Legal Practice Notes

Brexit: On 31 January 2020, the UK left its status as an EU Member State and moved into an implementation period, during which EU law continued to apply fully. Throughout this period, the GDPR remained in force in the UK and the UK was generally regarded as an EU (and EEA) country for the purposes of EEA and UK data protection law. Accordingly, any mentions of EEA or EU states in this Practice Note should be understood to include the UK until the end of that implementation period. For additional detail on that phase, its length, and the privacy regime expected to apply afterwards, see Practice Note: Brexit—implications for data protection [ Archived]. ARCHIVED: This Practice Note is archived material and sets out the position before the General Data Protection Regulation became applicable. It is provided for background purposes only and is not being...

CASE HUB ARCHIVED –this archived case hub reflects the position at the date of the judgment of 26 May 2017; it is no longer maintained. See further, timeline and commentary. Case facts Standalone proceedings before the CAT were brought by Socrates Training Limited against the Law Society of England and Wales, alleging abuse of dominance ( Case 1249/5/7/16). Latest development On 26 May 2017, the CAT issued its judgment on liability, concluding that the Law Society had abused its dominant position (in breach of the Chapter II prohibition) in the market for supplying quality certification/accreditation to conveyancing firms by requiring that certain training courses were sourced exclusively from it. The CAT also held that the Chapter I prohibition had been infringed. However, it determined that liability arose only from the end of April 2015, and not earlier. The Tribunal will next consider quantum. That same day, the CAT made...

The Law Society’s Wills and Inheritance Quality Scheme ( WIQS) was introduced in 2013 and operates by means of a series of prescriptive practice policies spanning Will drafting and the administration of estates. The protocols and policies contained within the estate administration section do not lay down a step-by-step method for handling an administration, as the process will vary according to the particular assets and liabilities within the estate, the expertise of those undertaking the work, and any recent changes in the law that may not yet be captured by the protocols. Even so, WIQS supplies a blueprint for the way a practice should approach administration to be able to claim the certification of WIQS. WIQS—general principles As set out by the Law Society, WIQS is intended to create a quality standard for producing Wills and administering estates. It comprises several...

Across legal practice, solicitors are represented on tax law matters by the Tax Law Committee. Below is a curated selection of its representations and practice notes. For more about the Committee, including its members, see: Details of the Law Society’s Tax Committee. Representations The Committee shapes policy in response to proposed changes in the law arising from bodies such as HMT, HMRC, the OECD and the European Commission. Tax treatment of asset holding companies in alternative fund structures consultation – Law Society response HMRC consultation on implementation of disclosable arrangements – Law Society response We responded to an HMRC consultation on draft regulations implementing EU Directive 2018/822 ( DAC 6) in the UK Major step closer to DAC 6 reporting deadlines extension EU Commission proposes DAC 6 deferral Changes to capital gains tax for UK residential property Budget response: No end to austerity in the justice...

Part 1 of the Transparency of Lobbying, Non- Party Campaigning and Trade Union Administration Act 2014 ( TLNPCTUAA 2014) governs consultant lobbying—the commercial activity of presenting clients’ views to government on their behalf. Those acting as consultant lobbyists must enrol with the Office of the Registrar of Consultant Lobbyists ( ORCL) and list their clients on the public register, disclosing the names of those clients. They must also state whether they adhere to a publicly accessible code of conduct available to the public. Most practices will not be affected, yet you should not presume the statute has no bearing on you. ORCL guidance clearly envisages that legal practices may fall within the lobbying framework. If your firm has any contact or interacts with ministers or permanent secretaries, assess carefully whether registration is required. Who is required to register as a consultant...

This Practice Note examines methods for valuing law firms and sets out the elements most prone to shape that assessment. Although several conventional approaches exist, it offers a worked illustration of an earnings-led valuation (discounted economic income). Investors commonly adopt this approach when pricing a company and, therefore, it is a vital computation to undertake before starting any talks. The outcome might be below your expectations, yet it provides a window into the sum an investor or acquirer could be prepared to offer. The discounted economic value model In brief, this model projects a firm’s future net cash profits and discounts them to today’s value. By applying an appropriate discount rate, it seeks to reflect the spectrum of risks the business encounters in generating that earnings flow over time. The exercise, therefore, converts anticipated cash returns across multiple years into a single current figure that...

The interview is your chance to showcase your proposal to the potential client. Poor preparation is the biggest cause of defeat at this stage. Even with a strong line-up, delivering without adequate rehearsal invites failure. This Practice Note sets out the core actions and factors to consider when preparing for a tender presentation. Get organised Hold a team meeting with the full pitch group at the earliest opportunity—see Precedent: Preparing for a tender presentation—meeting agenda. Aim to run this first session at least four to five working days before the interview. Check the administrative arrangements in the request for proposal ( RFP) or invitation to tender ( ITT). If the papers do not cover this, confirm directly with the client: how much time is available the preferred team size and make-up the location the room type the facilities and technology at the presentation location who will attend from the client side and what...

If you fail to plan, you are planning to fail These wise words, commonly ascribed to Benjamin Franklin, are strikingly relevant to the running of law firms today and their ongoing management. Whether your practice is a one-person outfit or a substantial organisation with numerous stakeholders, the underlying challenge does not change in essence. Succession planning is more than plotting for retirement; it is about charting the future of your firm and then gearing up to take the steps required to achieve that vision in reality. Your approach will be shaped by whether your objective is to: grow hold (remain the same) dispose close Once the destination is identified, the succession task becomes far simpler to manage. Plans must always consider clients, people, structure, finance and risk in every case, though the balance will shift according to your chosen path and priorities will inevitably adjust. If closure is in view,...

What are strategic aims? A strategic aims document, often referred to as a strategic plan, sets out the firm’s aims over a defined timeframe—typically between one and five years—and condenses the actions the business will take to realise the organisation’s overarching vision or goals. See Precedents: Draft strategic aims and Sample strategic aims. This Practice Note, together with the referenced Precedents, will help you create a single, succinct document articulating high‑level strategic aims, covering areas such as: where you should direct investment, the scale of that investment, and the source of funding which markets you will compete in and which you plan to leave the types of services you ought to provide the desired firm and management structure the people and infrastructure you will require Your strategic aims must remain adaptable—ie not set in stone—so you can respond to...

This Practice Note reviews the various categories of social media and points to the leading platforms in each. It further sets out how law firms can deploy these channels as marketing tools to publicise their services and reinforce their brand. Social media is now a staple marketing mechanism for many businesses across sectors. If you have yet to examine what other firms in your area, or those sharing your specialism(s), are doing on social platforms and how they use them to promote their practices, you may wish to do so. Insights from that review can inform and refine your own social media approach and priorities. It is equally essential to grasp how your target client base engages with these networks on a daily basis. To advertise in the right places, identify where prospective clients already are before investing time and budget in a social...

Risk management sits at the heart of a firm’s governance, culture and business strategy. It involves applying principle to particular situations. The issue for law firms is that they must determine their own principles. Many lawyers readily spot weaknesses in day-to-day practice, yet strategic control of risks across the whole practice is less intuitive. This Practice Note presents practical steps and considerations for law firms in handling their risks. What is risk? There is a widely recognised definition: Risk = probability x impact. For any risk facing your business, ask two things: How likely is it that the risk will materialise — what is the probability? If it does materialise, how serious will it be — what is the impact? Where to start Robust risk management begins by identifying the risks your firm faces. It can help to group them into familiar...

This Practice Note provides guidance on: the basic content of an offer letter taking up references keeping in touch before the start date preparing for a new employee’s first day induction programmes Basic content of an offer letter The majority of applicants will refrain from handing in their notice until they hold a formal written offer of employment. After you have identified your preferred hire, move quickly, particularly if you have been fortunate enough to secure an outstanding prospect who might be considering more than one opportunity. Make sure the written offer reflects everything promised verbally, and verify that all requisite approvals and authorisations have been obtained before issuing it, to avoid confusion, delays, or the risk of losing them to a competitor at the final hurdle......

Interviews remain a proven hiring approach, and you can enhance them with alternative selection techniques aligned to the vacancy. Certain options suit senior legal posts, while others fit junior or support positions. The strongest route to pinpointing the ideal hire is a well-planned interview combined with relevant assessment. Selection methods should reflect the level and duties of the appointment. Match each exercise to genuine role requirements to keep assessment fair and focused. Avoid unnecessary tasks that do not evidence the competencies you truly need. Keep the process proportionate. It may seem self-evident, but ensure you deploy exercises solely to test competencies needed for the job—for instance, there is no point asking for a presentation if presenting is never part of the duties. This Practice Note includes: assessment centres—what they are and when to use them psychometric testing other tools for...

This Practice Note This Practice Note helps you enhance efficiency in your firm by selecting the appropriate tool(s) for each phase of the five-step continuous improvement process, as set out in Practice Note: The five steps to continuous improvement, ie: define (ie identify) measure analyse improve control This is known as the DMAIC framework. It is an excellent approach to follow when you are working to improve an existing process. It leads you through each element one step at a time and ensures you......

Before commencing any outsourcing, you will need to navigate a demanding compliance pathway shaped by: SRA requirements data protection requirements other legislation, eg Equality Act 2010 general risk management best practice We have distilled this in our Outsourcing compliance lifecycle diagram. This Practice Note offers high-level guidance on four core compliance phases, broken into 12 practical stages aligned to our Outsourcing compliance lifecycle diagram: pre-contract (stages 1–6) negotiating and executing the contract (stages 7–9) post-contract record keeping (stage 10) post-contract quality checking and auditing (stages 11–12) Regulatory requirements For sector-specific regulatory guidance, see Practice Note: Outsourcing and offshoring—law firms. For data protection guidance, see Practice Note: Outsourcing and data protection. For general risk management best practice, see the following Practice Notes: Due diligence in outsourcing Limitation of liability in outsourcing Outsourcing...

This Practice Note explains when firms are required to appoint a nominated officer (often called a money laundering reporting officer or MLRO), sets out the nominated officer’s responsibilities, and suggests practical measures to help them carry out their role. It mirrors the requirements of the Money Laundering, Terrorist Financing and Transfer of Funds ( Information on the Payer) Regulations 2017 ( MLR 2017), SI 2017/692, as amended. This Practice Note also reflects Legal Sector Affinity Group ( LSAG) AML guidance. It further draws on the SRA’s key findings in its reports and publications ( SRA: Research and publications— Money laundering), alongside SRA guidance Money Laundering Governance: Three Pillars of Success. Where the SRA’s Three Pillars guidance refers to ‘ AML officers’, this covers the nominated officer and/or the Money Laundering Compliance Officer ( MLCO). For more on the MLCO, see Practice Note: Money...

This Practice Note outlines how to pinpoint learning needs and addresses: what a learning need is individual learning needs organisational learning needs learning needs analysis ( LNA) reports For guidance on identifying initial learning and development ( L& D) priorities for your firm, see Practice Note: Formulating a learning and development policy. What is a learning need? A learning need is the shortfall between the skills, knowledge or capability an individual or organisation requires and what is currently in place. Learning needs are commonly examined on two levels: the needs of the individual the needs of the organisation Like any other business investment, learning should be planned, prioritised, targeted and managed to achieve the best possible return. It is crucial that both the organisation and the individual understand these needs if any proposed training is to deliver maximum benefit. At both the...

Approaches to delivering learning and development— L& D This Practice Note sets out guidance on alternative routes for delivering learning and development ( L& D) and covers: factors to consider when selecting learning methods learning methods learning styles Factors to consider when selecting learning methods A broad spectrum of approaches to learning, training and development can be deployed to address learning needs across the firm. The choice of method for each identified requirement will depend on a range of considerations, including: the nature and urgency of the learning need the learner’s seniority and qualifications the learners’ location, particularly where remote or hybrid working applies the subject matter organisational culture evaluation of the effectiveness of earlier learning activities and events available budgets and associated costs learning styles inclusivity and...

Formulating a learning and development— L& D—policy This Practice Note sets out guidance on creating a learning and development ( L& D) policy. It examines the central considerations, including: what an L& D policy is who holds responsibility for the L& D policy regulatory or statutory obligations that must be met defining the policy’s content and scope determining the policy’s aims methods to develop, draft and roll out the L& D policy alignment with wider business objectives reviewing the L& D policy SRA requirements concerning training contracts fall outside the scope of this Practice Note. What is an L& D policy? An L& D policy expresses the firm’s stance on developing its people. It typically addresses training standards, scope, priorities, and the ways employees can access L& D. An L& D policy is distinct from an L& D plan, which is a...

This Practice Note offers guidance on learning and development ( L& D) plans and includes: the definition of an L& D plan regulatory requirements why using an L& D plan is good practice what an L& D plan should contain budgets and resources the corporate alignment of the L& D plan why an L& D plan may fail how an L& D plan can aid recruitment and the induction of new employees reviewing and monitoring L& D plans What is an L& D plan? An L& D plan outlines: what the firm aims to achieve, eg its objectives the learning outcomes needed to help meet those objectives, eg what staff must change or improve the training courses and other learning events scheduled to deliver each required outcome a timetable of L& D...