About CQS Conveyancing

A report prepared by the Lexsure Compliance Audit team last week revealed that only one in 20 firm audited by Lexsure in 2022 had any Source of Wealth Declaration Forms completed on their conveyancing files.  Of the firms that did have such forms, they were correctly advising clients that all supporting documents attached to the form need to be recent and relevant, i.e. issued or certified not earlier than three months prior to completing Declaration Form.   Understanding the Source of Wealth of conveyancing clients is a critical step in managing financial crime risk. Source of Wealth refers to the origin of a client’s entire body of wealth (i.e., total assets). It should describes the economic, business and/or commercial activities that generated, or significantly contributed to, the client’s overall net worth/entire body of wealth. This should recognise that the composition of wealth generating activities may change over time, as new activities are identified, and ...

I have been asked on a few occasions recently 'What should be included in a  CQS Purchase of a Leasehold Policy '.  The leasehold landscape is rapidly changing, so your firm's policy should be frequently under review. During a recent CQS mock audit I noted a particularity thorough policy where the table of content included:  Financial implications of leasehold Ground rents and onerous clauses Marketability and mortgageability of leasehold Implication of 35 year Mortgages on Leasehold Management information Referrals and conflicts of interest Building Safety Act 2022 - Purchase & Sale Cases Comprehensive reporting on leasehold