CRCS Legal April 2024 Newsletter Complaint Resolution Compliance Solutions

Welcome to our April 2024 newsletter.?

Update on SBB Law

The issues in this case are growing week by week.

LSB

The Legal Services Board (LSB) announced an independent review of the Solicitors Regulation Authority’s (SRA) regulatory actions in the lead-up to the collapse of SSB Group. The LSB will add this review to the scope of its current review into regulatory events prior to SRA’s intervention into Axiom Ince (which they announced in December 2023).

LSB statement:

“It remains the aim to report on Axiom in spring 2024, with the review in relation to SSB Group and overall learning and conclusions being reported in the summer.

Given the considerable consumer detriment, the Board believes that it is important to understand the regulatory events in relation to both firms. Learning from these cases will be vital for public and professional confidence.

The LSB will continue to partner with the law firm Carson McDowell to carry out the reviews.”

PM Questions

There has been considerable political interest in SSB.

It has been reported that the prime minister has made a fresh pledge to look into the collapse SSB. At Prime Minister's Questions on Wednesday 17 April 2024, Bradford West MP Naz Shah called on Rishi Sunak to intervene.

Ms Shah said: "The Prime Minister is no doubt aware of the collapse of SSB Law and many constituents, including hundreds in my constituency, have been affected and have bills of hundreds, up to hundreds of thousands.

"One constituent had to sell his wedding gifts, and his father had a heart attack with the stress.

"People are having to literally raid their pension pots and getting bills and bailiffs knocking on the door.

"Will the Prime Minister meet with me and my constituents' representatives (regarding the) collapse of SSB Law and make sure the government responds to something that is an injustice that's happened to people across the country?"

Mr Sunak said: "I'm sorry to hear about the situation impacting the honourable lady's constituents.

"I'll be more than happy to make sure the right minister looks into it and we will get back to her as soon as possible."

Have you checked your ATE provides sufficient cover?? Have you complied with the terms of the policy?? Have you provided your client with appropriate advice?

Post Office Scandal

Post Office Non-disclosure agreement.

Martin Griffiths, a sub postmaster ccstepped in front of a bus and died in 2013 after years of being pursued for shortfalls in his accounts.

In the Public Inquiry, it is reported that Gina Griffiths, the widow of Martin Griffiths was offered ￡140,000 settlement on the condition that she and her family sign a non-disclosure agreement (NDA) and drop the claims against the Post Office. The inquiry was also told that payments would be made incrementally “as an incentive to Mrs Griffiths maintaining confidentiality”.

The SRA issued a warning notice on NDAs and there is also guidance from the Law Society.

SRA | Use of non-disclosure agreements (NDAs) | Solicitors Regulation Authority

Code of Conduct:? Principle 5 – act with integrity

It was reported and in the Law Society Gazette that the relationship between Paula Vennells. (Former Chief Executive of the Post Office) and Susan Crichton (Former Post Office General Counsel) appeared to have broken down by September 2013.

?“The pair met at a Costa near the Post Office offices in Old Street where Vennells recorded that Crichton got angry and shouted at her. Crichton says she has no recollection of this.

“Then comes a particularly enlightening note from Vennells. The chief executive reflected that ‘Susan was possibly more loyal to her professional conduct requirements and put her integrity as a lawyer above the interests of the business’.

These Professional obligations, including upholding the rule of law and proper administration of justice, independence and honesty have never been more important.

Please contact us if you need advice on conflicts, own interest conflict and any of your professional obligations.

New Property Form (TAG)

The Law Society has updated its property form (TA6) to support National Trading Standards (NTS) guidance on 'material information' required for property listings. This has caused criticism and concern from conveyancing solicitors. Most understandably believe there should have been consultation with them. The concerns include the increased size of the form but more importantly about the increased liabilities on conveyancers and whether many of the questions are relevant to them, bearing in mind the new information is to assist clients when dealing with estate agents.? The form is not yet in force and Firms may wish to consult with their PII insurers before using the form.

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The Law Society has said it will review the position and will change the form if it is felt appropriate.

Access to Legal Services

?New research by the Legal Services Board ?and the Law Society reveals that two-thirds of adults in England and Wales (66%) have experienced at least one legal issue in the last four years.

The most common legal issues are related to employment, finance, welfare and benefits (28%), wills, trusts and probate (26%), consumer problems (26%) and property, construction and planning (25%).

Of those who had a legal issue, half (52%) received professional help, while 38% did not receive any legal help.

·??????? Most (57%) of those experiencing an issue have a contentious legal problem, which is more likely to involve a court or tribunal process. Half (51%) of these said they needed support to deal with the problem.

·??????? Almost a third (32%) did not have their issue resolved adequately and had an “unmet legal need”. A fifth (20%) had an unmet need because they did not get professional help.

·??????? One in ten said it was their doctor, and 8% used their insurance company for advice. 11% only got non-professional help, including from friends or family.

·??????? The level of unmet legal need has not improved since the last survey in 2019 when it was 31%.

·??????? 15% said that their legal issue was caused by the increasing cost of living, and 12% said their issue was caused by the Covid-19 pandemic. 26% said that their issue was made worse by the increasing cost of living, and 23% said that their issue was made worse by the pandemic.

This is food for thought when considering your client base and making you services more accessible.

Further fines from the SRA concerning AML

Are you compliant?

The Solicitors Regulation Authority (SRA) blitz on breaches of anti-money laundering (AML) continues. The SRA imposed ￡76,000 on a solicitor and four law firms.

It is reported that David Partington, a partner at Manchester firm Ogden Lyles & Fox, was fined ￡11,013 for allowing the firm’s client account to be used for payments and transfers on his and his family’s conveyancing matters which were unrelated to an underlying legal transaction.

A member of Mr Partington’s family loaned money which was already being held by the firm on another matter to help other clients purchase properties, at an annual interest rate of up to 12%.

“There were no documents located on the matter file to demonstrate that Mr Partington had considered potential own interest conflict in allowing his family member to loan money to clients,” the SRA said.

It is also reported that there was no evidence of advice to obtain legal advice.

That, Mr Partington acted for both sides on the sale of a property from a mother to her son at an undervalue, allegedly without her knowledge or consent.

He failed to undertake adequate client due diligence and he did not check and verify identity documents received from a third party, and did not take instructions directly from the seller, or from any person properly authorised to give instructions on her behalf.

North London firm Obaseki & Co has been fined ￡9,000 for multiple AML rule breaches, representing 2.4% of its annual turnover.

Fairhurst Menuhin & Co in Essex was fined ￡23,930, 2% of its turnover and close to the maximum the SRA can hand out, for not having proper policies, controls and procedures in place between 2017 and 2022.

Austen Jones Solicitors in South-East London was fined ￡15,202, 2.4% of its turnover, for failing to have a firm-wide risk assessment in place between 2017 and June 2020, and thereafter having an inadequate one.

Stevenage firm David Barney & Co was fined ￡17,223 for not having place “relevant documentation to prevent activities relating to money laundering and terrorist financing” as required by the regulations.

Please contact us if you need assistance with your AML Compliance.

Dash and Dine

The Daily Mail reported that the Ms Stevens and her Partner allegedly left a venue recently without paying for Sunday lunch.? They referred to her as “crooked solicitor”.?

Indeed, the SRA has revoked with immediate effect Kerry Ann Stevens’ practising certificate for the practice year 2022/23. It is on their website.

“The facts of the case

On 22 March 2022, in the Suffolk Magistrates’ Court, Ms Stevens was convicted of two counts of fraud by false representation contrary to sections 1 and 2 of the Fraud Act 2006.

Briefly:

On 14 January 2021, Ms Stevens represented she had paid for some takeaway food to be delivered when in fact she had not paid for it thereby intending to make a gain for herself of ￡43.47.

For that first offence, Ms Stevens was ordered to pay a fine of ￡440 and compensation of ￡100.

On 25 February 2021, Ms Stevens represented that she would return to a Harvester restaurant to pay her bill of ￡60.91 but she did not return to pay for it, intending to make a gain for herself of ￡60.91.

For that second offence, Ms Stevens was fined ￡440, ordered to pay compensation of ￡100 and a victim surcharge of ￡88.

Decision on outcome

On 31 October 2023, Ms Stevens’ practising certificate for the year 2022/23 was up for renewal for the new practice year 2023/24. She did not apply to renew it. This meant her practising certificate for the year 2022/23 remained in force after 31 October 2023, until it was revoked or replaced by a new one.’

Because Ms Stevens has been convicted of two offences and her conduct has been referred to the Solicitor Disciplinary Tribunal means that it is in the public interest to revoke her practising certificate immediately.

Crime does not pay!

And finally

The SDT’s Tribunal and offices are undergoing a refurbishment.? The new signage reads:? “Solicitors Disaplinary Tribunal”. Maybe this is for solicitors who are Disaplined?

How can CRCS Legal Ltd help?

The risk of non-compliance is real, serious, and costly.? We can provide:

A comprehensive compliance and web-site health check. A thorough look at your policies and procedures with solutions for any non-compliance.

Technical compliance support on an ad hoc or retainer basis. This will give you direct access to compliance professionals.

Complaint handling and assistance with the Legal Ombudsman (LeO) We can investigate the complaints, make recommendations, and draft your complaint response. We have years of experience of dealing with Le0.

Compliance training – one off training courses and comprehensive training programmes.? We can help you comply with the SRA’s continuing competence requirements.

File reviews and audits – detailed and in-depth reviews in accordance with the SRA supervision requirements.

Bespoke Compliance policies, procedures and templates.?

Assistance with Lexcel accreditation and visits

Anti-Money Laundering (AML) – a review of procedures and policies update

Transparency rules – Are you publishing the correct costs and complaints information?

GDPR and the ICO – including managing data breaches and SARs.

Advice on PII renewal

Assistance with SRA investigations and prosecutions

Merger and Acquisitions- assessment of regulatory compliance issues and due diligence.

Take control of your risk and contact us today for a free confidential discussion: 0330 2210511 or [email protected] .?