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.
Law Society Gazette article: Click here
Original Papers: Click here for access
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.
We provide a lot of AML support to businesses in the Legal Sector. Please see below for a summary and links for further information. (Watch this space for assistance coming for certain businesses in the Financial Services sector as well.)
(Sanctions Regime compliance - see separate services for this on our website.)
Sanctions Regime Compliance Training
SRA Accounts Rules Training
COFA Training
GDPR & Data Protection Training
Cyber Security & Fraud prevention Training
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]
Before someone can sit an SQE assessment, you will need to create your SQE account. Registration is now open, and you’ll need to follow these steps:
For further information here is the link to the SRA page: https://sqe.sra.org.uk/registering-and-booking
For bookings here is the link: https://sqe.sra.org.uk/registering-and-booking/booking-assessments
If you're an apprentice you must create an SQE account, activate it and log in.
Then you’ll need to fill in your profile - this includes verifying your identity and letting us know about any reasonable adjustments you will need when taking the assessments.
You will need to make sure that your employer or training provider has nominated Kaplan SQE as their End Point Assessment organisation.
If you employ or train an apprentice who plans to take the SQE, you must register your apprentice by emailing the apprenticeship team at [email protected]. You will need to provide them with the name and Unique Learner Number of the apprentice. This will ensure that we record them as an apprentice in their SQE account.
General info about the SQE & QWE: https://hunningsconsultancy.co.uk/the-new-sqe-exam-and-qualification-method/
SQE Exam Dates: https://hunningsconsultancy.co.uk/sqe-dates-of-exams/
SQE Training Providers: https://hunningsconsultancy.co.uk/sqe-training-providers/
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/
Feel free to contact Ingemar on: 07887 524507 or [email protected]
9th July 2021 the UK government released 2 new Practice Directions for the process for the appointment of Official Solicitor as litigation friend for:
a) someone lacking capacity to conduct personal welfare proceedings and
b) for the person concerned for property and financial affairs proceedings in the Court of Protection
This contains information and guidance around:
This practice note also contains details of how to contact the Official Solicitor, including out of hours applications relating to urgent medical treatment issues.
Here is a link to where you may download it: https://www.gov.uk/government/publications/appointment-of-the-official-solicitor-in-welfare-proceedings-practice-note?utm_medium=email&utm_campaign=govuk-notifications&utm_source=2bf1f0a5-8a23-449b-88ef-dbf6736d78d3&utm_content=daily
This contains information and guidance around:
Here is a link to where you may download it: https://www.gov.uk/government/publications/appointment-of-the-official-solicitor-in-property-and-affairs-proceedings-practice-note?utm_medium=email&utm_campaign=govuk-notifications&utm_source=78193e4f-bfa6-47df-9df3-553ea0df5f6b&utm_content=daily
We are not giving legal advice, but as providers of business support to law firms, we thought this information might be of some assistance to some of our clients. For more info about our services please visit our website: www.hunningsconsultancy.co.uk or contact Ingemar at [email protected] or on 07887 524507
An Independent AML Audit for your firm is required by Regulation 21 of The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017.
Did you know this?
The SRA reviewed 74 solicitors’ firms between September 2019 to October 2020 and found that only about 20% had ever conducted an AML Audit.
The SRA have given notice that they will be increasing their programme of visits to assess AML compliance.
There is more AML legislation on the way in 2022.
Here is a link to more info & some assistance: https://hunningsconsultancy.co.uk/independent-aml-audit/
We can carry out an
Or contact Ingemar Hunnings on 07887 524507 or [email protected]
Delighted to be able to announce that we've had our 1st client's QWE approved by the SRA - possibly the first anywhere. I've developed a service as an External Confirming Solicitor to help those Aspiring Solicitors who do not have a solicitor in their organisation to confirm the QWE. Here's a link to the service: https://hunningsconsultancy.co.uk/external-qwe-certification-service-2/
I've been working with a number of Aspiring Solicitors since September 2020, both in the UK & overseas. I've been liaising closely with the SRA as they published forms and clarified their process and procedure. A great relief to learn that what we've done has been approved.
If you have any questions or want more info then get in touch.
+447887 524507
Making sure you are complying with the Solicitors Accounts Rules is a constant worry for law firm owners. If you are a small solicitors firm, when do you need to start having your Client Account Audited?
If you want to ask further questions then feel free to contact us. Our resident expert on the Solicitors Accounts Rules is Ian Johnson who is the current Chair of the ILFM and Vice Chair of the ICAEW Solicitors Advisory Group which issues guidance to all Reporting Accountants. He is also an accountant with a track record at KPMG, and director at Hazlewoods and Saffery Champness. He is also an expert on anything relating to Law Firm Finance.
If you need to find an account who has expertise in handling the accounts for solicitors firms and doing the Client Account Audit, then we can help with a recommendation.
Contact us: Ingemar: 07887 524507 or [email protected]
Or fill in the Contact Form below.
While you're here why not have a look at the top of this page of our website for our other services. We provide a 'One-Stop-Shop' for Business Support for Law Firms. Everything to allow a busy partner to get on with their client work.
Current The Goal
I could stop with the diagram and invite people to ‘Discuss’ like in an exam question – if I was being cheeky. But I won’t. I’ll unpack this. It’s something I’ve been thinking about over the last couple of years or so. I think that it has pretty universal application to business but I’ll have a focus on professional services and in particular solicitors firms.
My thoughts have arisen from analysing my own businesses. I run a management consultancy providing Business Support for Law Firms and other Professional Services businesses. A sort of ‘One-Stop-Shop’ for the busy partner, so they may get on with doing the client work. Before that I practiced as a solicitor for 24 years, 14 of which as an Equity Partner. I sat on the Board and ran a department of 60 staff.
For lawyers most fees are generated through transactional work. Indeed, most professional services businesses, my own included, generate most of their fees this way. The client instructs you to do a job for them, you agree a price, do the work and invoice them. You might invoice them before you do the work (or receive money on account) or at stages during the work or at the end on delivery. That’s good. You have a trading business. That is how most law firms operate and they do so very successfully. That’s how most businesses operate - mine included. No problem with this – except that income is not so predictable. When setting budgets, you’re doing so on the presumption that things will be as they were last year. Some matters might be long-running (for example litigation) and so, if you know the end date, you might be able to predict some income in the coming year. However, that’s still transactional work. It also doesn’t add much to the value of the business, for example when valuing it to sell.
Recurring work is one step better. It’s Transactional Work, but Recurring Transactional work. That gives a level of predictability. Accountants have the annual audit, accounts and recurring tax work, which would fall into this category. It can give you a base income for your business that you are fairly confident will be generated, because all things being equal, the client will instruct you to do this work on a recurring date. Solicitors firms don’t manage to craft much of this type of work. An example where they have is with Employment Law, where they might carry out an annual audit of contracts and operating records. If solicitors were able to be more creative it would give a bit more certainty to budgeting and income. It would involve them getting closer to their clients. It would seem to me that there are opportunities in Corporate, Commercial and Health & Safety areas to mention a few. In my business, I’ve been able to generate some compliance packages that operate on a recurring basis: a monthly COFA & COLP Review and external file reviews carried out for some firms. Another example is that some firms ask me to train new starters on their LEAP Case Management System (really a hybrid between transactional and recurring) or to do an annual review on LEAP or Proclaim usage, update of changes and revision on best use. That is true recurring work.
Retained Work – what do I mean by this? You have a retainer which the client pays to cover work that you will do within the agreed price, paid at agreed intervals (quarterly, yearly etc). Normally there is no end date other than termination of the contract. Income is guaranteed unless the contract is terminated. This is great for predictability of income. It also gives some solidity to allow for valuation of the business. Of course, you need to evaluate and define carefully the work that would be included in the price and price the contract so you don’t end up doing the work at a loss or suffer from mission creep. (Don’t forget that defining work at the outset doesn’t always translate into what you end up doing, especially where the work is complex, and so a proper periodic review may be required to deal with situations where the goalposts are moving.) I’ve seen retainers created for Employment Work. There are some large non-legal firms (Peninsular for example) doing this. Many employment firms or employment departments have followed suit. Once you have a set price this should drive a focus on how to deliver to the best standard and at the lowest cost of production so as to maintain or drive up profit. I’ve worked recently with a couple of small commercial solicitors firms where the majority of their work is done on a retained basis. It gives them great predictability. It does so also for their clients. That is a good selling point not to be under-estimated. Your client might welcome such a discussion. I have been able to develop some services offered on a retained basis. Our OPM Service (Office Procedures Manual) has a recurring annual fee paid by monthly instalments for which the firm gets an up-to-date OPM with quarterly updates which is maintained up to date by us. We are on a general Compliance Advice Retainer with some firms. This is a sort of hybrid with Transactional Work. The client requests our assistance at an agreed rate. We record the work and time spend and invoice every quarter. The retainer remains in place unless and until it is terminated.
Passive Income – the Holy Grail of fees. The money comes in while you sleep. All of the above methods require ongoing effort to generate the income. Passive income typically requires up-front effort to establish and crystalise the opportunity, but then no additional effort to harvest (other than invoicing, which should never be regarded as a chore in my opinion). You then have real value in the business which could be capitalised and sold. I would venture to advise that all business owners should invest significant time and effort in thinking how they can create and generate Passive Income. In my experience it is very seldom achieved in law firms. Some could be generated, and I would welcome the ability to work with Managing Partners to see how this could be done in their businesses. It is a strategic aim to do so for my business. I now track how much is generated this way each month and look for opportunities for how to add to this. It is an old adage ‘What gets Measured Gets Done’. I know there is criticism of this statement, but I still think there is a lot of value in it. By measuring it you maintain focus and track progress. I have to maintain balance. Building Passive income is often a long-term project that I hope will harvest sustainable passive income in the future. I have to balance the time and effort devoted to this against the other 3 methods of earning income which puts bread on the table NOW.
An Additional thought re Passive Income
Thinking some more about this, one could sub-divide Passive Income as follows:
a) Recurring Passive Income: a regular amount that will come in and
b) Variable Passive Income: the amount varies (for example: royalties or fees from training videos watched).
My Fees Pyramid is currently the traditional one, with Passive Income as a small pointy bit at the top. My AIM is to invert the Fees Pyramid. I may never achieve it, but any progress towards it strengthens my business and makes it more sustainable and drives sustainable value.
Food for thought.
Ingemar Hunnings is lead consultant at HCL a management consultancy providing Business Support to Law Firms, in-house legal departments and other organisations Everything to allow a busy partner get on with the client work. Previously he practiced as a solicitor for 24 years, as an equity partner for 14 years and ran a department of 60 staff. Since setting up his consultancy in 2014 HCL has worked with over 400 businesses.
Contact details: https://hunningsconsultancy.co.uk/ 07887 524507 & [email protected]
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]
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