regulated firms. 

SRA regulated firms - did you know that Lexcel requires firms to review policies and training EACH year? 

The Legal Sector Affinity Group Anti-Money Laundering Guidance states that all employees and agents should receive training at regular and appropriate internals both to update on new developments and to refresh existing knowledge. All new employees should receive AML Training. 

The FCA adopts a similar approach and of course the legislation & regulations are the same.

We train on AML. Normally this is remotely done and charged at £200/hr + VAT (+ £50+VAT for prep for each training session). If you are booking just 1 hour the price is £250 + £50 for prep + VAT, to cover question, over-run and to reflect that fact that more than 1 person may attend.

Other AML 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.)

• AML Policy Documents & PWRA Review (PWRA is Practice Wide Risk Assessment)
• Independent AML Audit
• AML Updating Retainer
• Office Procedures Manual (OPM) 
• SRA Audit or Inspection on AML - we help firms with this. Charged at £200/hr. It is best to contact us as soon as you receive notification from the SRA. They will ask you to answer some preliminary questions and submit your policies for review. How you answer them can help or hinder how the audit or inspection goes.
• AML & Sanctions Manual

(Sanctions Regime compliance - see separate services for this on our website.)

Other Training from HCL

Sanctions Regime Compliance Training
SRA Accounts Rules Training
COFA Training
GDPR & Data Protection Training
Cyber Security & Fraud prevention Training

Contact Us

Feel free to contact us, ideally by using the 'How can we help you?' form below.

If nothing else, the pandemic has showed the value of good financial awareness and the value of cash in the bank. I think the economic outflow of the pandemic is still to hit us. Those businesses with a strong cash basis and good awareness of their finances will be in a stronger position to take advantage of the opportunities that arise. If you're looking for someone to talk with, we are fortunate to have as one of our consultants an expert in small and mid-tier law firm finance.

(He's already doing forecasting for some of our client firms. (He's also an expert in Benchmarking in the Legal Sector and the SRA Accounts Rules.)

If of interest contact us:

Ingemar on 07887 524507 or [email protected]

The SRA is running rolling programme of checks on all law firm websites to make sure you are complying with our transparency rules.  

They will be checking all law firm sites, including those of firms who have previously filled in a self-declaration stating that they are fully compliant. Embarrassing if you have said it is compliant when  it's not! When they do find it is not compliant they will tell you and give you a time limit for fixing this and again declaring if it is compliant. This service is just the review. We can also help after an SRA audit, but that will be on an hourly basis.

Here is a link to the SRA Transparency Rules: https://www.sra.org.uk/solicitors/standards-regulations/transparency-rules/

Here is a link to the SRA Guidance, updated in September 2024: https://www.sra.org.uk/solicitors/guidance/transparency-in-price-and-service/

If you need help contact us:

fill in the web form below

or

or email: [email protected]

Our Charges

£500 + VAT

The current thinking is that Legal Aid tenders will become available this autumn (2021). If you want to tender you will need to have the SQM or Lexcel quality mark. SQM is likely to take at least 3 months to obtain and Lexcel 4. Time to get moving.

Give us a shout if you would like to get some help.

Contact for info: Ingemar on 07887 524507 or [email protected]