The Report Spring 2017

The City of Westminster and Holborn Law Society

REPORT The

Spring 2017

NICHOLAS LE RICHE President of The City of Westminster and Holborn Law Society

Inside this issue:

■ Probate ■ Cyber Security ■ Conveyancing ■ Anti-Money Laundering

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ADVERTISING AND FEATURES EDITOR Anna Woodhams DESIGN AND PRODUCTION MANAGER John Barry ACCOUNTS DIRECTOR Joanne Casey MEDIA NO. 1499 PUBLISHEDFEBRUARY 2017 © Benham Publishing Ltd. LEGAL NOTICE © Benham Publishing.

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DISCLAIMER All views expressed in this publication are the views of the individual writers and not the society unless specifically stated to be otherwise. All statements as to the law are for discussion between members and should not be relied upon as an accurate statement of the law, are of a general nature and do not constitute advice in any particular case or circumstance.

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Members of the public should not seek to rely on anything published in this magazine in court but seek qualified Legal Advice.

COVER INFORMATION

Cover image: Nicholas Le Riche, Partner, Bircham Dyson Bell LLP.

COPY DEADLINES Summer

14th April 2017

Autumn

16th July 2017

Winter

16th October 2017

Members wishing to submit material please contact the Editor, Ivan Ho, before copy deadline.

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Anyone else wishing to advertise or submit editorial for publication in the Report please contact Anna Woodhams before copy deadline.

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LOCAL ISSUES WINE COLUMN CWHLS MEMBER’S REPORT PROPERTY EVENT MANAGEMENT FINANCE EVENTS CYBER SECURITY TECHNOLOGY PROBATE LEGACIES CONVEYANCING ANTI-MONEY LAUNDERING

32 President:

Hon Secretary:

Hon Treasurer:

Editor:

Administrator:

Nicholas Le Riche NicholasLERICHE@bdb-law.co.uk 020 7783 3560 Jonathan Cornthwaite jcornthwaite@wedlakebell.com 020 7395 3122 Bruce Clarke bruce.clarke@lbmw.com 020 7222 5381 Ivan Ho ih@hunters-solicitors.co.uk 020 7412 0050 Susie Hust, 1 The Sanctuary, London SW1P 3JT admin@cwhls.org.uk 020 7960 7115

The Report

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Local Issues

Report of the Professional Matters Sub-Committee January 2017 I would draw attention to three issues which we have considered since my last report.

1 The standard of proof in disciplinary matters On 10 November 2016 the Administrative Court gave its decision in the case of The Solicitors Regulation Authority v Solicitors Disciplinary Tribunal and Huseyin Arslan and the Law Society (Case No CO/1808n &1807/2016). The unsatisfactory upshot is that where a matter had been before the SRA (which applies the civil standard of proof) the Solicitors Disciplinary Tribunal (SDT) must apply the civil standard on any appeal to it. However the SDT would continue to apply the criminal standard where the matter was referred to it direct. We are concerned that the tide may be turning in favour of the civil standard. This could lead to substantial injustice, particularly where serious allegations of dishonesty and fraud are made.

In civil cases it used to be said that the civil standard was a flexible one, with the standard of proof being close to the criminal standard where fraud or dishonesty is alleged. That seems to us to be a prerequisite to maintaining faith in the disciplinary process. In civil cases it is often a question of whose version of events is preferred as between the claimant and respondent. That lends itself to a balance of probabilities test. Disciplinary proceedings are not adversarial between the complainant and the respondent. It should be just a question of whether the misconduct is proved to the requisite standard.

Balance of probabilities is a less comfortable standard to apply in such circumstances.

continue to be CEO of an organisation which is not prepared to change”.” We are not concerned with the rights and wrongs of the personal position of Ms Dixon (who has found another job).

However we take the view that the Council is too large and that generally the Law Society needs to change and streamline its governance if it is to survive. Clearly its income is under threat and our regulators would appear to wish it to disappear. That would leave our regulators to pursue their deeply misguided plans for the legal profession without serious challenge. The Law Society potentially has a huge opportunity to control, promote and protect the solicitors’ brand with the SRA and LSB apparently wishing to reduce the legal profession to the lowest common denominator. .

We would welcome the views of members on any of these issues. If you wish to comment please let me know on aylmer.julian@btinternet.com.

Julian Aylmer

2 The Competition and Markets Authority (CMA) Final Report on the Legal Services Market This is a very long report. There is no immediate consultation but this report is likely to trigger consultations, so we will keep it under review. We are concerned that concentration on price alone is dangerous. We also share the Law Society’s concern that a “desire for greater competition and deregulation in the legal services sector must not be allowed to undermine consumer protection…Law Society president Robert Bourns said: "The CMA's decision not to conduct a market investigation into the legal sector is welcomed…However it is astonishing that some of the CMA's recommendations prioritise deregulation over consumer protection…If solicitors were to offer legal services from unregulated companies, as suggested by the CMA, then their clients would no longer enjoy a raft of protections - from confidentiality to compensation - offered by every solicitor in a solicitor firm. These deregulatory changes would undermine consumer protections and erode trust in the legal system.”

The CMA proposes extending the ombudsman scheme to nonregulated entities. If that is done, then we are strongly of the view that those entities must pay for this.

3 The Future of the Law Society and its governance Members will have read that Catherine Dixon, chief executive of The Law Society, had resigned after two years as CEO. According to the Law Society’s Gazette: “She blamed lack of progress made by the organisation’s 100-strong Council in streamlining governance, adding that she “cannot in good faith The Report

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Local issues

Game of Drones Once the preserve of science fiction, unmanned aerial vehicles or “drones” are rapidly becoming commonplace throughout England & Wales.

From competitive flying, to accessing and inspecting remote parts of land and buildings, to airborne delivery of goods (Amazon claiming its first successful trial in this field in December 2016), the private use of drones continues to skyrocket.

meaning that the extent of proprietary rights enjoyed by neighbouring landowners is clear in such cases – from what it called “the difficulties posed by overflying aircraft or balloons, bullets or missiles”, in relation to which it said “it may be that certainty cannot be achieved”.

Justifiable concerns have been raised about the impact private commercial and recreational drone use might have in terms of privacy, the regulation of controlled airspaces and safety. But what of the private rights of landowners, who happen to lie in their flight paths?

It would seem therefore that, in contrast to the situation where articles attached to land A encroach into the airspace above land B - which should almost invariably be a trespass - the flying of drones from land A over land B’s airspace will not always be actionable. Regard will have to be had to the Lord Bernstein formulation: specifically, whether the airspace affected forms part of the airspace necessary for the ordinary use and enjoyment of the land thereby affected.

Trespass Perhaps the most obvious and direct cause for complaint is that those flying drones above neighbouring lands and beyond may be committing trespasses against the landowners.

The decision in Lord Bernstein v Skyviews & General Ltd [1978] QB 479 made clear that a landowner’s rights do not extend to an unlimited height above his land, but rather extend only to such airspace as is “necessary for the ordinary use and enjoyment of his land and the structures upon it”. Accordingly, in that case, it was held that the flying of aeroplanes “many hundreds of feet” above the claimant’s property that “in no way affects the user of the land” did not cause an actionable trespass.

Of course, drones typically remain much closer to the ground than the average light aircraft. One might suppose, therefore, that had Lord Bernstein been troubled by drones passing, or hovering, over his land, rather than by aircraft, a claim to injunctive relief might have succeeded. Certainly it seems easier to envisage real and substantial interference with the ordinary user of the land in such circumstances.

It remains to be seen how the courts will analyse and apply this law in any given case, and it is difficult to speculate in the abstract. In practice, a distinction may be drawn between drones which fly or hover a short distance above residential gardens - the ordinary enjoyment of which normally does entail a degree of free space and air - from cases where drones are being flown at greater height, over the top of tall commercial buildings for example.

Nuisance

The second most likely cause of action that may arise from drone usage is nuisance. Whilst the exact boundary Perhaps the most between nuisance and trespass may at times prove obvious and direct fine, in essence trespass involves direct entry onto land B, whereas nuisance concerns some condition cause for or activity carried out on land A that unduly complaint is that those flying drones interferes with the use or enjoyment of land B and/or causes disturbance or annoyance. In an appropriate above neighbouring lands case there may, of course, be some overlap.

and beyond may Although trespass is “actionable per se” (i.e. it is not necessary to demonstrate injury), nuisance requires be committing At first blush the flight of drones over a trespasses against proof of some special damage. Activities that neighbouring property seems more closely generate excessive levels of noise are classic the landowners. analogous to the facts of Anchor Brewhouse examples of nuisance. One can readily envisage Developments Ltd v Berkeley House (Dockland complaint being made along these lines in respect Developments) Ltd [1987] 2 EGLR 173 in which a developer of the noise generated by drones. Moreover, that may be so allowed cranes to oversail the neighbouring claimants’ properties during the course of works. The cranes were left free- even if their flight-paths do not take them directly across neighbouring land in such as way as to amount to a trespass. swinging when not in use. In granting an injunction, the court observed that the developer had, by these acts, interfered with Technology may have come on greatly since the decision in Hall the claimants’ rights to possession of the airspace above the v Beckenham Corp [1949] 1 K.B. 716, in which complaint was claimants’ lands (which only the claimant landowners were made of the noise caused by model planes, but the parallels entitled to take into actual possession all else being equal). and potential for complaint are obvious. Drones commonly generate noise when hovering and/or flying. Equally, persistent However, the court was at pains to distinguish the situation of observation and/or photography of neighbouring land may itself structural overhanging (including cranes attached to amount to an actionable nuisance (on which, see further the neighbouring land, and signs and other overhanging parts of decision in Lord Bernstein). buildings) – which it said did amount to a trespass in all cases

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The Report

Local Issues

Ciara Fairley

James Tipler

Defences is a potentially major restriction. Equally, Article 95 would prohibit Suppose a claim is brought in nuisance or in trespass and an flight over, or within, 150 metres of any congested area, save in injunction sought to restrain the relevant drone activity. In order accordance with a permission issued by the CAA. In practice, to defend that claim, the drone operator would need to show therefore, the defence afforded by section 76 of the Act may some lawful authority for his acts. This would typically be demonstrated by reference to a licence agreed with the affected prove to be of rather limited utility given the ways in which consumers have thus far sought to use drones in urban and landowner. Such licenses are now common practice in the suburban settings - save for those presumably rare cases where context of oversailing by cranes at development sites and one the blessing of the CAA has been sought and given. can envisage a similar development in this context. But such authority might also be founded on the existence of an Drone operators should also be mindful of s.76(2) of the Act, easement (for example, an easement conferring a right to emit which imposes strict liability upon the owner of any aircraft in noise from the operator’s land). Given the novelty of the respect of “material loss or damage” that is “caused to any technology involved, prescriptive claims are likely person or property on land or water by, or by a to be a rarity for the time being; and in all cases person in, or an article, animal or person falling from, Drones will much will depend on the specific use an aircraft while in flight, taking off or landing”. generally be contemplated, its interaction with the statutory Conclusion regulation of drone activity and the particular categorised In Lord Bernstein’s case, Griffiths J observed that circumstances of the case. For now, the astute as “small “the problem is to balance the rights of an owner to operator would be well-advised to explore unmanned enjoy the use of his land against the rights of the consensual agreement for such rights. aircraft” in the general public to take advantage of all that science A further defence can be found in section 76 of now offers in the use of air space.”

Civil Aviation the Civil Aviation Act 1982 (“the Act”), which Authority’s Those remarks were, of course, made in the context provides that: of light aircraft. As technological advances open up designation No action shall lie in respect of trespass or in the airways to an ever wider range of users, respect of nuisance, by reason only of the flight including drone operators, the same problems will of an aircraft over any property at a height above fall be addressed afresh. Inevitably the law will have to develop the ground which, having regard to wind, weather and all the in response to developments on (and above) the ground. As circumstances of the case is reasonable, or the ordinary operators of drones clash with neighbouring landowners, the incidents of such flight, so long as the provisions of any Air stage seems set for arguments over the extent of permissible Navigation Order… have been duly complied with [...] interference in the modern era. Watch this (air)space.

Drones will generally be categorised as “small unmanned aircraft” in the Civil Aviation Authority’s designation (as defined Ciara Fairley in Schedule 1 of the Act). In respect of any “aircraft”, section 76 James Tipler provides an apparently broad based defence against actions arising from the flight of the same over property at a BARRISTERS, FALCON CHAMBERS “reasonable” height or from the “ordinary incidents” of such flights. Queries may well arise as to what is “reasonable” as regards drones and the extent to which this statutory defence may be available.

However, this point becomes somewhat academic given the overriding need to comply with any relevant Air Navigation Order. The Air Navigation Order 2016 (“ANO 2016”) came into force on 25 August 2016. It contains a variety of restrictions which drone operators need to observe, in default of which they cannot rely on the statutory defence set out in s.76(2). Full consideration of the requirements of the ANO 2016 is beyond the scope of this article. But it is worth noting that Article 95 of the ANO 2016 expressly prohibits the flying of any drone with surveillance capabilities within 50 metres of a structure that is not under the control of the pilot without permission. Since most drones have surveillance equipment in the form of cameras that The Report

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Local Issues

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The Report

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Local Issues

Dealing with Stress

by Eric Farnworth

This is personal. I have been asked to write an article for “The Report” about Maytree, a sanctuary for people in a suicidal crisis, because I am a solicitor and a Maytree volunteer.

Why would The Report want an article touching on the taboo subject of suicide? Because lawyers (and others in highly responsible professions) are more likely than the general population to end their lives by killing themselves. Why? Well, in my personal experience, because of stress. I probably don’t need to tell anyone reading this article that the Law is a stressful occupation. We have high standards; we are trained and required to abide by them; clients are demanding, often unreasonably so; we need to give an excellent service; we need to meet deadlines (and billing targets!). Our employers are demanding. We often work long hours with excessive workloads. The more conscientious we are the more the pressure “gets” to us.

In my years in the City (before a long overdue crisis followed by a couple of years trying to leave the Law – an attempt to qualify as a primary school teacher, work as a gardener, and working in a supermarket - and then my return to the Law but half-time and in the leafy suburbs of southwest London so I could commute by bike rather than by SouthWest trains and London Underground) I probably had to take time off work a couple of times a year because I just couldn’t cope with the pressure. I would have to stay in bed - I just couldn’t get up. When awake I was angstridden, writhing in bed with no concept that I had a future, that I would ever feel better. Depressed? Certainly. Suicidal? Yes. Stress leads to depression. Depression, if untreated, will lead to suicidal feelings and

thoughts, which in turn can increase in severity and lead to a suicide attempt or to an unnecessary death. I didn’t take time off work lightly; I struggled. I would lie in bed when the alarm clock rang, sweating, afraid to face the day.

And of course I didn’t ‘fess up. I claimed ‘flu symptoms to explain my absences. Why wasn’t I upfront? Why didn’t I just say that I was stressed to the extent that I couldn’t continue? Pride, fear that I would be looked down on for not being able to cope in a competitive world. Law firms are small; our bosses are very literally our employers – they pay our salaries.

It makes it more difficult to admit suffering from stress or depression.

I have somehow come through all of this and along the way have been both a Samaritan volunteer and, for the last nine years, a volunteer at Maytree.

Maytree was founded in 2012 by two Samaritans with decades of experience between them. Their experience befriending people who are depressed/suicidal highlighted the fact that those in a suicidal crisis need somewhere to go for respite, for time out from their usual daily lives, to take a step back, to reflect, and to try to understand why they have been brought so low. The Samaritans does not have accommodation; it has phone lines and volunteer befrienders.

Maytree is a house in north London which provides the necessary sanctuary. I know it works. Many guests find their stays transformative, yet there is nothing complicated or mystical about what we offer: a safe place in a pleasant four storey terraced house for the seemingly very short period of five days (four nights); listening non-judgmental ears (the effect of just being listened to, without interruption or advice, of feeling heard, of feeling understood, can itself be hugely helpful), conversations with trained volunteers, staff members and other Maytree guests either generally round the kitchen table or 1:1 with a volunteer or staff member in dedicated “befriending rooms” as we call them. No medication, no diagnosing, a minimum of rules and regulations, freedom to come and go. There is no charge.

Guests self-refer (by phone, email or via the internet link) or may be referred by family, friends or professionals. After initial contact there is likely to be a series of phone calls during which a caller can consider whether talking things through with Maytree volunteers/staff is helpful and whether therefore a Maytree stay would itself be helpful; and Maytree can also form an opinion as to whether there is a suicidal crisis and whether what Maytree has to offer will be suitable. Not all callers can be helped by Maytree - for example we recognise that we can’t help those currently mis-using alcohol or drugs.

After a few phone calls we move on to an assessment - merely an indepth conversation with an experienced Maytree person. This will either be at the house for anyone in the London area, or will consist of two phone calls with different Maytree people if the “potential guest” is outside London. A decision is then quickly made as to the offer of a Maytree stay, which we hope will follow very shortly after the assessment.

If this article strikes a chord either for you or for someone you know, please contact us (details below). If you would like to help our work as a volunteer or with a donation, again, please be in touch. ■ Eric Farnworth, volunteer at:Maytree (a sanctuary for the suicidal) 72 Moray Road Finsbury Park London N4 3LG 020 7263 7070 maytree@maytree.org.uk Volunteering: carol@maytree.org.uk Donations:iqtadar@maytree.org.uk

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The Report

Local Issues

The Secret to Pro£itable Conveyancing Conveyancing events that look at maximising profit through innovation To increase profits in such a competitive market, busy law firms must maximise efficiencies when processing conveyancing work and generate new business wherever possible. LEAP, a leading cloud software provider for small law firms, is hosting two seminars, one in London at Microsoft’s headquarters and one at the Manchester Art Galleries, on how law firms can improve business profitability.

These free to attend events look at how putting effective methods in place to convert incoming conveyancing enquiries into new business and increasing the use of cloud-based software, can hasten the conveyancing process, so generating efficiencies and greater profits. In addition, the event will look at ways to improve profitability by removing the reliance on panel managers and their resulting commission.

looked at a number of key areas, including telephone techniques; how disbursements are dealt with; email follow up quoting; pricing; opening hours; competition from online website conveyancing operations; tracking results; who handles the calls�.

Benefits of attending the LEAP seminars include: • Hear from Professor Ian Cooper’s on ‘Finding the missing millions: Converting telephone enquiries for conveyancing quotes into profitable business’ • Learn how to generate extra revenue from experts in the field and leading conveyancing software suppliers including LEAP, InfoTrack, Microsoft and Perfect Portal.

• Explore how the innovative use of technology within the conveyancing market is helping law firms to work more Keynote speaker Ian Cooper, author of the Financial Times Guide efficiently. to Business Development, will provide advice based on his recent • Identify how to grow your network of referrers and major survey on ‘Converting Telephone Enquiries: Residential market your services directly to estate agents, mortgages Conveyancing.’ and the public at large without the need for a panel The survey and subsequent report is a comprehensive review of the way residential conveyancing firms and departments deal with manager. conveyancing requests. It is based on reviewing the results of mystery calls for quotes to 387 firms nationwide; interviews with senior management from residential conveyancing departments in over 100 firms and feedback from over 1,000 call handlers.

• Take part in an interactive discussion that examines how cloud technology is changing the way law firms practice conveyancing.

Amongst the findings, the study shows that:

London, Microsoft Headquarters, 23-2-2017, 15:30 – 18:00 innovationeventlondon2017.eventbrite.co.uk

• Over 85% of firms seem to treat ‘residential conveyancing quotes’ as a purely ‘low level’ administrative task.

To find out more and register for the event today:

Manchester Art Galleries, 20-4-2017, 15:30 – 18:00

• 91% of firms make no attempt to differentiate themselves from competitors, either during the telephone enquiry or in any follow up email. • In over a third of all calls, neither party knew who they were talking to, as the caller’s name was not taken and the call handler had not introduced themselves and in 97% the call handler failed to either ask if the caller wanted to go ahead, even when the caller responded positively to the quote. “The truth is that the majority of firms condemn themselves to the inevitability of quotes conversion failure.â€? says Professor Cooper. “The report reveals the main reasons for failing to convert. We

“We are consistently impressed with the team’s knowledge of solicitors’ practices and trends in the legal profession as a whole.�

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The Report

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Local Issues

US, UK and German Law Firms Collaborate to Help European Financial Whistleblowers Bring Cases, Collect Awards Meissner Assoc. (NY), Naegele (Stuttgart/Berlin) and Brahams Dutt Badrick French (BDBF)(London) team up to assist Europeans obtain financial bounties through SEC’s whistleblower program; despite rollback of some Dodd-Frank provisions, whistleblower awards expected to remain in place One of the leading whistleblower law firms in the U.S. has partnered with two prominent European firms to launch a collaborative platform to help Europeans call out financial wrongdoing and benefit from U.S. whistleblower laws.

Meissner & Associates, a New York firm that has secured the largest payment issued to any individual U.S. whistleblower, is collaborating with Stuttgart/Berlin-based Naegele and London-based Brahams Dutt Badrick French to create the new transatlantic whistleblower initiative, the first of its kind.

The three-way alliance is designed to help employees, suppliers and other stakeholders of international companies who identify financial misconduct in European operations bring lawsuits and advance enforcement actions by the U.S. Securities & Exchange Commission. Eligible clients could include anyone working with a European or multinational company whose securities trade on U.S. exchanges as well as American companies that do business in Europe.

Under the 2010 Dodd-Frank financial reform legislation, individuals whose original information assists the SEC in bringing a successful enforcement proceeding are entitled to a bounty payment as high as 30% of any financial penalty of $1 million or more imposed on a company. To date, the SEC has granted more than $110 million in awards to whistleblowers in dozens of cases and has taken in more the $500 million in related fines.

More large bounties are in the pipeline.

Although certain regulatory aspects of Dodd-Frank may be rolled back under the incoming Trump administration, the whistleblower bounty provisions are expected to remain in place as a valuable tool for incentivizing company insiders to step forward and work with the SEC and other agencies to curtail corporate wrongdoing.

Under the new alliance, the Naegle and BDBF firms will advise clients on local legal issues stemming from their role as whistleblowers, including helping with challenges that may arise from their employers such as retaliatory action. Mr. Meissner will help clients navigate the arduous process of filing and pursuing cases with the SEC. “We’re excited to align with two leading European employment law firms in Naegele and BDBF to provide a legal support system for individuals in Europe who may want to come forward as whistleblowers but up to now have not had the confidence that their voices would be heard and actions taken to protect them,” Mr. Meissner added.

“Becoming a financial whistleblower is a huge commitment and takes considerable courage and stamina, with numerous concerns such as potential retaliation if not handled properly, and because it can take several years to conclude a regulatory action that results in a financial award,” he explained. “Our European partners are extremely skilled in local employment law that could come into play as part of a whistleblower case.

And our firm has the background to provide a fully experienced counsel specific to whistleblower cases covering any possible issue that may arise.”

Sebastian Frahm, a founding partner with the Naegele firm in Stuttgart/Berlin, welcomed the tie-up as an important vehicle for safeguarding the interests of European whistleblowers who decide to expose financial wrongdoing.

“We have to improve the security and incentives for whistleblowers in the EU who identify accounting violations and other improper business behavior, in Germany and elsewhere,” Dr. Frahm said. “We need more legislative remedies as well, but for now we welcome our new partnership with Stuart Meissner and BDBF to help Europeans utilize the SEC whistleblower provisions in the U.S. Stuart’s success on behalf of the Monsanto whistleblower was extraordinary – the award he achieved for his client was just under the maximum 30% cap allowed.

“While the SEC’s bounty program has yielded a large harvest of payments in the U.S., most of those working for regulated companies in other countries have not taken advantage of the mechanism, even though most of the same rules apply for individuals working overseas, who have little or no protection for blowing the whistle,” said attorney Stuart Meissner, a former securities regulator and prosecutor with the Manhattan District Attorney’s office and the New York Attorney General, who is helping lead the collaboration.

“Working together, we will provide a reliable, safe and confidential service to German citizens who wish to become whistleblowers,” Dr. Frahm continued. “We’ve also agreed to defend whistleblowers in the event of any retaliatory action they may face from companies. However, the anonymous reporting feature of the Dodd Frank statute should provide comfort and entice many German business and financial professionals to step forward.”

Mr. Meissner recently represented a former financial executive of Monsanto Co., whose role in identifying audit lapses at the agribusiness giant led to a $22.5 million award this past August, which was by far the largest bounty paid to any U.S citizen to date. Here is a description of the Monsanto case: http://www.prnewswire.com/news-releases/law-firm-meissner-assocrepresents-whistleblower-in-nearly-225-million-bounty-payment-bymonsanto-over-accounting-deception-300320945.html.

Arpita Dutt, a founding partner of BDBF in London, added: “We are pleased to establish this unique international alliance with Meissner and Naegele to ensure that SEC whistleblowers have the best possible access to justice through seamless and confidential counsel with leading advisers in the field of whistleblowing law. We couldn’t have asked for a better association with Stuart Meissner, one of the preeminent whistleblower attorneys in the U.S.”

Mr. Meissner, who helped draft the original whistleblower provisions, recently met with two key officials in Washington regarding continuity for the whistleblower program, including Jane Norberg, the new chief of the SEC’s Office of the Whistleblower, as well as U.S. Senator Charles Grassley (R-IA), a longtime Chairman of the Senate Judiciary Committee and whistleblower advocate. Here is more detail on those meetings: http://www.hr.com/en/app/blog/2016/12/leading-whistleblower-attorneystuart-meissner-loo_iwhiqqto.html.

“Individuals who live or work in the UK and gain information about companies that violate U.S. securities laws have an invaluable role to play in exposing the harm caused to investors,” Ms. Dutt added. “Through this new alliance, BDBF will support to whistleblowers in the UK who may experience retaliation from their employers. We will also continue to call for legislative improvements to provide greater protection and rewards for UK whistleblowers.”.■

12 The Report

Wine Column

The En Primeur system explained.

The En Primeur market was originally designed to help producers in Bordeaux generate cash flow from their wines before they were ready to ship, or in many cases, even before they were blended.

In exchange for this partial financing of their inventory the Bordelais priced the En Primeur wines at a discount from the physical release price. This process does not offer the same financial saving that it once did for the consumer, but with the most sought after wines an En Primeur purchase is often the only way of guaranteeing an allocation. When buying En Primeur it is paramount to use a reputable merchant as the wine needs to be paid for many months before physical delivery takes place. There have been unfortunate instances where unscrupulous merchants have essentially “taken the money and run”. At the moment an investment in wine is one of the few that offers potential tax free returns due to HMRC interpretations.

(As always be sure to take tax advice before investing). Wines can be bought purely for investment purposes, to part fund the wines you wish to drink, or purely for the hedonistic pleasure they represent.

The 2015 Burgundy En Primeur season is now upon us and the biggest London merchants, including ourselves, will be hosting tastings this month to allow critics and buyers to assess wines from the 2015 vintage. On a recent tasting trip to Burgundy the reds

impressed us from the outset. Smooth tannins and supple flavours made them a pleasure to taste, even at such a young age, while the pure fruit gave clear expression to each terroir. The warm growing season was trickier for Chardonnay but we encountered some terrific whites from those who harvested early. Put simply, it is easy to recommend the 2015 vintage.

However, the warm weather which so concentrated the flavours in 2015, also reduced the final yield. Growers whose vineyards were ravaged by hail in previous vintages fared even worse, struggling to produce even a modest crop. Meanwhile, disastrous frosts in 2016, which wiped out entire vineyards will be putting upwards pressure on prices and making these rare wines even more sought after.

Burgundy has certainly had its fair share of challenges over the last few years but the quality of the 2015s in the Côte d’Or is without question and we would be buying it whether as an investment or as an addition to a drinking cellar.

For more information please contact clients@armitwines.co.uk

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13

CWHLS members report

Joint Chairs of CWHLS International Committee, Jeffrey Forrest and Professor Sara Chandler, having returned from the international delegation visit to Colombia in September, set off for Luxembourg for the FBE Congress from 13th to 15th October.

Milan Cathedral at Sunset.

Brexit and CWHLS It has been an interesting period for Londoners and for solicitors in Holborn and Westminster in particular.

Not many people know that a CWHLS member, David Greene of Edwin Coe, was part of the team that defended the decision on BREXIT and parliamentary sovereignty in the Supreme Court, and on 24 January heard the news that the team had been successful. Parliament is now charged with the responsibility to take the decision to start the withdrawal from the European Union. Withdrawal from the EU has implications for our London firms where European lawyers are working, and also for solicitors qualified in England and Wales who are working in firms on the continent of Europe. We need to know what the future will be for solicitors working permanently or temporarily in Europe. CWHLS has a useful data base of lawyers working in firms in several European cities, so they can be contacted when needed.

The cornerstone of international climate change policy is the commitment to global emissions reductions. Twenty years ago in 1996 in a meeting of the Council of the EU 2°C reduction was recommended and has remained the target ever since. There has never been agreement on how the reduction can be achieved. When discussing reductions in the UK it is generally argued that the UK should do so in order to comply with EU policy. UK politicians were at the heart of the policy formation. In 1996 the UK representative at the Council of the EU meeting was the Rt Hon John Gummer MP, who was then Secretary of State for the Environment and a very influential advocate on climate change policy. John Gummer is now Chair of the Committee on Climate Change at Westminster, a committee set up under the 2008 Climate Change Act. Domestic policy on climate change provides the framework for policies to roll back the march of Londoners have been increasingly concerned because of pollution trapped over the city in recent cold and foggy weather. Parents of children climate change. suffering from asthma attacks have been particularly worried. Schools What does that mean for solicitors, beyond personal responsibility? There have raised their concerns publicly. I remember the first time my eldest is an increasing role and CWHLS is hosting a climate change conference son, then aged 7, was having severe breathing difficulties, and his on 10 November 2017 in London as part of the Federation of European situation became so extreme we drove to the nearest hospital. He was Bars (FBE) Autumn Congress from 9 to 11 November. CWHLS will not rapidly diagnosed with asthma and assisted. The Mayor of London is only host the FBE Congress but at the same time is hosting the National attempting to restrict pollutants and improve air quality in the capital. On Conference of Local Law Societies. There is much to discuss next 19 January he issued a smog alert in response to the toxic air choking the November; CWHLS members should save the dates right away. city, following the first smog alert issued on 1 December 2016.

I have just attended the Opening of the Legal Year ceremony in Milan, in Sometimes the problem is aggravated by industrial pollution blowing in my role as Vice President of the FBE. At the CWHLS annual gala dinner in from continental Europe; however, London has illegal levels of nitrogen 2016, we were joined by 30 lawyers from Milan, who enjoyed a three day dioxide (NO2) air pollution (mostly from diesel vehicles) all year round. visit to London, hosted by CWHLS. Several CWHLS members were part ClientEarth brought a case against the UK Government last year because of years of failure to act on illegal levels of air pollution across the country.

As a result the government must produce new draft plans to clean up our air by April 24. The plans must include a national network of clean air zones, which stop the dirtiest diesel vehicles entering pollution hotspots, stop the fiscal incentives which encourage people to use diesel vehicles and instead help them buy cleaner ones.

of the team which took our guests on visits to the Supreme Court, Parliament, Middle and Inner Temple, the Royal Courts of Justice and King’s College. Thanks again to Arthur Weir, Adam Maberly, Jeffrey Forrest and Laura McKoy for making that visit so successful. We look forward to welcoming more lawyers from Milan next November and CWHLS members who are keen to get involved should contact me on sarachandler.lawsociety@gmail.com

Some cities with air pollution take emergency measures during similar smog episodes, including making public transport free and banning cars from the most polluted parts of the city.

Professor Sara Chandler QC (Hon) is a Past President of CWHLS and joint chair of CWHLS International committee

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Property

THE UNCERTAINTY OF OWNER’S POWERS SKELWITH (LEISURE) LTD V ARMSTRONG [2015] EWHC 2830 (CH) CECILY CRAMPIN

When I was at law school, I was taught that the Land Registration Act 2002 was an Act designed to provide certainty. What the register said was right. The misty world of equitable interests is excluded from the register.

A property interest has one owner, to the outside world, and that owner can be identified from the Register. Conveyancing is thus made clear, and the economic value of property protected.

he or she possesses” (nemo dat quod non habet); this was not appealed. Thus s24 is not a statutory provision which gives more rights than there were before.

That description of the Act has always been too purest. In part that is simply by necessity, because of the registration gap. Without econveyancing, someone buying a property won’t have legal title until some time after completion. For this reason at least, it seems, sections 23 and 24 of the Act give rights to deal with the property not just to the registered proprietor or the registered chargeholder. The rights to exercise owner’s powers are given to any person entitled to be registered as the proprietor (s24). Someone in the registration gap should be able to act as if they have title.

Presumably the point would also apply to an equitable assignee of a registered freehold or leasehold interest. Indeed Norris J has applied like reasoning to Skelwith in Stodday Land Ltd v Pye [2016] EWHC 2454 (Ch). The equitable assignee could not serve a statutory notice to quit because the general law (the statute) did not make him the landlord.

What about transfer? Presumably, the equitable assignee could only assign the registered freehold, under s23, if he could have done so under the general law. It’s not at all obvious that under the general law he would have any such power He could assign his rights, but.

That does not seem to be the exercise of an owner’s power bringing with it the effects of the Act. The answer in Skelton seems to defeat the intention of filling in the registration gap.

What seems to follow is that more than one person can transfer a registered interest in the property. This is the suggestion in the judgment of Rimer LJ in Helman v Keepers and Governors of the School of John Lyon [2014] EWCA Civ 17: if the trustee in bankruptcy has not entered a restriction Perhaps the answer on the bankrupt’s title, then, notwithstanding the automatic vesting of the bankrupt’s property in the is that “nemo dat trustee, “a bankrupt might be able to dispose to a quod non habet” purchaser of the estate vested in his trustee”.

is no longer the

The principle “nemo dat quod non habet” is central to the problem of balancing certainty and the rights of the unregistered. It seems odd that simply because someone has registered title, they should be able to transfer property free of their encumbrances, or transfer the property at all even though they were registered fraudulently. Yet that is the effect of the 2002 Act. On the other hand, if one took too seriously the nemo dat principle, all of the equitable rights that make land ownership so uncertain would have to be considered in any piece of conveyancing.

A recent case about an equitable owner of a correct way to registered charge suggests that the effect of s24 is understand either more limited than that first glance suggests. The legal or equitable title. words of s23 - owner’s powers are powers to make a disposition of any kind permitted by the general law - appear from Skelwith (Leisure) Ltd v Armstrong [2015] EWHC 2830 (Ch) to limit owner’s Perhaps the answer is that “nemo dat quod non habet” is no longer powers not just by reference to the kinds of dispositions there could the correct way to understand either legal or equitable title. The be of the particular property interest, but by reference to the particular answer is priorities. The legal owner of property where the equitable interest of the person entitled to be registered. interest is owned entirely by some other, does not own less of the property. It is just that someone else has a series of rights. The In Skelwith, the mortgagee assigned the legal charge by deed, but exercise of those rights is subject to rules of priority. The legal owner that assignment was not completed by registration, though the can charge or sell in a way that may postpone the rights in equity. assignee was entitled to be registered. The equitable assignee The person entitled to be registered, exercising owner’s powers, contracted to sell the property. The question for Newey J was may do so as if the owner, save that the rights he creates whether it had any power to sell. He found the assignee did, but not because that power was given to the assignee under s24. It was only are at risk of losing priority. because the assignee had that power by reason of the general law.

By CECILY CRAMPIN The equitable assignee could give good receipt for the mortgage Falcon Chambers money within the meaning of s106(1) of the Law of Property Act 1925, and could exercise the power of sale arising under s101, because the mortgage had been made by deed and the money was due.

Thus the powers of an equitable owner do not simply equate with those of the registered owner by reason of s24. The reason is, as per the Court of Appeal in Mortgage Business plc v O’Shaughnessy [2012] 1 WLR 1521, “a person cannot grant a greater interest than The Report

15

Property

Knight Frank has created a unique digital tool that gives property owners the latest local area trends that are driving property values in their postcode - 24/7.

Lifestyle trends: provides insight on lifestyle topics that are trending in social channels and key lifestyle factors that reflect and affect property values, such as popular eating and drinking types, number of gyms vs. craft breweries as well as the most popular social conversations going on in the area. There are 21 speciality cuisines in SW1P with Never before has a property consultancy brought together this unique Italian being the most popular. Access to local amenities are always combination of data to provide such detailed local area insight. attractive and a real bonus to potential buyers.

Property trends: provides property market and Knight Frank insight The data gets refreshed on a monthly basis so is always such as average sales asking price, average rental Looking to up to date. The insights in the tool ensure that prices, property value growth over time, as well as how sell or let myPropertyGenius provides an informative and enjoyable quickly Knight Frank sells properties in that area. experience for anyone interested in property. your home?

For example, the current average asking price for a two Find out the Looking to sell or let your home? Want to find out the current bedroom apartment in SW1P is £1,678,547 and there current average asking price? Visit myPropertyGenius.co.uk. have been 676 properties similar to this which have average “I believe My Property Genius is the first website of its kind been sold. Property values in the SW1P area have risen asking price? that allows access to local data and trends that are incredibly by 42% in the last five years. important factors when deciding whether to move from an Area trends: provides insight on retail, property area or to an area. This sort of information, collated in one place, is development and school catchment which reflect and affects property such a useful tool for buyers and sellers or those who are just curious values, such as increase in independent retailers, increase in loft about what is happening in their local area and what trends are conversions and the popularity of local schools and the likelihood of affecting the value of their homes.” getting in. In SW1H for example, over the last three years, there have Robert Oatley been planning applications granted for 22 loft conversions - a key – Associate, Sales Manager. indicator of an affluent area. Independent cinemas are increasingly Knight Frank, Victoria, Wesminster & Pimlico Sales. popular in the UK, there are currently 16 in SW1H and your child has an 82.4% likelihood of getting into your first choice of school.

Launched in late 2016, Knight Frank's MyPropertyGenius tool gives an insightful and fun snapshot of the user's local area, including area, lifestyle, school and social data, which they can share through their own social media channels.

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The Report

Faster.

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Our understanding of the ever-changing market enables us to price properties accurately.

So whether you’re looking to buy or sell; you can rely on Knight Frank to get you moving.

Knight Frank Victoria, Westminster & Pimlico 51 Victoria Street SW1H 0EU 020 3544 0640 @KFVictoria victoriasales@knightfrank.com

KnightFrank.co.uk

Event Management

YOUR ADVENTURE BEGINS...

Poole based Event Management Agency, Eventscape, has been organising events across the UK and Overseas since 2002.

We create high end incentives and events, resulting in memorable experiences for our clients and partners.

We organise Conferences & Board Meetings, Corporate Hospitality, Incentive & Reward programmes, Gala Dinners, Team Building and have our own Marine events division.

With a wealth of countries, venues and activities available to the corporate market, the UK may logistically appeal but it is also worth considering overseas locations as sometimes these prove more cost effective.

If your brief calls for a luxury one day incentive to ‘thank Partners’, contemplate chartering a private plane to France to taste Champagne in Reims, Fine Wines in Bordeaux or a gastronique delight in Paris…

Consider a decadent evening of Champagne and fine dining prepared by a top Celebrity Chef on the Belmond British Pullman, whilst being whisked back in time to a more gracious age of travel.

Golfing and Driving days can be magically enhanced…transport your guests to Lapland and let them try snowmobiling, Husky, Reindeer or Porsche driving or a very unusual game of golf on the frozen icescapes.

Successful events may sometimes require interesting quirky elements to boost attendance. We can bring your next event to life, be it Annual Conference, Gala Dinner or Award Ceremony with lavish décor, fresh exciting performers and energisers.

We offer a free venue finding service and the best hotel agency rates.

Working closely with the stunning New Forest Hotel, Chewton Glen, this beautiful location provides a backdrop for Board meetings, which you may find are more productive held out of the office.

We are proud of our new partnership with Somerley House as their preferred activity and event supplier.

Look on our website www.eventscape.co.uk for ideas and dates for your diary for a quintessentially English summer: Henley Festival A unique black tie summer party set on the Banks of the River Thames to celebrate the very best of International and UK Music, Art, Food and Comedy 5th – 9th July 2017

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Royal Ascot Not only a national institution for Horse Racing but a centre piece of the British social and sporting calendar 20th – 24th June 2017 The Jaeger-LeCoultre Gold Cup The premier Polo tournament in the world at 22 goal level, played to decide the British Open Polo Championship at Cowdray Park.

23rd July 2017 Cowes Week The largest Sailing Regatta of its kind in the world.

29th July – 5th August 2017 MARINE EVENTS Our specialist Marine division organises luxury Powerboat and Yacht Charters from the Solent and Poole Harbour.

Our Marine staff are professionally accredited and with a wealth of experience of water based charters, we are able to offer boats of varying size and budget to suit all requirements.

We offer luxury packages from our selection of powerboats, as a platform for you to bond with your corporate clients to watch your chosen regatta or enjoy VIP hospitality.

We will be hosting a fantastic demo afternoon on board a stunning Sunseeker Predator 56 Powerboat in April, please email us if you would like to attend on enquiries@eventscape.co.uk ■ Tel: 01202 853202

Finance

Finance News This issue’s finance news is brought to you by Tanya Hamilton a partner at McBrides Chartered Accountants and a specialist in advising legal practices.

Tanya Hamilton

Solicitors be mindful - you are not a bank!

Tax avoidance still at the top of the government’s agenda

The SAR Rule 14.5 preventing a firm’s client account being used as a banking facility has made the news over the last couple of months with a spate of recent disciplinary tribunals and court judgements against solicitors.

HMRC’s tougher line on tax avoidance collected a whopping £886m over the year to 31 March 2016, a figure significantly up on the 201415 figure of £494m. The Chancellor Philip Hammond signalled in his Autumn Statement, just before Christmas, that tax avoidance will feature in the new Finance Bill this year in the form of tougher penalties for professionals who promote suspect schemes.

The SAR Rule is explicit and states that there must be a legal transaction underpinning the movement of client money.

Solicitors trying to accommodate a client, however innocently, have been caught out and fined. And while a client may have a multitude of reasons for wanting to move money through solicitors rather than their bank (ease, lack of charges, trust etc), the Solicitors Regulatory Authority (SRA) would view this as ‘doing the bidding’ of a client something that the Rules were designed to prevent.

Since 1998, guidance note (ix) to Rule 15 of the Solicitors Accounts Rules 1998 has warned solicitors of the need to exercise caution if asked to provide banking facilities through a client account and in 2004 the note was amended to expressly state that solicitors "should not provide banking facilities through a client account". In 2011, the guidance note was elevated to an Accounts Rule (Rule 14.5 of the SAR Accounts Rules 2011).

The SRA believe that no specialist knowledge is required to understand this Rule and will prosecute if they believe a solicitor is moving money or holding client money without a legal transaction attached to it.

The SRA has seen an increase in reports of client bank accounts being used improperly as banking facilities, with the attendant risks of involvement in financial crime or non compliant insolvency processes.

HMRC’s computer snooper in full operation Don’t be tripped up by your electronic footprint - it’s bigger than you think it is! We all manage to leave a sizeable electronic trail detailing where we have been, what we have spent, showing when we are home and when we are away.

HMRC has spent over ÂŁ100 million, along with years of research, building their powerful ‘Connect’ system which enables officers to draw on information from government and corporate sources to profile each taxpayer’s total income. So, HMRC has a more complete view which extends beyond relying solely on information provided by the taxpayer. If HMRC sees variation in the information provided by the taxpayer, then the account will be flagged and could be subject to investigation.

Tanya Hamilton Tanya Hamilton is a partner at McBrides Chartered Accountants specialising in advising legal practices. Tanya is experienced in guiding legal practices through the minefield of SRA Accounts Rules as well as the accountancy and tax issues affecting the legal sector. To get in touch with Tanya visit www.mcbridesllp.com

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19

Events

LEGAL CUP 2017- Open for Entries Every year in the spring sunshine, law firms from all over the UK flock to the South Coast to compete in the legendary Legal Cup. This year’s event takes place over two days from 20 – 21 May 2017 and includes the ever popular themed gala dinner and party.

The weekend combines productive networking, team building and charity fundraising. It is the sailing event for the legal community.

In 2016 over 250 people took part including Magic and Silver Circle firms. After some incredible fancy dress and amazing dance moves, Tahiti holiday prizes from our generous sponsor, and very close racing on the water, the Bar Yacht Club and Bond Dickinson departed with the coveted trophies. Other prize winners included Allen & Overy, Clifford Chance and Fieldfisher.

Now is your chance to take part, please join us in 2017.

With sign ups from Linklaters, Norton Rose Fulbright, Private Office Legal Services and Private Office Asset Management Ltd the competition is heating up.

If you are a law firm looking for a new experience - the Legal Cup could be perfect for you. It doesn’t matter if you have never set foot on a yacht before; Our professional sailors will show you the ropes, so you and your team can have fun and get involved. We also accept entries if you have your own yacht.

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See what supporters of the event have to say: “The Legal Cup is a great way to meet others in the industry and a fantastic opportunity to bring teams together. A great feature of the event is that it’s open to all levels of experience and develops a terrific sense of camaraderie among the crews” – Allen & Overy “With a history deeply rooted in shipping law, Norton Rose Fulbright is delighted to enter the Legal Cup for the very first time. The weekend has developed a reputation as a must attend event in the legal sailing and social calendar and we look forward to hoisting our colours on our debut in the Legal Cup 2017” – Norton Rose Fulbright "Without doubt one of the best sporting events in the legal sector. Whether you're a seasoned sailor or a complete beginner, the staff at Britannia pull out all the stops to make sure you have an unforgettable weekend and keep you coming back year after year.”

- Herbert Smith Freehills LLP.

Cyber Security

FIGHTING BACK AGAINST THE FRIDAY FRAUDSTERS The digital world offers a seemingly unending stream of opportunities for criminals to enrich themselves at the expense of others.

The legal profession, routinely dealing as it does with the most sensitive of financial affairs, is a tempting target for the scammers.

One of the latest forms of internet crime to hit the headlines is conveyancing fraud – or so called “Friday Afternoon Fraud” - involving the fraudulent diversion of wire transfers into bank accounts under the control of scammers. Typically, the crooks strike just before a weekend or a bank holiday, hence the catchy sobriquet. The sums of money involved are substantial and the risks minimal. Little wonder that is one of the fastest growing online frauds.

grade security, collaboration and administration tools. The resulting product offers full end-to-end (e2e) encryption across not just messaging, but voice calls, video conferencing and file sharing.

In developing VIPole, we took a completely different approach,” says Miller, “Starting from the basic concept of an encrypted team collaboration tool, rather than a personal messenger with encryption added as an afterthought.” Unlike most other apps, IT administrators can manage teams of users, with a high degree of control over how they can use the system. “For example,” says Miller, “We can give individuals the ability to read but not share certain files, or deny access from devices outside the corporate network”

A typical case will involve the victim being contacted on the day of exchange, apparently by their solicitor, informing them of a change of bank details for the transfer of funds. The emails appear absolutely genuine, and include all the correct names and references. But in reality, the email is a fake; the fraudster has intercepted legitimate email The reason is that it’s not just emails that are vulnerable to unauthorised exchanges and has been patiently monitoring activity, waiting for the access. “Unencrypted data stored on mobile devices and even a right moment to interject false transfer information. Once money hits the company’s own server also represents a potential threat. criminal's account, it is instantly transferred to a Research has shown that 42% of all commercial data loss network of other accounts all over the world, where Encryption is a incidents involve a company’s own personnel, either acting it effectively becomes untraceable. powerful weapon maliciously or accidentally.” VIPole protects this data as well,

and gives administrators the power to remote wipe sensitive As is common in electronic crime, it is the humble against fraudsters, data from devices that have been lost or stolen. email that provides the entry point for the criminals. but only if it can Emails are typically sent as plain text across However one familiar feature that VIPole shares with other be properly networks, making them easy to eavesdrop once a popular apps is ease of use. Miller continues, “An effective implemented, network has been compromised. Private system must not complicate communications, and it must individuals are the least likely to be security-aware, effectively provide all the tools needed within a single e2e encrypted making them easy targets. Home WiFi networks platform. And, obviously, it has to have the ability to facilitate managed and with poor security; “man-in-the-middle” attacks external communications with clients within a secure easily used. trapping unwary users attempting to connect to environment.” free WiFi hotspots in public spaces or malwareRather than relying on usernames and passwords, algorithms ensure infected downloads are all used to listen out for key words and phrases that messages remain secure, that the sender and recipient are who that alert the crooks to potential property transactions. they appear to be and that nobody else is listening in to that The modern-day ubiquity of email was driven by its convenience, and conversation. End-to-end encryption ensures that nobody – not even the many people now use instant messaging for exactly the same reason. software provider - is able to break into conversation or create fake IDs Popular apps such as WhatsApp are convenient and easy to use, and or messages. “That,” comments Christopher Miller, “Stops the Friday as a bonus, many are increasingly using encryption techniques to Fraudsters dead in their tracks.” prevent messages being intercepted. Encryption encodes network traffic But what about the potential legal implications of sharing confidential so that only sender and recipient can unscramble the original data. client information over a public cloud service such as WhatsApp? VIPole Given the apparent benefit, it may appear odd that the business world has a simple solution; it offers an on-premise package that enables appears slow to catch on to this important development. However there firms to run the service completely in-house on their own server to create are reasons for this, as VIPole’s head of development, Christopher Miller their own private, strongly encrypted messaging eco-system. Firms are explains; able to connect clients to their secure system as easily as sharing an “Encryption is a powerful weapon against fraudsters, but only if it can be email address, but without compromising security. The VIPole client properly implemented, effectively managed and easily used. End-to-end software is available as a free download for all platforms (iOS and (e2e) encryption of traffic is the minimum requirement, but many Android, as well as Linux, Windows and Mac OSX), so anyone can start messengers do not meet this standard. Of those that do claim to be using it without having to buy equipment or install complicated software. e2e, question marks remain over how confidential data transiting across Moving to encrypted communications brings another benefit for legal third-party cloud servers actually is. For example, WhatsApp claims to professionals. With the greater publicity around conveyancing fraud be e2e encrypted, but admitted last year that it shares user data with creating anxiety in the market, the ability to guarantee secure parent company Facebook to profile users for marketing purposes.” communications with its clients and restore confidence, gives it an In 2013, VIPole, a UK-based software developer, set out to develop an obvious marketing advantage, as well as closing the door firmly on the instant messaging system that combined ease of use with enterprisecriminal aspirations of the Friday Fraudsters.

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Technology

LEAP enhances technical support and grows team LEAP, the world’s leading cloud software provider for small law firms, has recently transformed its UK customer service model, moving from an inbound helpdesk telephone system to a LiveChat system where the vast majority of support issues can be resolved immediately.

A client logs onto the LiveChat system, the call is automatically logged and the client is straight away talking to the technical support team. The team operates a triage system and over 80% of problems are resolved straightaway. The option of phone support is always available.

With the LiveChat system all ten of the LEAP support team say they have resolved an issue with online chat within one minute. How many phonebased teams can claim that? LEAP’s support team is UK-based, currently comprises of ten members, with three more to be added because of sales growth.

Sarah Martin-Lewis, Helpdesk Manager for LEAP, comments: “Clients understand that LiveChat means an immediate response to a query without having to wait in a queue for a period of time Customer agent Rhys Tudor-Davies adds " LiveChat gives us the opportunity to resolve multiple issues at once and allows customers to get in touch quickly without the need to be kept on-hold."

LEAP UK CEO Peter Baverstock comments: “We are exceptionally proud of our support team and we are delighted with the LiveChat system. We never give up on a technical problem. We pride ourselves in having the

best software for small law firms and we can now add the best support to that.”

LEAP customer Derek Adkins, DRA Conveyancing Ltd. comments “We have found the LEAP support to be patient and reliable. To illustrate this, I was recently working whilst flying at 35,000 feet on an airline which offers Wi-Fi; having some problems, I contacted LEAP Support. They promptly logged on to my laptop remotely and almost fixed my issue (only weak Wi-Fi preventing full resolution). The next working day LEAP completed the fix allowing me to be fully engaged in the running of my practice, and the accounts, whilst 5,000 miles away from UK.” and finally ….

Some amusing quotes from the support team have received from clients include: "Could you just pop down and sort this out for us? I’ll make you a nice cup of tea and a sandwich."

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23

Probate

Genealogical research – The secrets of locating missing heirs With the majority of estates, identifying the rightful heirs is straightforward.

However, when beneficiaries are missing or unknown it can throw the entire estate administration process into disarray.

A case which highlights these risks involved a spinster who died intestate and left a £200,000 estate. Her paternal family was quickly located and reported that there were no surviving maternal relatives.

unless genealogical research has been undertaken beforehand. For larger estates, a recognised genealogy report is often the only viable option for legal professionals to take.

To safeguard you and your clients against the consequences of a missing beneficiary coming forward, many firms carry out a beneficiary search through a specialist genealogist, like Title Research. They However, when the deceased’s post was redirected to her This may sound provide a comprehensive report which identifies any potential solicitor, a card was received from ‘Cousin Joyce’ who had not unusual but heirs (and locates them if necessary) or at least provides been mentioned by any other family members. As a result, the Title Research reassurances that there is little chance of further beneficiaries solicitor appointed Title Research to research the family tree in existing. greater detail. They identified seven maternal family members reports that 40% of family “In the authors’ view, whilst there is no authority which provides who all stood to inherit from the estate under intestacy rules, trees that they assistance on this point, it is possible that a beneficiary might fundamentally changing the distribution of the estate. check contain successfully argue that the personal representative has acted in This may sound unusual but Title Research reports that 40% errors. breach of duty by appointing an heir locator on such a basis, of family trees that they check contain errors. Had the estate and should be personally accountable for the share that the beneficiary been administered without further investigation, the beneficiaries (and has paid to the heir locator.” their legal representatives) could have been left exposed if entitled beneficiaries emerged after the estate had been distributed.

So how do you mitigate these risks? The SRA expects you to take reasonable steps to find all beneficiaries; only small estates of £500 or less can be self-certified and donated to charity. One way of doing this is to ask the beneficiaries whether they are aware of any other heirs but cases like ‘Cousin Joyce’ demonstrate how this approach is inherently unreliable.

Specialist insurance cover to mitigate the risk of a missing beneficiary coming forward is also an option. However, very few insurers offer cover

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Tom Curran, Chief Executive at Title Research said: “Failure to carry out thorough genealogical research could result in a missing or unknown heir coming forward after an estate has been distributed. We locate thousands of missing beneficiaries each year which highlights how easy it is for legal professionals to fall foul of assuming that all heirs are accounted for. Our consultant genealogists trace people across the world and have a success rate of over 90%, so we are confident that we can help our clients with even the trickiest of estates.”

For more information Title Research’s services, visit www.titleresearch.com or call 0345 87 27 600.

Probate

THE ASSOCIATION OF PROBATE RESEARCHERS (APR) TAKES THE FIRST STEPS TO REGULATION IN THE HEIR HUNTING INDUSTRY

The Association of Probate Researchers (APR) was formed in response to the lack of regulation in the Probate Research (Heir Hunting) industry.

Neil is a partner at Fraser and Fraser, the research firm who have featured most prominently on BBC One’s Heir Hunters programme for 10 consecutive series. After several years of looking at ways to promote regulation, Neil is delighted to announce that APR (which was incorporated in June 2016) is now a recognised body under the Professional Paralegal Register (PPR). APR’s new status is set to benefit its members, allowing them to hold a PPR practising certificate whilst they follow APR and PPR guidelines.

The probate research industry is unregulated and APR was set up as a voluntary, self-regulatory body which aims to raise standards and to offer protection to beneficiaries from hobby genealogists and enthusiast amateurs. APR protects consumers (beneficiaries) from firms and individuals who believe that, after having watched the TV series, they can become probate researchers with very little or no legal training and experience. In the past few years there have been several cases of fraudsters posing as Heir Hunters resulting in millions of pounds being stolen from members of the public. This is just the tip of the iceberg.

PPR was launched in 2015 by the National Association of Licensed Paralegals (NALP) and the Institute of Paralegals (IoP).

The PPR was set up in direct response to the Legal Education and Training Review (LETR) in order to regulate paralegals and only recognise those who provide the highest of standards. APR is the fourth body to be recognised by the PPR and the only body for Probate Researchers or Heir Hunters.

Commenting on this development, APR Chair Neil Fraser said: “APR is the only Recognised Body for Probate Researchers that has access to a compensation scheme and an independent complaints procedure. We are proud to be working alongside the PPR to enhance the status of Professional Paralegals. Our members will at last be able to have their professional status recognised, this is only the beginning in order to justly regulate the industry, but it is a huge first step.

“Beneficiaries can be comforted by the fact that our individual paralegal practitioners are regulated and backed by a compensatory scheme, an industry first.”

Rita Leat, Managing Director of the PPR added: “We are delighted that APR is now a Recognised Body under the PPR. The probate research profession have been among some of the unsung heroes offering legal services and we welcome them as Professional Paralegal Practitioners. The PPR is the voluntary regulatory body for all legal service providers who work in the unregulated sector. It provides a robust but proportionate set of regulatory standards with a compensatory scheme available to consumers when things go wrong.”

The APR is in talks with several of the leading firms in the industry and hope to announce more members in near future.

All APR members sign up to the professional ethics and code of conduct. Members benefit from: Inclusion on the Register held by the PPR; the ability to apply for Paralegal Practising Certificates which provide regulation that until now has been missing from the industry. The APR has an independent compensation scheme, which has been setup to promote regulation, protect fellow members of the legal industry, and more importantly reassures the general public and beneficiaries that they can turn to an authoritative body if they have been taken advantage of.

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Legacies

A HISTORY OF PIONEERING CANCER TREATMENT Since it launched, The Institute of Cancer Research’s (ICR) free Will scheme has raised over £8m in legacy gifts, which have helped us make some of the most important discoveries in the history of cancer research. Help us continue our 100 years of ground-breaking research.

From identifying cancer-causing chemicals in cigarette smoke, to the vitally important link between DNA damage and cancer, we’ve always been committed to improving treatment and prevention through our scientific research.

Thanks to the research taking place at our labs in Chelsea and Sutton, we now understand more about the biology and genetics of cancer than ever before. This means we can diagnose patients earlier and target their treatment more effectively. As such, the proportion of patients surviving cancer has doubled since the 1970s.

But we envisage a world where people can live their lives free of cancer as a life-threatening disease. We have bold plans to make this a reality. We’re using cutting-edge microscope technology to look in exquisite detail at the fundamental biology of cancer cells; we have plans to build a new Centre for Cancer Drug Discovery to help us discover more and better treatments, and tackle the challenge of drug resistance; and we’re investing in exciting new treatment approaches such as immunotherapy.

Legacy donations are a vitally important source of funding for the ICR and past legacies have helped us to make some of our most significant discoveries. At the ICR we offer a Will for Free scheme,

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enabling people aged 60 and over to make a basic Will or update an existing one – and the ICR will cover the cost.

Almost 400 solicitors across the south and east of England have partnered with the ICR on our Will for Free scheme, and together they helped secure almost £2.5million in legacy pledges in the last financial year. The importance of these pledges cannot be overstated; knowing that we can rely on future funds from legacy gifts allows us to embark on major research initiatives and invest long-term in finding the solutions to defeat cancer.

To find out more about the ICR and our Will for Free scheme, please visit our website icr.ac.uk/legacy or call Marcia on 020 7153 5387 or email legacy@icr.ac.uk.

“Having been a researcher at the ICR for almost 20 years, I have seen it go from strength to strength. I am proud of the impact its research has had, and will continue to have in the future. I decided to leave a legacy to the ICR in my Will because I want their vital work to continue.”

Professor Robin Weiss FRS Former Director of Research at the ICR.

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Legacies

Canine Care Card Some dog owners worry what might happen to their dog if they were to pass away first, leaving their beloved four-legged friend without an owner.

Thankfully, Dogs Trust, the UK’s largest dog welfare charity, offers the Canine Care Card, a special free service that aims to give owners peace of mind, knowing that the charity will look after their dog if the worst should happen. Not only does this offer reassurance to dog owners, it also helps to ease the minds of friends and family during what is already a distressing time.

Over the past 12 months, Dogs Trust has taken in a whole host of dogs across its 20 rehoming centres in the UK as part of the Canine Care Card scheme and helped them settle into happy new homes. One of these such dogs is ten-year-old Jack Russell Terrier, Buddy who was taken in by Dogs Trust Glasgow when his owner sadly passed away. When he first arrived at the rehoming centre, Buddy was understandably missing his home comforts and hoping to find love again with a new owner. Thankfully, the team at Dogs Trust Glasgow were able to provide the adorable boy with a home away from home while he awaited his furry-tale ending.

Dogs Trust never puts a healthy dog down, and works hard to match every dog with a responsible, loving home. After being lovingly cared for by staff at Dogs Trust Glasgow, Buddy is now starting life with a new family, who have even registered themselves on the Canine Care Card scheme.

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Sarah and Buddy the dog.

Adrian Burder, Dogs Trust CEO says, “Thanks to Dogs Trust’s Canine Card Card scheme, dogs in need of a new home are given a lifeline meaning that Buddy and many dogs like him are able to get a second chance at happiness and bring joy to a new family. If you decide to become a Canine Care Card holder, we will issue you with a wallet-sized card. It acts in a similar way to an organ donor card and notifies people of your wishes for your dogs, should anything happen to you. Dogs Trust also strongly recommends that you mention the care of your dog in your Will. That way, there can be no confusion about your wishes.”

Conveyancing Focus

Tailored Regulation from a Specialist The Council for Licensed Conveyancers (CLC) was established in 1985 to foster competition and innovation in the conveyancing market.

The CLC has always looked to be a proactive regulator in anticipating and monitoring the issues that affect the licensed conveyancing community. We work closely with all our licence holders and we listen to what they say, helping them to achieve the right outcomes for consumers.

The CLC regulates thriving firms of all types and sizes, and has always looked to promote high regulatory standards. Each CLC Practice is allocated a Regulatory Supervision Manager (RSM) whose role is to guide them in all regulatory and compliance issues.

Today, we are still helping legal businesses to thrive by finding new ways to meet changing customer expectation. Our approach is to support firms to achieve compliance and to accommodate different ways of working where we can. In 2016 we were awarded the highest overall rating of any legal services regulator by the Legal Services Board.

Should you wish to discuss your Practice’s requirements, whatever your business model, we will be more than happy to meet with you, or discuss them over the telephone. Please email Jeremyh@clc-uk.org

There has also been no need for an accreditation scheme for CLCregulated firms or lawyers, thanks to their specialisation and the effectiveness of our tailored regulation.

In a recent survey, three quarters of licensed conveyancers stated that the CLC provides value for money and supports them in developing their businesses. From 1st November 2016 the CLC reduced its regulatory fees rates for Practices by 20%.

TAILORED REGULATION OF SPECIALIST LAWYERS PROTECTING THE CONSUMER SUPPORTING INNOVATION, COMPETITION AND GROWTH

If you would like to find out more about CLC regulation, or are considering becoming a CLC regulated Practice then please visit the CLC website: http://www.conveyancer.org.uk/Regulation-by-CLC.aspx where you will find more helpful information, including how to qualify as a CLC Lawyer: http://www.conveyancer.org.uk/trainee-lawyer.aspx

IT’S TIME TO THINK ABOUT THAT MOVE

To find out more about how your practice could benefit from transferring to the CLC, contact us on the details below.

www.clc-uk.org/Changing-Regulators or call 020 7250 8465 The Report

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Conveyancing Focus 30

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eConveyancing starts to take shape

an interview with Adam Bullion, General Manager of Marketing & Product at InfoTrack Why is changing technology important?

It has become clear that advances in technology, such as the advent of the internet and the smartphone have changed human behaviour. From our professional lives, where we work longer hours due to remote technology, to the behaviour in our personal lives, where we expect to have access to information instantly and be able to perform many tasks wherever we are, whenever. Consumer behaviour also has changed, and ecommerce has become king, so we no longer need to ever leave our homes to buy goods. These daily efficiencies are also expected by staff, and as a business owner it is our duty to implement the appropriate technology to meet these changing needs, particularly when, regardless of technological advances, many business processes remain stagnant.

In terms of the conveyancing process where do you foresee the potential for change?

I believe that the conveyancing industry is a legal sector that is overdue for change. Aside from searches, many parts of the process have already become electronic and are hosted online, such as the submission process for the SDLT and AP1 forms.

However, no provider has taken advantage of this ability, until now.

At InfoTrack, we look at the most cumbersome and form heavy sections of conveyancing and turn these into electronic versions that are easier to complete and enjoyable to use. Upon review, we identified the contract pack as the next segment of the process where administrative processes can be reduced and optimised. With this in mind, we have created eCOS (electronic Contract of Sale) which combats the time consuming process of copying information into a contract, as well as dealing with the slow and unsecured way in which these documents (including the TA6 and TA10) are handled. eCOS is a fully electronic process that conveyancers can take now advantage of and be seen by their clients as truly forward thinking.

Tell us more about eCOS, what does this do?

We created eCOS (electronic Contract of Sale) to be a paperless solution that gives conveyancers the ability to compile the full contract pack electronically, including the TA6, TA10, contract, title and plan. Our smart eCOS portal also allows the contract pack to be easily sent and received by both the conveyancer and the client within InfoTrack, so you can rely on it being a fast, paper-free and completely secure process that requires no printing scanning, posting or faxing. These contract packs can also be signed

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electronically by all parties involved, using the latest in e-signature technology. At InfoTrack, our mission to build the end to end conveyancing process online is being enacted one process at a time, and eCOS is the next step.

Are electronic signatures acceptable forms of signing legal documents?

With a growth rate of over 53% annually, e-signatures are rapidly being adopted in many industries and at different levels of transactions. The Law Society recently released a practice note on the use of electronic signatures in law, and with secure, stringent measures put in to maintain the highest level of security, electronic signatures are highly regarded and are an efficient way of signing documents. The technology we use is by DocuSign, the global industry leader in e-signing.

Would you offer any advice to conveyancers looking to adopt new technology?

InfoTrack aspires to create technology that is not only incredibly efficient and simple to use, but also makes day-to-day processes more enjoyable. I believe that good technology should be a joy to use, as well as providing clear operational benefit. So when adopting new technology for your firm, I always suggest that a series of questions are asked; does it add value to the customer?

Does it reduce operating costs? Is it relevant? Will it help us excel in our core competencies? Will it reduce cost/improve quality/provide a set of functions that did not exist before? Those technologies that will be most valuable should respond ‘yes’ to all those questions. â–

By Adam Bullion, Head of Marketing

Conveyancing Focus

Environmental searches: a simple solution to the complex issue of flood risk.

In Summer, we witnessed flash flooding on an almost biblical scale.

In parts of Southern England, cars were caught in rising floodwaters and businesses were forced to close as almost a month’s worth of rainfall fell in just one hour.

There are many common misconceptions around flood risk.

When we think of flooding, there’s a tendency to picture a river that’s burst its banks. However, that’s not always the full story.

Did you know the Environment Agency estimates that more properties in England are at risk from surface water flooding than flooding from rivers and the sea?

In its practice note from May 2013, The Law Society draws attention to these hidden dangers, stating: “It may not be obvious when a property is at risk from flooding. Properties do not need to be close to a river or the sea or on low-lying ground to be exposed to flood risk. Surface water, groundwater and overflowing sewers are increasingly common causes of flooding.”

So, how do you make sure that your clients’ property transactions are completely watertight?

“Flood risk is a complex issue but the solution for conveyancers is simple,” says Steve Johnson, Account Director from Landmark Information Group. “The right property search will accurately

identify the level of flood risk at a client’s property while removing the burden of interpretation from the conveyancer’s shoulders.”

Thames Water Property Searches offers Landmark’s standalone Homecheck Flood report, as well as the all-encompassing Riskview Environmental Search, both of which offer a fully practice note compliant flood risk assessment.

“While misconceptions may abound, it is common knowledge that buying a home in an area prone to flooding can make it difficult to obtain a mortgage, obtain suitable insurance cover or sell the property in the future,” says Steve.

“Given the huge negative implications for clients, it is essential that solicitors and conveyancers follow The Law Society’s guidance by addressing flood risk in accordance with the Flood Practice Note,” he adds. “That way both the homebuyer and lender are fully informed before the purchase completes and the conveyancer remains robust in their due diligence.”

If you would like to find out more about our products or would simply like some advice, please do not hesitate to contact our customer experience team on 0845 070 9148 or visit www.thameswater-propertysearches.co.uk

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Anti-Money Laundering

Anti-Money Laundering & Financial Crime – Nothing to worry about then!

Leading search provider PSG asks Norman Denton from compliance and risk management specialists Legal Eye, to explain the importance of remaining vigilant in the fight against fraud.

As we enter another year, existing threats from Financial Crime remain with us. However, we also have a few additional threats coming along in the form of regulations, statute and enforcement agency action. For example: • Anyone who has read the SRA AML Report released back in May, will recall individuals in firms have mistakenly believed that Money Laundering is limited to regulated activities, or simply looking out for drug and terrorist finances. Not the case, and might still get them into difficulties. As the SRA in its report commented: “During our visits firms were made aware that they are still at risk of committing money laundering offences under POCA if, for example, they become involved in facilitating sham litigation, such as dealing with staged road accident claims, or bogus clients.”

and, “There are clients for whom firms should not act regardless of the level of risk that is assessed and applied. These clients are those subject to sanctions. The sanctions regime is absolute and stands outside any risk based approach.”

• In the last few months, I’ve noticed an increasing number of enquiries from firms dealing with Data Protection S29 requests from investigators of suspected criminal activity including fraudulent claims.

• Coming along by April is the Criminal Finances Bill which in its current draft form proposes extending its reach to those professionals and their organisations with the creation of two new offences: • Failure to prevent the facilitation of UK tax evasion, or • Failure to prevent facilitation of foreign tax evasion So, for example, none of you allow a private client to have a Bill issued for private client services and invoiced to their company. If they subsequently confess to tax evasion, as proposed, you will have some serious questions to defend around a possible conspiracy charge.

An extra layer of s security y for you and your client Almost every week, the ere is another report of innocent people having their identities stolen and a being defrauded out of tens, or even hundreds, of thousands s of pounds - often, involving a propertyy transaction.

Verify the identity of almost anyone at any time, anywhere in th he world as part of your cu ustomer due diligence processes and he elp protect your clients from the risk of conveyancing fraud. Try our o enhanced AML and ban nk account validation offering, now available to order via PSG Connect.

• Late November 2016 saw the closure of a Home Office Consultation on transposition proposals for the EU 4th Money Laundering Directive.

A further very brief consultation period will open in the next few months before final enactment in time for the June 2017 deadline. Specific areas to note are: • AML Risk Assessments – a need for ongoing written assessments?

• Domestic PEPs – how far will a risk based approach to EDD extend?

• Trust Registers – a new feature • Data Protection – treatment of additional enquiries e.g. supplementary to a Suspicious Activity Report • Operation of your Pooled Client Account – if Simplified Due Diligence is removed from Banks, how will this affect your clients as funds pass through your Client Account So lots for the firm’s radar to be monitoring whilst you complete the day job!

PSG work closely with Legal Eye to provide conveyancing solutions with a range of Practice Support Services to ensure compliance with the ever changing regulatory framework. You can find out more about the services on offer here https://www.psgconnect.co.uk/legaleye/.

To find out more Call 01226 240055 Email searchteam@prropertysearchgroup.co.uk Visit www.psgconnect.co.uk

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We have also recently partnered with GBG, world leaders in identity data intelligence, offer an enhanced solution to your AML and fraud prevention obligations. It’s automated and online, meaning we’ll help you reduce your use of paper-based ID checks, streamlining processes and removing the risks (and costs) associated with manual checks.

For more information on Practice Support Services or our AML solution: Email: customerservices@propertysearchgroup.co.uk Visit: www.psgconnect.co.uk or Telephone: 01226 240055

Anti-Money Laundering

IS YOUR AML SERVICE PROVIDER GOOD VALUE? I have to start this review by stating AML compliance is only expensive when it’s not done right and it can become very very expensive when it’s not done at all!

We have all seen articles reporting the eye watering fines on some of the large banking institutions for non-compliance; some of the fines have been bigger than some small countries GDP! I assume these days that we have all made that important leap from a paper based process to an electronic verification system and the reasons for doing that are many and varied.

The foundation of sound KYC, AML and CDD compliance is a combination of deep and reliable data with broad coverage; when you combine this with automated flexible technology with an innovative and intuitive customer interface then you maximise productivity and minimise your risk.

deal with the type of people who would be on the Sanction and PEP lists; I’m not sure their Regulator would agree with them? Other organisations take the view that they will only check HM Treasury Sanctions, which is a similar high risk strategy.

Automation is a prerequisite in dealing with Sanction & PEP checks and any credible electronic verification system should check a comprehensive range of worldwide watch lists, have multiple entries for AKAs or similar, along with biography, adverse media and photographic evidence, to enable both automated and manual Enhanced Due Diligence when a Sanction or PEP match is found.

In addition, going forward Daily Monitoring of existing customers against changes to Sanctions & PEP watch lists, effectively completes the circle and again should be done without any intervention from compliance staff, who The other major should be there to deal with the exceptions and not challenge is how the rule.

The most reliable data available is Credit Reference Agency (CRA) data, which is collected from several hundred independent financial organisations on a daily basis. This makes it reliable, up to date and virtually impossible to forge a false identity. The do you check majority of blind spots in this data are individuals who In this modern day, technology providers can deliver have limited or no credit history and these are likely to your customers individual AML checks in under 3 seconds and full be retired or young individuals and high credit risk business checks in under 2 minutes, without the need against individuals. Supplementary data sources that are for any documents and all from a single platform Sanctions & likely to cover many of these individual groups are the provided by one supplier. How much easier is that? unedited Electoral Roll and negative credit information PEPs? So here is a quick seven point check list to see how found in public records of county court judgements well your AML Provider shapes up: and bankruptcy. The CRAs also carry all of this data. Some of the 1. How many suppliers do you need to receive a complete service? more advanced systems are integrated with more than one CRA so you get the highest quality data with the maximum depth and 2. What are their principle AML verification databases, ie CRA based coverage and this enables the highest levels of “mach & pass” or other third party based? rates.

3. What is their average verification “match & pass” rate?

Be cautious of suppliers that use utility databases (telephone and 4. How many Sanction & PEP watch-lists do they subscribe to? energy) as a means of verification. These databases typically have issues: name data can be incomplete, it is very easy to establish an 5. How frequently are they updated? account and therefore may be used to establish a fraudulent identity 6. How often do they re-check your existing customers, daily weekly, and the coverage is limited and inconsistent. These data sources monthly, never? are at the lower end of the quality spectrum.

Equally important is easy to use technology that checks customer details against all of these databases and delivers a result in a matter of a few seconds. If this solution is easier to use, more accurate and reliable, quicker and more cost effective to use than “supposedly free documents” then every organisation should be migrating to electronic verification.

7. Do they provide Enhanced Due Diligence data and services?

So it may just be time that you went back out in to the market, to see what’s there and what you are missing out on; trust me solutions have developed considerably in recent times.

The other major challenge is how do you check your customers against Sanctions & PEPs? The same principles apply here, i.e. good quality reliable data with deep coverage along with automated systems that do most of the work for you. There are currently circa 1 million sanction & PEP records spread across more than 1,100 worldwide watch-lists and with new records added and changes to existing records every day, to manage this verification on a manual basis is literally “mission impossible”! This is why some organisations have a compliance strategy of saying that they don’t The Report

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