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 that 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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Solicitor Who Defrauded Her Employer of £160,000 Jailed For 3 Years
A solicitor from Cornwall pleaded guilty to fraud by abuse of position at Worcester Crown Court.
An associate property solicitor from a firm based in Hereford directed more than 300 clients to pay money into her own personal bank account rather than to the firm.
The fraud was traced back and believed to have started in September of 2020, when two house buyers paid £400 into an account to cover property searches. Two years on, the couple began to receive bills from the firm, which told them they still owed money.
Officers from Hereford CID and West Mercia’s economic crime unit discovered multiple similar incidents, ranging from March 2023 when the solicitor was arrested. Proceeds of Crime Act proceedings are now underway following the solicitor in question’s sentence.
“We are pleased to get this custodial sentence at court for Parsons whose fraudulent activities cost a law firm just over £160,000 over a three-year period,” stated Cathryn Blake of Hereford CID.
“Her actions not only put customers out of pocket but the business too and it was not only an abuse of her position as a solicitor but also an abuse of trust.”
“We would like to thank the firm for their cooperation and all the clients who have been spoken to, whether that was by myself or the firm for their help during this investigation.”
Admitted in 1998, the solicitor has been the subject of interim practising conditions since 2023. They will now be subject to disciplinary proceedings by the Solicitors Regulation Authority.
Source: here.
Risk & Compliance Support
All firms must demonstrate and uphold high standards in their AML systems and processes, as well as in their management and supervision. This also involves outlining how the firm operates, including the conduct of staff through set policies, controls and procedures.
At Regulation & Compliance Office, we can offer a number of outsourced support solutions, including:
- Regulation & Compliance Service – Our Risk Management Assessment Service has been specifically designed to review and update a firm’s approach to risk and compliance management.
- MLR 2017 Regulation 21 Independent Audit – A review of the firm’s approach to regulation and compliance, including AML procedures, with the audit meeting the requirements of Regulation 21 of AML 2017. The output provides the firm with a written gap analysis and solutions to remedy any issues and ensure compliance.
- AML Training Courses – Our Typical AML Training Includes:
- AML Training for ALL staff to meet the firm’s obligation to provide annual training.
- One-to-one training for the MLRO and MLCO on their obligations and requirements.
Read full article here.
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Is Your Firm Ready for Its SRA Equality, Diversity & Inclusion Submissions?
It is time to start preparing for the submission to the SRA in relation to Equality, Diversity and Inclusion.
The last time the SRA requested Firms to complete the equality and diversity questionnaire was in 2023. As it is performed on a two-year cycle, the SRA has now confirmed that all firms will be required to make their submissions in the summer of this year.
To assist with preparation, the SRA have released the questionnaire and additional guidance notes:
https://www.sra.org.uk/solicitors/resources/equality-diversity/your-data
Alternatively, see below for a summary of what is most essential.
How Can Regulation and Compliance Office Help You?
Regulation and Compliance Office has worked with multiple Firms in the past to assist with the preparation and submission of their response. This year, to assist and support Firms, we are able to perform the following:
- We have designed an interactive online solution that your firm can access to provide your staff an easy way to complete the questionnaire. The system will allow the firm to upload its employees, engage with them to complete the questionnaire and chase them if necessary. When completed, it will pool the data, ready for submission to the SRA.
- We will assist you with engagement with staff; generally, by encouraging them to complete the questionnaire and ensuring all data is protected.
- We will work with you to analyse the output, identify any issues that may arise, and work further with you on solutions.
- We will work with you to complete the SRA submission and deal with any questions that arise.
- Equality, Diversity and Inclusion Training packages (see below).
If your firm does not need or want to use the system, we can still provide support on items 2-5 as required.
For pricing in relation to the above, please contact us and we will discuss this with you.
If you are a member of the RACO network or use us to provide compliance support, you are entitled to discounts on all of our services.
For more information on how we can assist, you can speak to your compliance manager if you are a serviced Firm. If not, please call us on 0203 985 8550, complete the online enquiry form here, or email us at info@regulationandcomplianceoffice.co.uk
What are your Requirements?
The requirements set out by the SRA are as summarised below:
- All Firms must complete the questionnaire.
- All staff must be included:
- full-time and part-time employees
- employees on maternity leave or on long term sick leave (but only if they are in contact with the firm during their absence and are willing to respond)
- temporary employees, those on a secondment contract, consultants or other contracted staff working with you for three months or longer.
- Only the following staff are excluded:
- people engaged in work which has been outsourced by the firm
- barristers or other experts engaged by the firm on individual matters
- people who are normally based outside England and Wales.
- The portal will be available in the summer.
- The questionnaire is already available and can be viewed here: https://www.sra.org.uk/globalassets/documents/sra/equality-diversity/fdd25-questionnaire.docx
- Staff should be encouraged to complete the questionnaire themselves, but it is not compulsory.
- When ready to start collecting the data, ensure staff understand that their information will be shared with the SRA (remember, they can anonymise their responses if necessary).
- The SRA have provided a table, which sets out the category of a person in terms of their role. This can be viewed under the “collecting data” section of the guidance and will need to be sent to staff who wish to remain anonymous.
- The diversity data (redacted to protect individual’s data) must be published.
Equality, Diversity and Inclusion Training
It is important to ensure that all staff are trained on Equality, Diversity and Inclusion. We have a number of options Firms can engage with to secure appropriate and bespoke training:
- Prerecorded video and handout – £300 + VAT for members. £400 for non-members
- Live online session, including handout and post-course Q&A – £600 + VAT for members. £750 for non-members
- On-site training delivered in person, including presentation, handout and Q&A – Starting from £750 + VAT for members. £850 for non-members.
Training is approx. 2-3 hours in total with no limit to the number of attendees. Options 2 and 3 can be recorded live.
To book your training, you can contact us via this address:
info@regulationandcomplianceoffice.co.uk.
Read the full article here.
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Is your Firm’s Risk Strategy Up to Scratch?
Are You Confident in Your Firm’s Risk Strategy?
Does your current risk strategy account for:
- Systems & Data
- Experience & Dependence
- Competition
In this guide, we will be delving into the key elements you, as a law firm, need to consider. In the first of a three-part series, our compliance specialists discuss the core elements that firms must consider when assessing risk.
How to Build a Robust Risk Assessment Strategy
Risk is a widely used term in the legal sector and firms are expected to have a robust approach to risk management to ensure this is always controlled. Effective risk management is a general expectation of a law firm including Professional Indemnity Insurers, The Solicitors Regulation Authority (SRA), Clients and Staff.
Approaching how to manage and control risk, and the impact this has firm-wide, is a key consideration for firms. Regulation 18 of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR 2017) requires law firms to carry out a written risk assessment to identify and assess the risk of money laundering that they face. However, risk is not just about money laundering; it spans much wider. An annual risk assessment, completed properly, will cover the AML risks in addition to the wider risks that firms face.
The undertaking of an effective risk assessment will provide the firm with a robust platform from which they can adapt and modify their approach alongside providing training to staff.
At Regulation and Compliance Office, we work with firms of all sizes, offering expert and cost-effective solutions and providing annual risk assessments alongside building a risk strategy and documentation that protects the firm.
While firms face common risks from legal transactions, each firm has unique risks associated to them that require a tailored risk assessment approach.
You can read our comprehensive guide to Risk management and strategy here.
To Access Part 1 Of Our Free Guide To Risk:
CLICK HERE
Enhance Your Risk Assessment
Don’t get caught out! To strengthen your firm’s risk assessment and learn more about how RACO works with firms on risk management, you can contact us on 0203 985 8550, email us at info@regulationandcomplianceoffice.co.uk,or make an online enquiry.
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S CA M A LE R TS
Misuse of the name of GC Business Lawyers Limited on Website
The SRA has announced via its website that two members of public have reportedly been contacted by an individual referring to themselves as “Michael White” and purporting to be from GC Business Lawyers Limited (www.gcbussiness.com) in relation to the recovery of cryptocurrency funds.
GC Business Lawyers Limited (SRA ID: 597430) was a law firm previously authorised by the SRA, but ceased trading on 1 October 2024 when it was acquired by MDLS Solicitors Limited, a law firm authorised by the SRA.
The website ‘www.gcbussiness.com’ has been suspended and is no longer operating. GC Business Lawyers Limited has confirmed that the website is not operated by them, nor have they authorised the use of their name.
Therefore, please note that any business or transaction through GC Business Lawyers Limited or through the website ‘www.gcbussiness.com’ is not undertaken by a firm or solicitor authorised and regulated by the SRA.
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Person by the name of George Smith is purporting to be associated with EM Law
The SRA has announced via its website that an individual referring to themselves as George Smith is purporting to be associated with EM Law. The purported individual George Smith is fraudulently sending correspondence including a last will and testament with “EM Law & Solicitor” in the heading.
The correspondence from the individual George Smith also uses the email address GeorgesmithEMLAWandsolicitor@outlook.com, has fraudulently stamped the correspondence using “EM Law and solicitors” and uses the firms business address.
Please note that the SRA authorises and regulates a genuine firm of solicitors called EM Law which is a trading name of Emerging Law Limited.
The firm’s head office is based at White Collar Factory, 1 Old Street Yard, London, EC1Y 8AF
The genuine firm’s telephone number is 0203 6376374.
The genuine firm has confirmed that they do not have any genuine connection to the email address GeorgesmithEMLAWandsolicitor@outlook.com nor do they have any connection with an individual by the name of George Smith.
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Caution: Emails misusing the name of CND Law Ltd, David Marks and Nick Cross
The SRA reported to have seen emails misusing the name of genuine solicitors claiming to be Intellectual Property Solicitors from ‘CND Law Firm’.
The emails state that they are in relation to a supposed application for legal protection of a third-party brand under UK intellectual property laws. The emails state that the applicant is seeking exclusive rights to this name, and as part of due diligence, the application has been reviewed to ensure compliance with the Trademarks Act 1994 and other relevant regulations.
Please be aware that the emails misuse the postal address of a genuine firm of solicitors and some of the emails misuse the SRA ID number of a genuine solicitor.
Emails were sent using the addresses ‘david@cndlaws.com’ and ‘nick@cndlaws.com’.
The emails provide a telephone number of ‘+44 (0) 20 376 93846’ and a website address of ‘https://cndlaws.com/’. This website, however, is not accessible.
Please note that the SRA does not authorise and regulate a firm of solicitors called ‘CND Law Firm’.
Therefore, any business or transactions through the website, emails and telephone number set out above are not undertaken by a firm of solicitors authorised and regulated by the SRA.
However, the SRA does authorise and regulate a firm of solicitors called CND Law Ltd. The office is at 8 Berry Street Liverpool L20 8AT. The firm has not commenced trading. The firm does not have a website or email domain, or a telephone number assigned to the firm.
The SRA also authorises and regulates a genuine solicitor called David Jonathan Marks, his SRA ID is 276564 and a genuine solicitor called Nick Paul Cross.
CND Law Ltd, David Jonathan Marks and Nick Paul Cross have confirmed they do not have any connection to ‘CND Law Firm’ nor to the emails.
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 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
