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 20th 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:
Here is a link for the full guidance: https://www.lawsociety.org.uk/topics/anti-money-laundering/anti-money-laundering-guidance
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)
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?)
2025
July
FLK1: week commencing 14th July 2025
FLK2: week commencing 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).
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 take place 6th - 8th May 2025 in the Pearson VUE centres.
Oral:
The oral assessments will be in Cardiff, London & Manchester.
First sitting: 28th-29th April, Second sitting: 30th April -1st May, Third sitting: 13th-14th May and 4th sitting: 16th-16th May 2025.
Results due: 27th August 2025
July
Bookings dates: Closed.
Overall the exams run from 28th July & finishing 7th August 2025.
Written:
The written assessments take 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
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/
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)
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/
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
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.
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.
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/
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.
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
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
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.
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.
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/
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/
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?
Fill in the form below or feel free to contact Ingemar on: 07887 524507 or [email protected]
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.
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.
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.
Overall, we found that the areas needing the most work from firms were:
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:
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
We provide a full suite of Compliance Support for law firms and other professional service firms (insofar as AML, Data Security & Cyber Security). We invite you to look at the drop down menus at the top of this page. Feel free to call us on 07887 524507 or email on [email protected]
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.
Practice Direction Details:
Practice Direction Details
Practice Direction Details
A full copy of the Practice Direction update may be found here: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/962218/PD_Update_1_of_2021_Feb21.pdf
We are a 'One-Stop-Shop' for Business Support for Law Firms and other Professional Service Firms. We invite you to have a look at our services from the 'Services' and 'Compliance Support' drop down menus at the top of this page. If you don't see what you need then ask. We will frequently bespoke for clients. If we don't supply the service (eg marketing, bookkeeping or HR) we will know someone we can recommend.
Contact Ingemar on 07887 524507 or [email protected].
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.
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.
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
Please note that we offer DPO as a service. Here is more information: https://hunningsconsultancy.co.uk/dpo-service-data-protection-officer/
Practice Direction Update 127 publicised by the MOJ on 11th Feb and coming into force on 6th April 2021. There are changes to:
There are other provisions. For the Practice Direction Update Summary follow this link: https://www.gov.uk/government/publications/practice-direction-update-127-civil-procedure-amendment-rules-2021?utm_medium=email&utm_campaign=govuk-notifications&utm_source=d820c4ee-a7d0-43fd-9991-86be1f2d45df&utm_content=daily
For a pdf of the full Practice Direction Amendments click here: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/960367/127-cpr-update.pdf
Whilst on this page may we invite you to take a look at our other services (see the drop downs at the top of this page). We provide all round Business Support for Law Firms, everything to allow a busy partner to get on with the client work. We have assisted over 350 law firms, direct access barristers and in house-legal. Everything from Compliance to on your Case Management System (LEAP, Proclaim & Clio), from Mentoring to Setting up a New Law Firm. Ask about running your firm and we're probably able to help. 07887 524507 or [email protected].
This has been missed by many solicitors. As part of our service to our clients taking our Office Procedures Manual Service, we questioned this with the SRA and have obtained clear guidance in a letter from the SRA.
Below is the note issued by the SRA on 5th January. We do not think they will sanction you if you register now. For most solicitors handling conveyancing you will already be within the AML scope because you do property work and therefore will be already supervised for Anti- Money Laundering. It would seem that the form FA10b would be the one you would use. It is a very simple and quick job to complete and file this to inform them you advise on SDLT. It seems to be just a question of informing the SRA.
"Solicitor firms have until Sunday (10 January) to check if any tax advice work they carry out falls under a new definition for money-laundering purposes.
Last year’s fifth Anti-Money Laundering Directive brought in amended regulations, with the definition of ‘tax adviser’ widened to include more activities than before. Any firm that finds it is now in the scope of the regulations needs to have applied to us or another AML supervisor, such HM Revenue & Customs to be supervised for money laundering before 10 January.
We have produced guidance on tax advice and AML for firms to help them determine whether or not they will fall within the scope of the regulations.
Paul Philip, Chief Executive, said: “Tackling money laundering is a priority for all of us and we know the vast majority of firms are committed to keeping the proceeds of crime out of the profession. Importantly, the amended regulations widen the definition of tax adviser, which means firms not currently engaged by the anti-money laundering regulations will shortly be included.”
“Any firm providing tax advisor services must check the position and, if necessary, apply to us or another AML supervisor. Alternatively, you might choose to drop the activities that bring you into scope.
“Whatever you choose to do, you need to have made that decision and acted accordingly before 10 January.”
The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (‘the regulations’) were amended on January 10, 2020. Tax adviser is now any firm or individual “who by way of business provides material aid, or assistance or advice, in connection with the tax affairs of other persons, whether provided directly or through a third party”.
Any firm now in scope needs to submit to us a completed FA10form including providing suitable Disclosure and Barring Service (DBS) checks for beneficial owners, officers and managers at their firm. They also need to make sure they comply with the regulations, other relevant statutes and our guidance, by 10 January 2021.
This includes assessing the risk for their in-scope business activities, as well as complying with other guidance and warning notices on AML, and Legal Sector Affinity Group guidance.
Those find that they carry out activities that are in scope of the new definition of tax adviser but will stop these activities before 10 January 2021, then no action is needed.
Anyone that needs further information can contact our Professional Ethics helpline. Ethics advisers however cannot decide whether a firm is in scope or not, only the firm can do that"
Please feel free to contact us if you have any questions or would like to know more about how we may assist you with your compliance. 07887 524507 or [email protected] we cover all things linked with the SRA, have a national expert on the Solicitors Accounts Rules and indeed offer a DPO Service (Data Protection Officer) and assistance with Cyber Security and data breach. Please see the drop down at the top of our website for a list of our services. If you do not see what you are looking for please ask. We will bespoke for clients as well.
Ingemar has interviewed a prominent broker for Legal PII with access to the whole Professional Indemnity market. This is what he said:
“Cyber security is an area that Insurers are asking more and more questions about in respect of a firms PII. With the Insurers pretty much on for any loss from the client account, then they will always have a keen eye on what measures a firm takes to protect the client account from both an internal and external perspective. The question of cyber security has been brought even more to the fore during the pandemic, as so many firms have had staff working from home. Therefore, Insurers are very keen to understand that a firm has the same security for their systems when being used remotely as when they are being used in the office.
There is one Insurer that now even goes as far to make all PII quotations subject to a cyber audit. The client pays for the audit (cost ranges from £350 plus VAT to £1,000 plus VAT dependent on the firm) within their overall premium and involves a remote penetration test being carried out on their systems. A report is issued after the test to the client and will include system improvement requirements which the client has to implement within 90 days of the report being issued.
As for Cyber Essentials and Cyber Essentials+, then there is no direct correlation between having this and the PII premium, which is the same as something like Lexcel. However, what it does demonstrate to an Insurer is that a firm is operating to a certain standard in relation to the management of a particular risk, so they have to make less assumptions on that firm and allows them to discount the rate.
It is my understanding that there are Insurers that will offer more favourable terms to firms that have Cyber Essentials but only in respect of Cyber Liability Insurance. One insurer agrees to reduce the policy excess to Nil if the firm has Cyber Essentials as one example of concessions available on Cyber Liability policies.”
HCL can assist you in obtaining cyber security accreditations: Cyber Essentials, Cyber Essentials+ and IASME. We can also assist if you suffer a Data Breach. Finally, HCL offers a DPO service where you may buy in the services of our Data Protection Officer just for the number of hours you need a week or month, or indeed for a specific review or project. Contact us on 07887 524507, [email protected] You can follow this link for our DPO service: https://hunningsconsultancy.co.uk/dpo-service-data-protection-officer/
High Court decision from November 2020 in the case R (on the application of Aviva Insurance Ltd and Swiss Reinsurance Co Ltd) v. Secretary of State for Work and Pensions [2020] EWHC 3118 (Admin).
The High Court found that defendant insurers do not have to repay to the government all of the state benefits paid to the successful Claimant.
The reason was that it was incompatible with Article 1 of the First Protocol to the Convention for the Protection of Human Rights and Fundamental Freedoms, i.e. the entitlement to the peaceful enjoyment of his possessions; Article 1 states that “no one shall be deprived of his possessions except in the public interest and subject to the conditions provided for by law and by the general principles of international law.”
Specifically they held that the Social Security (Recovery of Benefits) Act 1997 was incompatible in 3 ways:
a) The requirement to repay 100% of the recoverable benefits even where the underling claimant (i.e. the person seeking compensation) is found to be contributorily negligent;
b) The requirement to repay 100% of the recoverable benefits even where the underlying claimant’s “divisible” disease is in part unconnected with the insured’s tort; and
c) The requirement to repay 100% of the recoverable benefits even where other tortfeasors would normally be liable for an indivisible disease but they or their insurer cannot be traced.
What does this mean in practice? It will become clearer when the parties make further submissions with regard to the remedies in that case.
The case was brought by insurers for the defendant in an industrial disease case. They were challenging having to pick up the tab for all state benefits even if the claimant was found to have been contributorily negligent, or certain heads of claim were not proved or there was compromise. Therefore it will have most direct force in industrial disease cases. However, I would have thought it would have strong persuasive power in all PI & Clin Neg cases. The court found that the 1997 Act was incompatible with Article 1 from the date the Human Rights Act 1998 came into force (2nd October 2000).
This adds a lot of uncertainty for the next little while until issues can be clarified. However, it raises the possibility of the insurers NOT having to pay back as much to the CRU. If they don't have to pay it back to the CRU then they shouldn't be making the corresponding reduction in damages to the Claimant. Interesting. Certainly with disease cases settled from 2nd October 2000 onwards there may be the an argument for examining them to see if the insurers can claim reimbursement for over-recouped state benefits and thus further compensation for the claimants (or their estates). Would the same go for general PI & Clin Neg? I could see a bit of an industry developing in reopening settled disease cases and challenging the settling insurer for return of 'over-recoupments', causing them to challenge the CRU for return of these sums.
Here is a link to the full judgment from 20th November 2020: https://www.bailii.org/ew/cases/EWHC/Admin/2020/3118.pdf
Here is a link to the follow up judgment on this case handed down on 12th January 2021: https://www.bailii.org/cgi-bin/format.cgi?doc=/ew/cases/EWHC/Admin/2021/30.html
Many firms doing PI use the Proclaim case management system. If you need help with configuring your Proclaim system, then we can help. Please feel free to contact us on [email protected] or 07887 524507. Here is a link to some information about the support we can give Proclaim users: https://hunningsconsultancy.co.uk/proclaim-support/
