Modern Law Magazine Issue 73

Issue 73

ISSN 2976-9396

THE BUSINESS OF LAW

NAVIGATING RISK

P06 P10 P28

Reputation,

Reputation,

Reputation

Paul Bennett on why risk

is more than just about

finance

Risk in a

Changing

Climate

Jessica Clay, Kingsley

Napley

Riding High at the

LEAP Modern

Law Conveyancing

Awards

The future

of housing

completions

> Over $3Tn of housing transactions have

completed in Australia safely online.

We’re bringing the same benefits to

England and Wales.

> Our goal is to remove friction and

manual processes in the housing buying,

selling and remortgage process.

> Our revolutionary platform provides

efficient and secure transfer of funds

and title.

Stay up to date

“Risk comes from not knowing

what you’re doing.”

Warren Buffett

Welcome to issue 73! As winter draws in

and we have the first frosty mornings and

even some snow for a lucky (or unlucky,

depending on your view) few, we have

turned our attention to the weather - or at

least our changing climate - as part of our

focus for this issue.

Climate-related risks are just one aspect of

risk in the legal sector - a landscape that

continues to evolve at an unprecedented

pace and in this edition we provide a

comprehensive exploration of those risks.

We delve into the multifaceted challenges

facing legal professionals today - from the

sweeping implications of climate change

on property transactions to the economic

headwinds reshaping client relationships,

we examine how these forces are

transforming our profession.

The digital revolution brings both

opportunity and vulnerability. As we

embrace innovative technologies to

enhance our services, lawyers must also

navigate the complexities of cybersecurity

and data protection. Our contributors

share invaluable insights on striking the

right balance between technological

advancement and risk management.

But risk isn’t just about challenges -

it’s about foresight and adaptation.

We explore how forward-thinking

firms are turning potential threats into

opportunities, whether through innovative

client service models, progressive

environmental policies, or robust risk

management strategies.

This issue brings together perspectives

from industry leaders such as Jessica Clay

and Paul Bennett, seasoned practitioners,

and emerging voices in our profession.

Their collective wisdom offers not just

warnings of what could go wrong, but

practical strategies for building resilience in

an uncertain world.

Our Editorial Board provides focused

comment on a range of risk-related issues,

we hear from leading suppliers of legal

software Clio and Monica Kapur hones

in on specific risks for the construction

industry.

In our In-Depth feature Rebecca Atkinson,

director of legal compliance firm McArthur

Atkinson considers how the SRA has

strengthened their powers to fine firms

under the Economic Crime Act and other

recently introduced legislative changes.

Our regular Legal Tech Talk slot features

Egishe Dzhahozayan, Partner at King

& Spalding, who provides thoughts on

geopolitical risks in today’s complex world

as well as Bill Deckelman, Senior Public

Policy Advisor at Baker Donelson who

focuses on AI and cyber security risks.

Of course we also provide coverage

of our fabulous LEAP Modern Law

Conveyancing Awards 2024 which was

held at the Rum Warehouse, Liverpool

last month. The event saw an amazing

turnout of legal professionals and suppliers

donning their cowboy hats for an evening

of awards and celebrating against a

backdrop of Western-themed fun. Turn to

page 41 to read more about the winners.

As we face the fast-paced spectrum of

legal risk together, we hope this edition

serves as both a guide and a catalyst for

meaningful discussions within your own

practice. After all, understanding risk isn’t

just about survival - it’s about creating a

stronger, more adaptable legal profession

for the future.

Cara Flood is Acting Editor at

Modern Law Magazine and

Marketing & Account Manager at

Consortium – more than marketing

cara@consortiumbiz.co.uk

Editorial Contributors

Neville Dinshaw, Law Mergers & Acquisitions

Mark Holt, Frenkel Topping

Nicola Gifford, SmartSearch

Alex Holt, The Cashroom

Kathliya Harwood, Speech Processing Solutions

Stuart Whiter, AJ Chambers

Sam Kimber, Pro-Gen Research

Keith Ahmed Sort Group

ISSUE 73

ISSN 2976-9396

Editor

Cara Flood - Acting Editor

Project Manager & Events Sales

Kate McKittrick

Modern Law Magazine is published by Charlton Grant Ltd ©2023

2024

All material is copyrighted both written and illustrated.

Reproduction in part or whole is strictly forbidden without

the written permission of the publisher. All images and

information is collated from extensive research and along

with advertisements is published in good faith. Although

the author and publisher have made every effort to ensure

that the information in this publication was correct at press

time, the author and publisher do not assume and hereby

disclaim any liability to any party for any loss, damage, or

disruption caused by errors or omissions, whether such

errors or omissions result from negligence, accident, or

any other cause.

3

CONTENTS

INTERVIEW

06 Reputation, Reputation, Reputation, Why Risk Management Is About

More Than Just Being Compliant

Paul Bennett, Partner and Founder at Bennett Briegal LLP

10 Managing Risk In A Changing Climate

Jessica Clay, Partner in the legal services regulatory team at Kingsley Napley

24 Transforming the Legal Experience Through Cutting-Edge

Technology and Risk Management

Sarah Murphy, General Manager of EMEA at Clio

EDITORIAL

BOARD

15 Law Mergers & Acquisitions

Striking a balance - risks and opportunities of AI for law firms

Neville Dinshaw, Managing Director of Law Mergers & Acquisitions

15 Frenkel Topping Group

Standing Guard: Financial Protection in Personal Injury Cases

Mark Holt, Chief Operating Officer at Frenkel Topping Group

17 The Cashroom

Risk, Risk, Everywhere…

Alex Holt, Chief Revenue Officer at The Cashroom

17 SmartSearch

Risk Management 101: Protecting Your Company from Uncertainty

Nicola Gifford, General Council and Company Secretary at SmartSearch

19 Speech Processing Solutions

Building Trust in a Risky Digital World: Cybersecurity Measures

That Matter

Kathliya Harwood, Marketing Manager at Speech Processing Solutions

21 AJ Chambers

What Are The Risks in Legal Recruitment?

Stuart Whiter, Associate Portfolio Director at AJ Chambers

23 Pro-Gen Research

Mitigating Risks for Probate Research Firm Clients

Sam Kimber, Probate Researcher & Genealogist at Pro-Gen Research

23 Sort Group

Financial Crime and Risk on Client Accounts

Keith Ahmed, Managing Director of Sort Group

INSIGHT

28 Foundations at risk:

Monica Kapur, Director, Isadore Goldman

IN-DEPTH

30 Navigating The Evolving Risk And Compliance Landscape For Law Firms

Rebecca Atkinson, Attorney, Solicitor and the Director of McArthur Atkinson

4

CONTENTS

FEATURE

SPOTLIGHT

33 Weathering the Storm: Advising clients on climate-related risk

David Kempster, Chief Customer Officer, Groundsure

53 From Reviews To Directories: Tackling Some Common Law Firm

Marketing Risks

Lou Gilbert, Associate Director Consortium - more than marketing

35 Spotlight On: AML and Financial Crime

Paul Saunders, Managing Partner, Legal Eye

37 What Do Law Firm Professionals Need to Know About Risk

Intelligence?

Oliver Tromp, Regional Vice-President, UK at Actionstep

39 A Managing Partner’s Guide to Risk

Marc Lansdell, Managing Director, Evolve

AWARDS

FORUM

41 Riding High: A Wild West Celebration at the LEAP Modern Law

Conveyancing Awards

The LEAP Modern Law Conveyancing Awards once again lit up Liverpool’s

stylish Rum Warehouse, an event often hailed by many in attendance as

their favourite on the property calendar.

49 Conveyancing Panel

Is Conveyancing a Risky Business?

Angela Hesketh, Pexa and Chris Loaring, Landmark Information Group

LEGAL TECH

10 MINS WITH

55 LegalTechTalk

Merlin Beyts, Content Director, LegalTechTalk, Bill Deckelman Senior Public

Policy Advisor/Of Counsel, Baker Donelson, Egishe Dzhahozayan Partner,

King & Spalding

58 10 Mins With...

James Maxey, Chief Executive Officer, Express Solicitors

Disclaimer: Our publications contain advertising material submitted by third parties. Each individual advertiser is solely responsible for the content of its advertising material. We accept

no responsibility for the content of advertising material, including, without limitation, any error, omission or inaccuracy therein. We do not endorse, and are not responsible or liable for,

any advertising or products in such advertising, nor for any any damage, loss or offence caused or alleged to be caused by, or in connection with, the use of or reliance on any such

advertising or products in such advertising.

EDITORIAL BOARD CONTRIBUTORS

SpeechLive

䰀愀眀䴀攀爀最攀爀猀 ☀ 䄀挀焀甀椀猀椀琀椀漀渀猀

䈀甀猀椀渀攀猀猀䘀愀挀椀氀椀琀愀琀漀爀猀琀漀琀栀攀䰀攀最愀氀倀爀漀昀攀猀猀椀漀渀猀眀椀琀栀圀漀爀氀搀圀椀搀攀䌀氀椀攀渀琀䈀愀猀攀

5

INTERVIEWS

REPUTATION, REPUT

WHY RISK MANAGEMENT IS ABOUT M

Paul Bennett is a partner and founder at Bennett

Briegal LLP, a specialist law firm advising

law firms and other professional services on

regulation and compliance. Paul is also Chair of

the Professionals Partnership, Shropshire and a

former member of the governing council of the

Law Society.

He spoke to Cara Flood and Will Gordon about

the importance of risk management in the legal

profession and why its impact extends beyond

just financial implications.

Hi Paul, it’s great to speak to you. Could we start by

Q hearing about your role at Bennett Briegal and the

area you specialise in?

Yes, we’re a niche firm predominantly advising law firms

A on regulatory compliance and risk management. We

specialise in “the business of law” which also covers mergers

and acquisitions, partnership agreements and providing

best practice in areas like anti-money laundering and SRA

reporting.

You could say we’re “the lawyer’s lawyer.” We help

operationally and strategically on business issues and risk.

Do you see risk as a growing area/becoming more

Q and more important for law firms to “get right”?

Definitely. If you wind the clock back to before the

A Legal Services Act 2007, the level of risk management

awareness in the legal sector was relatively low, but we’ve

seen a seismic shift in this area over the past 15 or so years.

A pivotal moment came in 2013 when the SRA stepped out

from the shadow of the Law Society to become a separate

body. This change marked a focal point in determining

who is responsible for managing risk within law firms. This

focus has been partly driven by criticism the SRA faced in

cases that previously went wrong, making risk an ever more

significant factor in their regulatory approach.

The other key change has been the introduction of

compliance officer roles - the COFA and COLP. These roles

provide a focal point of responsibility for compliance and

who manages risk.

With that, we now have a level of personal liability for

individuals in these roles. It’s no longer just the firm at risk,

but individuals can be held personally accountable. This

personal liability risk is ever-growing, adding another layer

of complexity to risk management. Firms and compliance

officers can find themselves in trouble not just for failing

to manage risks, but for not managing them in a compliant

way.

To put it into perspective, 15 years ago I might have dealt

with risk-related issues once or twice a month. Now, it’s

once or twice a day! The ethos around risk is very different

so I would say it’s not just growing - it’s been completely

revolutionised, and AI is set to transform the risk landscape

even further.

What are the recurring issues you advise your clients

Q on?

Typically, our clients call us when something’s gone

A wrong and need advice on how to respond. Whilst most

firms are worried, it’s interesting to know that the majority

of legal errors, if handled properly, can be responded to

effectively, and the impact on clients can often be limited.

In these situations, we guide our clients through the process

of reporting to insurers and, when necessary, to the SRA.

We help them navigate questions like, “How do we report

this to insurers and document what’s gone on? Should we

report this to the SRA?” These are critical decisions that can

significantly affect the outcome of a situation.

6

INTERVIEWS

ATION, REPUTATION:

ORE THAN JUST BEING COMPLIANT

Of course, in smaller firms, the COLP/COFA is usually a

fee-earner and trying to juggle that with staying on top of

compliance, whereas larger firms can obviously dedicate a

whole role or even an entire team to compliance.

Recently, we’ve seen an increase in queries related to antimoney

laundering and sanctions, particularly since the

outbreak of the war in the Ukraine. The political situation has

created new risks and firms must tread carefully.

We also assist clients who are looking to sell their business

or acquire another, transactions that bring a wide range of

potential risks.

A smaller portion of our work involves providing training and

policy development for our clients. We ensure that our work

fits the unique culture of each client, as risk management

should always be tailored specially to your own operations.

We educate the importance of identifying and training

against risks available in different roles within a firm. This

comprehensive approach helps embed risk awareness

throughout the organisation as a whole.

What burden does risk management and compliance

Q place on smaller firms?

It’s a real challenge for all firms - large or small but I

A think the smaller firms in particular really struggle - when

issues arise, discussions with smaller firms tend to be more

panicked, and there’s often concern that not everything is in

place to handle the situation effectively.

The challenge for smaller firms is to be proactive. They need

to get effective risk management systems and processes

in place and once those are agreed it tends to reduce their

anxiety around risk too.

Why is effective risk management so important in the

Q current climate?

Poorly managing risks can lead to a range of severe and

A long-lasting consequences.

We’ve seen numerous cases where firms have mismanaged

risks, leading to disciplinary sanctions from the SRA. However,

the stakes have been raised significantly in recent times.

One of the most pressing concerns, particularly for smaller

and mid-sized firms, is the SRA’s increased fining powers.

This especially affects smaller practices that may not have the

financial resources to withstand substantial fines.

It’s important to understand that the real risk extends far

beyond penalties and fines. The most significant threat to

law firms today is reputational damage. In this digital age,

information about disciplinary actions or regulatory breaches

can exist on the internet forever. One wrong move can

damage a firm’s reputation for years to come, affecting client

trust and the ability to attract new business.

Word of mouth remains an incredibly powerful tool in how

clients choose their lawyers. This is transferring online

so we’re seeing firms struggling with review sites that

give consumer feedback, sometimes unfairly. These are

unfortunately hard to manage.

I always remind my clients that if errors are made, a

significant part of the impact will be as a result of how you

deal with that error. Being transparent and honest with clients

and the regulator, or identifying where further training is

needed for example, will go a long way in re-establishing

trust, and also make it much more likely that the regulator will

not need to intervene at all.

7

Enjoy a career without

limits, earning up to

75% of your billing.

Taylor Rose is a top 60 law firm with

over 30 offices nationwide and we are

seeking legal professionals that are keen to

work on a consultancy, fee sharing basis.

We are seeking like-minded individuals

and groups of Solicitors, FCILEx or Licensed

Conveyancers with 4 years PQE+ to join

our consultant programme.

We provide lawyers with a unique opportunity

to thrive as part of our consultant arrangement,

taking back control of their life and earnings in a

smart, modern and supportive environment.

You can choose to work from home, one of our

offices or both!

Why choose us?

· Earn up to 75% of what you bill;

minimum earning 70%

· Choose your own clients, fees,

hours and volume of work

· Work from home, 100 days access

to hot-desking facilities

· PII cover up to £20 million

· Free calls via our app

· Access to nationwide offices and meeting rooms

· Fully optimised CMS and electronic systems

· Access to business development

· Dedicated liaison team and technical head

for ops, legal support and training

“The consultancy

model has turned

my career on its

head. This model of

working is superb.”

To find out more, read our brochure or

arrange a confidential call, please email

consultantrecruitment@taylor-rose.co.uk

or visit our website

www.consultant-solicitor.co.uk

Mark Quinn,

Consultant Solicitor

INTERVIEWS

The repercussions of poor risk management can also affect

a firm’s relationship with its insurers. Any issues can lead

to insurers cancelling or choosing not to renew contracts,

potentially increasing policy excesses, or increasing

premiums.

It’s also worth noting that the SRA’s decision-making

processes can be lengthy. This prolonged period of

uncertainty during investigations or disciplinary proceedings

could be damaging to a firm’s operations.

Firms should consider risk management as an ongoing

process rather than a ‘one and done’ activity. Regulations

are always changing, and new risks emerge as the legal

profession evolves. Staying ahead of the curve and adapting

strategies accordingly is crucial for long-term success and

sustainability.

What role does technology play in risk and

Q compliance, both in terms of introducing risk and

managing it?

Most of our queries from clients relating to technology

A are currently around data security - GDPR, protecting

client confidentiality etc. We are starting to see the

challenge of balancing the need to innovate operations and

increase productivity with the associated risks too.

Firms are increasingly using AI to enhance productivity, for

example. The potential benefits of AI and other emerging

technologies in legal practice are significant, however,

it’s important to approach this carefully and responsibly.

Firms need to balance using innovative tools to improve

efficiency with upholding the highest standards. This means

being transparent with clients about AI use, ensuring the

technology is free from bias, and keeping human oversight

in critical decisions.

An area that’s starting to grow is considering the ethical use

of AI. The ethics of AI are not yet embedded in firms and

nor are the ethics of law widely understood by software

suppliers. For it to really take off in the sector we need an

“ethical bridge” to be forged between software suppliers

and law firms so that firms have confidence there is strong

ethical credibility and can feel confident in using AI to assist

them on client matters.

We’ve also seen some fee pressure around the use of AI and

how billing is formatted if it is saving lawyers time - should

clients then receive a value-based fee or a time-based fee?

Are we going to be driven by time, expertise, or results?

Are there any other ethical considerations within risk

Q for firms to be aware of?

Yes, there is definitely still an ethical challenge around

A openness and transparency with all parties - clients,

insurers, the SRA - especially when things go wrong.

I think firms are also still grappling with fully understanding

the SRA principle of integrity and honesty - which are quite

nebulous issues. We’ve moved away from tick-box regulation

which was easier to implement, to a focus on ethical based

principles.

I’ve delivered training on the SRA Codes of Conduct to

around 6,500 solicitors and can say with confidence these

are not widely understood issues.

We’ve also heard a lot of noise around moral judgments,

rather than ethical issues. For example individuals not

wanting to act for certain sectors like fossil fuel providers.

Interestingly, we’ve observed that the higher up the law

firm ladder you go, the harder it can be to hold onto these

moral principles, perhaps due to increased pressures and

competing interests.

can significantly impact its reputation. Ethical decisionmaking

in this area is not just about following regulatory

guidelines, but about sticking to the firm’s values and

maintaining public trust in the sector.

What areas of risk do you see as emerging in the

Q next 3-5 years?

Over the next 3-5 years, an emerging area of risk will

A stem from a shifting ethical landscape, particularly

influenced by younger lawyers. The next generation is

becoming more selective about the firms or clients they

choose to work with, often putting their personal values and

morals first. This trend makes it difficult to attract and retain

talent, particularly in firms that may not meet their ethical

expectations.

AI will bring new and unique ethical challenges, as it

reshapes not only how legal services are delivered. AI will

likely transform ethical discussions, shifting focus away from

campaign-driven issues and more toward concerns about

processes and how AI will fit into legal operations.

However, there’s also a risk that the legal industry may

become too focused on the processes and systems involved

in implementing AI, which could lead to larger ethical

concerns and the human element in legal firms being left

behind.

Thank you so much Paul, it’s been a fascinating

Q discussion and we’ve covered a lot. Can you leave us

with your top tips for risk management for law firms?

Be proactive - risk management should not be

A reactive. Regularly work out what’s working well

within your firm and identify areas that are open for

significant improvement. Being proactive helps you stay

ahead of potential issues rather than struggling to address

them when they arise and sometimes that means asking

challenging questions.

Build tailored processes. Create processes, policies, and

systems that truly reflect how your firm operates. These

documents shouldn’t be generic templates but tailored

to your unique workflows. Ensure that your entire team is

trained and supervised based on these standards, so that

everyone understands and follows the same guidelines.

Prioritise risk management, it should never be seen as an

afterthought or something to do later. No matter how busy

your firm gets, it’s critical to dedicate time and resources

to it. Avoid the “lone wolf in the corner” mentality, where

individuals “opt out” of managing risk. It should be an

ongoing and firm-wide priority. You can also consider

rewarding effective risk management with remuneration.

Lead by example. The best leaders demonstrate risk

management in their day-to-day actions. It’s important to

practise what you preach. When leaders actively engage in

and prioritise risk management, others will naturally follow.

Share responsibility. Managing risk is not just the

responsibility of the leadership and senior team. It’s

something that everyone in the firm should take ownership

of. You should build

a culture where

every individual,

regardless of role,

feels accountable

for identifying and

mitigating risks.

Paul Bennett

Partner and Founder at

Bennett Briegal LLP

Firms need to consider the ethical implications of the clients

they choose to represent and the matters they take on. In an

age of rapid information sharing, a firm’s client relationships

9

INTERVIEWS

MANAGING

RISK IN A

CHANGING

CLIMATE

Jessica Clay is a Partner in the legal

services regulatory team at Kingsley

Napley. She has a substantial practice

advising law firms, partners and

alternative legal services providers on

a range of SRA-related matters. She

talks to Cara Flood about how her

roles at the SRA and LSB have led her

back to private practice and what the

landscape for risk management looks

like in the current climate.

Jessica Clay

Partner in the legal services

regulatory team at Kingsley Napley

10

INTERVIEWS

Hi Jessica, it’s a pleasure to talk to you.

Q

Could you start by telling us a little about your background

and career path to date?

AI began my career in private practice, training and

qualifying into the Public & Regulatory team at

Fieldfisher. My early practice focused on regulatory

investigations in the healthcare sphere and public law work

with a regulatory focus. In around 2011, I got my first taste

of client work in the legal services regulatory space and that

really was the turning point for me. A great opportunity

arose for me to join the in-house legal team at the Legal

Services Board (LSB). Whilst leaving private practice was a

huge decision for me, I was soon in my element and didn’t

look back.

In late 2015, I moved to the Solicitors Regulation Authority

(SRA) to take up a newly created role as Principal Lawyer

in the General Counsel directorate. I led day-to-day from

a legal policy perspective on the SRA’s drafting of the

Enforcement Strategy and the Standards and Regulations. I

worked in a brilliant team during this time alongside policy

experts and other lawyers and we made real progress in a

very short space of time. Following extensive consultation,

the Standards and Regulations were subsequently approved

by the SRA Board and the LSB and were introduced in

November 2019.

My time in-house at the oversight and frontline regulator

provided me with a unique opportunity to fully immerse

myself into how the regulator thinks, what it sees as

more serious conduct and the basis upon which it makes

decisions. Whilst at the LSB, all decision-making was

underpinned by the framing of its powers as set out in the

Legal Services Act 2007 (the LSA). Similarly, working on

the Standards and Regulations drafting project at the SRA

required an extensive knowledge and understanding of the

hotchpotch of underpinning legislation in place. The final

piece to the jigsaw was helping to prepare the SRA’s revised

Enforcement Strategy which I regard as the keystone which

brings elements of the Standards and Regulations together

– particularly the Principles, Codes and rules relating to

investigations and conduct/processes in respect of which

enforcement action might be taken.

What does the general landscape for risk management

Q look like for the legal sector currently, and what are

some of the key trends in areas of risk you are seeing?

The risk management landscape in the legal sector

A has grown more complex and dynamic in recent

years and this demands a more proactive approach to risk

management.

Regulatory compliance is at the core of risk management

for law firms. In recent years, the SRA has intensified its

focus on key areas such as economic crime and workplace

culture (through the lens of counter-inclusive conduct

including sexual misconduct and wellbeing), aligning

with broader societal shifts toward ethics, inclusivity,

and transparency. The use of technology by law firms,

particularly in light of the emergence of generative AI, is now

also becoming a regulatory focus. This requires firms to have

in place proactive and adaptable systems and processes

underpinning their risk management strategy, to meet

evolving standards and minimise potential penalties and

reputational risks. Modern risk management now extends

beyond the mere delivery of legal services, encompassing

firm culture, ethical practices, and the workplace

environment to uphold regulatory standards and maintain

client trust and public confidence.

Some of the key risk trends in the legal sector include:

The use of AI: The SRA’s 2023 Risk Outlook highlights AI’s

opportunities and challenges, cautioning firms to establish

oversight mechanisms to manage issues like ‘hallucination’

errors, where AI produces plausible but incorrect

legal arguments. AI also introduces challenges around

accountability, client confidentiality and ethical biases. As

AI is novel, there is still no substantial regulatory guidance,

legislation or case law that governs the use of AI, so the risk

is to ensure you stay up to date with any key developments,

whilst not stifling innovation.

AML and economic crime: The SRA’s expanded authority

under the Economic Crime and Corporate Transparency

Act 2023 has heightened the need for robust AML and

counter-terrorism financing controls. Global events such as

the Ukraine war have also emphasised the importance of

sanctions compliance, underscored by recent fines issued by

the Office of Financial Sanctions Implementation.

Data privacy and confidentiality: Increased reliance on

digital tools and AI requires heightened vigilance around

data privacy and confidentiality. Firms must ensure they

safeguard client information rigorously to prevent breaches,

particularly as AI can inadvertently disclose sensitive data if

improperly managed.

Workplace culture: Firms are expected to foster a respectful

and inclusive workplace under SRA standards, with a

proactive focus on addressing bullying, harassment, and

discrimination. The SRA has indicated that it will actively

enforce standards in respect of counter-inclusive behaviour

for both firms and individuals, underscoring the need for

policies, training, and reporting channels that promote a

positive workplace culture.

International regulatory divergence: Firms with a global

footprint face a myriad of regulatory frameworks they

need to navigate. With political factors to consider, such

as the change in government here in the UK and the

recent US presidential election, which can create a shift in

regulatory priorities, firms must stay attuned to jurisdictional

differences that may impact operations and their approach

to governance. Even if firms lack a physical presence in

affected regions, if they conduct business there, they may

still be impacted by any regulatory changes.

11

INTERVIEWS

To address all these types of risk, law firms should continuously

keep under review their risk assessment frameworks, staying

current with regulatory changes and implementing best

practices in compliance, data protection, and workplace

culture.

You have a particular interest in counter-inclusive

Q behaviours and how they impact law firm culture - can

you tell me more about this area and the risk-related issues

that arise within it?

For a law firm, failing to identify and address

A counter-inclusive behaviours such as bullying, harassment,

discrimination and victimisation, poses a significant risk, not

only culturally and in terms of regulatory compliance but also

from a reputational perspective. The SRA’s updated Codes

of Conduct mean that firms and those working within them

will need to be able to demonstrate how they foster fairness

and respect, and firms will need to commit to having a

zero-tolerance approach towards these types of behaviours.

Indeed, partners now have a duty to actively challenge any

behaviour that they do not think aligns with these standards.

If a law firm fails to address counter-inclusive conduct, the

SRA may want to know why. It can investigate a firm and,

where necessary, take enforcement action against individuals

working at the firm and the firm itself. In October, the SDT

took action against a co-owner of a law firm for bullying and

harassment directed at junior lawyers. The outcome is one of

the first cases following the SRA’s recent updates to its Code

of Conduct. In this particular case, the Tribunal struck off the

offending partner and ordered him to pay £42,000 in costs.

Additionally, unaddressed counter-inclusive conduct can

diminish trust within a law firm, increase staff turnover, and

make it difficult for a firm to attract and retain a diverse

workforce. Poor workplace culture can, crucially, be exposed

publicly, damaging the firm’s brand, impacting client trust and

damaging public confidence.

What role does leadership play in creating a culture

Q of compliance and inclusivity, and how can this be

measured and improved?

Setting the tone from the top is key. The SRA Code

A of Conduct explicitly requires those who supervise or

manage others providing legal services to ensure those

individuals are competent to carry out their role, and that they

keep their professional knowledge and skills, as well as their

understanding of their legal, ethical and regulatory obligations,

up-to-date. This includes ensuring they fully understand

and remain current with ethical and regulatory obligations,

including standards for inclusive behaviours right through to

compliance with regulations such as anti-money laundering

policies and everything in between. Therefore, regulatory

compliance and a commitment to having a good workplace

culture must be led from the top. Beyond simply needing to

fulfil regulatory requirements, a firm’s culture is often shaped

by the behaviour of its senior members. It is about walking the

walk and talking the talk when it comes to leaders needing to

reinforce a firm-wide culture of compliance and inclusivity.

Leadership and those holding key statutory oversight roles

should be distributed around the firm, rather than held by

a single individual or team within the firm; this minimises

the risk of rogue action being taken by one leader and is

crucial to drive a shared commitment towards oversight

and accountability. Responsible leadership must span senior

management, risk & compliance teams, HR, partners and

employees, ensuring that compliance and inclusivity values are

consistently embedded within the organisation.

The collapse of Axiom Ince highlights the risks associated with

consolidating multiple leadership roles within one individual.

Without adequate checks and balances, the potential for

misconduct increases significantly, emphasising the need for

a collaborative leadership approach that promotes ethical

behaviour and compliance at all levels.

To promote a good workplace culture, a law firm should:

Ensure effective policies are in place to help employees

understand what the expectations and values of the firm are;

Provide regular and effective training in respect of all

DEI issues so that all staff better understand the impact

counter-inclusive conduct can have;

Create and maintain effective systems and processes, to

ensure staff are aware of the reporting mechanisms in

place and are encouraged to speak up and report counterinclusive

behaviours by establishing clear and easy-tonavigate

channels that allow any issues to be raised safely;

Ensure there are effective supervision arrangements in place

so that those working at the firm always feel well-supported

and able to speak up should they have any concerns;

Identify, monitor and manage all material risks and regularly

review compliance with its policies and procedures, which

will likely involve an ongoing temperature check of the firm’s

culture. This requires a proactive approach which stands a

firm in better stead than being on the back foot and having

to react in a crisis.

“It is about walking

the walk and talking

the talk when it comes

to leaders needing to

reinforce a firm-wide

culture of compliance

and inclusivity.”

12

INTERVIEWS

Top four areas of risk that Jessica expects to increase in the next 3-5 years:

Economic Crime

Law firms will need to continue to be alive to economic crime, such as money laundering. Given its prevalence, it will continue

to be a focus for the SRA and firms will need to keep abreast of regulatory developments in this space. For example, the

SRA’s new powers under the Economic Crime and Corporate Transparency Act 2023 have led the SRA to propose significant

changes to its financial penalty scheme for breaches related to economic crime, including theft, fraud, and money laundering.

There has been a lot of push back on the proposals during the consultation period, so it will be interesting to see if and how

the SRA takes this on board and where the positioning lands.

These changes reflect a shift towards stricter enforcement and the SRA sending a clear message that the current level of

fines has not instilled public confidence in the solicitors’ profession and has not acted as enough of a deterrent for future

misconduct. The SRA can conduct proactive inspections of firms and may also commence an investigation on the basis

of intelligence received from a third party or from a self-report. Firms must prepare by maintaining robust systems and

processes, including rigorous audits, effective and meaningful training, and effective AML policies, integrating these into their

overall risk management strategy.

Generative AI

Law firms will need to chart a clear path when it comes to

the increased use of generative AI in the legal sector. While

there are inherent risks in implementing AI powered tech

solutions, firms will also want to push boundaries when it

comes to being more innovative and delivering their services

differently. In particular, generative AI has the potential

to further drive efficiencies and enhance client services,

making it crucial for law firms to stay attuned to emerging

technology. However, use of generative AI in law firms is

still in its infancy and firms will need to proceed cautiously,

carefully considering the implications of adoption.

As we know, specific risks associated with the use of

generative AI include the phenomenon of ‘hallucination,’

where AI generates plausible but incorrect outputs,

potentially leading to erroneous legal arguments. The scale

of mistakes made as a result of AI can affect numerous

clients simultaneously, complicating the supervision

of outputs. Confidentiality and privacy must also be

protected, ensuring compliance with regulations like those

set by the Information Commissioner’s Office. Ultimately,

solicitors remain accountable for any AI-generated

outputs, underscoring the necessity for firms to establish

comprehensive AI policies that address various factors, from

data management to liability and insurance coverage. By

taking proactive steps to mitigate these risks, law firms can

successfully integrate AI while adhering to ethical standards

and enhancing their service offerings.

The LSB (the oversight regulator of the legal profession)

also highlights several key challenges that law firms should

address when integrating AI: accountability, transparency,

and explainability. Consumers must have clear avenues for

redress, and firms must clarify who is accountable for legal

services delivered with input from generative AI. Moreover,

lawyers must communicate openly with clients about how

generative AI is used in delivering legal services, building in

trust and taking people on the journey.

Law firm culture

The SRA will continue to focus on workplace culture,

particularly concerning issues such as sexual misconduct,

bullying, harassment, and the impact of the work

environment on solicitors’ wellbeing. The SRA’s commitment

to embedding workplace culture and wellbeing into

its regulatory framework is evident, as it has made fair

treatment of colleagues a core requirement. This proactive

stance is aimed at fostering a healthy workplace culture

within the legal profession. The SRA has articulated

that “making the fair treatment of colleagues an explicit

regulatory requirement will help to promote the importance

of a healthy workplace culture” and enhance its ability to

take action against cases of unfair treatment that pose

significant regulatory risks. Consequently, law firms must

prioritise the cultivation of an inclusive and respectful

workplace culture, as failure to do so could attract

scrutiny from the SRA and jeopardise their regulatory and

reputational standing.

Implications of Axiom Ince Report

The Axiom Ince report has found that the SRA missed

critical opportunities to identify misappropriation of client

funds from Axiom Ince’s account a year prior to the SRA

taking action. An investigation initiated in July 2023

uncovered what is alleged to be a large-scale and complex

fraud, with claims that over £60 million of client funds were

misappropriated by the owner and managing director.

The report calls for the SRA to revise its procedures to

better mitigate such risks, potentially altering its regulatory

approach and, therefore, altering how firms must assess

and approach risk management.

This is particularly relevant for acquisitions, as the report

raises concerns about the SRA’s ability to adequately

assess the risks associated with such transactions. It

highlights that the SRA’s current regulatory framework

lacks due diligence protocols when an authorised law

firm intends to acquire another. Understandably, there

are apprehensions within the legal market that any

changes stemming from the report’s proposals and

recommendations could impose regulatory obligations that

inhibit the ongoing trend of consolidation through mergers

and acquisitions. If the SRA becomes overly involved in

these transactions, it poses a risk of slowing a firm’s ability

to act swiftly on market opportunities, potentially hindering

overall market dynamics. The LSB has made clear that it is

open to considering a more effective statutory framework

to address mergers and acquisitions in the legal sector.

Therefore, firms contemplating a move in this direction

should be alive to any regulatory developments in this

space.

The report also raises concerns regarding the SRA’s

oversight of firms’ client accounts. Coupled with the SRA’s

previous murmurings about moving away from traditional

client accounts, firms should stay tuned for an imminent

consultation on this at some point in the coming weeks.

The Law Society has expressed significant concerns

about a move to third party managed accounts, arguing

that client accounts are essential for the efficient delivery

of legal services. Whilst any change of this nature could

introduce new considerations to grapple with, law firms

will need to implement rigorous due diligence procedures

in respect of these third parties, to safeguard client

assets. This potential shift could also impact professional

indemnity insurance policies, necessitating that insurers

redefine coverage in light of the new structures for

managing client funds. As these changes unfold, I would

encourage law firms to engage in consultations and stay

up-to-date as the positioning develops.

Thank you so much for sharing your insights and

knowledge with us Jessica, it’s certainly a complex

area for firms to navigate with plenty of changes

on the horizon. We very much appreciate your

time.

13

FREE

Expert Training for Expert Practitioners

from Frenkel Topping knowledge Hub

The knowledge Hub – from Frenkel Topping Training academy

delivers FREE virtual and face-to-face training to our professional

clients - helping you stay up to speed and informed.

Courses available from knowledge Hub.

1 2 3

4

Avoiding

Professional

Negligence

Application

of Periodical

Payment Orders

Understanding

Pension Loss

Trusts for

Minors

Welfare

Benefits

5 6 7

8

Investing for

Vulnerable

Clients

Personal

Injury

Trusts

Loss of Earnings

Self Employed

Claimants

One hour expert

training modules

All our training is

APIL accredited

Counts towards

your CPD hours

Achieve the right

financial outcome

for your clients

With over 30 years’ experience of delivering financial expert reports and advice,

find out how Frenkel Topping knowledge Hub could help you.

contactus@frenkeltopping.co.uk or call 0161 886 8000

knowledge Hub

Frenkel topping training

academy

frenkel

topping

GROUP

EDITORIAL

BOARD

Striking a balance - risks and

opportunities of AI for law firms

The introduction of AI and automation

into legal practices comes with potential

risks, particularly in relation to accuracy,

ethics, and data security. One significant

concern is the reliance on algorithms

for tasks like contract reviews, legal

research, and predictive analysis. While

AI tools can process vast amounts of

information quickly, they may lack

the nuanced understanding of legal

principles that human lawyers possess.

As AI systems become more integrated

into everyday legal work, questions arise

about who is accountable for decisions

made by AI—especially in litigation,

where outcomes are critical. A lack

of clear regulation could leave firms

vulnerable to legal challenges if AI tools

fail to perform as expected.

The increasing use of cloud-based

services, AI-powered document

management systems, and automated

workflows increases the potential for

cyberattacks and data breaches. Given

the stringent requirements of the

General Data Protection Regulation

(GDPR), a breach could not only harm a

firm’s reputation but also result in heavy

fines.

Despite the risks, technology also

provides powerful tools to mitigate

them. AI can improve risk management

by enabling better compliance checks,

automating due diligence processes, and

flagging potential issues in contracts or

legal documents. By automating routine

tasks, AI reduces the risk of human error,

especially in repetitive or data-heavy

activities like contract reviews, allowing

lawyers to focus on more strategic, highvalue

tasks.

Automation can also help law firms stay

compliant with evolving regulations.

For instance, AI can be used to

automatically update legal documents

or flag regulatory changes, ensuring that

firms remain in line with the latest legal

standards.

Additionally, AI-powered cybersecurity

tools help mitigate the risk of data

breaches by detecting suspicious

activities and responding to threats

more quickly than manual systems.

Advanced encryption and multi-factor

authentication, often enhanced by AI

algorithms, help secure sensitive client

information.

In conclusion, while the technology

introduces new challenges around

accuracy, accountability, and data

security, it also enhances the legal

industry’s ability to manage risk, improve

efficiency, and ensure compliance.

The key lies in careful implementation,

balanced regulation, and continuous

monitoring.

Neville Dinshaw,

Managing Director of Law Mergers

& Acquisitions

Standing Guard: Financial Protection

in Personal Injury Cases

Operating in the personal injury

and clinical negligence space, the

topic of ‘risk’ is always high on our

agenda because, unfortunately, those

individuals who have experienced lifechanging

injury or illness, are exposed

to increased risk in many areas of their

lives.

No matter how long I work in this

sector, I think my response to stories

of vulnerable people being preyed

upon financially will always be one of

utter disgust. Sadly those abhorrent

individuals and organisations will

always exist, so we have a duty to do

everything in our power to protect our

clients and communities from the risks

they face.

After a brain injury, individuals need

protection from financial exploitation

and impulsive decisions, particularly

when managing settlement funds.

This requires clear communication,

responsive service, and tailored

financial products at fair prices.

As financial expert witnesses and

financial advisers, we work closely

with vulnerable clients and their legal

teams throughout their litigation

journey. Our expert training focuses on

identifying both financial vulnerability

and financial abuse. We place special

emphasis on recent consumer duty

regulations that require stronger

protections for vulnerable clients.

As advisers, we play a pivotal role

in guiding clients through critical

financial decisions. This includes

helping them understand Periodic

Payment Orders (PPOs), lump sum

payments, Personal Injury Trusts, and

navigating welfare benefits eligibility.

Early financial advice from experienced

advisors is vital for your long-term

financial security. We guide you

through the Financial Services

Compensation Scheme, assess fund

longevity through cash flow modelling,

develop balanced budgets with

contingency planning, and create

strategic investment plans to maximise

your income.

15

Understanding risk levels in financial

planning is also critical and of course,

risk levels change according to

the macroeconomic landscape – a

relatively new Government and the

recent budget providing a perfect

example of that.

We believe we have a duty not only to

empower and protect our clients but

to educate the wider industry through

our KnowledgeHub training division

so that the personal injury community

is better protected and those threat

actors and charlatans who prey on

vulnerable people are deterred as

much as possible.

Mark Holt,

Chief Operating Officer

at Frenkel Topping Group

Discover why so many law firms are

choosing to outsource their finance

function with Cashroom

EDITORIAL

BOARD

Alex Holt,

Chief Revenue Officer

at The Cashroom

Risk, Risk, Everywhere…

Has there ever been an era where the practice of law was

more risky than right now? So many things must be keeping

lawyers up at night, and the even trickier bit is that so many

of the risks are interlinked.

Consider this: a firm maintains an expensive team of

management, fee earners, and support staff. One of the

primary concerns is, “Can we secure enough work to cover

costs and turn a profit?”

Beyond that, another question arises: “Is the work we

win high-quality and sustainable?” There’s always a risk

of operating in a sector with shrinking profit margins, or

perhaps one where there’s abundant high-quality work, but

billing is delayed. Cash flow risks right there!

Additionally, “Is the work we’re doing vulnerable to

automation, or could it be made more efficient with

technology we lack - technology that a competitor down

the road might already have in place?”

Even with excellent work for your fee earners, these

individuals are valuable assets - and in today’s hybrid

work environment, they’re frequently targeted by

competitors offering better deals or more attractive working

arrangements.

Your internal non-fee-earning team is essential in

supporting the business, yet it’s all too common for

specialists in these roles to have minimal monitoring or

supervision. Often, their work involves technical elements

that lawyers aren’t equipped to oversee effectively.

Add to this the constant demands of regulatory compliance,

the pressure to be highly responsive to clients, the growing

threat of cyber attacks, and the need for continual tech

investments just to keep pace with competitors. Combine

these with the challenge of making critical business

decisions often based on outdated or incomplete data, and

you have a perfect storm of risks threatening to overwhelm

any firm.

But this article isn’t helping reduce stress levels, is it? One

helpful hint - outsource non-legal tasks to specialists with

the right expertise.

I may be biased, but partnering with an entity like Cashroom

offers significant risk avoidance advantages. It enhances

technological capabilities, leading to more efficient

processes and an improved experience for end clients.

Additionally, it provides better cybersecurity, resilient and

flexible resource management, reliable data, and compliant

processes. The list goes on.

Nicola Gifford,

General Council and

Company Secretary at

SmartSearch

Risk Management

101: Protecting

Your Company from

Uncertainty

Every company faces risks. Without proper management

within a framework, the approach to such risks can be

inconsistent and result in greater risk exposure for the

company. By implementing effective risk management, a

company gains valuable insights into which risks it is willing

to accept without mitigation, which ones require additional

controls, and which ones are unacceptable. It is also key

that the whole business is educated when it comes to risk

management - it’s not just a job for one person or team.

The UK Corporate Governance Code states: “The board

should establish procedures to manage risk, oversee the

internal control framework, and determine the nature and

extent of the principal risks the company is willing to take in

order to achieve its long-term strategic objectives.”

It is important to have a risk management framework and

a risk appetite statement which will change as the business

grows. A risk register is a crucial part of assessing risks and

capturing them centrally. Assessment of risks can be done

in multiple ways, but it all comes down to sitting with each

business team and posing questions about the procedures

they follow, the systems they use, the tasks performed, and

the third parties relied upon. Once this has been done, the

risks occurring will become clear. Preparing for their impact

comes in the controls that are in place to eliminate or

mitigate those risks, and then regularly reviewing to ensure

those controls remain effective.

Modern and emerging technology such as AI and

automation can play a large role in both creating and

mitigating risks. AI is a challenging, but exciting area, which

is receiving a lot of scrutiny as governments and businesses

grapple with how to use it. The EU AI Act came into force

on 1st August 2024 and is aimed at taking a risk-based

approach to regulating the entire lifecycle of different types

of AI systems. The King’s speech in July did not outline

specific plans to implement all of Labour’s manifesto

pledges on AI; however, it did mention the intention

to establish appropriate legislation that would impose

requirements on those developing the most advanced

artificial intelligence models. In Identity Verification, AI is

enormously useful in helping to detect deepfakes – keeping

ahead of criminals’ attempts to create false identities. It will

be fascinating to observe how technology and AI influence

businesses’ strategies for mitigating risks as we move

forward.

One thing I suggest - don’t pay lip service to risk. Assess

it properly across the whole firm, and then act upon that

assessment. It’s too risky not to do so!

17

Streamline your

AML processes

Use our Electronic Verification

for reliable, secure and efficient

identity & AML solutions

Call us to book a free demo:

+44 (0)113 346 4245

Visit us online:

smartsearch.com

Find us on:

Modern easy-to-use platform

Easy to interpret results

98% customer retention rate

EDITORIAL

BOARD

Building Trust in a Risky Digital

World: Cybersecurity Measures

That Matter

Cybersecurity breaches have become a blunt

reminder that any company is vulnerable to

an attack. Hackers have honed their skills in

exploiting security vulnerabilities, targeting

sensitive data and disrupting operations with

alarming precision. A study carried out by

Cybersecurity Ventures shows that global

cybercrime costs could grow by 15% per year

over the next two years, reaching $9.5 trillion

globally this year and $10.5 trillion by 2025!

According to IBM’s Cost of a Data Breach

Report, the average cost of a data breach

reached an all-time high in 2023 at $4.45

million, representing a 2.3% increase from

2022.

Philips Dictation takes the security of our

customers seriously and with the rise in

cybercrime and costs associated; you can

trust that your data is safe with us. Our

solution, SpeechLive, is hosted on Microsoft

Azure servers for all dictations. As the

world’s leading enterprise-level provider

of cloud-hosted solutions, they maintain

uncompromising security standards and

processes to ensure the highest level of data

privacy and security.

Uptime reliability

Microsoft Azure services are highly reliable.

Microsoft prides itself in promising a 99.9%

uptime guarantee, 24/7, 365 days a year.

Microsoft Azure also has a ‘lights out’ policy

meaning various measures are in place to

protect operations from:

- Power failure

- Physical intrusion

- Network outages

Their data centres are compliant with

applicable industry standards for physical

security and reliability; managed, monitored,

and administered by Microsoft operations

staff.

Data security and encryption

Users can create backups of all dictations, and

can recover them at a later point if necessary.

Accidentally deleted dictations can be

restored by the account administrator for up

to 30 days.

HTTPS encryption

Dictations are always created, sent, and

stored with industry-standard AES 256-bit

encryption – in the web app using a secure

Microsoft Azure environment, or in the iOS or

Android app on mobiles.

Multi-factor authentication (MFA)

MFA adds an extra level of security.

SpeechLive uses a secure authentication

service that prevents security risks such as

brute force attacks.

Single Sign-on (SSO) Login

SSO reduces the hassle of having to

remember multiple passwords. Users can

use their Microsoft credentials to easily and

securely log in to all SpeechLive platforms.

File access

Dictations can only be viewed by authorised

owners and with a username and password.

User management and backup are only

available for administrators – not all

SpeechLive users.

Find out more about SpeechLive at www.

speechlive.com

Kathliya Harwood,

Marketing Manager at Speech Processing

Solutions

19

Shaping your future

01702 410 415

AJ-Chambers.com

propertyconveyancingconsultancy.co.uk

The Ultimate

Post-Completion Service

Focus on your exchanges and increase your profits

We carry out the following so that your staff

can be re-deployed to revenue earning activities:

Submit Registrations

Address Land Registry Requisitions

Submit Notices to Third Parties

Send Title Information Document to Clients

Review Ledgers

Archiving

Let PCC take care of

your post-completion

Reduce HM Land

Registry requisitions

Reduce administrative

errors

Increase productivity

Consultancy services offered to post completion departments. For further information

call Priscilla Sinder on 07984 290634 or email PSinder@pc-consultancy.co.uk.

EDITORIAL

BOARD

What Are

The Risks in

Legal Recruitment?

In today’s highly competitive legal

landscape, law firms must recognise the

importance of an effective recruitment

strategy. Failing to attract and retain

the right talent can expose a firm to

a wide range of risks, each having

significant consequences on the firm’s

reputation, financial health and long-term

sustainability. Below are some of the key

risks law firms face when their recruitment

strategies fall short.

Firstly, failing to attract the right talent

to your firm can leave skills gaps. Law is

a fast-evolving area and firms must hire

legal professionals with the right expertise

to stay competitive. Without an effective

recruitment strategy, firms may struggle to

find candidates with the necessary skills or

experience, which could impact their ability

to serve clients effectively. This shortage of

talent can lead to increased workloads for

existing staff, low morale and decreased

productivity.

Without a well-defined recruitment

process, law firms risk making poor hiring

decisions. Recruiting the wrong candidate

can be costly- financially, in terms of

training and integration into the firm and

professionally, due to potential harm to

the firm’s reputation. Without a structured

hiring process, there is a risk of cultural

mismatch too, where new hires fail to fit

with the firm’s values and culture. This

could lead to high turnover rates, which are

costly in terms of recruitment expenses and

lost productivity.

Clients expect law firms to have

experienced and skilled professionals ready

to handle their matters. The quality of the

legal team directly impacts client service

and satisfaction. A failure to maintain a

robust hiring strategy may lead to the firm

appearing less competent in the eyes of its

clients, resulting in the firm being outpaced

by its competitors who have a thorough

and robust approach to recruitment and

talent acquisition.

In conclusion, an effective recruitment

strategy is vital to a law firm’s long-term

success. It not only ensures that the firm

attracts the best legal talent but also

minimises risks such as skill shortages,

poor hiring decisions, and high turnover.

Law firms that invest in recruitment

will be better positioned to thrive in an

increasingly competitive market.

Stuart Whiter,

Associate Portfolio Director at AJ

Chambers

21

Missing Beneficiaries

Intestate Estates

International Bankruptcy Searches

Document Acquisition

Statutory Will Assistance

Dormant Account Holder Tracing

Experienced & CILEX Qualified

GET IN TOUCH

01603 561105

www-pro-gen-research.co.uk

info@pro-gen-research.co.uk

EDITORIAL

BOARD

Sam Kimber,

Probate Researcher &

Genealogist at Pro-Gen

Research

Keith Ahmed

Managing Director

of Sort Group

Mitigating Risks for

Probate Research Firm

Clients

Probate research firms play a vital role in estate administration,

helping executors, solicitors, and individuals trace heirs, confirm

family trees, and ensure legal and accurate estate distribution.

However, mismanaging these processes can jeopardise both

the executor’s duties and the estate. For private client lawyers,

understanding these risks is crucial to guiding clients effectively.

Here, we explore the primary threats facing clients of probate

research firms and outline practical steps to mitigate them.

Fraud and Misrepresentation in Probate Matters

Fraud is a major risk in probate cases, especially intestate

estates. False claims or forged documents can jeopardise the

estate. Engaging reputable probate research firms with strong

verification systems, including cross-referencing public records

and genealogical data, helps mitigate this. Firms with a solid track

record and indemnity insurance offer added protection against

losses.

Missed Beneficiaries

Failing to identify all rightful beneficiaries can cause legal

disputes, delays, and reputational damage, particularly in cases

with estranged or dispersed families. To reduce this risk, clients

should engage probate research firms with advanced tools, global

networks, and legal expertise. Firms with indemnity insurance for

missed beneficiaries offer extra protection.

Data Security and GDPR Compliance

As probate becomes more digital, data security is vital. GDPR

breaches can lead to hefty fines and reputational damage. Clients

should ensure probate research firms use encrypted systems,

follow GDPR, and have clear data-sharing agreements and

protocols for handling sensitive information.

Delays in Estate Distribution

Delays in estate distribution from inefficiencies, disputes, or

administrative issues can cause financial losses and strained

relationships. Clients should choose efficient probate firms, set

clear timelines, and request regular updates to ensure transparency

and avoid setbacks.

Legal Challenges to the Estate

Errors in identifying heirs or interpreting inheritance laws can lead

to costly legal challenges. To reduce this risk, clients should work

with firms that have a strong understanding of probate law and

established connections with legal professionals. Collaboration

between probate researchers and private client lawyers ensures

accurate and lawful estate resolution.

Financial Crime and Risk

on Client Accounts

Compliance is certainly getting the spotlight it deserves

within the legal sector but are the law sector regulators

focusing on the right topics?

Gone are the days when having LEXCEL or any of

the other law society endorsements was enough to

demonstrate compliance. Nowadays, the modern law firm

needs to be an expert in Cyber Security, Data Protection,

Anti Money Laundering, Proliferation Financing, Source of

Funds and Source of Wealth!

Is the emphasis on money laundering and cybercrime

shifting focus from the main compliance issues such as

training and competency?

I am sure many PI insurers will agree that most claims are

due to poor advice and negligence rather than a breach of

a client account or a cyber-attack.

So why are the regulators not taking the same focus on the

legal competency and ability of the staff within a law firm?

I guess the answer is bad press. We won’t see a 3-part TV

drama on negligence, in the same way we do on money

laundering.

Yes, it’s great that compliance is back on the agenda,

as it needs to be, but to what cost? I speak to many law

firms who struggle to balance the cost of compliance

vs profitability. Ever-increasing PI costs, cyber security

premiums and compliance services are taking their toll.

This begs the question, is this a compliance cost issue or a

law firm pricing one?

Do we need to look at passing the costs of compliance

down to the client and review our pricing structures? This,

of course, depends on the type of work you are doing. But

for a fixed fee conveyancing or even panel PI firm is it time

to revise fees to meet the increased burden of regulatory

compliance that wasn’t there to this extent as recently as 5

years ago?

Financial crime, cyber threats, and increased regulation

will not go away, the question is how we adapt to

accommodate it.

Conclusion

Private client lawyers should choose probate research firms

with strong due diligence, data security, and probate expertise.

Proactively managing risks ensures clients’ interests are protected

and estate administration runs smoothly.

23

INTERVIEWS

Transforming the

Legal Experience

Through Cutting-Edge

Technology and Risk

Management

Sarah Murphy serves as the General Manager of

EMEA at Clio, the global leader in legal technology.

With a focus on innovation, she leads her teams to

ensure Clio remains at the forefront of transforming

the legal experience worldwide.

24

INTERVIEWS

We spoke to Sarah about the growing area of risk and cyber

security in technology, and how this may affect those in the

legal sector. Here’s what she had to say:

Hi Sarah, can you first provide an overview of the main

risks you are aware of in the legal technology sector and

the implications if firms do not effectively manage them?

Yes, there are several primary risks that require careful

management to avoid severe consequences for law firms.

The first and most pressing risk is data security and privacy.

Law firms handle highly sensitive client information, making

them attractive targets for cyberattacks. If these threats are

not managed effectively, firms risk data breaches that can

lead to reputational damage, financial losses from potential

fines and lawsuits, and a significant erosion of client trust.

To mitigate this, firms must adopt robust security protocols,

such as encryption, regular assessments, and compliance

with high-security standards to protect client information.

Another key risk is data ownership and portability. When

law firms store data with third-party providers, maintaining

clear control over that data becomes more complex. If

ownership is ambiguous or portability limited, firms may

face operational disruptions or compliance challenges,

especially if they need to transfer data quickly. Firms can

avoid these issues by ensuring that contracts specify clear

data ownership rights and include easy, accessible data

export options.

Vendor lock-in poses an additional risk. When law firms

enter long-term contracts without flexible exit clauses or

choose software that lacks integration capabilities, they

may find themselves tied to a single provider. This can limit

their ability to adapt to changing needs or upgrade to more

suitable solutions, ultimately affecting their competitiveness

and operational flexibility. To manage this, firms should

prioritise contracts that allow regular reviews and

renegotiation, data portability, and integrations that support

a flexible tech stack.

Lastly, compliance with regulatory standards like GDPR and

SRA guidelines is essential in the legal tech landscape. If

firms fail to keep up with evolving compliance requirements,

they risk penalties and reputational harm. Regular

compliance audits and reviews of provider practices help

firms stay aligned with regulations, safeguarding both their

data and their client's trust.

Failing to address these risks can lead to significant

operational, financial, and reputational consequences.

By managing them proactively, firms can leverage legal

technology to its full advantage while protecting their

practice and their clients.

What are the key areas law firms should focus on when

considering changing legal technology suppliers or

products?

Law firms should consider several essential areas when

evaluating new legal technology to ensure the solution

meets current and future needs.

Functionality and practicality come first. The software

should genuinely support daily operations and align with

the firm's specific needs. A demo alone might not reveal

everything, so seeking direct feedback from current users

can provide valuable insights into its reliability and ease of

use in real-world applications.

Data security and compliance are paramount. Legal tech

providers must uphold high standards for data protection

to safeguard client information. This includes confirming

that the provider's encryption methods, breach protocols,

and adherence to standards like GDPR and SRA regulations

are robust. Strong compliance practices protect client

confidentiality and reinforce the firm's reputation.

Avoiding vendor lock-in and long-term contracts is also

crucial. Lock-in risk arises when firms commit to lengthy

contracts that restrict flexibility. To counter this, firms should

negotiate break clauses to allow for contract reassessment,

clarify data portability for easy data export without hidden

fees, and prioritise solutions with robust integration

capabilities to avoid dependency on a single provider.

Transparent pricing helps firms budget accurately and

prevents unanticipated costs. Verifying all fees upfront and

requesting a clear upgrade roadmap enables the firm to

assess whether future improvements align with its goals.

Lastly, quality of support and training is key. Law firms need

responsive, knowledgeable support that includes 24/5

assistance and thorough onboarding, especially for initial

setup and ongoing updates. Ensuring a smooth exit process,

where the firm retains ownership of its data and can retrieve

it without hassle, protects against potential vendor lock-in.

“To mitigate

risks, firms

must adopt

robust security

protocols”

25

INTERVIEWS

“Failing to address these

risks can lead to significant

operational, financial, and

reputational consequences.”

By focusing on these areas, law firms can make informed

choices and ensure they have control over their data,

adaptability, and budget. This approach empowers firms to

select a tech solution that effectively supports their growth

and operational goals, instilling a sense of confidence and

control.

How does your software address the unique ethical

considerations of the legal profession, particularly

regarding client confidentiality?

Clio prioritises client confidentiality with multiple layers of

data security, including industry-leading encryption and

two-factor authentication. Customisable access control

restricts data access to authorised personnel only, while

audit trails provide transparency and accountability.

Another essential feature is access control. Clio offers

customisable user roles and permissions, enabling firms to

restrict data access within their teams. This ensures that

only authorised personnel can access sensitive information,

supporting client confidentiality and minimising the risk of

inadvertent disclosures.

Recognising that accountability and transparency are

paramount in legal practice, Clio includes comprehensive

audit trails. These audit logs track all activity within the

platform, allowing firms to monitor data access, review any

changes, and quickly detect potential issues. This fosters

accountability and provides firms with a clear record to

support compliance efforts.

Clio's commitment to regulatory compliance further

reinforces ethical obligations. We are GDPR and SRA

compliant, ensuring that firms meet their responsibilities

under data protection regulations and industry guidelines.

This level of compliance, along with our partnership with

the Law Society of England and Wales and our status as an

approved supplier of the Law Society of Scotland, provides

firms with a sense of security and reassurance about the

reliability of our solutions.

Finally, Clio understands the ethical implications of cloud

storage in safeguarding client data. Our platform allows

firms complete control over their data, with options to

retrieve it in a usable format should they end their Clio

account. We maintain strict data segregation to prevent

privacy breaches, addressing data ownership and access

concerns.

How does your software support legal tech innovation

and opportunities, and what safeguards are in place to

manage the risks associated with new technologies?

Clio empowers law firms with flexibility while incorporating

safeguards to manage any risks. Unlike many providers in

the legal tech industry, Clio offers transparent pricing and

flexible contract options—an approach designed to remove

the barriers often posed by long-term contracts or hidden

fees. This flexibility allows firms to adapt as their needs

evolve without being locked into restrictive agreements,

providing transparency and cost predictability that support

long-term success and empower firms to make informed

financial decisions.

As a cloud-based platform, Clio enables seamless working

from any device or location, giving legal professionals the

agility to work securely and efficiently. Clio's infrastructure

supports a vast ecosystem of integrations, partnering with

over 100 third-party applications commonly used by law

firms. These integrations allow firms to build a customised

tech stack, expanding capabilities while maintaining a

secure, unified system that supports their unique workflows.

Clio's client-centric features enhance innovation further,

offering tools designed to improve client intake, relationship

management, and secure client communication through a

dedicated client portal. Clio's approach to innovation isn't

only about adopting new technology—it's about elevating

client service and satisfaction. Additionally, Clio's workflow

automation streamlines repetitive tasks, freeing up time

for high-value activities that contribute directly to client

outcomes.

Understanding the importance of innovation and

responsible implementation, Clio incorporates robust

safeguards to manage potential risks.

How does your software adapt to evolving cybersecurity

threats in the legal sector?

Cybersecurity is a critical concern for the legal sector, where

client confidentiality and data protection are of the utmost

importance. Due to the sensitive nature of the information

they handle, law firms are increasingly targeted by

cybercriminals. Clio has implemented a proactive approach

to managing these evolving threats through a series of

advanced security measures and practices.

26

INTERVIEWS

Data encryption is foundational to Clio's security strategy.

We apply industry-leading data encryption. This level

of encryption protects data against interception and

unauthorised access, ensuring client information remains

secure even as threats advance.

Clio employs session tracking and activity logging to record

login attempts and IP addresses, helping firms detect

potential breaches early and respond swiftly. Multi-factor

authentication strengthens access control, adding a layer of

security that makes unauthorised entry more complex for

attackers.

To maintain alignment with regulatory standards and

ethical requirements, Clio fully complies with GDPR and

SRA guidelines, providing firms with a platform that meets

stringent data protection requirements. We regularly

conduct security audits to ensure our platform remains

compliant and current with the latest regulatory obligations.

Recognising that cyber threats evolve rapidly, Clio's

development team continuously monitors emerging

cybersecurity trends, such as AI-assisted hacking, and

adapts our security protocols accordingly.

Finally, Clio supports law firms with education and

best practices around data security. Through training

resources and robust support, we empower firms to use

our tools securely, reinforcing critical measures like strong

password policies, regular data backups, and secure client

communication via Clio's encrypted client portal.

with 54% of firms anticipating an increase in fixed fees

in the coming year. Fixed pricing models meet client

demands for cost predictability and streamline firm

operations. For more insights into this and other trends,

I encourage readers to download Clio's latest Legal

Trends Report, which explores billing practices, AI

usage, and more.

Client-centric features will also remain a focus, with

firms adopting secure portals and automated intake

to meet growing client expectations for transparency

and accessibility. Finally, data analytics will become

more prominent, providing firms with insights to

optimise operations and stay competitive. Together,

these trends underscore the legal sector's commitment

to leveraging technology for efficiency, security, and

improved client experience.

About Clio

Since its 2008 launch, Clio has transformed legal

technology, becoming the leader in innovation and

integration. Its advanced, user-friendly software has

redefined efficiency and client service, setting the

standard for legal professionals worldwide. Committed

to continuous innovation and customer success, Clio

leads the evolution of legaltech. Discover more here.

By combining advanced security measures with compliance

and continuous monitoring, Clio provides law firms with

a comprehensive approach to managing cybersecurity

threats. This enables them to protect client information and

maintain trust in this digital landscape.

What trends do you see emerging as key focus areas for

legal technology in the next three years?

Several trends will shape legal technology in the coming

years. AI and automation will streamline workflows,

handling tasks like document review and contract analysis.

Cloud-based platforms will continue to support flexible,

remote working environments, while enhanced data

security will remain a priority as cyber threats evolve.

Sarah Murphy

General Manager of EMEA at Clio

A notable shift in the UK market is towards fixed-fee billing,

27

INSIGHT

Foundations at risk:

Insolvency lawyers navigate risk as a core part of their work,

managing complex financial, legal, and operational uncertainties

daily. Monica Kapur, Director at boutique insolvency and

restructuring firm Isadore Goldman and founder of IG Construct,

looks at insolvency risks in construction – a sector which is

particularly vulnerable, especially in the current financial and

political climate.

Insolvency trends in the UK:

Construction sector takes a

hard hit

The rise in UK insolvencies

continues to gain attention

as businesses grapple with

challenging economic conditions.

According to recent figures

from the Insolvency Service, the

number of company insolvencies

reached 1,973 in September

2024, up 2% compared to

August 2024. However, the

number of Company insolvencies

remained higher than those

seen both during the Covid

19 Pandemic and between

2014 and 2019. This reflects

the ongoing struggles across

multiple industries. Among these,

the construction sector stands

out with some of the highest

insolvency rates, signalling that

the sector’s financial woes are

far from over. In this article we

look at insolvency trends, why

construction is a particularly

vulnerable sector and what

challenges insolvency advisors

face when dealing with the

complexities of construction

cases.

Overview of UK Insolvency

trends

The past few years have seen

notable shifts in insolvency

rates, largely driven by the

impact of the COVID-19

pandemic and subsequent

economic challenges. During

the pandemic, government

support packages helped

many businesses stay afloat;

however, as these measures

phased out, insolvency figures

began climbing again. By

2023, the number of company

insolvencies was 38% higher

than in pre-pandemic years.

The recent insolvency

statistics highlight specific

vulnerabilities in industries

such as retail, accommodation,

and manufacturing. Still,

construction is consistently one

of the hardest-hit sectors, with

a reported 4,310 insolvencies in

the past year alone. This spike

points to deeper, structural

challenges in construction,

from cash flow issues to rising

costs of materials, which have

severely impacted small and

large firms alike.

Construction Insolvencies:

Why the sector is suffering

Construction’s unique

characteristics make it especially

vulnerable to financial distress.

The industry’s reliance on

a steady cash flow is often

disrupted by delays, contract

disputes, and price volatility.

Additionally, construction firms

28

operate with relatively thin profit

margins, making them highly

sensitive to shifts in the market

and changing interest rates.

Recent high-profile insolvencies

highlight the sector’s precarious

position. For instance, the

collapse of Carillion in 2018 left

a lasting impact, as the oncemajor

player in construction

and facilities management

fell into liquidation with debts

exceeding £1.5 billion, affecting

over 30,000 suppliers and

subcontractors. 2023 saw the

administration of companies like

Henry Construction Projects and

the Buckingham Group, which

cited rising costs and cash flow

issues as primary reasons for their

insolvency.

The highest profile construction

casualty most recently was ISG

with eight of its subsidiaries

going under, highlighting that

even established businesses with

significant project portfolios are

not immune.

The link between

construction insolvencies and

Economic Policy

Government policy, particularly

regarding housing and

infrastructure, would suggest

that construction companies are

going to be under pressure for

INSIGHT

the foreseeable future. The UK

government’s ambitious housing

targets—to build 300,000 new

homes annually—along with

commitments to large-scale

infrastructure projects, continues

to create high demand within

the sector. Yet this demand can

also drive unsustainable growth,

pressuring companies to take

on excessive debt or stretch

resources thin to keep up with

contracts and deadlines.

Rising National Insurance

contributions, announced

in the Autumn budget, as

well as increased borrowing

costs further exacerbate the

problem. With inflation putting

pressure on project budgets

and financing terms tightening,

construction firms face a

particularly challenging financial

landscape, limiting their ability

to meet demand without risking

insolvency.

Risks for Insolvency

Practitioners: Complexities

of construction cases

For insolvency practitioners

(IPs), taking on a construction

insolvency can be uniquely

risky. IPs must navigate multiple

challenges, including unfinished

projects, competing creditor

claims, and complicated contract

structures. Recovering assets

is often difficult, and many IPs

find themselves in situations

where the financial recovery is

too limited to justify the time and

costs involved.

Construction insolvencies

come with their own set of

challenges, as many projects

involve multi-party contracts and

long supply chains. IPs handling

these cases must contend with

claims from subcontractors,

suppliers, and creditors, all

vying for limited assets. In some

instances, these claims may go

unresolved. The complex nature

of these cases often results in

IPs making minimal recoveries,

further diminishing the appeal

of handling construction

insolvencies.

The Solution: Funded

solutions and specialist

support

To address these challenges

IPs can use funded solutions.

Funding offers a critical

resource, enabling IPs to take

on cases that may otherwise

be financially unsustainable.

Through funding, IPs can afford

the necessary due diligence,

complete essential asset

recovery steps, and manage

creditor claims effectively.

Collaborating with a network

of industry experts is another

effective approach for handling

construction insolvencies. IPs

can benefit greatly from the

expertise of constructionspecific

legal advisors,

surveyors, adjudicators,

and insolvency lawyers who

understand the unique

pressures and intricacies of

the industry. Having a team

with experience in complex

construction claims and an

understanding of regulatory and

contract law helps IPs manage

the risk and navigate cases with

greater confidence.

Specialist support and funding

not only make these cases

viable for IPs but also increase

the potential for a successful

resolution. These resources

allow IPs to maximise asset

recovery and mitigate the risks

associated with construction

insolvencies. With the right

combination of funding

and expert assistance, IPs

can approach construction

insolvencies with a strategy that

balances risk and reward.

What lies ahead for the

construction sector and IPs?

The future of construction

remains uncertain. With

economic pressures persisting

and the government’s

housing and infrastructure

targets placing further strain

on resources, the risk of

insolvencies is likely to remain

high in the sector. Highprofile

projects, such as data

centres and infrastructure

developments, could also be

impacted, especially as inflation

continues to drive up material

costs and financing becomes

more constrained.

For IPs, the road ahead will

involve adapting to these

evolving risks by leveraging

available funding options and

partnering with experts. The

ability to navigate construction

insolvencies effectively will

depend on both financial

and legal resources, and IPs

must stay agile to meet these

complex challenges.

While the construction sector

is poised for continued growth

in demand, only a strategic

approach to managing

insolvency cases can ensure

that IPs can handle the

complexities and secure the

best possible outcomes for all

parties involved.

Monica Kapur,

Director, Isadore Goldman

29

IN-DEPTH

NAVIGATING THE EVOLVING

RISK AND COMPLIANCE

LANDSCAPE FOR LAW FIRMS

The risk and compliance landscape

is ever-evolving, ever-shifting and

in constant need of attention and

dedicated time. In this article, Rebecca

Atkinson explores the top risks currently

faced by law firms and offers key tips

for managing them.

Rebecca is a New York Attorney,

Solicitor and the Director of the legal

compliance firm McArthur Atkinson.

Author of three books on regulatory

matters, she sits on a number of

boards and committees and advises a

wide range of law firms on all risk and

compliance issues.

Anti-money laundering

The Solicitors Regulation Authority

(SRA) has significantly expanded

its Anti-Money Laundering (AML)

capabilities in recent years, affecting

all law firms regardless of whether they

handle AML-regulated work. While the

SRA currently faces pressure to address

other regulatory priorities - particularly

in light of the Legal Services Board's

critical report on their handling of the

Axiom Ince matter - their intensive focus

on AML supervision shows no signs of

diminishing.

In September, the Office of Professional

Body AML Supervision (OPBAS)

reported that none of the AML

supervisors it oversees were fully

effective across all areas. Overall

effectiveness had either declined

slightly or remained static, with only

three supervisors showing incremental

improvements. Additionally, OPBAS

noted that these supervisors had not

used their powers effectively to act as a

credible deterrent. OPBAS also reported

a decline in the number of fines, even

though supervisors have identified

more instances of non-compliance.

Weaknesses were also noted in the

design of supervisory approaches.

Although the SRA was not specifically

criticised, it is likely that the SRA will

aim to strengthen and refine its AML

supervision and adopt a tougher stance

on fines.

At the Law Society AML Conference in

September 2024 and again at the SRA

COLP COFA conference in November

2024, the SRA announced that its

next thematic review will focus on

compliance with source of funds and

source of wealth requirements. Firms

should be prepared to participate in this

review.

The SRA has also recently published

its AML thematic review report on

training. In it they set out that where

money laundering compliance officers

had taken additional training, firms

were around 50% more likely to be

compliant, some training of staff was

too focused on the regulations and not

about practical processes and why they

are important, firms should not rely

on external providers which provide

generic training and training ought to

be bespoke where possible. Thematic

reviews have a history of being repeated

so firms would do well to consider

the review and consider how it might

amend its training programme.

The SRA’s 30th October 2024 annual

AML report outlined findings from

reviews of 545 firms, which should be

closely examined.

Firms must always be ready for an

SRA AML visit, using the High-Level

Compliance Principles from the Legal

Sector Affinity Group Guidance as a

starting point.

SRA 'unlimited fines' for economic

crimes

Continuing with the AML theme, the

SRA recently closed its consultation

on the Economic Crime and Corporate

Transparency Act 2023, which removes

the cap on fines for economic crimes.

Instead of unlimited fines, the SRA

proposes two new fining bands, ranging

from 11% to over 25% of a firm’s annual

domestic turnover, with individuals

facing fines up to 1.5 times their annual

salary. For international firms, fines

could be based on global turnover, with

fines potentially skyrocketing to millions.

So what is an ‘economic crime’? This

is where the SRA finds a failure on

the part of an individual or firm in the

following:

• the prevention or detection of

economic crime; or if

• the failure consisted of an act or

omission which had the effect of

inhibiting the prevention or detection

of economic crime.

The definition of economic crime under

the Act is an act which:

• constitutes an offence listed in

Schedule 11 (‘a listed offence’)

• constitutes an attempt, conspiracy or

incitement to commit a listed offence,

or

• would constitute a listed offence or an

offence specified in paragraph (b) if

done in the United Kingdom.

30

IN-DEPTH

A Schedule 11 offence includes cheating

the public revenue (i.e. tax evasion),

untrue tax declarations, theft, false

accounting, dishonestly retaining

wrongful credit, forgery, offences under

the Proceeds of Crime Act 2002 or the

Terrorism Act 2000, an offence under

the money laundering regulations of

contravening a relevant requirement

(regulation 86), fraud, bribery and more.

Firms need to watch the SRA’s next

move on this and share the outcome of

the consultation across the business.

New preventative duty to prevent

sexual harassment and SRA ‘wellbeing’

review

The Worker Protection (Amendment of

Equality Act 2010) Act 2023 brought

in a new preventative duty (live from

26 October 2024) on all employers to

take all reasonable steps to protect their

workers from sexual harassment by

other workers or third parties (including

clients). The Equality and Human

Rights Commission has issued lengthy

technical guidance as well as an 8-step

guide that employers can follow to

prevent sexual harassment at work.

Step one is conducting a risk

assessment, as employers cannot prove

they’ve taken reasonable measures

without this. Based on the assessment,

firms should implement mitigation

measures, engage with workers,

establish clear policies and reporting

lines, provide relevant training, and

take swift action when harassment is

reported.

On a similar theme, the SRA continues

to focus on well-being within law

firms, examining the steps firms are

taking to comply with paragraph 1.5

of the Code for Solicitors, RELs, and

RFLs, as well as paragraph 1.6 of the

Code for Firms. Essentially, those rules

require solicitors and law firms to treat

colleagues fairly and with respect - and

to not bully, harass or discriminate

unfairly against colleagues. The rule in

the Code for Solicitors, REL and RFLs

also expresses that there is a positive

duty on a ‘manager’ (meaning a partner

of a partnership, member of an LLP

or director of a limited company) to

challenge the behaviour of those who

do not meet the standard. The rule for

firms sets out that firms must require all

employees to meet the standard.

The SRA has been sending firms a

questionnaire on this topic, which

includes questions about the firm’s

existing policies, such as those on

workplace relationships, how it

investigates issues, and whether it has

its own internal code of conduct.

Firms selected for an interview can

expect to be asked about whether they

have a core set of values and how they

ensure these values are actively upheld.

Questions will also cover whether

leaders model the firm’s values, how

the firm measures well-being, how it

supports employees in managing client

pressures, what changes, if any, have

been made due to the ‘well-being’ rule,

and more.

There is a clear overlap between the

new legislative preventative duty and

the Code rules. Firms that ensure they

meet their legal requirements will

be well on their way to meeting the

regulator's expectations.

Failure to prevent fraud offence

Another gift of the Economic Crime

and Corporate Transparency Act

2023 is the failure to prevent fraud

offences, making it easier for firms to be

criminally prosecuted. A valid defence

against the offence would be that the

firm took all reasonable measures to

prevent fraud from occurring. On 6

November 2024, the government issued

long-awaited guidance and confirmed

that the offence will come into force on

1 September 2025. The guidance sets

out what reasonable measures would be

and it starts with top-level commitment.

Next is to complete a risk assessment to

understand an organisation’s exposure

to fraud being committed by relevant

persons. This risk assessment should

identify the risk and put in place

mitigation to lower any risks found.

This will be a familiar concept for law

firms who must have a practice-wide

risk assessment under the anti-money

laundering legislation and may have

a risk assessment also for two other

failures to prevent offences under the

Bribery Act 2010 and Criminal Finances

Act 2017.

Measures that an organisation may wish

to implement will depend on the risk

found but will undoubtedly include the

implementation of a policy and training.

It may also include more vetting of

associated persons, making sure new

service offerings are considered for fraud

risk, having a procurement process that

considers fraud risk and undertaking

due diligence of some kind on suppliers.

For more information, please read the

guidance here.

Continuing competence

In October 2024, the SRA reminded

the profession about the continuing

competence regime, which requires

solicitors to reflect on their practice,

identify learning needs, plan and address

them, and record the process. Despite

being in place for years, the regime

still feels unfamiliar to many, and there

is ongoing nostalgia for the former

CPD system. The SRA can request a

competency record at any time, and they

have recently begun asking solicitors

to submit their continuing competence

records during investigations.

Firms should ensure their internal

processes support continuing

competence, providing a method for

employees to track their development

and maintain records.

Rebecca Atkinson

Attorney, Solicitor and the

Director of McArthur Atkinson

31

Clarity on Climate

Risks - at No

Extra Cost.

ClimateIndex TM provides conveyancers

with clear and practical support to easily

signpost any potential future issues to clients.

• Included automatically with our key residential and

commercial search reports

• Covers main physical risks: Flooding, subsidence and coastal erosion

• Includes transition risk detail: EPCs (incl multiple for commercial) and

flood resilience

• Backed by expert data, training and support with clauses

• Supports Law Society Climate Guidance for Duty of Care and Duty to Warn.

Trusted already in over 700,000 transactions and counting.

www.groundsure.com/climateindex or contact your preffered search provider.

Email: info@groundsure.com Tel: +44 (0)1273 257 755

FEATURE

Weathering the Storm:

Advising clients on

climate-related risk

For lawyers dealing with property

transactions, climate risks can be divided

into three main categories:

•Physical risks from already wellunderstood

primary issues of flooding,

subsidence and coastal erosion;

•Transition risks that affect owners

in terms of the impact of legislation,

eg on minimum energy performance

standards for homes and businesses

and the cost of meeting those

standards; and

• Liability risks that firms could face from

failing to advise clients on potential

physical and transition risks.

Climate change does not distinguish by

region or property type, but broadly,

climate modeling agrees that the south

and east of the country is getting

drier and warmer in the summer,

while the north and west is getting

wetter. Differentially, this means that

undefended streams and rivers in wetter

areas could have more significant

impacts, while clay shrink-swell

subsidence from droughts could affect

London and the south east more.

Assessing the changing face of climate

risk

Groundsure was the first in the market to

integrate climate analysis automatically

in searches at no extra cost, as we

believe there is no difference in terms of

environmental due diligence, whether

it is the present day or into the future.

ClimateIndex looks at the three main

physical risks - flooding, subsidence

and coastal erosion - and projects

changes in the risk over a five and 30-

year period. This ensures that it meets

Bank of England and lender reporting

requirements. Our Climate analysis also

looks at transition risk factors, such

as the existing and potential energy

performance of the property and,

critically, how it compares to others.

For commercial property, we also list

up to 50 EPCs if there are multiple

units, including combined retail/office/

residential in a mixed block.

Climate data will continually evolve as

The Met Office and others refine their

models and we get more evidence of

extreme climate events. This applies to

the speed of the trajectory of warming

too. ClimateIndex is based on the

Met Office UKCP18 model and takes a

blended approach to climate warming

above pre-industrial levels, so that we

have a moderate view of future risk

- we have already breached 1.5C of

warming, but 3-4C of warming is, in our

opinion, alarmist at this stage and will

unnecessarily blight too many properties.

Eroding values

The most stark expression of climate

risk that could affect property value is

from coastal erosion. While compared to

flooding and subsidence, the estimated

numbers of properties at risk is relatively

small (42,000 extra by 2050), but these

properties will fall over a cliff or onto the

coastal foreshore and represent a total

loss of value. These properties are often

bought with the heart not the head, as

holiday or retirement homes, and many

fail to appreciate that land is eroding

at an accelerated rate, especially along

the east coast of the UK. Many will be

cash-only purchases, which lenders

increasingly shy away from, often

because insurance cannot be obtained.

Sea level rise and storms are contributing

to this acceleration, which is why

homebuyers, farmers and businesses

should not second guess how many

years they think they can get out of their

investment (which it isn't if it goes over

the cliff).

Valuation impacts of properties prone

to flooding will be largely determined

by their degree of protection. Where

defences have been implemented, they

are largely effective, as long as they

have been futureproofed sufficiently, but

even some of these are being tested and

may become obsolete based on specific

weather events. It's the small, clogged

streams that no one normally notices

or the groundwater that comes up

through the floorboards that are hidden

risks that only become obvious during

extreme events, but that could forever

impact insurance and desirability of the

property.

Planning for the future

Our ClimateIndex ratings provide

guidance on the potential impact of

the three main physical risks mentioned

above on valuation and obtaining a

loan or insurance. Where a flood risk

is identified, we provide additional

guidance on potential options and

costs for retrofitting flood mitigation

measures which could improve insurance

quotations, reduce excesses and support

lending decisions. Energy performance

measures are also offered. The aim here

is to offer suggestions that can assist in

price negotiations if any work is required

or desired and keep the transaction

moving. It is important to stress that the

vast majority of property will see low

or negligible climate risk, but there are

exceptions.

The ratings can be combined with

standard clauses that conveyancers can

use to explain the risk in a consistent

and robust way. The important point

(reinforced by the Law Society Guidance

and anticipated sector-specific guidance

early in 2025) is that the risk should just

be signposted, with standard wording

and support from report providers

such as ourselves used and no more -

conveyancers are not climate scientists!!

David Kempster,

Chief Customer Officer,

Groundsure

33

We work with law firms to ensure

compliance and optimise performance:

Risk and compliance support

AML independent audit

Annual risk assessments

COLP / HOLP Annual

Compliance Support

File reviews - quarterly / annual

support

Firmwide Risk and Compliance Gap

Analysis review

Acquisition and Merger

Compliance Audit

Certification support

AML independent audit and

certification

CQS Gap Analysis

LEQS (Legal Eye Quality Scheme)

Lexcel accreditation support

CQS Accreditation support

Bespoke consultancy and on-site

exclusive live training

Enhanced AML Masterclass training

for SRA regulated firms

Enhanced AML Masterclass training

for CLC regulated firms

Source of Funds and Source of

Wealth training

Codes of Conduct Training

Legal Eye Academy online training

(including Q&A)

Other risk and compliance support services

Complaint handling service (ad-hoc)

GDPR advice and training

Policy and procedure store

Straightforward, practical advice in a

complicated regulatory arena

Contact us 0203 051 2049 or email us at bestpractice@legal-eye.co.uk

Connect with us for regular compliance updates Newsletter | LinkedIn | Twitter

For more information visit our website www.legal-eye.co.uk

SPOTLIGHT

SPOTLIGHT ON:

AML and

Financial Crime

As we move from 2024 into 2025,

regulatory compliance remains a pressing

issue for law firms.

The Law Society’s Anti-Money

Laundering (AML) and Financial Crime

Conference 2024 held in September,

highlighted several critical areas on which

firms need to focus in order to remain

compliant in a challenging regulatory

landscape.

Key themes were Suspicious Activity

Reports (SARs), risk assessments,

customer due diligence (CDD), data

protection regulations, and the

importance of preparing for SRA audits.

Regulatory compliance and suspicious

activity reports (SARs)

A critical area of compliance that

continues to have a focus is the

importance of submitting accurate

Suspicious Activity Reports (SARs).

The new SAR portal is expected to

improve the submission process, but

firms were reminded that accuracy

remains paramount. Missing or

incomplete reports can hinder financial

crime prevention efforts, so ensuring all

details are correctly captured is essential.

Law firms are encouraged to invest in

training and resources to improve their

SAR processes, as even minor oversights

can have serious consequences.

Risk Assessments: Firm-wide and clientlevel

Risk assessments were another priority,

with a clear emphasis on moving away

from generic templates. Law firms were

advised to conduct tailored, firm-wide

risk assessments that account for the

nuances of their operations. A thorough,

customised approach to risk assessments

allows for a more accurate alignment

between firm-wide risk, client risk, and

matter-level risk.

In 2025, regulators will likely continue

scrutinising firms that fail to adapt

these assessments to their specific

circumstances, so reviewing and

updating risk assessments should be high

on the compliance agenda.

Customer Due Diligence (CDD)

challenges

Completing Customer Due Diligence

(CDD) effectively remains a common

struggle. A notable challenge is

understanding clients' sources of wealth

and knowing when to perform enhanced

due diligence. With increased regulatory

focus, firms need to strengthen their

CDD processes to mitigate risks,

especially when dealing with complex or

high-risk clients.

2025 may see heightened enforcement

around CDD, particularly where firms

fail to verify clients’ sources of funds

rigorously. Ensuring robust procedures in

this area will be essential to compliance

and protecting firms from regulatory

penalties.

Balancing GDPR and MLR Compliance

The intersection between General

Data Protection Regulation (GDPR)

and Money Laundering Regulations

(MLR) presents another complex area

for law firms. These can be sometimes

conflicting requirements, and knowing

how to navigate both frameworks

effectively can be challenging.

Ensuring data protection while fulfilling

AML obligations can be tricky, but firms

must strike a careful balance. Moving

into 2025, law firms should be prepared

to justify how they handle personal data

in the context of AML, demonstrating

compliance with both GDPR and MLR.

SRA enforcement and preparing for

audits

Preparing for visits and audits from

the Solicitors Regulation Authority

(SRA) was highlighted as an essential

component of AML compliance.

Proactivity in identifying and addressing

potential gaps in AML procedures is

crucial, especially with the SRA’s focus on

thorough regulatory enforcement. Law

firms must ensure they understand the

latest developments from the Solicitors

Disciplinary Tribunal and stay current

with their obligations under AML.

Effective preparation for an audit can

also enhance firm operations, turning

compliance into an opportunity for

overall process improvement.

In summary, as regulatory requirements

evolve, law firms must adopt a proactive

and tailored approach to compliance.

Legal Eye offers comprehensive

compliance support, helping firms ensure

they meet their regulatory obligations

while optimising internal processes.

From SAR accuracy to balancing GDPR

with MLR and preparing for SRA audits,

compliance demands will only increase

as we move into 2025. Now is the time

for firms to review and refine their

practices, ensuring a solid compliance

framework that mitigates risks and

supports sustainable growth.

Paul Saunders was appointed Managing

Director of Legal Eye Ltd in 2016 and has

over 35 years of experience as a solicitor.

He is part of the senior leadership team

at PEXA in the UK, a world-leading,

digital property exchange and data

insights business where he serves as

HOLP of Optima Legal, and Managing

Director of both Amity Law and Legal

Eye, all of which operate under the UK

PEXA group umbrella.

Paul has held senior roles, including CEO

and COLP at a leading Midlands firm and

Head of Lender Services at Shakespeare

Martineau. His extensive experience

in compliance, risk management, and

conveyancing positions him as a key

figure in the sector.

Paul Saunders,

Managing Partner, Legal Eye

35

Modern, adaptable

law firm management

Work efficiently

Manage profitability

Oversee firm operations

Delight clients

Grow your firm

actionstep.com

SPOTLIGHT

What Do Law Firm

Professionals Need to Know

About Risk Intelligence?

Law firms are increasingly seen as vital gatekeepers in the

fight against financial crime. As the pressure to comply with

Anti-Money Laundering (AML) regulations intensifies, firms

must navigate a myriad of risks while maintaining their client

service standards. This article highlights key AML risks for law

firms and shares best practices for robust risk assessment,

featuring insights from Amy Bell, founder of Teal Compliance,

as detailed in our new guide with First AML.

Understanding Client Risk

Law firms play a critical role in preventing money laundering,

with non-compliance carrying severe consequences such

as reputational damage, regulatory sanctions, and criminal

liability. AML legislation requires firms to conduct client

due diligence to determine whether clients are engaged in

criminal activities, which is made more challenging by the

ever-evolving nature of money laundering schemes and

regulatory demands.

Evolving Legislation: A Risk-Based Approach

AML regulations now follow a risk-based framework, allowing

firms to tailor assessments to national, industry, and firmspecific

factors, enabling more effective risk management.

Key Risk Indicators

Risk assessments require an understanding of various factors

that can signal potential money laundering, including:

• Services Offered: High-risk services, such as real estate

transactions, involve significant values and opportunities to

obscure fund origins.

• Geographical Jurisdictions: Transactions in high-risk

countries identified by the Financial Action Task Force

(FATF), necessitate enhanced due diligence due to

inadequate AML controls or significant corruption concerns.

• Client Profiles: High-risk indicators include international

clients, complex entities, unusual transaction patterns, and

wealth sources like cryptocurrency.

Tailored Risk Assessments

AML risk assessments should be customised to each firm’s

circumstances. For example, a multinational firm handling

high-value transactions faces different risks than a local firm

focused on wills and divorces.

Practical Challenges and Solutions

Implementing effective AML programs often encounter

hurdles, including:

• Weaponised incompetence: Staff may see AML processes

as barriers to client service.

Solution: Provide concise training and workflow-integrated

guidance to empower staff to execute AML procedures

effectively.

• Excessive effort: Manually switching between systems

wastes time and friction.

Solution: Integrate AML functionality into practice

management systems like Actionstep to streamline

processes.

• Lack of understanding: Lawyers may struggle to apply due

diligence consistently.

Solution: Use dynamic prompts tailored to clients and

matters to guide informed decisions.

Best AML Practices for UK Law Firms

UK law firms can strengthen their AML programs with these

six strategies:

• Define normal practices: Establish baselines to identify

unusual or high-risk activities.

• Customise assessments: Tailor risk assessments to reflect

the specific needs of each department in your firm.

• Provide continuous training: Invest in ongoing education to

keep staff informed of regulations and best practices.

• Collaborate with peers: Learn from industry colleagues and

other firms to share insights.

• Leverage technology: Simplify workflows by integrating

AML tools like those from First AML into your practice

management system.

• Be proactive from the start: Avoid shortcuts to build

sustainable, compliant programmes from the outset and

reduce your law firm’s risks long term.

By leveraging these practices and technology, law firms can

streamline AML compliance, boost efficiency, and uphold

strong client service - mitigating risks while strengthening

their reputation for integrity.

For a deeper dive into these strategies, we invite you to

download our comprehensive guide on AML compliance

tailored for legal professionals.

Oliver Tromp is the Regional Vice President, UK, at

Actionstep. He leads Actionstep’s UK go-to-market strategy

including sales, marketing, customer success, and support.

Driven by a deep curiosity and an entrepreneurial spirit,

Oliver started his career with seven years in the world of

auditing before taking up a role as COO of a high-growth

digital marketing start-up.

Oliver is passionate about using technology to enable law

firms to do more of what they do best – helping people and

businesses.

Oliver Tromp,

Regional Vice-President,

UK at Actionstep

37

Are you taking note?

Start your journey with us.

01908 018390 or contact@evolvelaw.co.uk evolvelaw.co.uk

SPOTLIGHT

A Managing

Partner’s

Guide to Risk

Managing Partner of Evolve Law,

Marc Lansdell, considers risk from

a leadership perspective

What do you consider the most significant risks facing law firms in

the current market?

I think most Law firm owners would say their biggest threat and the

one that keeps them up at night is the potential of a cyber-attack. As

a conveyancing business we are very aware that we need to have the

highest walls possible to protect our systems. These threats are only

going to increase as we embrace the new technologies required to

operate in a developing world, particularly AI.

I also think the legal profession is in the midst of a recruitment crisis,

particularly in conveyancing. I have been lucky enough to have spent

nearly 20 years doing what I do and still absolutely love the hard

work and hustle of the job but we live in different times. The dream of

rising the legal ladder to equity partnership is no longer an attractive

proposition for lawyers who want a healthy work-life balance as well

as the right opportunities to progress. There is no escaping that the law

is tough and it does require a degree of hard work and sacrifice but it

cannot be at the risk of our health. We need to make the law attractive

again and be open to new ideas of working, understanding that our

people have so much more to offer than hitting billing targets. We have

the power to change things, we just need to be open-minded and listen!

How are you monitoring how these risks evolve, and mitigating

against them?

Firstly it comes with having the right partners. We are lucky that we

have worked with the same IT team since we started the business and

their MD has been to known to me for over 15 years. They understand

every corner of our business and the risks we face and do a great job

protecting us. Alongside this we ensure all staff undertake ongoing cyber

training as well as having a very strong culture of openness regarding

risk.

We have some strong growth plans so we are mindful that we are

going to need lots of great people to join us on that journey. There are

some attractive opportunities in the market so we know we need to

be constantly pushing ourselves to make sure we can compete. What I

can say is top to bottom there are no egos in the business. We foster a

culture of openness and encouragement to explore new ideas. When I

started the business my vision was to be the Google of the Conveyancing

world. We don’t have sleep pods or slides yet but never say never.

Are expectations of clients changing, for example around use of

technology/AI?

There is no escaping the fact that client expectations have changed.

Almost everything we purchase now can be tracked to the minute,

be that via an app or automatic updates to our phones. We interact

with chat bots, use facial recognition to access our bank accounts and

most of us have used ChatGPT or some sort of AI by now. So why when

we interact with these systems on a daily basis do we expect client

expectations and behaviour to be any other way? Clients are demanding

that we use these systems and keep up with the pace of change and

those firms who are embracing these solutions and understand that

client behaviour will drive how legal services are delivered are going to be

the winners of the future.

I also think that as we learn more about it, blockchain technology is

going to play a significant part on how we deal with transactions in the

future. At the moment this is still an unknown but the rapid pace of

development in this space is going to mean that smart contracts and

payments in a digitised currency is going to become part of normal life.

I don’t think we are close but we need to remain open to the possibility

and continue to educate ourselves on what might be possible.

What strategies do you use to mitigate risks around people such as

talent retention and recruitment, mental health and well-being and

behavioural related risk?

There is no getting away from the fact that recruitment is tough. There

is more competition for new hires and the talent pool is shrinking as

less people enter and remain in the law. With lots of firms now offering

remote working the employment opportunities are now not limited to

the local market and candidates have ample opportunities to select the

right firm for them. This is great for improving employee wellbeing and

standards across the profession with firms now having to up their game

to compete for the best talent and retain them.

At Evolve we have spent a significant amount of time and money on

looking after our colleagues and listening to their needs. We have a

culture team made up of colleagues across the business whose role it is

to ensure our values run through everything that we do and to hold us

all accountable to those values, including me! We are proud to say that

we have two Mental Health First Aiders in the business and have plans

to expand that next year as well as offering private medical care which

includes access to support for those who might be suffering from poor

mental health.

Excitingly, we are launching our Evolve Academy in 2025. This has been

on my “to-do list” for far too long and I am pleased to say that we are

finally in a position to launch this to the market next year. We know

that we build great lawyers at Evolve and we want to give as many

opportunities as we can to those who want a great place to work and get

the support they need to be the version of themselves.

What emerging regulatory challenges do you anticipate for law

firms?

As ever there will be a focus on the protection of client data and their

funds, as well as a renewed energy on AML and source of wealth which

remains a challenge for firms. We are already seeing a bigger push

towards Third Party Managed Accounts for holding client funds with

the regulators keen to explore the possibilities. I am not convinced at

the moment we are ready for this but I have no doubts this will become

the norm in the future and we need to be ready. Hopefully we will see

cheaper PI quotes as a result as well!

There are going to be challenges over the adoption of AI and how this

interacts with firms systems and client data. It is going to be imperative

that safeguards are put in place and expect to see something from the

regulators soon on what that looks like. I do think that AI has a place in

the future but we really need to understand fully what we are dealing

with and not play around with it like a new toy.

How do you as a Managing Partner, balance risk management with

strategic growth and vision?

I have an amazing senior management team who run the day to day ops

which has released me to focus on what I am good at. This allows me the

space and time I need to consider decisions balance these against the

risks we face. Everyone in our leadership team has clearly defined roles

which play to our strengths and we have strict polies and procedures

in place for all aspects of the business. This allows us to make strategic

decisions based on a clear understanding of how this affects risk within

the business. My role now is to focus on the growth of the business,

looking for new opportunities for us to expand our market share and

consider how can might pivot into new channels. Although I do often

find myself being pulled back into the operational side of the business as

I have an unhealthy obsession with marginal gains.

Marc Lansdell

Managing Director at Evolve Law

39

Join the Legal AI revolution

By leveraging powerful AI integrations within LEAP, law firms can drive their

productivity through efficiency gains in:

- Legal research

- Document management

- Automated time recording

- Matter intelligence

leap.co.uk/legal-ai

Matter AI LawY AI Prompts

AWARDS

RIDING HIGH:A WILD WEST CELEBRATION AT

THE LEAP MODERN LAW CONVEYANCING AWARDS

The LEAP Modern Law Conveyancing Awards

once again lit up Liverpool’s stylish Rum

Warehouse, an event often hailed by many in

attendance as their favourite on the property

calendar. Known for its vibrant atmosphere

and unique flair, this year’s event did not

disappoint - delivering an unforgettable night

of celebration, camaraderie, and recognition

for the best in the business.

With a Wild West theme, attendees were

transported to a world of cowboy hats, country

music, and rustic charm. The lively strains of

country songs set the tone as guests settled in

for an evening celebrating excellence, with no

fewer than 24 prestigious awards up for grabs.

Kindness and camaraderie at the heart

This year’s event embraced a powerful theme of kindness,

recognising the collaboration and resilience needed in an

industry where conveyancers often navigate the demands

of an exacting consumer base. The evening offered a

chance to step back and celebrate not just professional

accomplishments but also the team spirit, camaraderie, and

great characters that make the conveyancing community so

special.

The impressively witty Keith Farnan, a former solicitor turned

comedian, brought his unique charm to the stage. Farnan

delighted the audience with a clever arsenal of conveyancingthemed

jokes—delivered with the kind of precision and

humour that had the crowd laughing and cheering. It was

clear he relished this one-of-a-kind opportunity, knowing his

niche material might not have another audience!

Under Keith’s expert “corralling,” the awards were handed out

seamlessly, honouring the incredible talent, innovation, and

hard work that defines the conveyancing sector.

Honouring excellence and achievement

Among the evening’s highlights were several prestigious

awards recognising individuals who have gone above and

beyond:

The Outstanding Achievement Award went to Maria Harris,

celebrated for her “vital voice” and determination to bring

about positive change.

The Lifetime Achievement Award was presented to Edward

Donne, a well-known figure renowned for his passion and his

love of the industry, who will be sorely missed when he retires

next year.

This year also saw the introduction of the Female Trailblazer

Award, marking a significant step forward in celebrating the

achievements of women in the profession. The inaugural award

was presented to Laura Cartwright of Bell Lamb and Joynson,

acknowledging her significant contributions to the industry.

Sponsors and entertainment steal the show

The night wouldn’t have been possible without the fantastic

support of all its sponsors.

LEAP, once again the headline sponsor, was praised for being a

supportive partner throughout the process.

The champagne reception and warm welcome were courtesy

of Aconveyancing, while Dye & Durham provided unforgettable

entertainment, including Cowboys on stilts—an unexpected

but wildly popular addition! A warm thank you to all the

sponsors.

An unforgettable night

With its upbeat atmosphere, innovative awards, and

celebration of kindness and collaboration, the LEAP Modern

Law Conveyancing Awards once again proved why it’s such a

beloved event. From recognising individual achievements to

bringing the profession together, it was a night that inspired

pride and joy across the industry.

Congratulations to all the winners, nominees, judges, and

organisers for an evening that will be remembered for years to

come.

A full list of the winners and sponsors follows.

41

AWARDS

MANAGING PARTNER

OF THE YEAR INTERVIEW

David Baybut,

Chairman and Head of Real

Estate, Stephensons Solicitors

What does winning the award mean to you

and your firm?

Winning this award is a real honour

and acknowledgment of my personal

contribution as Managing Partner of the Real

Estate Team. It is a meaningful recognition

of the hard work and dedication of my team.

While I am grateful for the congratulations

I have received, I firmly believe that no

manager can succeed without the support

and collaboration of their team. This award

reflects the collective effort we put in every

day, and I am proud to share this recognition

with them.

What is your ethos as Managing Partner?

Lead by example. Do not expect your teams

to do anything that you yourself do not or

have not done. Learn as much information as

you can about your team and sector, listen

and communicate openly and frequently.

What has been your proudest achievement

as Managing Partner?

I have been the managing partner of the real

estate team at Stephensons for decades and

am proud of our resilience in overcoming

the challenges we face, emerging stronger

each time. I am equally proud of our ability

to embrace and adapt to technological

advancements, ensuring we continue to

move forward with innovation and progress.

The award was sponsored by Groundsure,

what does their support - and other

suppliers - mean to the industry?

The demand upon conveyancers, since

I commenced practicing, has grown

considerably. Without the current support

of Groundsure and many other suppliers

with whom we work, and their investment

into continually improving their products,

innovation, keeping up to date with

regulatory change, customer care, etc, we as

a conveyancing practice would struggle to

fulfil our obligations.

What was your favourite moment from the

evening?

Sorry there is no favourite moment, I

enjoyed it all, the humour of the evening,

the seriousness of the awards, meeting

old friends, making new friends, the new

award categories. Very noticeable, and

most pleasing was the camaraderie of

the sector, different firms all supporting

and congratulating each other, with no

competitive edge, just friendship and

solidarity.

42

AWARDS

“We are delighted once again to be a key sponsor of the LEAP Modern Law Conveyancing

Awards this year. This event has cemented itself as one of the high water marks of the

conveyancing calendar, celebrating real quality, innovation and leadership across the board,

while having some fun in the process. We have renewed our sponsorship of the Managing

Partner of the Year award as recognition of

the importance of leadership and guidance

in an ever changing market, as firms balance

technology, process and client care, while

ensuring a robust and supportive culture.

Additionally this year, we also wanted to

recognise and sponsor awards for regional

firms in the Midlands and South, which

reflect those firms demonstrating these exact

qualities across their teams. We look forward

to welcoming our guests and catching up

with friends and colleagues again.”

Malcom Smith, Groundsure

“SearchFlow, one of the UK’s largest

providers of legal due diligence data for

residential and commercial property

transactions, is proud to be sponsoring the

‘Rising Star of the Year’ category at the LEAP

Modern Law Conveyancing Awards 2024.

The winner of this award has exceptional

client service, a flare for innovation and

championing best practice, high levels of skill

and technical ability; and shows initiative in

challenging situations – qualities which are

all incredibly important to SearchFlow.”

Laura Plane, SearchFlow

“The LEAP Modern Law Conveyancing Awards

recognise the outstanding efforts of those

teams that play a vital part in keeping the

property industry moving. At CLSQ, we

understand that all great teams are built on

training and development and we’re delighted

to sponsor the Outstanding Commitment

to Training award, which celebrates those

organisations that have excelled in this area.”

Lorenzo Tejada-Orrell, CLSQ Property Insight Limited

43

AWARDS

LEAP MODERN LAW CONVEYANCING AWARDS 2024

44

AWARDS

LEAP MODERN LAW CONVEYANCING AWARDS 2024

45

AWARDS

CONVEYANCING FIRM OF THE YEAR

– NORTH OF ENGLAND

Sponsored by Perfect Portal

HIGHLY COMMENDED - Birchall Blackburn Law

WINNER – Grey-Smith Legal


– MIDLANDS

Sponsored by Groundsure

HIGHLY COMMENDED - Lucas & Wyllys Solicitors

WINNER – Nelsons


– SOUTH OF ENGLAND


HIGHLY COMMENDED - Lightfoots Solicitors

WINNER – Martin Tolhurst Solicitors


– WALES

Sponsored by Hoowla

HIGHLY COMMENDED - Colin Jones Clarke

& Hartland Solicitors

WINNER – JCP Solicitors

NATIONAL CONVEYANCING FIRM

OF THE YEAR

Sponsored by Landmark

HIGHLY COMMENDED - Birchall Blackburn Law

WINNER – Muve

RESIDENTIAL PROPERTY TEAM

OF THE YEAR

Sponsored by One Search Direct

HIGHLY COMMENDED - Bell Lamb & Joynson

WINNER – Paul Crowley & Co Solicitors

COMMERCIAL PROPERTY TEAM

OF THE YEAR

Sponsored by TM Group

JOINT HIGHLY COMMENDED - Stephensons

Solicitors LLP & Landsmiths Solicitors

WINNER – Lightfoots Solicitors

SEARCH PROVIDER OF THE YEAR

Sponsored by NTitle

HIGHLY COMMENDED - InfoTrack UK

WINNER – TM Group

INNOVATION OF THE YEAR

Sponsored by Redbrick Solutions & Kylant Legal

Accounting Software

HIGHLY COMMENDED - Legalito

WINNER – Collaborative Conveyancing

RISING STAR OF THE YEAR

Sponsored by SearchFlow

HIGHLY COMMENDED - Kirsty Szulc - Heald Law

WINNER – Samuel Cash - Bennett Oakley

SERVICE PROVIDER OF THE YEAR

Sponsored by Conscious Solutions

HIGHLY COMMENDED - inCase

WINNER – InfoTrack UK

CLIENT CARE

Sponsored by Access Legal

HIGHLY COMMENDED - GA Solicitors

WINNER – RG Law

BEST USE OF TECHNOLOGY

Sponsored by Armalytix

HIGHLY COMMENDED - The Cashroom

WINNER – Eden Conveyancing

OUTSTANDING COMMITMENT TO TRAINING

Sponsored by CLS Property Group

HIGHLY COMMENDED - Sort Group

WINNER – Movera

MENTAL HEALTH & WELLBEING AWARD

Sponsored by Capio Recruitment

HIGHLY COMMENDED - Read Roper & Read Solicitors

T/A LPL

WINNER – PCS Legal

CONVEYANCER OF THE YEAR

Sponsored by PEXA

HIGHLY COMMENDED - Kiri Kkoshi - Healys LLP

WINNER – Charlie Davidson - Bishop & Sewell

MANAGING PARTNER OF THE YEAR


HIGHLY COMMENDED - Nick Hale - Movera

WINNER – David Baybut - Stephensons Solicitors LLP

BUSINESS DEVELOPMENT

PROFESSIONAL OF THE YEAR

Sponsored by TwentyCi

HIGHLY COMMENDED - Alex Holt - The Cashroom

WINNER – Rob Hosier - inCase

FEMALE TRAILBLAZER OF THE YEAR

Sponsored by Evolve Law

HIGHLY COMMENDED - Natalie Moore - Aconveyancing

WINNER – Laura Cartwright - Bell Lamb & Joynson

46

AWARDS

GIVING IT BACK AWARD

Sponsored by The Search Bureau

HIGHLY COMMENDED - MSB Solicitors

WINNER – Groundsure

BEST WORKPLACE AWARD

Sponsored by Ochresoft

HIGHLY COMMENDED - Lightfoots Solicitors

WINNER – MSB Solicitors

OUTSTANDING EMPLOYEE OF THE YEAR

Sponsored by LMS

HIGHLY COMMENDED - Russell Munster - Amicus

Law Solicitors

WINNER – Sarah Coldicott - Aconveyancing

OUTSTANDING ACHIEVEMENT

OF THE YEAR AWARD

Sponsored by Dye & Durham

WINNER – Maria Harris

LIFETIME ACHIEVEMENT AWARD

Sponsored by Leap

WINNER – Edward Donne

Kindly sponsored by

47

AWARDS

HEADLINE SPONSOR INTERVIEW - LEAP

Nicky Baker

Marketing Manager, LEAP

What motivated you to be involved again this year

and why do you think our awards are important for the

sector?

We are thrilled to be the headline sponsor of the LEAP

Modern Law Conveyancing Awards (MLCA) 2024 once

again. At LEAP, our mission is to support the legal

sector by providing innovative, efficient solutions that

empower conveyancing professionals to thrive. These

awards are an excellent platform to recognise the

outstanding achievements and hard work of individuals

and teams in the conveyancing industry—a sector that

plays a vital role in people’s lives and the property

market.

Being part of MLCA allows us to celebrate excellence,

innovation, and dedication within the conveyancing

community, qualities that align with our values at LEAP.

It’s important to shine a spotlight on the progress and

success stories in this field, fostering inspiration and

driving continuous improvement. We believe these

awards not only acknowledge exceptional contributions

but also highlight the resilience and adaptability of

conveyancers in an ever-evolving legal landscape.

Can you share some of the key innovations LEAP has

introduced to support conveyancers and improve

client experience over the past 12 months?

Our commitment in 2024 is to empower our customers

with cutting-edge AI tools that enhance efficiency,

accuracy and client satisfaction. By integrating these

technologies into our platform, we enable conveyancers

to streamline their workflows and deliver an exceptional

client experience.

LawY is LEAP’s integrated AI Legal Assistant, designed

to simplify complex tasks by quickly providing accurate

answers and check legislation. Unlike other AI tools,

LawY’s unique human verification process ensures

that every AI-generated response is reliable, giving

conveyancers the confidence to use them in their

matters.

Matter AI revolutionises reviewing documents and

building matter chronologies. Handling client queries

is much more efficient, as conveyancers can simply ask

Matter AI for an overview of the matter progress and it

will generate a clear, concise summary in seconds.

Finally, AutoTime is a game-changer for conveyancers

working on a fixed-fee basis. It tracks all time spent on

matters automatically to ensure that the time spent is

equivalent to the time billed. This not only builds trust

with clients but also provides peace of mind that every

effort is accounted for.

How are you addressing the evolving needs of clients

in the property transaction process?

Our long term goal is to ensure that our customers are

as efficient and transparent as possible to ensure they

deliver cost effective yet highly professional services

to their clients. Providing on-demand insights into their

matters electronically is our current focus.

How do you see the role of technology for

conveyancers evolving over the forthcoming year? Are

clients increasing their expectations when it comes to

the use of tech?

Conveyancers are expected to further embrace digital

solutions to streamline processes and reduce manual

tasks in the coming year. Technologies such as Artificial

Intelligence (AI) play a pivotal role in automating routine

activities, thereby enhancing efficiency and accuracy. A

survey by Landmark Information Group found that 88%

of conveyancers believe paper and manual processes

will have ‘all but gone’ by 2025.

Clients are increasingly demanding faster, more

transparent, and personalised services. They now

expect instant onboarding, regular updates, and

seamless digital experiences. This shift highlights the

importance of adopting digital tools that enhance client

communication and streamline processes.

What does exceptional client service look like in

modern conveyancing and how can LEAP support

this?

Exceptional client service in modern conveyancing

revolves around delivering a seamless, transparent, and

efficient experience that exceeds client expectations. It

combines effective communication, rapid turnaround

times, and a personal touch, all underpinned by the use

of technology to enhance efficiency and accuracy.

LEAP, a leading cloud-based practice management

software provider, is uniquely positioned to help

conveyancers deliver on these service expectations by

empowering them with the tools they need to deliver

a fast, transparent, and personalised experience that

builds trust and loyalty.

48

FORUM

Is Conveyancing a Risky

Business?

A Forum Discussion

In this edition of our regular Conveyancing Forum, Angela Hesketh from

PEXA and Chris Loaring from Landmark Information Group consider the

key risks for those involved in conveyancing, both currently and looking

ahead to the future. They ponder how risks have evolved, the role of

technology in both creating and mitigating risks and the immediate

impact of climate change on the profession.

This issue’s opinions are from:

Angela Hesketh

FCILEX/Cilex Conveyancing

Practitioner/Licensed

Conveyancer and Head of

Market Development UK, Pexa

Chris Loaring

Managing Director (Legal),

Landmark Information Group

Join the Legal AI revolution

Matter AI LawY AI Prompts

Our award-winning AI solutions are built with lawyers in mind, streamlining

legal research, matter analysis and drafting, allowing you more time to focus on high-value work.

leap.co.uk/legal-ai

FORUM

Hello to you both and thank you for joining us.

Today we’re going to be discussing the key issues

that your clients should be aware of around risk in

the conveyancing sector, and whether these risks

have changed over the past few years. First of all,

what are the main risks and what are the dangers if

they are not managed effectively?

Chris: Over the past few years, the conveyancing sector has

seen significant changes in the types of risks that need to be

managed. One of the most notable changes is the expanded

definition of environmental searches, particularly with the

increasing relevance of climate change. Conveyancers must

now consider a broader range of environmental factors

that could impact property transactions. Additionally, the

importance of digital onboarding and Anti-Money Laundering

(AML) procedures has grown, reflecting the need for more

robust and secure processes. If these risks are not managed

effectively, conveyancers and their clients could face severe

consequences, including financial losses, legal liabilities, and

reputational damage.

Angela: The conveyancing sector continues to be at the centre

of discussions around significant transformation, primarily

driven by the increasing demand for digitisation of services

alongside the shift to a more remote workforce. While these

changes have brought new opportunities, they also introduce a

range of risks if not managed appropriately.

Modern consumers now expect and demand convenience,

transparency, and efficiency in their daily lives. This has

pushed conveyancers to adapt their services to meet these

expectations, leveraging online platforms and workflows.

However, without robust systems in place, meeting these

demands can lead to inconsistencies, data vulnerabilities, and a

potential erosion of client trust.

The conveyancing process relies on accurate, timely, and

trustworthy data. Yet, the lack of full digitisation in many areas

– particularly in England and Wales – has left gaps that can be

exploited. Errors in data provenance, delayed access to key

information, and manual processes all compound the risks.

The move to remote or hybrid working has created both

opportunities and challenges for law firms. To attract and

retain top talent, conveyancers must adapt their employment

practices while ensuring that staff operate within secure,

standardised processes.

Without addressing these risks, firms face potential data

breaches, client dissatisfaction, and reputational damage.

Furthermore, failure to align with emerging standards such

as the UK’s Smart Data Bill could leave firms behind as the

industry transitions toward a more interconnected and digitised

future.

What emerging risks do you see as key for

conveyancers over the next few years?

Chris: One of the key emerging risks for conveyancers is

supplier selection. As the digital environment becomes more

complex and the volume of information increases, choosing

the right suppliers who can provide reliable and secure services

is critical. This is evidenced by the widening gap between

transaction ‘decisions’ and underlying ‘data’, more and more

often the latter will be obscure or moved to the background.

Conveyancers must be diligent in evaluating their suppliers to

ensure they can meet the demands of a rapidly evolving market

and maintain the integrity of their services.

How can tech and software help reduce these risks?

Chris: Technology is not just a tool to help reduce risks in

conveyancing; it is the only viable solution to manage the

complexity and volume of data involved. For example, Climate

Change searches require consideration of multiple time

horizons, emission scenarios, and risk types, each with data

from various suppliers. This complexity can only be simplified

through advanced technology and credible partners. By

leveraging technology solutions, conveyancers can streamline

processes, ensure compliance, and provide more accurate and

timely information to their clients.

Angela: Technology is not just a tool but also an enabler of

trust, efficiency, and security in the conveyancing process.

PEXA offers solutions that directly address the risks inherent in

traditional methods.

“Conveyancers must now

consider a broader range

of environmental factors

that could impact property

transactions.”

50

50

FORUM

One of the most significant vulnerabilities in conveyancing is

the movement of funds through client accounts, exposing firms

to fraud and errors. PEXA reduces this risk by enabling funds to

transfer directly between stakeholders within a secure banking

environment. Whether it’s lender-to-lender remortgages or,

starting in 2025, sale and purchase transactions, this approach

provides enhanced transparency and security throughout the

process.

PEXA’s collaborative workspace allows all stakeholders to have

real-time visibility of transaction progress. This shared access

reduces errors, miscommunication, and delays, offering a

seamless experience for both clients and conveyancers.

One of the many pain points in the current process is the risk

of delayed lodgements, described recently by a leading lender

as the ‘circle of doom’, with the need for continuous and timeconsuming

chasing behaviour for lenders. PEXA addresses this

by automating the lodgement process upon completion. This

integration ensures that title applications are timely, reducing

post-completion risks.

Upfront validation of title data further de-risks transactions,

ensuring that any issues are identified and resolved early in

the process. This pre-emptive approach supports smoother

workflows and reduces the likelihood of rejections or disputes

after completion.

By leveraging proven, secure systems, conveyancers can

safeguard their operations, improve client confidence, and

future-proof their firms.

What risk issues does the rapidly growing area of

new technology create?

Angela: While technology offers transformative benefits, it

also introduces new risks that conveyancers must proactively

manage.

Artificial Intelligence (AI) is reshaping industries, and

conveyancing is no exception. AI-powered tools can streamline

processes, from document review to fraud detection. However,

these tools require careful oversight to ensure ethical use, data

protection, and compliance with evolving regulations.

As technology becomes more sophisticated, so do the

threats. There is a need to establish and apply rigorous

protocols for cybersecurity and data privacy. This includes

not only protecting sensitive client information but also training

employees to recognise and mitigate risks such as phishing

and data breaches.

Adopting new technologies without a clear strategy can expose

firms to risks of inefficiency, compliance failures, and poor user

experiences. It is important to assess the suitability of tools like

AI in the context of your broader operations, ensuring that

new systems are integrated thoughtfully and in alignment with

industry standards.

We cannot afford to ignore the rapid evolution of technology.

By embracing a forward-thinking approach and implementing

the right safeguards, we can turn potential risks into

opportunities to enhance service delivery and build trust with

clients in an increasingly digital world.

Chris: The rapid advancement of technology, particularly AI,

introduces new risk issues such as data visibility and ownership.

In a digital environment, decision outcomes are often visible

more quickly than the underlying decision logic, which can

obscure the reasoning behind decisions. This makes trust in

the supply chain crucial. Additionally, as technology like web

crawling and document recognition becomes more prevalent,

questions arise about who owns the data and the insights

derived from it. Ensuring clear data ownership and maintaining

transparency are essential to managing these risks.

How do climate-related risks play a part in what

you offer your clients?

Chris: Climate-related risks are becoming increasingly

significant for conveyancers. The upcoming Law Society

guidance pending in early 2025 will highlight these issues

further, presenting new challenges for conveyancers. To

address these challenges, conveyancers need access to trusted

partners who can deliver efficient, simple, and actionable

insights, so that they then have the information they need to

reduce the risks of their clients. This involves integrating climate

risk assessments into their processes and staying informed

about regulatory changes.

It is important to recognise that both clients and employees are

increasingly engaging with AI and other advanced technologies

in their daily lives. For many, this has become the norm. Firms

that resist or delay integrating these technologies risk alienating

their customer base and struggling to attract a digitally savvy

workforce.

51

Landmark Residential Environmental Reports

We engaged with over 200 residential conveyancers

to shape our new environmental reports to create

comprehensive due diligence, made easy for both

conveyancers and homebuyers. Designed to boost client

confidence, reduce data interpretation time, and enhance

customer service, our new reports are a game-changer.

Our new reports feature:

Upgraded risk modules

Visually enhanced front pages

Executive summary pages for quick risk assessment

Homebuyer guidance for better understanding

For more information, please get in touch at

landmark.co.uk/legal-conveyancing/legal-due-diligence-reports

FROM REVIEWS

TO DIRECTORIES:

TACKLING

SOME

COMMON

LAW FIRM

MARKETING

RISKS

FEATURE

Lou Gilbert, Associate Director, shares some of the

marketing risks she comes across when advising law

firms.

1. Feedback and reviews: The love-hate relationship

An area we frequently get asked about is whether to invest in

collecting reviews. Yes, it’s risky to throw yourself out there

on Google or review sites; what if someone doesn’t love you

back? But avoiding reviews entirely is, in my opinion, a bigger

risk. Prospective clients are already checking for reviews even

if it’s just as a validation exercise—so having none or only

the occasional comment could be just as damaging. Instead,

establish a system for responding to all feedback. Handle

negative reviews openly and constructively; this shows

transparency – and a few minor criticisms among positive

reviews will actually help to build credibility. People know

perfection is a myth, so you don’t need to just have all five-star

reviews—aim for genuine, public responses that show you’re

engaged and accountable.

2. Reputational risks: The social media quandary

Social media gives your team a platform to build their personal

brands, but it’s a double-edged sword. We want lawyers to be

active, develop their brands, and represent the firm well—until

a controversial post or comment doesn’t align with the firm’s

values. “All views are my own” disclaimers can only go so

far. We find it works best to establish clear guidelines about

what’s acceptable and what’s not, encourage alignment, and

keep the communication open. It’s not about policing every

post but making sure everyone’s on the same page about

what represents the firm best. We’ve found that a marketing

session for new joiners of the firm to establish guidelines and

opportunities to build their brand works really well, as well as

regular training and update sessions. And of course, back these

up with proper social media policies.

3. Standing out while staying professional

If you’re using every marketing channel to make a big splash,

there’s always a risk of trying to be all things to all people.

Choose some key channels and do them well. There’s a real

pressure to stand out, but actually being authentic is much

more important. Also, be timely – a big barrier in law firms can

be decision-making – the more agile you can be about signing off

content and ideas so that they hit the spot in terms of being topical,

the better. It’s all about finding that balance between getting

consistent content out there without losing the thread of expertise

that sets you apart.

4. FOMO on Marketing Trends

Are you missing out on the latest marketing trends like AI, podcasts,

or interactive content? Fear of Missing Out (FOMO) is real in law

firm marketing too. But don’t experiment just for the sake of it or

you’ll risk spending time (and possibly money) on the latest trend

only to find that it doesn’t suit your audience. Always keep your

customers front and centre - not every trend will fit, but keeping

your options open is the key to staying relevant.

5. The Directory dilemma

The very mention of legal directories makes most law firms groan.

Is the time and effort put into submissions really worth it, and does

a ranking actually impact buying decisions? Directory listings can be

valuable as part of a recruitment strategy, for boosting team morale,

and for helping you get noticed in the latest RFPs—so they might

just be worth the commitment.

But, if you’re applying for the first time, keep your expectations

realistic. You have to be in it for the long game - there’s no

guarantee of instant success. You also need to be prepared for being

ranked in a lower tier than the one you think you should be in – so

think about whether the risk outweighs the reward. Sometimes, the

status and feedback can mean more than your exact position in the

bandings so it’s definitely still worth submitting. And if directories

aren’t part of your big plan, remember—there are plenty of other

ways to show off your credibility.

In short: embrace risk so you can grow

It may sound cheesy, but taking some risks with your marketing—

getting active on social media, submitting to directories, and trying

fresh strategies—can really pay off when you have a clear plan and

the right guidance to keep you on track.

Lou Gilbert,

Associate Director

53

Join the Conveyancing Association

and help positively shape the future

of the conveyancing sector

Are you ready to have a real impact on the conveyancing sector?

Join the Conveyancing Association today and be part of a community dedicated

to creating a more positive home-moving experience for all.

You will enjoy a wealth of benefits, designed to support and enhance

your day-to-day operations.

Being connected

Take advantage of networking with your peers, who

all share a commitment to excellence in conveyancing.

Through events, conferences, and meetings, members

can connect with conveyancers to share experiences,

and collaborate on initiatives that drive the industry

forward. We also connect you to key stakeholders

and suppliers so you can keep abreast of the market

and innovation.

Sharing knowledge and expertise

We are committed to your continuous professional

development and offer a range of training programs,

online webinars, workshops, and seminars designed

to enhance your skills and knowledge, ensuring you

are well-equipped to handle the complexities of the

modern property market. Members benefit from various

conveyancing protocols and guidance which are free

and kept dated. We also provide sessions on practical

advice on how to run your business.

Collective strength and influence

We are a leading industry voice on behalf of our

members and play a significant advocacy role. As a

collective, the Conveyancing Association is a powerful

influencer with Government, regulators, and other key

stakeholders. We seek your views so you are shaping the

discussion, keep you updated and help with the practical

implementation of any change so that you are ahead of

the curve and responding more accurately and quickly.

Future proofing

It is important that our members are kept abreast

of future thinking, whether that is from a regulatory

stance, around technological advancements, or from a

government policy perspective. We constantly horizon

scan and look to how we can influence the outcome on

our own or through membership of key industry forums.

Conveyancers add huge value and help consumers on

a daily basis. We work to ensure our members worth is

understood and foster the respect you deserve so that

you can be rewarded accordingly.

Changing the way we convey

To find out more and to join the Conveyancing Association

please email: secretariat@conveyancingassociation.org.uk

or call our team on: 01787 221021

www.conveyancingassociation.org.uk

LEGAL

TECH TALK

Merlin Beyts

Content Director, LegalTechTalk

If you asked a lawyer twenty years ago about their biggest

professional risks, they might have mentioned missing

a filing deadline or accidentally hitting “reply all” on a

confidential email. Today, that same question might send

them into an existential crisis worthy of a philosophy

major’s midnight ruminations.

Welcome to the brave new world of legal risk management,

where geopolitical tensions, emerging technologies, and

regulatory frameworks collide like particles in a particularly

anxious hadron collider. As legal professionals, we’re no

longer just practicing law – we’re becoming part-time

futurists, tech prophets, and international relations experts,

all while trying to remember if it’s acceptable to wear

brown shoes with a navy suit. (Spoiler alert: it depends on

which jurisdiction you’re in.)

The current landscape of legal risk resembles a complex

game of four-dimensional chess, where the rules keep

changing and the pieces occasionally become self-aware

thanks to artificial intelligence. As Bill Deckelman astutely

points out in his interview, the unprecedented pace of

change in global markets has created a perfect storm

of interrelated risks spanning AI, cybersecurity, data

governance, and geopolitical concerns. These risks don’t

exist in isolation – they’re more like a family of particularly

argumentative relatives at a holiday dinner, each one

affecting and amplifying the others.

around we go in a merry dance of causality. Managing

these risks requires legal professionals to “connect

the dots” across disparate parts of an organisation,

often across different continents and time zones (and

yes, sometimes even during lunch breaks).

For modern legal practitioners, the key to survival

in this risk-laden landscape isn’t just expertise in any

single area – it’s understanding how these various

risks interact and amplify each other. It requires a

holistic approach that combines technical knowledge,

business acumen, and the ability to adapt faster than

a chameleon at a disco party.

As we delve deeper into our experts’ insights in the

following interviews, one thing becomes clear: the

legal profession is evolving at breakneck speed.

Today’s lawyers need to be more than just legal

experts – they need to be strategic advisors who can

navigate the complex interplay between technology,

geopolitics, and regulation. And perhaps most

importantly, they need to maintain their sense of

humor while doing so.

Because let’s face it – in a world where AI can write

legal briefs and geopolitical tensions can reshape

entire markets overnight, sometimes laughter is the

best risk management strategy of all.

Take, for instance, the realm of sanctions, which Egishe

Dzhazoyan identifies as the “number one current challenge”

from a geopolitical risk perspective. Sanctions have become

the legal equivalent of a long-term relationship status:

complicated. They’re easy to implement but notoriously

difficult to remove, as demonstrated by decades-old

cases involving Cuba and Iran. Their “sticky” nature,

combined with inconsistent enforcement standards across

jurisdictions, creates a labyrinth of compliance challenges

that would make Kafka’s bureaucrats break out in a cold

sweat.

But wait, there’s more! The rise of generative AI has

transformed the cybersecurity landscape faster than you

can say “Hey ChatGPT, how do I protect my client’s data?”

As Deckelman explains, threat actors are wielding AI like

a digital Swiss Army knife, while enterprises scramble to

deploy the same technology defensively. It’s an arms race

where the weapons are algorithms, and the battlefield is

your company’s data infrastructure.

The real challenge lies in the interconnected nature of

these risks. Data management affects AI capabilities, which

influence cybersecurity postures, which impact regulatory

compliance, which shapes geopolitical strategies – and

55

LEGAL

TECH TALK

Interview with

Bill Deckelman

Senior Public Policy Advisor/Of Counsel, Baker Donelson

Q: Can you outline the current risks that legal

professionals are currently grappling with

(both historic and emerging)?

Legal professionals grapple with many risks, of

course. However, there are several risks that

have emerged in recent years because of the

accelerated pace of change and uncertainty

business enterprises are experiencing,

particularly in global markets and operations.

Emerging technologies and geopolitical

shifts, conflicts and competition are driving

unprecedented risks for companies. These

risks are highly interrelated, and they span

AI, cybersecurity, data management and

governance, regulation and government policies,

national security and geopolitical concerns.

Q: You’re currently examining the interplay

between these risks - why is it important that

the legal sector considers this dynamic?

Within a large or global business enterprise

executive level responsibility for the areas

mentioned above are dispersed organisationally

and even geographically making it difficult

to ensure meaningful collaboration in setting

strategy and identifying market and operational

risks and opportunities. Even centralised

enterprise risk functions struggle to achieve

effective collaboration and they often are not

capable of maintaining knowledge and expertise

across all these areas sufficient to enable a

successful risk management program.

Legal professionals often operate broadly across

an enterprise and have learned to “connect

the dots” and bring disparate parts of an

organisation together to analyse these risks

(and opportunities) on an integrated and holistic

basis. This approach is critical because what

may appear as a minor risk in one area could

create a significant risk in another interrelated

area (e.g., AI, data, and cybersecurity).

Q: Can you explain how the risks interact with

one another and the effects that transpire as a

result?

If you consider AI and cybersecurity, there is a

direct correlation between the two—generative

AI has completely changed the threat landscape

in cybersecurity just in the last two years.

Threat actors now are using it to attack the

systems and data assets of businesses in new

ways at an accelerated pace and with everchanging

methods. Likewise, cyber specialists

on the enterprise side can use generative AI in

new and better defensive ways as well.

Q: What is common to these two areas?

Data. Both AI and cyber impact enterprise data

and, likewise, data volume, management and

governance impact the AI and cybersecurity

posture of the enterprise. What else is

common? Regulation. The enterprise

compliance function must view all three risk

areas as interrelated and government regulatory

or policy trends in one area can affect the other

areas. Likewise, geopolitical trends can impact

all kinds of strategic decisions. And country

jurisdiction has a significant impact on how

the enterprise structures its governance for AI,

cybersecurity, data and regulatory compliance.

The challenge of effectively addressing these

risks increases significantly in the context of

emerging technologies coming to market at an

unprecedented rate. Uncertainty creates risk

and uncertainty has never been higher than now

for large and global companies.

56

LEGAL

TECH TALK

Interview with

Egishe Dzhahozayan

Partner, King & Spalding

Q: You’re an expert in the realm of geopolitical

risk. Is this something that law firms should

be paying extra attention to given the current

climate? Why?

In my view, the number one current challenge

for law firms and their clients from a geopolitical

risk angle is sanctions. This is for many reasons

including: (a) the inherently uncertain and fast

evolving nature of sanctions coupled with their

inextricable nexus to political decision-making;

(b) the administrative nature of the underlying

process, which is in general far less transparent

and rigid than a judicial process; (c) high legal

thresholds required for a successfull challenge of

a given sanctions regime in any major jurisdiction

(the UK, U.S. or the EU) given that courts in those

jurisdictions are usually quite reluctant to interfere

with the executive branch’s decisions in sanctions

context; (d) lack of level playing field and uniform

standards when it comes to various jurisdictions,

which is especially noticeable in the EU where,

on the one hand, a decision on the imposition of

sanctions is adopted on the EU supra-national

level, however, matters of enforcement are left to

individual EU members states; and (e) the “sticky”

nature of sanctions - as the Cuba and Iran cases

demonstrate, sanctions are easy to enact but

are very hard to remove even after decades of

existence.

Q: When a major conflict arises, how does that

affect businesses and what immediate major

actions should they consider taking?

One can only prepare so much in advance since

most conflicts are inherently hard to predict and

ever harder to call in terms of their duration and

outcome, as the ongoing conflcit in Ukraine amply

demonstrates. That being said, flexibilty and

perseverance are key as well as making sure to

always keep communication channels open with

the counterparties, regulators, auditors and banks

alike.

must be wary of the costs involved as well as the

relative paucity of qualified experts and service

providers in this area.

Finally, government lobbying remains an

important instrument which can help convey

companies’ needs and aspirations to various

echelons of political power. It does not work

always and is not exactly cheap either, but

has proven to be a valuable tool nonetheless

especially in the context of investors’ disputes

against foreign governments.

Q: What do you think is your most important

role when advising businesses that are affected

by global conflicts?

As a lawyer advising clients in multiple

jurisdictions including those directly affected

by armed conflicts, my most important role

is to make sure my clients always receive

comprehensive and multi-faceted advice covering

not only the specific area of focus at a given time

(say, a dispute or a contract negotiation) but any

other potentially applicable areas as well (for

example, sanctions, regulatory or data privacy).

From my experience, what clients ultimately need

is pragmatic, no-nonsense and commercially

oriented advice which they can easily implement

in everyday business environment whether in the

context of a dispute, settlement or a contract

negotiation. That being said, sometimes a client

does not want to follow your advice for whatever

reason - that is fine too as long

as your advice is clear

(and hopefully is fully

paid for!).

Another arsenal in the tool that a business can

take the benefit of when faced with a conflict is

political risk insurance which can be especially

important for businesses working in developing

and politically volatile countries. However, one

57

10 MINS WITH

Minutes With...

James Maxey

Q

What

is your most memorable achievement

whilst working in your current role?

I’d like to answer this question in numbers. I’ve spent twenty-four

years at the same company, representing 42,000 claimants against

insurers, and recovering a staggering £400M in compensation for

injured people. Along the way, I’ve helped train and qualify over 200

solicitors.

Q

What

has been the most valuable piece of

advice you have been given?

I’ll cheekily sneak in two answers that have stuck with me

throughout my life. First, my Dad’s classic wisdom: it’s funny how

the harder you work, the luckier you seem to get. Then there’s the

advice from my Training Principal about building a people-focused

business. First, get the wrong people off the bus, and then carefully

get the right people on board. Both pieces of advice have been

absolute game-changers in how I approach success.

Q

What

has been the key positive or negative

impact of change in your area of the market?

As an optimist, I’ll highlight the positives I’ve witnessed over the last

three decades. The standout change? Ever-increasing specialisation.

Gone are the days when lawyers could be generalists - writing a will

one day, conveyancing a house the next, and dabbling in personal

injury claims. Now, it’s all about deep, focused expertise.

QIf you were not in your current position, what

would you like to be doing?

I’d definitely be in business- specifically a business-to-consumer

venture. Sure, I’ve loved my legal career and truly value helping

people get the compensation they deserve. But imagine something

a bit more fun - like selling luxury holidays. Providing a service

people genuinely need, doing it brilliantly, and making a profit

along the way. Now that sounds like a dream!

Q

What

three items would you put on display in

a museum of your life and why?

Now this one really got me thinking, so here goes!

Firstly, I’d display the beautiful brass steam whistle my wife and I

salvaged from the last shipwreck sunk in the European theatre of

World War II. Raised together as a team, it now sits in our hallway -

more than just an ornament. It’s a testament to those pre-children

days of wild, adventurous scuba diving around the UK and its

islands, shared with a fantastic bunch of lifelong friends.

Secondly, shifting from deep wreck diving to a whole new life

chapter, I’d treasure an album filled with photographs of our lovely

twins, who make life truly feel complete. These capture those

magical moments of them growing up and gradually discovering

how the world works.

Finally, there would be a scrapbook of Express Solicitors appeal

case transcripts. A lawyer’s role extends beyond simply applying

routine legal principles or focusing on winning or losing in County

or High Court. When necessary, it’s to pursue relevant appeals

- whether to challenge flawed laws or correct judicial errors -

standing by clients through the final stages of their legal battle.

QWhat three guests would you invite to a

dinner party?

I’d invite my brilliant wife Jo who has supported me both before

and throughout the business’s life. It’s impossible to build a big

organisation, reinvesting each year, without the support of those

most important to you at home.

Secondly, I hope I can take liberty and bring someone back to life

for one evening and that would be my dearly departed Mum. First,

I’d take a moment to thank her for always encouraging a little

boy who wasn’t always on his best behaviour and for her quiet

conviction that he would make something of his life. Then, I’d rely

on her talent for asking direct, insightful questions—especially for

our third guest, Lord Jonathan Sumption, who served as a Supreme

Court Judge from 2012 to 2018.

I chose him to represent a long tradition of intelligent and

thoughtful senior judges in this country. He offered valuable

insights on government policy during COVID-19, and during his

time on the bench, he illustrated the importance of a delicate

balance: an elected government held in check by an independent

body like the Supreme Court to keep our democracy working.

James Maxey

Chief Executive Officer, Express Solicitors

58

MOD WILLS & PROBATE

CONFERENCE 25

ERN

LAW

WEDNESDAY 5 TH

FEBRUARY 2025

THE PEOPLE CONFERENCE

COOMBE ABBEY, CONVENTRY

INVITATION ONLY

To express your interest to attend please contact

emily@charltongrant.co.uk

Complimentary attendance for law firms

www.privateclientconference.co.uk

HEADLINE SPONSOR

SPONSORS

THURSDAY 6TH

MARCH 2025

The Vermilion, Manchester, M40 8AD

Deadline Extension!

New closing date:

Wednesday 11th December 2024

www.modernlawawards.co.uk

For sponsorship opportunities contact Rachael Pearson

e: rachael.pearson@charltongrant.co.uk | t: 01765 600909

HEADLINE SPONSOR

SPONSORS

Modern Law Magazine Issue 73

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template ?