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Legal compliance doesn't take a break

As we move closer to the Christmas break many of you will be looking forward to a well-earned rest and may be thinking that you can take a break from dealing with compliance, but unfortunately 2020 is going to be just as busy as 2019 has been, so preparing for compliance in the New Year is going to be as important as ever.

Legal Sector Risk & Compliance Software Compliance

Posted 13/12/2019

Here are some of the things you should be planning for:

  • SRA Standards & Regulations (STaRs) - the SRA is likely to be carrying out a thematic review of these in 2020; if you haven't already done so you should:
    • Review and update your policies and procedures as appropriate;
    • Provide training for all staff;
    • Review case management/accounts systems to ensure they are fit for purpose;
    • Review compliance registers to ensure they meet the firm's requirements going forward - the SRA will expect you to keep evidence of compliance with the STaRs and that you can justify your decisions;
    • Review your compliance plan and update it to take account of the new regulatory landscape;
    • Review you breach reporting procedures - you don't only have to report what clearly constitutes a serious breach but also other matters; you also need to review whether solicitors will have the confidence that your COLP/COFA will report matters to the SRA or whether solicitors will want to report direct to the SRA themselves. You also need to consider how non-solicitors will deal with reporting serious matters, as according to the new rules they have a duty to report direct to the SRA and not via the COLP/COFA;
    • Ensure you are displaying the SRA's digital logo on your firm's website
  • Contact from the SRA in relation to its AML thematic review; make sure you:
    • Have a comprehensive firm-wide risk assessment in place;
    • Provide AML training to ALL staff - the lack of training for support staff has been identified as an issue by the SRA;
    • Carry out appropriate client due diligence and note the findings;
    • Review your reporting to the NCA - the SRA is likely to assess whether the work you do should have led to more SARs being made.
  • Property related referral ban - the government may impose a ban in early 2020 if transparency over estate agent arrangements has not improved; if your firm is paying for such referrals you should ask yourself:
    • How will we market our services in place of paying referral fees?
    • Will we be able to bridge any fee income gap if estate agents choose to send work elsewhere?
    • Do we need to start planning for a reduction in property staff if the ban leads to an upheaval in the conveyancing market?
  • SRA Thematic Reviews - apart from the above-mentioned reviews the SRA has indicated that it is also likely to be carrying out further reviews of competency and transparency; there is also talk of a review of the compliance officer regime to make sure COLP/COFAs are doing what is required of them.

The above may seem daunting for you but we are here to help with services including:

  • SRA Standards and Regulations training courses and policy documents
  • Risk and Compliance system for recording and managing key compliance areas
  • AML training courses and policies

And one final thing, if you are having a firm Christmas party don't forget to remind staff to enjoy but behave themselves; the last thing you want at Christmas is to take the shine off a successful year by having to report an incident that could have been easily avoided.

Please contact us for further information.