I have been receiving an influx of calls and emails from conveyancing firms recently regarding urgent communications from LMS. I expect much of the same from Lender Exchange in the months ahead. Conveyancing firms, regardless of whether they are CQS accredited, are being warned of potential removal from lender panels, a move that can have a devastating impact on most firms.
The AML Connection
These notices appear to be triggered by SRA sanctions specifically related to Anti-Money Laundering (AML) breaches. Lenders are now hypersensitive to compliance failures, and any formal disciplinary action is being treated as a major risk factor.
Caution is Vital
If your firm is contacted, you must be extremely careful. Your response needs to be strategic and focused on robust remediation; a rushed or defensive reply could result in immediate removal.
If you have I would suggest that you need to change the narrative from the past sanction to your current, validated compliance.
If you are at the appeal stage you still have options:
Strategic Inquiry: Ask LMS to gauge what ‘new information’ or specific compliance benchmarks would satisfy their risk committees for a lender panel reinstatement. They may not tell you but it does not hurt to ask.
Propose an Independent AML Audit: Ask LMS if they would consider a reinstatement appeal supported by an independent AML/Regulatory audit. Using a specialist firm to provide the external validation lenders need to tick their ‘risk mitigation’ boxes.
Focus on Remediation: Any appeal must demonstrate that the issues leading to the SRA fine have been fixed and are now monitored via robust, third-party verified systems .
How to Get Help
To support firms through this, Lexsure has set up a Lender Panel Removal Consultancy Services for Law Firms to deal with these specific enquiries. If you are in this position and need expert guidance, I suggest you complete the contact form.