Skip to main content

SRA and CML take opposing views on retention of conveyancing files

By
The CML has recently expressed concerns with the SRA’s proposals for shortening the retention period as they relate to property deeds and associated conveyancing files.  

In an effort to reduce expenses the SRA have proposed to put in place a retention period of purchase files for 7 years from date of file closure; or a period of 2 years from the date of intervention for registered deeds or documents.  

The CML are urging that the Solicitors Regulation Authority retain the current retention period of 7 years from the date of intervention. 

The CML have expressed concerns that reducing the time period for holding conveyancing files from the current requirements, would cause potential difficulty for claimants, including lender claimants, if they are unable to access historic conveyancing files required to pursue claims that are outside of typical limitation periods. This can occur where the claimant is relying on latent damage, Nykredit–type claims and claims where there has been dishonesty and concealment, which may require access to these files to assist in the case. 

Additionally, the CML point out that an intervened conveyancing firm, by its nature, is more likely to be subject to actions which may require access to historic files and documents. 

The CML have suggested the SRA to consider holding conveyancing files digitally to decrease costs rather than the proposed reform. Whilst acknowledging  there would be cost in converting the paper files to a digital format, this would allow for the extant retention period, but remove the physical storage costs, which the SRA note is a significant proportion of the overall expense.
Labels:

Comments

Post a Comment

Popular posts from this blog

Argie Bargie over Home Information Packs

By
In response to a question from Conservative MP David Amess on what methodology would be used to use to evaluate the effectiveness of the Home Information Pack programme, Communities and Local Government Minister Ian Austin was involved in heated argument. The wording of the debate ( reported in Hansard ) makes interesting reading, so I thought I would share it with you : Mr. David Amess (Southend, West) (Con): What methodology his Department plans to use to evaluate the effectiveness of the home information pack programme; and if he will make a statement. Mr. Andrew Mackay (Bracknell) (Con): What methodology his Department plans to use to evaluate the effectiveness of the home information pack programme; and if he will make a statement. Mr. David Jones (Clwyd, West) (Con): What methodology his Department plans to use to evaluate the effectiveness of the home information pack programme; and if he will make a statement. The Parliamentary Under-Secretary of State for Communities and Local...
Post a Comment
Read more

Paperwork is not a shield: Why your SRA aml audit demands more than just a dusty manual

By
The Solicitors Regulation Authority continues its aggressive crackdown on financial crime with a recent fine issued against Whiteheads Solicitors (Staffordshire) Ltd . This decision serves as a stark reminder that the regulator is looking far beyond simple paperwork during an SRA aml audit . The firm was fined 2,584 GBP plus 600 GBP in costs following an investigation into its compliance with the Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017. While the firm had a firm-wide risk assessment and general policies in place, the SRA identified critical failures at the matter level. Key compliance failures included: Failure to conduct adequate client and matter risk assessments . The SRA found a consistent pattern where the firm failed to sufficiently assess client matter risk levels as required by Regulation 28. Inadequate scrutiny of source of funds . In one specific property transaction, the firm failed to properly investigate the origin of funds provided by ...
Post a Comment
Read more

The High Street Practitioner’s Guide to Surviving the FCA

By
For a sole practitioner or the MLRO in a small high-street firm, "AML compliance" often feels like just another mountain of paperwork standing between you and your actual work. When you are juggling a heavy conveyancing caseload, a sensitive probate matter, and the day-to-day survival of your practice, the last thing you need is a new regulator with a reputation for being data-heavy and "zero-tolerance." But the ground is shifting. As the Financial Conduct Authority (FCA) takes over AML supervision from the SRA, the "high-street way" of doing things—relying on long-standing local reputations and gut instinct—is being replaced by a requirement for hard, documented proof. The end of "I’ve known them for years" In a small town, you often act for the same families for generations. You know their business, their parents, and their reputation. Under the old mindset, that felt like enough. Under the FCA, it isn’t. T...
Post a Comment
Read more