Welcome to the Regulation & Compliance Office’s fortnightly roundup, where we look at all the latest stories to keep you ahead and informed in the world of law and compliance.
The RACO roundup is just another way in which we keep the solicitors and other law professionals we work with in the know, so we can ascertain you are never missing the vital developments occurring in your profession.
Below you will find the most recent headlines selected by our compliance experts, followed by a Security Section, where we will also give you an overview of the latest scams currently impacting solicitors and their clients.
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SRA Asking Firms to Provide Information on How Complaints Are Managed
The SRA has written to 750 firms requiring Compliance Officers (COLPs) to provide information on how their firm identifies and handles first-tier complaints.
It is a regulatory requirement that all SRA-regulated law firms have a complaints procedure in place. Firms also need to publish details on their website (providing they have one).
The SRA is asking all selected firms to provide the information by completing an online questionnaire.
Please note that the deadline for completing and returning the questionnaire is 28 February.
Firms are asked to keep in mind that responding to the questionnaire is a regulatory requirement; the regulator has also stated it may take disciplinary action on firms that fail to do so.
Why Does the SRA Need This Information?
In an announcement published on its website, the Solicitors Regulation Authority stated, “the public should have confidence that they can access good quality legal services, with effective avenues to raise concerns and have them resolved.”
“We [the SRA] are undertaking a programme of work in response to the LSB’s policy statement on first tier complaint which requires us and other legal regulators, to pursue specified outcomes. This continues our aim to ensure that all firms have procedures in place for the effective, efficient and fair investigation and resolution of complaints in the public interest and in the interests of consumers.”
Been Selected? Find Assistance Below
To assist firms with answering their questionnaire and submitting data, you can download an example of the survey here:
The SRA can only accept responses submitted using our online form.
The link to the online form has been emailed to selected COLPs. To view the form, click here.
How to Find Out if Your Firm Has Been Selected
All COLPs required to take the survey were emailed on 30 January 2025. Subsequent reminder emails will also be sent out before the deadline.
Please note that if your firm has been selected, then your COLP’s participation is mandatory.
Read the SRA’s full statement here.
Complaint Management Services
Is your firm’s complaint management up to scratch? Don’t get caught out. Regulation and Compliance Office’s Complaint Management Service is an outsourced solution that enables firms to pass any complaint received from a client or other party for independent investigation, response, and resolution. This includes:
- Complaints made against the firm by clients
- Complaints made against the firm by other parties
- Legal Ombudsman Complaints about service
- SRA Complaints made against:
- The firm,
- An individual in the firm.
Whether handling a complaint as a one-off solution or as part of an ongoing contractual relationship, RACO is able to provide support. For more information, click here.
To communicate with us directly, please call us on 0203 985 8550, complete the online enquiry form below, or email us at info@regulationandcomplianceoffice.co.uk.
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Maximum £25,000 Fine Imposed for South East Firm
Utilising its fining abilities to the fullest, the Solicitors Regulation Authority has issued a fine of £25,000 for a firm’s AML breaches.
The SRA announced the fine against a firm based in the south east and headquartered in Reading.
After failing to ensure it had relevant documents in place to prevent activities related to money laundering, the SRA flagged potential issues back in October 2023. This came after a desk-based review, which then referred the matter for a formal investigation.
It was later discovered that the firm had failed to have an adequate risk assessment in place for as long as six years. The firm also reportedly failed to establish and maintain the correct policies, controls and procedures, which would have managed the risk of money laundering.
The regulator stated that the fine was based on the breach of the rules, which lasted “longer than was reasonable,” which, in turn, could potentially cause harm to the public interest.
The firm in question cooperated with the investigation fully, and immediately took the necessary remedial action.
Despite there being no evidence that harm had occurred as a result of the necessary documents being in place, the firm was still ordered to pay an additional £1,350 in costs, alongside the initial fine of £25,000.
The Solicitors Regulation Authority is increasing its efforts to double down on firms not compliant with AML regulations and is showing no sign of slowing its disciplinary activity.
It has levied more than £600,000 against almost 50 firms in the last year alone, not including cases that went to the Solicitors Disciplinary Tribunal. In December, six sanctions were announced across a period of three days.
Read the full article here.
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Multiple Breaches Result in £25,000 Fine for Both Firm & Compliance Officer
A London-based firm and its compliance officer have both been fined £25,000 after several compliance failures were discovered throughout the course of an investigation by the Solicitors Regulation Authority.
SRA investigators discovered a client shortfall of over £40,000 when they assessed the books of a firm based in East Ham back in 2021. These shortfalls were reportedly spread over as many as 423 client matters.
It has also been reported that the firm held £288,000 in residual balances across 1,786 matters. These were found not to have been touched for at least a year. SRA investigators reviewed AML documents provided by the firm on 15 conveyancing matters – resulting in twelve issues being identified as cause for concern.
Source of funds checks were revealed to be insufficient in certain matters. The correct risk assessments were also found to be missing in some cases.
A second respondent before the resulting tribunal was the firm’s manager – the East Ham-based firm’s compliance officer for finance and administration. The compliance officer failed to correct any of the firm’s breaches or report them to the regulator.
The compliance manager had made a declaration to the SRA back in February of 2020, stating that the firm had a fully compliant firm-wide risk assessment in place. However, it has since come to light that this document was not drafted until February 2022.
The compliance officer in question admitted that he only realised a firm-wide risk assessment was required once the SRA investigation began. The tribunal found that he acted recklessly in making a declaration without ensuring that he understood what firm-wide risk assessments were.
The London firm’s compliance manager confessed to feeling “confused” when answering the AML declaration. He also stated that he was “by no means the only person to have ticked “yes” in answer to a question from the SRA in a mistaken belief that his firm had a compliant FWRA when it did not”.
Both the compliance manager and the firm had an unblemished regulatory record before the investigation. Yet, both have been fined £25,000 and ordered to pay £38,000 costs. The compliance officer was also barred from being a head of legal practice or compliance officer without expressed SRA permission.
Read the full article here.
Regulation & Compliance Services
The Regulation and Compliance Office’s Detailed Risk Management and Compliance Review provides a Law Firm with a ‘deep dive’ into its business across all areas of risk and compliance. The purpose of the review is for the Firm to identify and appreciate any gaps in its process and for us to establish solutions with them and make improvements where necessary.
This review can be independently secured by the Firm or through Professional Indemnity Insurers. For many firms, this is an essential step in the professional indemnity renewal process, which assists Insurers in gaining a greater understanding of the risk profile for their Insured Law Firm. This, in turn, will assist with renewal terms.
This review can be extended to include an Independent Audit for the purposes of Regulation 21 of the Anti-Money Laundering Regulations (MLR) 2017. Please click here to see our brochure on this service.
Contact Us
To ask any questions about the Regulation and Compliance Office and how we can support your Law Firm, please call us on 0203 985 8550, complete the online enquiry form below, or email us at info@regulationandcomplianceoffice.co.uk
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SCAM ALERTS
Misuse of the name Thomas and Thomas Solicitors Limited
The SRA has stated via its website that emails have been sent claiming to be from a genuine firm of solicitors, in relation to the payment of a deposit in a conveyancing transaction.
The email address used was ‘@tandtlaws.co.uk’ (note: additional ‘s’ at the end).
Please note that any business or transactions through the email domain ‘@tandtlaws.co.uk’ is not undertaken by an individual or firm of solicitors authorised and regulated by the SRA.
Please be mindful that the SRA authorises and regulates a genuine firm of solicitors called Thomas and Thomas Solicitors Limited. The genuine firm uses the email domain ‘@tandtlaw.co.uk’.
The genuine firm of Thomas and Thomas Solicitors Limited has confirmed that it does not have any connection to the emails referred to above.
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Payment request made Misusing the name QDR Solicitors Limited
The SRA has revealed that a payment request has been made misusing the name of a genuine firm of solicitors.
A payment was requested through an online banking transaction. The transaction details refer to ‘QDR SOLICITORS HTTP://WWW.QGB’.
Please note that the SRA does not authorise or regulate a genuine firm of solicitors called ‘QGB’.
Any business or transaction through ‘QDR SOLICITORS HTTP://WWW.QGB’ or the website ‘HTTP://WWW.QGB’ are not undertaken by the genuine firm referred to below, or any firm or individual authorised and regulated by the SRA.
Please be mindful that the SRA authorises and regulates a genuine firm of solicitors called QDR Solicitors Limited. The genuine firm’s address is Olympus Avenue, Leamington Spa, Warwickshire, CV34 6BF and its website is qdrsolicitors.com. The genuine firm’s telephone number is 01926 758 731.
QDR Solicitors has confirmed that it has no connection to ‘QDR SOLICITORS HTTP://WWW.QGB‘.
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Misuse of the name Grania Baird & Farrer & Co LLP
The SRA has warned that an email has been sent to a member of the public claiming to be from a genuine solicitor at a genuine firm.
The email seen by the SRA was written in Spanish and has a subject line including ‘Request for research collaboration’ and advises the recipient that some financial irregularities are being investigated.
The email was sent from the email address ‘support@farrer-co.link’. Please be mindful that the email misuses the name and address of a genuine firm of solicitors.
Any business or transactions through the email address ‘support@farrer-co.link’ is not undertaken by a firm or individual authorised and regulated by the SRA.
The SRA authorises and regulates a genuine firm of solicitors called Farrer & Co LLP. Its head office address is 66 Lincoln’s Inn Fields, London, WC2A 3LH. Emails from the genuine firm use the domain ‘@farrer.co.uk’.
The SRA also authorises and regulates a genuine solicitor called Grania Baird who is a solicitor at Farrer & Co LLP.
The genuine firm of Farrer & Co LLP has confirmed that neither it, nor its Grania Baird have any connection to the email referred to above.
BEEN CONTACTED?
Here’s What to Do…
When a firm’s or individual’s identity has been copied or cloned, due diligence is necessary. If you receive correspondence you believe to be suspicious, you should conduct your own due diligence by checking the authenticity of the correspondence by contacting the law firm directly by reliable and established means.
You can also contact the SRA directly to find out if individuals or firms are regulated and authorised by the SRA and verify an individual’s or firm’s practising details. Other verification methods, such as checking public records (e.g. telephone directories and company records), maybe required in other circumstances.
Reach Out to RACO
We at RACO are always at hand to provide tailored guidance to help you make the most informed and beneficial decisions. We help you understand the recurrent regulatory shifts and work with you to provide solutions. With our team of professional specialists and our renowned legal expertise, we can work with your firm to always ensure you are never left unprepared in the wake of legal changes or cyber threats.
For more information on how we can help, call our consultants on 0203 985 8550 or email us at info@regulationandcomplianceoffice.co.uk
