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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Legal Ombudsman Publishing Law Firm Complaint Details  

In its new bid to bring in a new dawn of transparency, the Legal Ombudsman have announced plans to publish details of all upheld complaints made against law firms. A total of three firms have already been named in what the Law Gazette are referring to as a “shame parade”. 

In the past, the Ombudsman (a free service initiated to investigate complaints made against lawyers independently) named firms but gave out details concerning the complaint’s outcome only. This has been the case for several years. However, the Gazette reported that it “understands [the Ombudsman] will publish decisions more regularly in the future.” 

These new publications from the complaint handler will be assessed on a case-by-case basis. Cases given the greatest amount of exposure will be those demonstrating the most serious of systemic failures and those which affected clients the most. The Ombudsman have also announced that cases where the lack of cooperation has been significant will also be disclosed in more detail. 

The complaints handler chose the three cases to highlight problems across the law areas of: 

• Litigation 
• Wills and probate 
• Employment 

Complaint Case No.1  

One firm, based in Southampton, was instructed to draft a client’s will in 2005 with provision for his long-term partner to receive one-fifth of his estate and continue to live in his house for as long as needed. When the client passed, however, the partner received none of the £21,600 cash assets due to her, nor was she given any explanation before she died two years later.  

After an extensive investigation and following a complaint from the deceased’s family, the Legal Ombudsman found that Underwood & Co had paid four other residuary beneficiaries £21,600 each a number of years prior, but had withheld the partner’s share. 

The Ombudsman also found that the firm failed to respond to multiple requests for information about the estate, the will, the estate accounts, interim payments, and the legacy due. Furthermore, the firm failed to respond to any requests for payment and neglected to address any of the family’s complaints. The Ombudsman awarded the partner’s estate £60,962.99, including interest and a refund of fees. 

Complaint Case No.2 

After almost 20 issues of complaint from a litigation client were upheld, a Harrow-based firm was ordered to pay around £25,000.  

Complaint Case No.3 

A London-based firm was ordered to pay a figure close to £39,000. This payment was intended for clients who had wished to file employment claims. The signatories to the funding agreement had been unhappy with the firm deducting 35% of the damages they secured, complaining that the firm had charged twice and taken fees from both the employer and the employee.  

The Ombudsman stated that the firm provided no cost information to support its defence that the clients should have known they would be charged separately for any money recovered from the employer for legal fees. The funding agreement the firm drafted referred to the possibility of charging for additional work to the employment claim, but also stated that the firm would tell the clients if that happened. The Ombudsman was unable to find evidence that the firm fulfilled this commitment. 

Source: here. 

My Firm Has Received a Complaint – What Do I Do? 

Improving complaint handling in law practice isn’t easy. Responding to legal complaints and handling dissatisfied clients in law firms should remain a top priority for all businesses seeking to enhance their reputation management. 

We at Regulation & Compliance Office specialise in complaint procedures for legal firms and can help firms of various sizes respond to legal complaints to enhance customer experience and maintain best practices. 

Reducing client complaints and optimising client care in law firms is not only possible but elementary. Read on to discover how our compliance experts can help. 

Complaint Management Service 

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 will include: 

• 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 and costings, download our full service brochure here. 

See Related Articles 

• Navigating SRA Enquiries and Investigations 
• Guidance on Complaints Concerning Legal Costs 
• Experienced Solicitor Struck Off After Backdating Documents 

RACO: Expert Legal Advice 

For more information on the Regulation & Compliance Office and how we can assist in accelerating your risk management, compliance and regulation, call us on  0203 985 8550 or email us at info@regulationandcomplianceoffice.co.uk 

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Client Care Letter and Terms and Conditions Checklist

Have you recently audited your client care letters and terms and conditions? It is essential to evaluate these documents to ensure that all appropriate information has been included to protect the firm and ensure compliance.

In a previous article, we reported on a warning issued by the Legal Ombudsman (LeO) that emphasised the importance of firms being clear about their pricing. In their updated guidance for lawyers, the LeO highlighted the importance of transparent communication regarding ongoing costs. This renewed focus came after receiving numerous complaints from clients who were dissatisfied with how their lawyers’ bills were presented to them. For more information:

Guidance on Complaints Concerning Legal Costs

Comprehensive Client Care and Terms and Conditions Checklist for Law Firms

We have created a downloadable document, which serves as a self-checklist to guide you through the essential components of both client care letters and terms and conditions.

Keep in mind that a thorough review by the Regulation and Compliance Office (RACO) is recommended for optimal results, with a nominal cost of £500 + VAT for RACO members or £750 + VAT for non-members. Our service can save you up to 20 hours of admin, depending on how many client care letters your firm has. 

Please get in touch with your Compliance Manager or with a member of the RACO team to initiate the review process.

All we will need is a copy of your standard client care letter and terms and conditions to proceed with the review. An overview of details that should be included in your Client Care Letter and your Terms and Conditions are provided below, and you can download the full Client Care checklist document here.

Become a Member of the Regulation and Compliance Office

Whilst the Regulation and Compliance Office (RACO) is a membership-based service we also provide services to non-members. However, to take advantage of the various member benefits, and to receive exclusive discounts, membership is essential. Find out more about the list of benefits and information on how to join: The RACO Membership.

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THIS WEEK: Annual AML Data Collection Begins

The Solicitors Regulation Authority’s annual AML and sanctions data collection has begun, meaning firms will be required to provide information about AML management and financial sanctions activity.

Regulated firms now must provide the SRA with information on work carried out within the scope of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017.

This also includes any contact or involvement with the sanctions regime and the individuals designated under it, as well as the submission of suspicious activity reports to the National Crime Agency.

Speaking on this issue, the regulator commented, “We appreciate that not all firms are involved with one or more of these regimes – in which case, you will be able to submit a nil return.”

The SRA also said, “We are required by our own regulator, the Office for Professional Body Anti-Money Laundering Supervision to take a risk-based approach to supervision. To supervise the legal sector effectively, we need to have accurate data. This allows us to see the distribution of risk across the legal profession, which in turn informs our programme of inspections and our guidance.”

“Collecting this information allows us to establish where the risks lie and how we can better allocate our resources. Most importantly, this data needs to be up to date and relevant so that our approach can evolve and adapt.”

To help compliance officers prepare for the data collection, the SRA has made a specimen version of the questionnaire available. However, please note that this is provided for guidance only and should not be submitted. To submit your data or to read the SRAs FAQs on the matter, click here.

Source: here.

Compliance and Regulation Support UK

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 in accordance with established 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.

Regulation & Compliance Office – Reach Out Now

To ask any questions about the Regulation & Compliance Office and how we can support your Law Firm, please call us on 0203 985 8550 or email us at info@regulationandcomplianceoffice.co.uk 

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S C A M     A L E R T S

Website Falsely Claiming to be for ‘David du Pre & Co. Solicitors’

A website page is operating at ‘www.internationaldivorcelawyer.co.uk’ claiming to be for a firm of solicitors which is no longer operating. The SRA has also warned via its website that phone calls have been received by members of the public that appear to be from a telephone number listed on the website referred to, and which relates to the former firm.

The telephone number used is ‘0207 4301950’, which used to be the phone number connected to a firm of solicitors by the name of David du Pre & Co that closed in 2022/2023. Please note, any business or transaction now undertaken through ‘David du Pre & Co’, the website ‘www.internationaldivorcelawyer.co.uk’ or the telephone number ‘0207 4301950’ is not undertaken by a firm or individual authorised and regulated by the SRA.

The SRA previously authorised and regulated a firm of solicitors called David du Pre & Co (SRA ID: 74414), but this firm has ceased trading.

The SRA also previously authorised and regulated a genuine solicitor named David du Pre, who was previously of David du Pre and Co.  The genuine Mr du Pre is no longer a solicitor and has confirmed that he has no intended connection to the old, published website page referred to in the above alert, neither has he any connection to the phone calls referred to.

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Website misusing the name of Wealth Recovery Solicitors

A website is now known to be operating at ‘www.quantumrecoverylawgroup.com’. This website states that ‘Quantum Recovery Law Group’ is a trading name of a genuine firm of solicitors.

The website provides the email addresses ‘info@quantumrecoverylawgroup.com’ and ‘support@quantumrecoverylawgroup.com’ as well as the telephone numbers ‘+61 272 568476’ and ‘+44 2039 545911’.

The SRA noted via its website that a member of the public has been contacted by an individual called ‘Josh Bennett’ from ‘Quantum Recovery Law Group’ regarding the supposed recovery of funds.  Please note, however, that the SRA does not authorise or regulate a solicitor called ‘Josh Bennett’ or a firm of solicitors called ‘Quantum Recovery Law Group’. Therefore, any business or transaction through the above contact details is not undertaken by a firm or solicitor authorised and regulated by the SRA.

Please note that the SRA authorises and regulates a genuine firm of solicitors called Wealth Recovery Solicitors which is a trading name of Wealth Recovery Solicitors Limited.

The genuine website for the firm is www.wealthrecovery.co.uk. The genuine firm can be contacted on the email address info@wealthrecovery.co.uk and on the telephone number 020 3695 9239. Wealth Recovery Solicitors Limited has confirmed that it has no connection to the above website.

The SRA also authorises and regulates a firm of solicitors called Howard & Byrne Solicitors which has a branch office at Gridiron Building, 1 St Pancras Square, London, N1C 4AG. The genuine firm has confirmed that it has no connection to the above matter.

The SRA also authorises and regulates lawyers and solicitors working at an address of Gridiron Building,1 St Pancras Square, London, N1C 4AG. Furthermore, the SRA authorises and regulates a genuine solicitor called Joshua Bennett, who has confirmed that he has no connection to the above matter.  

BEEN CONTACTED?

Here’s What to Do…

When a firm’s or an 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), may be required in other circumstances.

Compliance Support for Law Firms

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