Archives: Professional

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Accounts rules – no banking facility

June 2020 | Professional

We do not usually report on disciplinary matters, but the fate of an experienced solicitor acts as a useful reminder of one of the cornerstones of the Solicitor’s Accounts rules. It is very straightforward. Rule 3.3 says: ‘You must not use a client account to provide banking facilities to clients or third parties. Payments into, …

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Reserved activities – a reminder

June 2020 | Professional

The SRA distinguishes between reserved and non-reserved legal activities when discussing furloughed solicitors carrying out pro bono work. By way of reminder, s12 Legal Services Act 2007 sets out six specific legal services activities that only those who are authorised (or who are exempt) can carry on. These are reserved legal activities and lawyers carrying …

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AML compliance – Covid-19

June 2020 | Professional

Firms are facing challenges to carrying out proper identification and AML checks during the Covid-19 situation due to the disruption that working at home and the need for social distancing have presented. The Code of Conduct says that firms must identify who they are acting for (rule 8.1), but this is not prescriptive and it …

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Digital identification – guidance

June 2020 | Professional

Electronic verification can be useful for EDD but the LSAG guidance above also refers practitioners to FATF guidance when considering whether a digital identification service provides the required level of assurance. The FATF has issued detailed, rather technical guidance on electronic due diligence. It is fair to say that practitioners might need to employ the …

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SDT – honesty

June 2020 | Professional

We reported in our November 2019 edition (p3) on the distinction in the new Principles that the SRA has drawn between acting honestly and with integrity, introduced in November 2019. The distinction has been brought into focus by two cases heard by the CA in 2018 in which Lord Justice Jackson said: ‘Integrity is a …

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PII – SRA extension

June 2020 | Professional

The SRA has announced that firms which are finding it difficult to secure PII due to Covid-19 can apply to prolong the extended indemnity period. The SRA states: ‘If you are not able to secure PII because of practical difficulties due to the coronavirus outbreak you may be able to agree with your insurer to …

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