Legal compliance doesn't take a break

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.