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 Updated: 17 July 2008
RISK UPDATE - JULY 2008 newsletter July 2008 Risk Update is now available for download. Risk Update is available electronically only. You can download it here or receive a copy straight to your inbox by signing up to our free e-mail service. Back issues can be found further down this page. Solicitors’ Indemnity Insurance Rules 2008 The Rules are in force from 1 October 2008 view >> Inside information: FSA issues principles The Financial Services Authority has issued Principles of Good Practice for unregulated organisations on handling inside information >> The SRA have acknowledged the publication with a reminder to firms working in this area to ensure they have robust procedures for managing risk and maintaining client confidentiality >> The Solicitors’ Accounts (Residual Client Account Balances) Amendment Rules 2008 amend the Solicitors’ Accounts Rules 1998 with effect from 14 July 2008. The amendments introduce specific obligations for the prompt return of surplus client funds and reporting to clients if funds are retained. They also permit solicitors to deal with the withdrawal of smaller residual client balances themselves, without recourse to the SRA. The lead-in time of three months from the Master of the Rolls’ concurrence is intended to give solicitors and their reporting accountants time to make the necessary changes to their systems and procedures. The Solicitors’ Accounts (Residual Client Account Balances) Amendment Rules 2008 >> TOP 100 Professional Indemnity and Risk Management Survey 2008
SRA strategy for Risk-based regulation
SRA policy review on referral arrangements
The SRA has issued its final report on referral arrangements (December 2007) following its monitoring and enforcement activity >>
The Solicitors (Disciplinary Proceedings) Rules 2007
MORTGAGE FRAUD WARNING
The Law Society issued a new warning on mortgage fraud on 12 December 2007 as a result of the recent slowdown in the property market. >>
IBA Best Practice guidelines The International Bar Association has issued Best Practice Guidelines as part of its Law Firm Governance Initiative. >>
Legal Services Act 2007 The Legal Services Act received Royal Assent on 30 October 2007. The SRA have published an outline policy on its approach to the regulatory changes required by the Act which will allow the formation of legal disciplinary practices (LDPs) and alternative business structures (ABSs).
Solicitors’ Code of Conduct 2007 - R v Ulcay [2007] EWCA Crim 2379 - Held that rule 2.01 did not preclude solicitors from taking instructions in a criminal case where limited time meant they may be unable to achieve the normal standard of service Transcript >
Online training: Anti money laundering and Risk management Legal Week article on Legal Risk's involvement in the production of e-learning products with a group of City firms. >> Further information email us.
Publication: Risk Management in the Legal Profession
Client care guide: new edition
The Law Society’s client care guide, Your clients – your business, has been updated to reflect the changes that have come into force following the introduction of the Solicitors’ Code of Conduct >>
File retention: Records management - practice note
The Law Society has issued a new practice note, File retention: records management, which replaces the guidance in Annex 12A of the now-superseded Guide to Professional Conduct. Primarily dealing with wills, it contains some guidance of wider application.
Conditional fees - practice advice booklet
The Law Society has updated its booklet entitled Payment by Results which includes basic information on CFA's, contingency fees, fixed costs and the indemnity principle.
Auditors' liability
The Financial Reporting Council has appointed a Working Group to prepare the guidance on auditor liability limitation agreements. FRC press release >
The EU Commission has published results of consultation on possible reform of liability rules. View summary report > Updated Scope Rules and Conduct of Business Rules
The updated rules reflect the introduction of the Solicitors Code of Conduct and the establishment of the SRA and the LCS.
Scope Rules >> Conduct of Business Rules >> In addition the SRA will shortly be publishing guidance relating to changes to terms of business and client care literature. Broadly, unauthorised firms must update the status disclosure statements they give to clients. They should also provide an explanation to their clients of the role of the Law Society, the SRA and the LCS. The SRA has prepared suggested wording for client care and terms of business literature: “The Law Society is a designated professional body for the purposes of the Financial Services and Markets Act 2000 but responsibility for regulation and complaints handling has been separated from the Law Society’s representative functions. The Solicitors Regulation Authority is the independent regulatory body of the Law Society and the Legal Complaints Service is the independent complaints handling body of the Law Society.” Risk Management Toolkit
Patner Frank Maher and Consultant Tony Summers have contributed chapters on Strategy, structure and systems, Operational Risk and People in this reference source launched by Law Management Section and downloadable free to LMS members - details...
Solicitors Code of Conduct 2007
The Code of Conduct came into force on 1 July 2007. Amendments were made on 24 July 2007 and 1 August 2007. All solicitors in England and Wales must have procedures for risk management and business continuity. Risk management procedures require a mechanism for review. For help with compliance and/or in-house training tailored to your firm's practice needs email us.
Warning card on Referral Fees The SRA have issued a warning card on referral fee arrangements >> Business Continuity - British Standard Business continuity planning is a statutory requirement for solicitors in England and Wales. The British Standards Institute has launched BS 25999-1:2006. To purchase a copy visit the BSI website. The Lexcel standard was amended in March 2007 to require firms to have a plan. For further information on this and the requirements of the Code of Conduct email us.
SRA Referral fee clampdown: Confidential Health Check Enforcement action poses a real threat to firms already under pressure. One firm was recently fined £9,000 with £25,000 costs and suffered a massive drop in income over several years while the case was hanging over it. Short Guide to the Minimum Terms and Conditions 2007 Many firms do not read their insurance policies and are later surprised to discover the onerus requirements they contain and the areas which are not covered. Partner Frank Maher has written a short guide to the Law Society's Minimum Terms and Conditions which explains in Plain English what the basic policy covers and what it does not. Priced £50+VAT. Contact us for further details.
A link to the new terms and a free slideshow on successor practices is available on the Successor Practice page of our website.
Goshawk v Bank of Scotland - judgment on Consumer Credit Act issues. View Lawtel summary >>. Transcript >> Law Society guidance on refunding referral fees paid to AIL >> Interview on Radio 4's You and Yours with Legal Risk partner Frank Maher on 14 September 2005 >> Articles - Frank Maher has written three articles on TAG which can be viewed further down the page - see 'Press Articles & Features' . Conflicts of interest We have in depth experience of advising top firms on conflicts and handling major liability claims, as well as advising on the implementation of effective information barriers. Contact Frank Maher. Legal Risk launches Partner Asset Protection Plan
A strategic review of firms’ approach to protecting partner assets.
View the press release  or email Frank Maher. UIFT 40/FRS 5 - Accounting for Solicitors' work in progress
Insurance Mediation and the regulation of general insurance business
See Law Society guidance issued 18 May 2005 >> For enquiries on how we can assist email: Frank Maher.
FREE Risk Guide
The Law Society has published A Practical Guide to Minimising Risk written by Legal Risk partner Frank Maher. Email us to request a free copy.
Law Society Guidelines and Publications
Updated October 2007 and containing recommendations on engagement letters and terms. (See now the Solicitors' Code of Conduct 2007.)
Solicitors' Practice Rules 1990 > Composite set of Practice Rules and associated rules and codes (August 2006, replaced with effect from 1 July 2007 by the Solicitors' Code of Conduct 2007). Annual Statistics Report 2007 > Some interesting statistical details of the size, composition and trends on the legal profession. E-mail Guidelines for Solicitors 2005 > Guidelines (November 2005). The main changes are in paragraphs 3.17 and 3.18, which deal with the important question of email retention - electronic or paper? Internet policy toolkit > To assist firms in developing their own e-mail and internet policies. It deals with security issues, monitoring usage as well as business continuity and disaster recovery . Limiting liability We assist many firms - both major international and high street practices - on terms limiting liability. Contact us for details of services and fixed fee packages. Risk Update Newsletters
2008
Jun - The renewal (part 2), son of TAG, mortgage fraud warning, file audit by insurers, PSU visits, post mediation remorse. May - The renewal, property related claims, a rogue in your midst, property fraud, clients' expectations of risk management, equity release, client authority, share dealing policies .... Mar - US perspectives on law firm risk management, Top 100 PI survey 2008, sub-prime & claims, AML, offshore trusts & tax Jan - Anti Money Laundering, IBA Best Practice guide, client care &costs: MasterCigars, errors in practice, supervision-or lack of it Nov - Anti Money Laundering, new Partner for Legal Risk, Ok, CHAPS, mortgage fraud, US mergers, limiting liability in litigation Sep - Anti Money Laundering, Code of Conduct, limiting liability, IBA, cross-border risk, information barriers, document retention.  Jul - Code of Conduct, money laundering, large claims and cross-border issues, the renewal, insurance mediation. May - Code of Conduct - in force 1 July 2007, money laundering. Mar - Code of Conduct, mergers & lateral hires, money laundering, limiting liability in litigaiton, trusts, referrral fees. Jan - Risk forecast 2007, money laundering, aggressive tax planning, Code of Conduct, compulsory risk management. 2006 Oct - Money laundering, conduct rules, referral fees, conveyancing - the next hit , partnership issues, cross-border issues. Jul - The renewal, getting buy-in, lateral hires, secondments. Apr - Limiting liability, lateral hires, mergers and demergers. Jan - TAG, Money Laundering, FRED 39, compliance visits.To subscribe to our electronic newsletters directly, contact us. Subscription is free. Seminars and Events The Insider’s Guide to The Solicitor’s Professional Indemnity Insurance Market - getting the best from the insurance market. Frank Maher will be speaking at this event for Liverpool Law Society on 23 July 2008 - more details >> Slides and articles from past events Munich - International Bar Association - Risk Management for law firms: How to protect your law firm in today’s high stake environment, Frank Maher spoke on Protecting Partner Assets on 17 September 2007 - Email us to request a free copy of the notes. Sue Mawdsley spoke (with Francois Tulkens of NautaDutilh, who represented the Belgian Bar in the recent ECJ challenge) on Money Laundering - Is there an escape for Lawyers? Commonwealth Law Conference 2005 Risk Management in a Property Practice
Press Releases 19 Nov 2007 - Legal Risk scoops leading Professional Indemnity Partner 30 Jan 2007 - Money Laundering Regulations 2007 09 Nov 2006 - Money Laundering warning for Personal Injury Lawyers 02 Oct 2006 - Law Society clampdown on Referral Fee breaches: Legal Risk launches fixed price health check 31 Jul 2006 - Second solicitor jailed in Money Laundering crackdown 21 Jul 2006 - Solicitor jailed: money laundering warning 30 Jan 2006 - Results of the Top 100 Professional Indemnity and Risk Management Survey 2006 revealed 22 Nov 2005 - Legal Risk looks East: low down on the Malaysian BarProfessional Indemnity Workshop and Conference 7 Oct 2005 - Money laundering raids: warning for property lawyers 3 Aug 2005 - Accident Group solicitors warned on policy renewal 6 Jun 2005 - Partner asset protection plan 1 Jun 2005 - Equity release misselling 8 Mar 2005 - Money laundering: complacency after Bowman v Fels 31 Mar 2005 - New indemnity rules force firms to consider LLP
Press Articles and Features Airing Dirty Laundry - An update on anti money laundering developments. Article written for Property in Practice, Mar 2008 >> Protecting Partner Assets - FD Legal, Feb/Mar 2008 >> Solicitors PI plummets - Frank Maher assesses the moves in the market. Insurance Times 25 Oct 2007 >> 'Back to School' post holiday planning Frank Maher tells us what other other firms are doing and provides planning tips for the regulatory year ahead. FD Legal Aug/Sep 2007 >> The changing risks that spell dangers for brokers Brokers are exposed to professional liability claims if they advise client law firms that have merged or taken on new teams without a full understanding of their changed profile. Successor practice provisions under the Law Society's Minimum Terms and Conditions - Article by Frank Maher in Insurance Times, 27 Sept 2007 >> Can one lawyer serve two masters? Partner monitoring in practice Money Laundering: the enemy within The Key to Lateral Thinking Growing Pains Secrets of Succession Privilege v Duty Bowman v Fels: Consent rules may hit fees Allianz Cornhill enters TAG legal battle Rogue Lawyers Protecting Partner Assets - limitation of liability issues Does law firm insurance cover trustee solicitor liability? TAG: Lawyers on the Line TAG: Solicitors hit with 100m in claims Why Insurers 'on edge' about Personal Injury market Risk and Solicitors' Indemnity Insurance Rules (the 'Aggregation' Rule) Ahead of the Game - with Lexcel Thoughtleader - the new aggregation rule
Managing Partner, Apr 2005 >
New aggregation rule will force firms to seek limited liability
Lexis Nexis Update, 7 Apr 2005 >
Happy Birthday Money Laundering
First anniversary review of money laundering regulations. New Law Journal , 25 Feb 2005 >
Marry in haste, repent at leisure
Mergers and acquisitions and due diligence issues. Managing Partner magazine, Dec 2004 >. The article also appears in Australian Law Practice Management, Feb 2005 with additional articles on law firm risk management >
Pass the Bomb - The Successor Practice Nightmare in Action APP - Association of Partnership Practitioners, Nov 2004 > Hiring & Firing: how recruitment can damage your wealth Managing Partner, Nov 2004 > The same article appeared in Australian Law Practice Management for Dec 2004-Jan 2005 with additional articles on law firm risk management > The Lawyer - Profile of Legal Risk, 13 Sept 2004 >
The Lawyer - Opinion, 20 Sept 2004 > A risk based approach to money laundering compliance Managing Partner, Jun 2004 > Sharpen up Poor client communications, conflicts of interest and non-disclosure are all contributing to an increase in professional indemnity claims. HCCI, 11 Oct 2003 (originally published in Post Magazine) > Risk and the Rogue Partner Managing Partner, July/Aug 2003 > Understanding the Perils of the Professional Indemnity Partner Managing Partner, Jun 2003 > |
