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 are running a Client Account and
• If the average amount held in Client Account at the monthly reconciliations across the year is over £10,000 or
• If at any of the reconciliation dates the amount you hold in Client account exceeds £250,000

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:

• this work experience was for the number of months stated (full time or part time equivalent)
• the applicant has had the opportunity to develop some or all of the prescribed competencies for solicitors
• where the QWE has been completed in an organisation where I do not work, I have reviewed the applicant's work during the placement and have received feedback from the person(s) supervising their work."

What is QWE?

Here is a link to a short podcast with info if you prefer to listen:

https://anchor.fm/ingemar9/episodes/What-is-QWE--Part-of-the-SQE-route-to-qualifying-as-an-English-Solicitor-e1dllkp

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.

What is there is no solicitor in your organisation to confirm your QWE?

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/

Other Links

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/

Contact us:

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:

• awareness and attitudes towards cyber security, including the impact of COVID-19
• approaches to cyber security, including the technical and governance processes that organisations have in place to identify and manage cyber risks
• the nature and impact (including estimated costs) of cyber security breaches
• differences by size and sector.

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

How Can We Help?

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.

Transactional Work

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.

What could be better?

Recurring work

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.

What could be better?

Retained 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.

What could be better?

Passive Income

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]

There is a lot of information in this guidance. It is pretty comprehensive. We do not seek to reproduce it all here but just to highlight the main principles and offer some assistance. There is a link at the end to the full guidance. They state quite openly that following this guidance will not be a defence to prosecution, but it is our view that if you can demonstrate that you are following it is firstly likely to reduce dramatically the likelihood of something going wrong and secondly it is likely to sound loudly in mitigation.

Published by the Law Society on 20^th January 2021. Designed to support legal professionals and firms in complying with the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (as amended) and reviewed and redrafted after the EU's 5 Anti-Money Laundering Directive. It is currently with the Treasury for approval, but we cannot imagine that the Treasury will water it down.

Practices must have:

• Practice-Wide Risk Assessment: Practices must have a written, up-to-date practice-level risk assessment in place, in line with R18 requirements. (Link to R18: https://www.legislation.gov.uk/uksi/2017/692/regulation/18)
• Client/matter level risk assessment: Practices must have
  • a) Client and matter level ML/TF risk assessment procedures that include a requirement to undertake a written risk assessment on each new client and matter/retainer particularly where the matter is non-repetitive and
  • b) A documented procedure for the application of client/matter level risk assessment outcomes to the due diligence undertaken on any particular client/matter

• Policies, Controls & Procedures (PCPs) : The practice must have clearly documented PCPs based on their practice-wide risk assessment which include the AML governance arrangements of the practice.
• Client Due Diligence: The practice must have clearly documented PCPs based on their practice-wide risk assessment which include Client Due Diligence on which it then gives particularised guidance.
• Suspicious Activity Reporting: the practice must have procedures setting out how, and in what circumstances an internal disclosure should be submitted to the nominated officer (MLRO).
• Technology: the practice must have clearly documented PCPs based on their practice-wide risk assessment which include:
  • a) Measures taken when new technology is adopted to protect against Money Laundering (ML) or Terrorist Financing (TF) risks
  • b) 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.

• Training: The practice must have clearly documented PCPs based on their practice-wide risk assessment which include:
  • a) Measures deployed to ensure AML relevant training of partners, staff and agents, including the maintenance of records relating to such training. This training must include awareness of MLR, Proceeds of Crime Act Part 7 and Terrorism Act Part 3 reporting requirements, legal professional privilege and data protection requirements. Training should also cover recognition of red flags/risk indicators as relevant to their duties and responsibilities, along with other relevant laws and
  • b) Procedures for the communication of PCPs to partners and staff.

• Internal Controls: Where appropriate to the size and nature of the practice:
  • a) The practice must conduct an independent audit of the adequacy and effectiveness of its AML policies, controls and procedures and
  • b) The practice must undertake screening of relevant employees – both at pre-employment stage and on an ongoing basis.

• Record keeping: The practice must have procedures relating to records keeping and related data protection matters.

Here is a link for the full guidance: https://www.lawsociety.org.uk/topics/anti-money-laundering/anti-money-laundering-guidance

How We Can Help

1. Assistance with drafting your Practice-Wide Risk Assessment
2. AML Training
3. External, independent AML Audit
4. A template for record-keeping
5. An Up-to-date Office Procedures Manual with an updating service

Contact us: Ingemar Hunnings 07887 524507 or [email protected]

[contact-form to="[email protected]" subject="HCL Website Enquiry"][contact-field label="Name" type="name" required="1"][contact-field label="Email" type="email" required="1"][contact-field label="Message" type="textarea"][/contact-form]

The SRA have published the dates for the SQE exams. You will need to register with Kaplan by the deadline to obtain your candidate number and pay your fee to be able to sit each exam. SQE1 & SQE2 written exam will take place at Pearson VUE test centres in the UK and internationally. The SQE2 oral exam will take place in Cardiff, London & Manchester.

See below for the link to the main SRA website  to register & book the SQE.

(External QWE Confirmation Service - see below for info)

General Info

Bookings will close approximately five weeks before the assessment sitting.

They expect results to be published within 6 - 10 weeks of the exam.

SQE1 involves around ten hours of examinations, while SQE2 is around 14 hours.

SQE1 is sat over two full days and tests you on your legal knowledge.

SQE2 is sat over five half days and tests you on the application of that knowledge and your skills to real life scenarios.

(If you need help getting QWE confirmed click here.)

(Here is a link to our YouTube channel. On there you will find many videos explaining about the SQE, QWE and applying for exemptions from the exams. Also full videos of webinars we have delivered with info about this & the Q&A session that follows the talk. If you think this might be helpful, might we invite you to subscribe so it reaches more people?)

Exam Dates

SQE 1:

2025

July

FLK1: week commenced 14th July 2025

FLK2: week commenced 21st July 2025

Bookings closed

Results due: 10th September 2025.

2026

January

FLK1: week commencing 12th January 2026

FLK2: week commencing 19th January 2026

Bookings open - TBA (10am)

Bookings close - TBA (5pm)

Results due: 10th March 2026.

July

FLK1: week commencing 13th July 2026

FLK2: week commencing 20th July 2026

Bookings open - TBA (10am)

Bookings close - TBA (5pm)

Results due: TBC

General Pattern: It would appear that the SQE1 exams will be sat either in January or July each year. It looks like the exams will be run on 2 occasions a year.

The Candidate Services Team will only be able to help candidates with queries relating to booking if they are logged in to their candidate account. To book a place, candidates must have first completed the registration and pre-booking processes. If they need any reasonable adjustments they should make the request as early as possible as part of their pre-booking steps.

How? Here is a link to the SRA web page for Booking & Paying: https://sqe.sra.org.uk/registering-and-booking/booking-assessments

Where? Pearson VUE locations (UK & internationally).

SQE 2:

You only need to attend one of the oral assessments, which, subject to availability, you can choose.

2025

April

Bookings dates: Closed.

Overall the exams ran from 28th April & finishing 16th May 2025.

Written:

The written assessments took place 6th - 8th May 2025 in the Pearson VUE centres.

Oral:

The oral assessments were in Cardiff, London & Manchester.

First sitting: 28th-16th May 2025.

Results due: 27th August 2025

July

Bookings dates: Closed.

Overall the exams ran from 28th July & finished 7th August 2025.

Written:

The written assessments took place 5th - 7th August 2025 in the Pearson VUE centres.

Oral:

The oral assessments will be in Cardiff, London & Manchester.

First sitting: 28th-29th July and Second sitting: 30th-31st July 2025.

Results due: 19th November 2025

October

Bookings dates: Opening 16th June & close 24th September 2025.

Overall the exams run from 30th October & finishing 14th November 2025.

Written:

The written assessments take place 4th - 6th November 2025 in the Pearson VUE centres.

Oral:

The oral assessments will be in Cardiff, London & Manchester.

First sitting: 30th-31st October, Second sitting: 11th-12th November and Third sitting: 13th-14th November 2025.

Results due: 24th February 2026

2026

January

Bookings dates: TBC

Overall the exams run from 27th January & finishing 6th February 2026.

Written:

The written assessments take place 27th - 29th January 2026 in the Pearson VUE centres.

Oral:

The oral assessments will be in Cardiff, London & Manchester.

First sitting: 3rd-4th February, Second sitting: 5th-6th February 2026.

Results due: 21st May 2026

April

Bookings dates: TBC

Overall the exams run from 28th April & finishing 15th May 2026.

Written:

The written assessments take place 28th - 30th April 2026 in the Pearson VUE centres.

Oral:

The oral assessments will be in Cardiff, London & Manchester.

First sitting: 5th-6th May, Second sitting: 7th-8th May, Third sitting: 12th-13th May, Fourth sitting: 14th-15th May 2026.

Results due: 27th August 2026

July

Bookings dates: TBC

Overall the exams run from 28th July & finishing 7th August 2026.

Written:

The written assessments take place 28th - 30th July 2026 in the Pearson VUE centres.

Oral:

The oral assessments will be in Cardiff, London & Manchester.

First sitting: 4th-5th August, Second sitting: 6th-7th August 2026.

Results due: TBC

October

Bookings dates: TBC

Overall the exams run from 27th October & finishing 11th November 2026.

Written:

The written assessments take place 27th - 29th October 2026 in the Pearson VUE centres.

Oral:

The oral assessments will be in Cardiff, London & Manchester.

First sitting: 3rd-4th November, Second sitting: 5th-6th November, Third sitting: 10th-11th November 2026.

Results due: TBC

The SRA asked candidates to ensure that they followed steps 1 and 2 in their SQE candidate account. Candidates should refer to My SQE overview within their account for full details and explanation. If you need a reasonable adjustment you do not need to wait to contact Kaplan.)

Here is the url to book your assessment via the SRA website: https://sqe.sra.org.uk/registering-and-booking#heading_01fd

Oral Assessment Locations:

Cardiff
Mercure Cardiff Holland House Hotel and Spa
24 26 Newport Rd, Cardiff CF24 0DD

London
Royal College of General Practitioners
30 Euston Square, London NW1 2FB

Manchester
Macdonald Hotel
London Road, Manchester M1 2PG

Resits

2 attempts in addition to the original attempt. All the resits have to be taken within 6 years of the initial attempt. You may resit the SQE 1 Functioning Legal Knowledge assessment 1 and/or SQE Functioning Legal Knowledge assessment 2 and/or SQE 2. You’ll have to pay the whole fee for the exam you’re sitting. After 3 attempts you have start again. Our understanding is that is that you will have to sit everything again as if starting from the beginning.

Link to further info: https://sqe.sra.org.uk/exam-arrangements/results-and-resits

The main SRA site for registering & booking the SQE Exams is here:

https://sqe.sra.org.uk/registering-and-booking

Here's a link to further info about how to register for the SQE: https://hunningsconsultancy.co.uk/sqe-registration-bookings-now-open/

QWE

External QWE Confirmation service

We have blogged extensively about QWE and invite you to visit some of the blogs. URLs are listed below.

Should you not have a solicitor who can 'Confirm' your QWE then WE CAN HELP.

Here’s a link to our External Solicitors Confirmation Service: https://hunningsconsultancy.co.uk/external-qwe-certification-service-2/

For information about the SQE see here:  https://hunningsconsultancy.co.uk/the-new-sqe-exam-and-qualification-method/

For information about Training Providers: https://hunningsconsultancy.co.uk/?s=sqe+training

SQE2 Exemption Applications

We have also helped many people with this. Here is a link to more info about this (only available to Foreign Qualified Solicitors)

Contact Us:

Fill in the form below or

contact Ingemar on: 07887 524507 or [email protected]

We offer a free zoom to talk through your questions. As far as we are aware, Ingemar is currently the only solicitor offering a service as an External Confirming Solicitor. He has successfully helped several aspiring solicitors have their QWE accepted by the SRA, including, we are fairly confident, the very first in April 2021

(N.B. Remember there is also a £4,115 cost of taking SQE1 and 2 exams themselves.)

We have been asked by several Aspiring Solicitors where they can find a list of providers of training for the SQE. So, we have done a bit of spade work to bring together in this blog what we can find. Please do not regard this as the definitive source of data – but we hope it will be a helpful resource for you.

We understand that some of the larger law firms will be offering to provide the SQE training internally. We understand that some universities will be offering to cover SQE preparation in their courses.  Several will be offering a separate SQE preparation course. As there are so many and they can be found from the SRA List below we have not put details here.

Some firms will avail themselves of the ability to offer Solicitor Apprenticeships, where the government will cover the SQE preparation fees and the exam costs - see here for more info: https://hunningsconsultancy.co.uk/apprenticeships-the-sqe-how-this-can-save-you-money/

SRA List

The SRA has a list of SQE Training Providers who have registered to use the SRA trademark so far. That does not mean that they will actually provide training. The SRA wrote that details of further providers will be added in due course. Here is a link to the list. It is just a list and when we checked many of the links to websites did not work. Very few seem to have published what fees they will charge.

https://www.sra.org.uk/students/sqe/training-provider-list/

Other Providers

The College of Legal Practice

Australian. Self-Styled Disrupter

Offering on-line training at low prices. Will not be part of the Apprenticeship Scheme.

As reported in the LS Gazette in Feb 2021: “The college has designed a range of virtual programmes, a SQE1 preparation course costing £1,800 and a SQE2 preparation course costing £2,300. These are two of three core learning areas, the other comprising legal skills modules, which can be taken in isolation or grouped together as part of a Master of Laws (LLM) in Legal Practice. The SQE programmes are available as a 12-week full-time course or a 20-week part-time course.” Pricing for 2025 seems to be £4,500 - £4,900 for SQE1 & 2.

https://www.collegalpractice.com/sqe

Barbri

A provider from the USA. Plan to be part of the Apprenticeship Scheme.

Were the first to enter the market. They offered the preparation training for both the SQE1 & 2 at a cost of about £6,000.

https://barbri-prep.com/sqe/

QLTS School

As their name suggests, they come from a background specialising in helping foreign lawyers from various countries around the world to qualify as solicitors in England and Wales (Qualified Lawyers Transfer Scheme). As the SQE exam is based to a large extent on the old QLTS scheme, this gives them many years of expertise in preparing candidates for this types of exams. They also offer free Mock Tests: FLK1, FLK2 & SQE2. 

They have stated that they will prepare students, paralegals, apprentices and foreign qualified lawyers for SQE1 & 2 with a cost between £4,000 and £6,000, depending upon options chosen.

https://www.qlts.co.uk/sqe/

University of Law

The traditional provider that for older solicitors was the College of Law. Part of the Apprenticeship Scheme.

The University of Law has developed an LLM Legal Practice course costing between £14,000 and £18,800.

https://www.law.ac.uk/study/postgraduate/sqe/courses/

The Law Training Centre

A Kent based Legal Training company.

Fees for SQE1 & 2: £4,900. The provider is also offering a discount for students who have completed the Legal Practice Course or an undergraduate degree.

https://www.ltckent.co.uk/

BPP

Recognised providers of training courses to the legal profession. SQE1 & 2 £13,400 if out of London or on-line or £15,800 if in London. 

https://www.bpp.com/courses/law/postgraduate/sqe

Brightlink Learning

Also provide CiLex Training. Only providing SQE1 prep for the moment (summer 2022). Cost: between £2,500 & £3,000. S

https://brightlink.org.uk/sqe/#1646675255913-3dd6e956-90f9

SMART Superexam Coaching (also known as OSCEsmart)

Previously a provider of QLTS OSCE training and now offers preparation for both the SQE1 and SQE2. They offer 1-to-1 SQE2 mock simulations with personalised feedback, priced at £120 each. Additionally, they provide SQE law and skills pre-recorded lectures at a cost of £35 each, along with revision live lectures priced at £25. These law lectures are specially designed for non-native speakers and include concise and structured notes. Option to purchase a discounted package, with the SQE1 and SQE2 package priced at £3,439. Alternatively, services can be purchased standalone.

https://superexam.uk/prices/

Preptackle

They say they provide coaching to help candidates prepare for SQE2 in an affordable and flexible way. We cannot see pricing from the website. We were made aware of this by a candidate in Dubai who thought they focus on people in the Middle East, although there is no mention of that on the website. They seem just to focus on prep for the SQE2 exam, not SQE1.

https://www.preptackle.com

Schatz Legal Learning

Provides SQE training and preparation. Live SQE Prep Courses – Full coverage of SQE1 & SQE2, structured and interactive. Revision Masterclasses – Intensive weekends. Webinars – Deep dives into tricky areas like Taxation, Wills and Intestacy.  Mock Exams & MCQ Practice. Led by Dr. Schatz is an experienced legal educator. Pricing: £2,397 for SQE1 course; £2,397 for SQE2 course.

https://www.sqewithdrschatz.com/

QWE

We have blogged extensively about QWE and invite you to visit some of the blogs. URLs are listed below.

Should you not have a solicitor who can 'Confirm' your QWE then WE CAN HELP.

Here’s a link to how: https://hunningsconsultancy.co.uk/external-qwe-certification-service-2/

For information about the SQE see here: https://hunningsconsultancy.co.uk/the-new-sqe-exam-and-qualification-method/

YouTube

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We are honoured to have been invited to attend an AML Roundtable meeting called by the SRA where they intend to discuss their findings from the first 74 firm AML audits that they have carried out (Sept 2019 to Oct 2020). They learned that there were a number of consultants assisting firms to be compliant. They have invited representatives of those consultants to contribute "with the aim of ensuring standards, driving consistency and ultimately assisting in the prevention of financial crime." "The idea is to share our expectations, discuss challenges and start a dialogue."

Below is a summary of the SRA findings.

Executive summary

Background

We are a supervisory authority under The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 ("the regulations"). We have a role in checking firms are complying with the regulations and ensuring they have effective AML policies controls and procedures in place.

To help fulfil this, in 2019 we began an ongoing programme of firm reviews.

Our approach

We looked at the firms' approaches to preventing money laundering in 10 key areas. In each area we have outlined what the regulations say, our expectations, what we found, good practice and areas for improvement.

From September 2019 to October 2020, we visited 74 firms to review their AML policies and procedures and to see how these were being applied on a sample of the firm's files. We are grateful to the firms we visited for their time and insight into their work to prevent money laundering, particularly when the Covid-19 pandemic has disrupted work across the sector.

Key Findings

Overall, we found that the areas needing the most work from firms were:

• Audit, where some firms misunderstood the requirement for an independent audit and failed to test the effectiveness of their AML regime. More than half (38, 51%) required follow up action in this area. Of those, 14 firms (19%) had never conducted an audit.
• Screening, where firms were generally compliant with the requirement to screen employees on appointment, but 21% were failing to conduct ongoing checks.
• Matter risk assessments, which on 29% of files had not been carried out. This meant that the firms may have been unaware of high-risk matters passing through their hands.
• Source of funds, which had not been checked adequately or at all in 21% of matters. Failing to check a client's source of funds is likely to mean a failure to properly understand the risks involved in the transaction.

Further action

• Forty-seven (64%) required some form of engagement. This included requesting firms update their AML policies and reviewing revised versions to ensuring compliance. We also requested in some cases that firms agree a compliance plan to rectify any shortcomings, such as requiring a review of live files to ascertain the extent of a lack of customer due diligence. We then considered the results and provided recommendations to ensure compliance.
• Nine firms were referred to the AML Investigations Team for further investigation into whether there have been serious breaches of our rules, and any appropriate sanction.

Conclusion

The firms we saw were, for the most part, united in their determination to keep the proceeds of crime out of their client accounts, and we were able to assist many of them in meeting their obligations.

We saw a mixture of good and poor practices, but generally it was clear that in most practices there was a will to prevent money laundering and to comply with the regulations.

Audit was a particular matter of interest. While firms generally had an understanding that they needed to keep their policies, controls and procedures updated, a number of firms failed to monitor their effectiveness.

When reviewing firms' files, we found that in a large number there were differences between policies, procedures and what the money laundering compliance officer (MLCO) said should have happened, and what actually happened on the ground. This was often because the fee earners were not following procedures, something that could have been identified and rectified sooner if a compliant audit had been carried out.

Where we referred firms for further investigation, this was because what we saw suggested a systemic lack of compliance such as:

• at least 50% of the files reviewed showed serious issues, such as a lack of due diligence or matter risk assessments were not present
• a lack of an effective compliance framework, or indeed a lack of any AML policies, controls, and procedures at all
• an MLCO who did not appear to understand their obligations and was failing to carry out their role properly
• serious breaches by senior members of the firm, for example, one head of department who had failed to carry out sufficient AML checks on a politically exposed client from a sanctioned jurisdiction

This document should act as a guide to other firms on how they should approach the areas we now understand firms are unsure about.

Here is a link to the full report: https://www.sra.org.uk/globalassets/documents/sra/research/anti-money-laundering-aml-visits-2019-2020.pdf?version=4ada2c

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We have spotted the following release. The changes largely seem to to reflect the change in practice brought about by the pandemic: allowing for electronic signature, removing the need for certain things to be read aloud in open court and specifically extending the end of some Covid measures from the end of March to the end of October 2021.

The importance of Adequacy

The EU Commission on 19th February 2021 published a draft adequacy decision in favour of the United Kingdom. This is good news and whilst not a final decision is bodes well for UK businesses who trade in the EU.

Following the UK’s exit from the European Union and the end of the transition period on 31st December 2020, the UK became a Third Country in terms of our relationship with the EU. In respect of data protection this means that transfers of personal data from the EU to the UK can only take place under certain circumstances, to ensure sufficient safeguards are in place to protect EU data subjects. These safeguards must be put in place by any UK company that offers goods or services, or monitors the activity of EU citizens. Broadly speaking the main safeguards are:

• Standard Contractual Clauses (SCCs) (most commonly used)

• Binding Corporate Rules (BCRs) (for large corporates)

• Derogations under Article 49 of the GDPR (rarely used)

• An adequacy decision by the EU Commission

Most of the above safeguards involve a lot of paperwork, often legal fees and following a recent CJEU court case, the use of SCCs (the most common and likely route for most companies) entail additional actions including risk assessments on a “case-by-case” basis etc. A Third Country that received an adequacy decision however, is free to transfer data unhindered by red tape.

In order to reach an adequacy decision the Commission, along with other EU bodies, assess the data protection laws of the importing country and pay particular attention to the degree and ease of access by government to personal data. The recent demise of US Privacy Shield in the Schrems 2 case, and the absence of any adequacy decision in favour of the US, is largely down to the degree of access that US intelligence agencies have to personal data of non-US citizens. Additionally, at present there is no federal data protection legislation spanning the whole US. Currently only 12 countries have been given adequacy decisions.

So, why have the EU decided to offer the UK adequacy?

Current European data protection legislation has its roots very largely in the European Convention on Human Rights. The Commission appears to be favouring UK 'adequacy' (which requires "essential equivalence" with the EU in the protection of personal data) based to a large extent on the U.K.'s ratification of that Convention which guarantees the "right to a private and family life". But importantly the Commission also accepts that government access to personal data is only permitted under specific circumstances, mainly around public safety/security. This is detailed in the Convention but the U.K. Human Rights Act 1998 dictates that any public authority action must be consistent with the Convention to which the U.K. has signed up. I think the apparent acceptance of this point by the Commission is key, because one of the reasons adequacy was in doubt was EU concerns over potential government access to data.

Another key factor in this decision was the fact that the UK, having been bound by the GDPR as members of the EU, have now, through the European Withdrawal Act 2018 and the ‘easy for you to say’ Data Protection, Privacy & Electronic Communications (Amendments etc.) (EU Exit) Regulations 2019, brought the GDPR into UK law as the UK GDPR. This being supplemented by the Data Protection Act 2018. This means that it would be difficult for the Commission to argue that the UK does not have “essentially equivalent” data protection rules to those of the EU.

New data protection laws appear to be sweeping the globe, and the US is currently discussing possible implementation of federal legislation. I would anticipate more adequacy decisions in coming years, especially as the free flow of data is so fundamental to international commerce.

We are not out of the woods yet but this is certainly a positive step and we await final adoption with baited breath! This will last for a 4 year period before being reconsidered.

Representative in the EU

It is worth pointing out however, that even in the case of adequacy, UK businesses offering goods or services in the EU/EEA, who do not have an establishment within the EU/EEA, must be aware that they will probably need to appoint a representative in the EU/EEA.

This is a service we can offer so if you are affected by this please contact us for details.

07887 524507 or [email protected]

Written by our Data Protection Officer: Nick Richards CIPP/E

DPO Service

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