About CQS Conveyancing

Let’s broaden the question, should any conveyancing practice also own their own search company? I came across the following wording recently in some Ts and Cs: Depending on the transaction, we may use one of several search companies. One of the search providers, {xxxxx} Limited, is a wholly owned subsidiary of {xxxxxx}, the parent company of {name of law firm}. Thus it is part of our group of companies. You are not obliged to use that search provider. If you have any concerns about this please contact us. In a compliance environment where regulators are focusing their attention on cost transparency one might question whether such behaviour is acceptable. Whist the firm does make the position clear in their Terms and Conditions, is this acceptable? How is this in the interest of the underlying client? At the very least, I would have thought that the firm should be clear about the ‘markup’.

Kensington Mortgage just changed their Part 2 requirements to 5.4.5 of the Lenders Handbook. The section addressed whether the lender accepts personal searches and, if yes, what are their requirements? The previous answer was: No, we do not accept all personal searches without limitations. Our requirements as to personal searches are as set out in paragraphs 5.4.7 bullet one and two of Part 1. Personal searches are carried out at the solicitors’ own risk provided adequate insurance is in place. The new answer is: Yes, at the Conveyancer’s own risk and subject to paragraphs 5.4.7 and 5.4.8 and provided that any firm carrying out a personal search is a member of an appropriate trade body, with established standards; has adequate insurance in place and is a member of an industry trade body that abide by the Property Ombudsman Scheme: http://www.tpos.co.uk I count at least 8 conditions to the ‘Yes’. Frankly, the risk of carrying out a personal search in such circumstan...

The SRA adopt a risk-based approach to AML supervision. The SRA visits a greater number of firms classified as high risk, while also conducting visits to low and medium-risk firms. It is important to note that a visit does not automatically imply that your firm is deemed high risk for potential money laundering activities. To determine the firms the SAR classify as high risk they assess the pertinent sections of the Office of Professional Body Anti-Money Laundering Supervision (OPBAS) source book, which can be found at this link . The regulator may also utilise the information within their possession regarding firms as they assess their level of risk. Nevertheless, the classification of a firm as high risk is not determined by a single factor. Your firm will be asked, as part of the audit, for your AML Policy. CQS firms should have a policy as part of their Core Practice Management Standard policies.

Is is considered best practice to align a firm-wide sanctions risk assessment with the requirements of the MLR2017. These regulations outline several risk factors that should be taken into account. They include: your firm’s clients Regions or locations where your services are conducted Offerings or services provided by your firm Transactions conducted by your company The methods through which your firm delivers its products and services The risk assessment must align with the scale and scope of your practice, considering any factors that may influence risk, such as: number of staff areas of work geographic location of offices supervisory structure – this might, for example, include whether your firm works remotely, whether you have overseas offices, and what level of oversight senior staff have of fee earners. Whatever you decide, if your firm is CQS accredited, make sure you update your CQS AML Policy

CQS audits are on the in increase. I will be conducting a 30 minute webinar later this month focusing on providing helpful tips what to look out for and what the main regulatory tick boxes are when it comes to CQS audits.  Helpful guidance will be given on the following areas:  What CQS Practice Standards will be reviewed and when? How to use benchmarking data to compare your firm’s performance in issues such as timeframes to register title.  Implications of an adverse CQS Audit Common omissions in policies such as a CQS Dealing with Lender Policy If you are interested in attending please contact your search provider for an access code.

The firm-wide risk assessment serves the crucial purpose of identifying potential vulnerabilities to breaches of the regime and exploring ways to mitigate these risks. Although the sanctions regime is characterised by strict liability rather than risk-based, implementing this framework aids in the identification of emerging risks and facilitates the adoption of preventative measures. The Office for Financial Sanctions Implementation (OFSI) has stated that despite the strict liability regime, it intends to adopt a risk-based enforcement approach. In the event of a breach, the implementation of preventive measures is expected to offer significant mitigation. Having a firm-wide risk assessment is crucial for developing appropriate policies, controls, and procedures. While it may not be a legislative or regulatory requirement, I strongly recommend implementing it to safeguard both yourself and your firm. Additionally, fee earners may need to refer to the firm-wide risk assessment w...

LMS are set to increase the current £25 plus VAT per completion charge to £35 plus VAT for all instructions received on or after 1st March 2024 Instructions received prior to 1st March 2024 will continue to be paid at the current rate. All LMS lender panels remain free to join at the point application and no charge is applicable on cases that do not reach legal completion. Updated panel membership addendums will be deployed live to our Conveyancer Zone portal on Tuesday 20 February 2024.

Leeds Building Society conveyancing panel should be aware that it is a standard offer requirement that Leeds Building Society receives a copy of the Housing Association consent to their mortgage BEFORE funds are released. This lender policy requirement is missed by some firms (CQS or otherwise). Firms need ensure that this is submitted before the eCOT is prepared as funds will not be released until the consent is received and this may result in a delay to completion. CQS accredited firms may wish to update their Dealing with Lender Policy template.