File and Case Management Procedure (May23)

Introduction

File and case management procedures assist us in ensuring that client files are managed in an effective, efficient and compliant way.

Effective file and case management has many benefits, including

• eliminating mistakes;
• improving efficiency and profitability;
• reducing stress on staff;
• enhancing the service we provide to our clients;
• reducing the risk of regulatory investigations and sanctions; and
• reducing the risk of complaints and claims.

Documenting these procedures ensures that we know how we are expected to manage client files.

Purpose

These procedures aim to ensure that we are managing client files in a consistent way in order to increase profitability and to reduce the risk of breaching the SRA Standards and Regulations and other applicable laws and regulations.

Scope

The file and case management procedures apply to all file handlers (including all fee earners) and support staff assisting with the management of client files (however slight that assistance might be).

File handlers are responsible for ensuring not only that they personally adhere to them, but also that secretaries and other staff who work under their guidance know and observe procedures relevant to their work.

This manual sets out the rules which apply to all our practice areas. They are minimum standards and some departments may impose further rules.

Failure to adhere with these procedures may result in disciplinary action. Where compliance with these procedures is impractical, Timothy Halliday (COLP) should be informed without delay.

Responsibility

Timothy Halliday (COLP) is responsible for these procedures and for monitoring their effectiveness. If you have comments on this manual or suggestions for improvements, please direct them to him.

Principles of risk management

In addition to complying with the procedures in this manual, bear in mind these general principles.

Think risk. We cannot practise law without incurring some risk. So be aware of the sources of risk in your practice and seek constantly to minimise risk.

Manage the work you take on. If you are too busy, or lack the necessary expertise, it is best to turn work away or ask someone else to take it on.

Allocate work carefully. If you are responsible for allocating work, you must ensure it goes to those who can do it effectively.

Communicate with clients. Many complaints and claims arise because clients are not kept informed, or because lawyers have not listened properly.

Be organised. Work methodically. Try to finish one task (including record keeping and filing) before starting the next. Avoid “fire-fighting”.

Have backups. If something can go wrong, it will. So, for anything risky, you should have a backup in place. In particular, record deadlines scrupulously and where others will see them, even if you are absent. Do not rely on memory.

Supervise and support others. Delegation is not abdication. When you delegate work to others who work under your direction, you must supervise. When others need your help, you must provide it.

Review your files. It is easy for a file to be overlooked, especially if the matter is difficult or uncongenial. Prioritise your work and address important issues before they become a problem.

Report complaints and mistakes promptly. Any complaint by a client about our standard of service, or by anyone about our standards of conduct and professionalism, requires serious attention even if you consider it to be unjustified or frivolous.

Remember that the firm’s Complaints and Reporting Policy states that a failure to make a report may be treated as a serious disciplinary matter.

Ask for help. For example, if you have too much work, need more supervision or training or have personal issues that are affecting your work, speak to your supervisor or head of department.

New client enquiries

It is essential that all enquiries from potential new clients are dealt with as quickly, efficiently and courteously as possible.

Please refer to the Client Care Policy for full details about our enquiry handling procedures.

Accepting instructions

Instructions will not be deemed to have been formally accepted until the file opening procedures have been completed.

In taking instructions (and during the course of the retainer) you must be particularly mindful of the following:

• The type of work the client requires us to undertake and whether we have the necessary expertise, experience and resources to carry out this work competently.
• Client attributes, needs and circumstances – you must have proper regard for your client’s mental capacity or other vulnerability, such as incapacity or duress; and
• Joint instructions – you must check that all clients agree with the instructions given or seek agreement from all clients that you can accept instruction from one client on behalf of all clients. Such an agreement must be documented on the client file.

Declining instructions and ceasing to act

We are not obliged to act in all cases and can decline to act on grounds, provided it is reasonable on the facts and will not breach the SRA Principles to act with integrity and in the best interests of each client. Reasons to decline to act may include:

• The enquiry is for a service/relates to an area of work that we do not provide/specialise in;
• The client has a track record of not paying bills;
• The client has threatened or assaulted staff;
• The client has made us aware that they have lodged a complaint with other law firms;
• The client is engaged in activities that we would not wish to be associated with – this may include ethical or regulatory concerns such as a suspicion of money laundering or insurance issues;
• The work falls outside what the firm deems to be acceptable risk levels;
• It will not be possible to act in the client’s best interests.

We cannot decline to act for a prospective client on any grounds that would breach discrimination laws and the SRA Principle to act in a way that encourages equality, diversity and inclusion. This includes declining to act on the basis of age, disability, gender reassignment, marriage and civil partnership, pregnancy and maternity, race, religion or beliefs, sex or sexual orientation.

It is important to bear in mind that the Legal Ombudsman can accept complaints from prospective clients and to take precautionary measures to safeguard the firm’s position should this occur. You may wish, for example, to keep a record of instances where instructions have been declined, which briefly summarises the reason why, how this was communicated to the client (e.g., by phone, in person or by email) and how they responded, retaining any evidence of written communications.

Where instructions are declined/terminated, for prospective clients, the client should be given an explanation that is appropriate in the circumstances.

If there is a significant credit risk (i.e., we may be unable to recover our fees and disbursements from the client), only agree to act if the client provides sufficient funds on account.

Situations where instructions must be declined

There are situations where we cannot accept instructions, and these include:

• Where we could commit a breach of the law or professional obligations in acting, e.g., where there is or could be a conflict of interest or we cannot satisfactorily complete identity checks;
• Where we lack the expertise or the resources to represent the client effectively, or the instructions would put our commitments to that client or others at risk;
• Where we have reasonable grounds to suspect that the instructions are affected by duress or undue influence and do not represent the wishes of the client.

Ceasing to act

We must not cease acting for a client without good reason. On occasion we will reach the unfortunate conclusion that we cannot continue to act for a client on a matter. Such circumstances may include:

• The refusal of the client to provide instructions;
• The non-payment of an invoice;
• A breakdown of the relationship.

Prior to contacting the client, the file handler must seek authorisation from the head of department to terminate the instructions.

Where instructions are terminated, the client should be given an explanation that is appropriate in the circumstances, which is given with reasonable notice, in writing, before the instructions are terminated and the client should be advised as to possible alternative options in terms of finding alternative representation. The timing must also be sufficient to allow for alternative representation to take over ahead of any key dates. The advice given must be confirmed in the final closure letter to the client. Please refer to Timothy Halliday (COLP) if you are unsure of what this explanation should be in a given case.

Record of client matters

We maintain details of all open and closed client matters on our case management system.

Clients are identified by a unique reference number, which is allocated to them. Returning clients will keep their original reference number but the matter number will change. Any linked files will be identified.

File opening

You must complete a file opening form whenever a new file is opened. This is regardless of whether the file is for a new client or a new matter. The form must be completed fully to ensure that the client is clearly distinguishable, i.e., including their full name, matter number and work type.

New matters sometimes emerge from current matters. In this situation you must not run separate matters under one file; a new file must be opened.

Opening risk assessment

As part of the file opening procedures, you must complete an initial risk assessment on the file. This assessment is intended to highlight new instructions or clients that we should not accept or, if we do, the fact that these matters will require a higher degree of due diligence, care or supervision. Once approved, all risk assessments must be recorded clearly on the file opening form, and updated on the firms case management system (ALB).

A person of sufficient experience must make this decision; support staff must not complete these assessments if they are assisting in the administrative steps of opening the file.

On conveyancing matters all risk assessments must be discussed and signed by an independent Director at the weekly conveyancing meeting (held every Wednesday morning).

On all other types of work, the fee earner can complete their own initial risk assessments but must refer any where the risk is deemed high to the COLP for approval to proceed.

If the initial risk assessment concludes that the matter is ‘high risk,’ i.e., the COLP must review the matter to determine whether we should accept the instructions and what mitigation steps should be taken regarding responsibility and supervision if the matter is accepted. This decision must be recorded on the file and recorded in the firms’ higher risk register.

Work cannot commence on that file until permission to proceed has been received from COLP.

Matters should be judged as high risk if any of the following facts or circumstances apply:

Interim risk assessment

Interim risk assessments are to be carried out periodically on all files ahead of key stage within transactions. In a conveyancing transaction this must be done prior to exchange. Where the file handler considers there has been any change to the risk profile of the matter from the client’s point of view, the client must be advised in writing of such circumstances without delay. Before contacting the client, the file handler should discuss any concerns with the COLP and agree on a way forward.

Conflicts of interest

Conflict of interest checks must be carried out before client instructions are formally accepted and work begins on the file.

Our full expectations and procedures are set out in our Conflicts Policy. This is mandatory reading for all staff managing client files.

Anti-money laundering checks

Where appropriate, anti-money laundering checks must be carried out as part of the file opening process.

Please refer to the Anti-Money Laundering Policy for full details about our anti-money laundering procedures.

Identity checks

For all matters, including non-money laundering regulated work, you must confirm the identity of the client and verify that the client is who they purport to be. If someone other than the client will be giving instructions, you must also verify their status to do so.

Matter supervision

Every matter must have a director who is suitably competent and experienced to guide and assist others designated as the supervisor. Where possible, the supervisor should not be the same as the person having day-to-day conduct of the matter.

The responsibilities of the supervisor include:

• Deciding whether to accept instructions;
• Ensuring work is allocated to those with the necessary resources, experience and workload capacity and reallocating existing work where appropriate;
• Ongoing monitoring of the work, at a level appropriate to the difficulty of the matter, and the experience and ability of the fee earner handling the matter;
• Undertaking regular, independent file reviews of the layout and conduct of files and their substantive legal content for file handlers under their supervision (including files identified as ready for closure);
• Reviewing stale matter reports (see the ‘Stale matter reports’ in the ‘Progressing matters’ section of this policy for further information) with file handlers under their supervision at regular intervals to ensure that files are closed where appropriate and files which require further work are identified;
• Periodically reviewing matter details in order to ensure good financial controls and the appropriate allocation of workloads; and
• Carrying out firm and departmental policies on the review of post, file reviews, performance reviews, etc.

If you are not the designated supervisor, the starting point is that if you are doing substantive legal work (such as giving legal advice or sending out a document you have prepared on behalf of a client) it should first be reviewed in draft by the designated supervisor.

Exceptions

Depending upon your level of experience, the supervisor may authorise you to send out some categories of substantive legal work without first having it so reviewed. Supervisors must make clear the limits of any such authority. See the Supervision Procedures policy – Systems of supervision section for more information.

You may only send out substantive legal work without it being first reviewed if:

• you are clearly within the scope of the authority given to you; and
• you are confident that your work is free of errors, bearing in mind the complexity of the issues, your previous experience, the clarity of your instructions and the care you have taken checking your work.

Urgent advice

Advice given by email or orally should be subject to the same care as a letter.

If the designated supervisor is not available, seek approval from another suitably competent and experienced supervisor.

Occasionally the pressure of time or other circumstances may compel you to give advice which has not been adequately reviewed. If so, make that clear to the client and explain that this is only provisional advice. The client can then decide whether to take the risk of proceeding without fully considered advice.

Remote supervision

The regulatory requirements regarding supervision remain applicable irrespective of where employees are working. Please see the ‘Remote supervision – all employees’ and ‘Remote supervision – junior staff and trainee solicitors’ sections in the Flexible, Remote and Hybrid Working Policy for specific guidance on how to supervise staff who are working remotely or in a hybrid working arrangement.

Changes during a matter

Changes in the parties involved in a matter will normally call for fresh checks. For example, if an additional party is joined to litigation, or the identity of the buyer on a property sale changes, fresh conflict checks will be needed. Likewise, fresh AML checks will be needed if additional clients or beneficial owners become involved.

Keep the risk profile of the matter under review. The risk profile may change due to new issues arising, changes in instructions, delays, cost over-runs, adverse costs orders and many other factors.

As well as informing and advising the client, you must ensure the supervisor is aware of developments affecting risk. Supervisors should inform the COLP when appropriate.

Taking and confirming instructions

Client instructions must be acknowledged promptly and confirmed in writing. This is initially done by drafting and issuing our client care documents. Copies of these documents must be kept on the client’s file.

It is important that clients are provided with a clear explanation of the issues involved and the options available to them. Clients must be told about any instructions that may bring us into breach of the SRA Standards and Regulations (or other applicable laws or regulations) and our inability to act in such circumstances.

We must explain the following information in the client care documents:

• Our full understanding of the instructions including the background facts;
• The client’s objectives and desired results;
• Any issues involved and the options available to the client;
• What we will and will not do;
• The name and status of the person handling the matter;
• The name and status of the person responsible for the overall supervision of the matter;
• What the next steps are to progress the matter;
• The likely or approximate timescale (either to complete the instruction or to complete the next step in the instruction where the full timescale is not known);
• The method of payment;
• The cost effectiveness of the matter;
• How to deal with problems if they arise;
• The client’s right to complain, the firm’s complaints procedure and (if applicable) the client’s right to make a complaint to the Legal Ombudsman and when they can make such a complaint;
• The client’s responsibilities; and
• Our responsibilities/level of service including how the client will be kept informed of progress.

If the client is an individual consumer and the contract for our services is entered into by the parties “off-premises” (i.e., outside of our offices), the client care documents must also include information about the client’s right to cancel the contract for our legal services within 14 days pursuant to the Consumer Contracts Regulations 2013. If you are uncertain about whether you need to include the notice regarding the client’s right to cancel, contact the COLP.

Make sure to follow-up with the client to obtain signed copies of our terms of business and client care letter. The signed copies must be kept on file.

General client care letters

If we regularly act for a client, a general client care letter may be put in place. In that case, a letter or email can be sent to the client which:

• Confirms the scope of our instructions;
• Explains the matter is covered by the existing letter;
• Gives the best possible information about the likely overall cost (unless that subject is adequately covered by the general letter);
• Identifies the lawyer(s) who will be dealing with the matter; and
• Reminds them of their right to complain and the procedures for making a complaint to the firm and to the Legal Ombudsman.

Please note that when opening a new matter that is covered by a general client care letter, you still need to open a new file on our system for this matter.

Instructions from another law firm

We may be instructed by another law firm and may have little or no contact with their underlying client. However, we will ultimately be providing services to the underlying client and so you must take the following precautions:

• Give the name of the underlying client in the new matter form and conflicts search.
• Address the client care letter to the underlying client. You may send it “care of” the instructing firm, and they may sign it on behalf of their client if they so wish.
• For money laundering purposes, obtain evidence of the identity the underlying client. The instructing firm may consent to us relying on the due diligence they have carried out on their client. See the firm’s precedent, which may be used in such circumstances.

It may nonetheless be appropriate to agree that the instructing firm will be responsible for our fees. The above arrangements are not inconsistent with such an agreement.

Costs information

We must give clients the best possible information about the likely overall cost of the matter, both at the outset and as the matter progresses if appropriate. All costs information must be clear and confirmed in writing.

In particular, we must advise the client of:

• The basis of our charges;
• Any circumstance where we will receive a financial benefit as a result of accepting the client’s instruction;
• Whether charging rates are likely to be increased;
• Likely payments which we or the client may need to make to others;
• How the client will pay;
• The circumstances in which we may be entitled to exercise a lien for unpaid costs;
• Their potential liability for any other party’s costs.

If accurate costs information cannot be provided at the outset because the matter is particularly complex, we should provide the client with as much information as possible and keep the client updated as the matter progresses. Where possible, costs estimate ranges should be provided or a ceiling figure or review dates should be agreed with the client.

Costs information must be kept up to date in line with the following expectations:

• Initial estimate is confirmed in the client care documents;
• Clients are billed monthly, unless agreed otherwise;
• Costs estimates are reviewed:
  • In advance of any court hearing;
  • When a substantial or previously unforeseen piece of work is to be undertaken;
  • When counsel is instructed;
  • When significant disbursements are going to be incurred;
  • Every 6 months or at the client’s request.
• Any variation to costs estimates, including anticipated disbursements, is notified to the client in writing in a timely manner.

Consent to inspection

Client consent to inspection of files should be sought for audits and reviews carried out by third parties, e.g., Lexcel consultants/assessors, accountants and the SRA.

We will obtain a confidentiality undertaking from all third parties before access to client files is permitted.

Where a client indicates that they do not consent to third party inspection, this should be clearly marked on their file and any information that would enable an assessor to know what we are doing for the client (e.g., matter print-outs) must not be disclosed.

Explicit written consent must be obtained from the client at the time of any request for other third parties (referrers, etc.) to inspect their file(s). You cannot use the client care letter as a ‘cover-all’ for this purpose.

Matter planning

Every matter should have a clear strategy apparent from the file. For straightforward matters, this should be evident from client care documents and our updates to the client. However, for more complex matters, a case plan should be developed.

A case plan should detail how we intend to meet the client’s instructions, agreed objectives, frequency of reviews or team meetings if applicable, the main steps to be taken by us and the client, key dates and billing frequency. Case plans should be updated regularly and be sufficiently detailed and focused, showing each stage linked to a planned timescale.

Case plans should be separate from any other matter documentation and stored in a prominent place on the file.

File maintenance

The file should be a complete record of all dealings on the matter. This means that all communications should be noted on the file. It is the responsibility of the person handling the matter to ensure that the file is well maintained and, in particular that:

• It includes all communications of any substance with the client or other parties to the matter. Documents and correspondence relating to the matter can be traced either by being on the file itself or clearly referred to in it;
• The file is managed in such a way that the objective, strategy for achieving that objective, current position, progress to date and what remains to be done can be easily understood by a third party following a brief review of the file.
• There is a record of the advice given and the instructions received. Verbal instructions received and advice given are confirmed in writing to the client.
• It is kept tidy and is up to date with progress readily apparent to any colleague who might need to check the position of the matter;
• Correspondence, attendance notes and telephone call records are filed in chronological order and in an orderly fashion – both hard copy files and electronic files;
• A copy of every email sent or received is saved to the practice management system. This applies to all emails, however short;
• Electronic files are clearly navigable and follow the normal principles of good file organisation and management – which includes the use of sub-folders for storage of different types of documents;
• Documents are kept together;
• Attendance notes are comprehensive and legible;
• Draft documents should be dated when they are produced and where a document has been superseded by an amended version, the earlier document should be disposed of if no longer needed. If it is to be kept, then a note should be put on the document that it has been superseded by a later document;
• The strategy for the matter should always be apparent on the matter file. In complex cases develop a project plan.

Identification and traceability

All papers, documents and items in relation to a client file must be traceable by being stored on the matter file at all times. The client matter reference number must be included on all documentation and the location of any items and papers that are not kept within the file must be clearly recorded on the file.

Each person is responsible for the safekeeping of their paper files, which must be stored alphabetically in filing cabinets.

Confidentiality

This section should be read in conjunction with our Information Management and Security Policy and our Data Protection Policy.

If you intend to work on a file away from the office, care must be taken to ensure that the file is kept secure. Failure to do so may result in disciplinary action.

Care must be taken when copying items of sensitivity where their loss could result in difficulty for us or the client.

Files should not be left in cars overnight and you should not work on files in public places unless you can ensure that matters will remain confidential.

Refer to the Client Care Policy for further details on our expectations in respect of confidentiality.

Key dates

A key date is a date or deadline which, if overlooked, may give rise to a claim against the firm, for example:

• Limitation periods;
• Contractual deadlines;
• Time limits for rights to exercise an option;
• Deadlines for the performance of an undertaking;
• Court hearing dates;
• Post-completion obligations such as the payment of tax or registration of title.

We maintain a central record of key dates via a centrally accessible Outlook calendar.

It is the responsibility of all file handlers to ensure that key dates are identified, entered onto the central record of key dates, entered into the file handler’s own diary and recorded on the client file. It is also their responsibility to regularly review all key dates relating to a matter to ensure that any revisions to key dates are taken into account.

We also maintain a centrally accessible spreadsheet to record registrations on conveyancing matters. Due to the delays at the land registry, we can also review to ensure that clients are regularly updated.

Absences from the office

You must take the following steps if you are going to be away from the office, whether on holiday or for any other reason.

For all absences:

• Ensure relevant colleagues (including reception and secretarial staff) know you will be absent.
• Tell any clients who are likely to try to contact you during your absence that you will be away and who they can contact in your absence, including providing their contact details.
• Identify any action that will be necessary while you are away. Brief a suitable person to deal. Give or confirm the details in writing.
• Give your contact details to those who will be covering for you so that they can ask you questions in an emergency.
• Ensure someone will check incoming post and faxes.
• Ensure someone with access to your email account will check your emails at least daily (unless you will be checking them yourself).
• Set an out-of-office notification on your email. Include when you will be back and details of someone who can handle urgent enquiries in the meantime.
• Set a temporary voicemail message. Again, include when you will be back and interim contact details.

For absences longer than five working days (additional precautions):

• Allocate files. Ensure that all matters are allocated to other fee earners, and that they are suitably briefed (see next point).
• Draft holiday notes. The level of detail will vary, but your notes should normally include the following:
  • The nature of the matter and the stage reached.
  • The next steps, and who should take them.
  • The location of relevant documents. It can be useful to attach post-it notes as flags on key documents in the file.
  • Contact details of key parties, if not apparent from the file.
  • A warning about any risk factors.

Undertakings

An undertaking is “any statement made by you or the firm, that you or the firm will do something or cause something to be done, or refrain from doing something, given to someone who reasonably relies upon it.” For a statement to qualify as an undertaking it is not necessary that the word “undertake” or “undertaking” is used.

Undertakings may create contractual liability, and in certain cases, namely where they are given by a solicitor in their personal capacity or on behalf of an unincorporated legal practice, may also be enforced by the courts under their supervisory jurisdiction.

We also have professional conduct obligations under the SRA Standards and Regulations to perform all undertakings within an agreed timescale or within a reasonable period of time. By reference to paragraphs 1.3 of the Code for Solicitors, RELs and RFLs and Code for Firms, there is a requirement to ‘perform all undertakings given by you and do so within an agreed timescale or if no timescale has been agreed then within a reasonable amount of time.’

Policy

Our policy in respect of undertakings is as follows:

• Financial or non-standard undertakings may only be given in circumstances where performance or compliance with an undertaking can be guaranteed. Undertakings are binding even if it is to do something outside of our control;
• All financial and non-standard undertakings given by us must be recorded on our Access Undertakings Module.
• If an undertaking is received by email and there are any doubts about whether it came from the purported sender, you should contact the sender by phone to confirm the email’s authenticity;
• Undertakings given must be clear, as ambiguous undertakings are generally construed in favour of the recipient;
• It is the responsibility of file handlers to decide when an undertaking may be required and to obtain the necessary authority to give the undertaking;
• Obtain the client’s authority before giving an undertaking which may affect the client’s position in any way.
• Do not undertake to pay a sum of money unless we have the required funds and the client’s authority to make the payment. If we do not have the required funds, we may (with the client’s consent) undertake to pay out of such funds as they come into our hands;
• Any difficulties in complying with an undertaking must be reported to the COLP immediately;
• If we have given an undertaking dependent upon the happening of a future event and it becomes apparent the future event will not occur, notify the recipient of this;
• A file cannot be closed or transferred to another firm if an undertaking is still outstanding.

Remember – if we fail to honour an undertaking, we may be in breach of the SRA Standards and Regulations and/or in breach of contract, both of which can result in serious consequences for the firm therefore please ensure that great care is taken when giving one.

Failure to comply with the policy in respect of undertakings, as outlined above, may result in disciplinary action.

Authority to give an undertaking

No one must give an undertaking unless it has been authorised by a director, with the exception of:

• Routine/implied property undertakings which can be given by property fee earners;
• undertakings to the court given by an advocate.

Record of undertakings

All undertakings (whether given or received) must be recorded on the client file.

All financial and non-standard undertakings (given and received) must also be recorded in the undertakings module within Access Legal Compliance.

File handlers are also responsible for updating the file and Access Legal Compliance once an undertaking has been complied with.

Monitoring undertakings

The COLP will review non-financial undertakings and the COFA will review financial undertakings each month at their monthly meeting, to ensure that all non-standard undertakings, whether given or received, have been discharged promptly if they have become due for discharge.

Progressing matters

All matters must be progressed in an appropriate manner, having regard to the importance of the matter to the client, any instructions that they have provided on desired or necessary timescales and the constraints of the process concerned. In particular, file handlers must:

• Provide regular and reasonable information to clients, in writing, on progress or the reasons for the lack of it. This includes providing the client with all material information relating to their matter and allowing the client to make informed decisions as relevant;
• Respond to any telephone call or communication from clients promptly;
• Reply in a professional manner to solicitors acting for opponents or other parties

Review your matters

At least monthly, review every matter for which you are responsible. Check that:

• there is no outstanding issue you need to address;
• the client is aware of the current costs position;
• the client is aware of the general level of progress;
• the risk profile has not changed (e.g., no new clients, counterparties or issues) – where it has, the client has been advised promptly in writing and the COLP has been informed and guidance sought from them before proceeding.

 Face up to problems

If you are uncertain about what to do on a matter, are too busy to give it suitable attention or otherwise feel unable to make progress, report the matter to your supervisor or head of department. S/he will decide how the problem will be resolved.

Updating the client

One of the most common causes of complaints is the failure to update clients, particularly when there is a change in:

• Anticipated costs;
• Timescale;
• The people responsible for their matter (whether the person with day-to-day control, or the supervisor).

Diarise any dates by which you have promised to update the client about matter progress or costs.

Cost updates

Costs should be reviewed regularly, and costs updates must be provided to clients following such reviews. Costs must be discussed with the client before an estimate or agreed upper limit is exceeded.

Change of file handler

The client must be informed in writing if there is a change of file handler or if the designated supervisor changes.

Billing and debt management

Initial arrangements

You should have made arrangements with the client at the start of each matter concerning how regularly they will be billed and what sums we require on account, both initially and potentially later. This will normally be addressed in the client care documents.

You must ensure that clients are billed as agreed, and that matters are managed within appropriate credit limits.

Money on account

Wherever possible, money on account of our costs and disbursements should be obtained from the client.

Interim bills

Where appropriate, interim bills should be raised in line with the pattern of billing agreed with the client at the outset. Smaller and regular bills are less likely to be the subject of non-payment. Regular billing also helps with the firm’s cash flow.

Responsibility

Fee earners are responsible for preparing their own bills, which should be rendered within a reasonable time of concluding the matter. The bill should be sufficiently detailed for the client to be able to identify what it relates to.

Financial transactions

The Accounts Department applies procedures designed to ensure that financial transactions are carried out safely and that appropriate authorisations are obtained and records are kept.

The following are some of the most important principles which you should apply in this context:

• The prescribed forms must be used to authorise transfers of office or client money or for payments to clients or third parties. The Accounts Department will not accept oral instructions to make a transfer or payment. You must check carefully the destination of any money we are transferring.
• Payments out of client account, whether by cheque or bank transfer, can only be authorised by a director.
• No accounting documents, including authorisation forms and cheques, may be amended in any way or for any reason. If a cheque needs to be amended, it must be returned to the Accounts Department, so that it can be cancelled and a new cheque issued.
• Cheques received must be passed to the Accounts Department so that they may be entered into the paying in book, entered on the accounts system and paid into the bank.
• Cheques should be banked promptly to comply with the SRA Accounts Rules. We may need to account to the client for interest on client money if the amount calculated exceeds £25.

Fraud prevention

Law firms are constantly targeted by fraudsters seeking to steal money. Report promptly anything that may have been an attempt to defraud the firm or its clients, to obtain passwords or other sensitive information, or otherwise to breach our security.

Familiarise yourself with and apply the firm’s Information Management and Security Policy. For example, it is important that you use secure passwords and keep them secret.

New fraud methodologies arise all the time, so you must be on your guard. In particular take the following precautions.

Fake law firms

Be alert to the existence of fake law firms set up by fraudsters to intercept financial transfers. If you are not familiar with the firm to which you are asked to pay money, seek more than one source of evidence to verify its bona fides before sending funds. Check if the firm has the SRA digital badge on its website.

Bear in mind that some firms have had fake offices registered with the SRA or listed on the Law Society’s “find a solicitor” online service.

Calls purportedly from our bank

Fraudsters may call pretending to be staff at our bank. They may then seek information that enables them to steal money from our client account. Such calls are particularly common on Fridays and are sometimes known as Friday afternoon frauds.

Unless the caller is well known to you personally, you must always return any call, using a number known to be genuine, before acting on anything a caller tells you or giving the caller any sensitive information. Call back from another line than the one you took the call on to be sure they have not managed to stay on the line.

Fake emails apparently from clients and others

Fraudsters may send us emails which appear to come from a client or from members of the firm. If you receive an email instructing you to send money to a particular account, double check with the client before doing so, usually by telephoning him or her. It is not sufficient to check by email, since fraudsters may be able to intercept emails and reply to them.

To avoid this issue, normally obtain all critical information, including bank details, by secure means at the start of a transaction.

Fake emails apparently from us

Similarly, fraudsters may send emails or other messages to clients which appear to come from us. Accordingly, our standard client care letter warns clients not to make payment to any account other than the one particularised there. You should consider reminding clients of that, particularly if they seem vulnerable.

All clients should be sent the firm’s standard warning document about cybercrime at the start of a matter. This particularly applies to conveyancing clients.

Arranging insurance for clients

If you help to arrange insurance for a client, such as title insurance, the SRA Financial Services (Conduct of Business) Rules 2001 (as amended from 1 October 2018) require that you take the following steps.

• Step 1 – Check suitability.

You must take reasonable steps to ensure that the recommended insurance is suitable to the client’s demands and needs. That means you should identify the client’s requirements (including checking details of any insurance the client may already have) and assess the suitability of the proposed insurance, including the level of cover and any exclusions, excesses, limitations or conditions.

• Step 2 – Give the client the required information.

This should be done in writing before the insurance is arranged. A statement may not be necessary if you are merely renewing insurance or referring the client on to a regulated broker. Check the rules themselves before relying on any such exception.

A form of words along the lines of the precedent in this manual will usually be appropriate. This is often referred to as a “demands and needs statement” but must include other information as well, e.g., as to your firm’s remuneration.

Please refer to our Insurance Distribution Directive Policy for further information.

Special note applicable to property transactions only in CQS accredited firms

We require all employees involved in submitting applications to HM Land Registry (HMLR) to take all reasonable care to ensure that the contents of the applications are fully completed and correct before being submitted, to avoid HMLR having to raise requisitions that could have been avoided had more care been taken.

For straightforward applications, we require the file handler to review the application to check for simple errors and omissions before submitting it.

For more complex applications, we require the file handler to review the application to check for simple errors and omissions before asking a colleague to check the application.

End of matter procedures

Once a matter has ended, the file should be closed without undue delay. Leaving a file open on our system after the matter is completed can lead to confusion and complications.

Final review

File handlers must undertake a final review of all matters as soon as they are completed. The final review should assess whether the client’s objectives were met and, if not, why not. This must be evidenced on the file, otherwise the file will not be accepted for archive.

Final report to client

File handlers must make a final report to the client by way of a file closure letter detailing:

• The outcome of the matter and whether any further action should be taken;
• What further action the firm will take (if any);
• The amount of any outstanding client money to be returned to the client;
• Any original documents or other property belonging to client to be returned (unless it has been agreed that they will be held by us);
• Storage and retrieval arrangements for the client’s file and any other items held;
• Advice as to whether the matter should be reviewed in the future and if so, when.

Along with the final report you should normally send:

1. Any original documents or property unless agreed otherwise with the client;
2. A copy or link to the client satisfaction survey;
3. Any final invoice or receipt against money held on the client’s behalf.

Concluding risk assessment

File handlers must complete the concluding risk assessment/ file closure risk review.

Files will not be accepted for archive unless this assessment has been completed.

If it is considered that we should have done better for the client and that they could fairly complain about the service or make a claim, the file handler must report the matter to the COLP without delay. The COLP will decide what action should be taken and whether the client and our professional indemnity insurers should be informed.

File closing

The File Closure Checklist must be completed and signed.

File handlers must ensure that all ledger balances have been reduced to nil and any unbilled time has been written off before the matter can be closed on our accounts system. File handlers must also check all procedural issues have been resolved, including that any undertakings have been discharged.

Check the file

Before sending a file to storage it is important to remove deeds, wills and other important original documents. The documents should either be returned to the client or, if instructed to do so, retained by the firm in separate secure storage.

Where such original documents are retained by the firm you must:

• Record the document in the central register of original documents held by the firm.
• Store the document in the appropriate secure location so that it cannot be lost or stolen.

Securely destroy duplicate documents

Transporting and storing papers costs money. Multiple copies of documents may have accumulated on files. Securely destroy any duplicates which are clearly not required.

Copy documents for knowledge management

If any documents may be useful precedents in future, copy them to [the person responsible for knowledge management in your department] for storage in the knowledge management system.

Retention periods

File handlers must assess and record the date for the eventual destruction of the file. As a minimum, all files must be kept for 6 years. We have additional storage requirements depending on the type of work or document and these are:

The file should be passed to the accounts department who will arrange for the file to be archived.

Handing over a file

Establish the reason for the request

If a client may be contemplating a claim against the firm, the matter should be referred to the COLP.

In rare cases, the client may be requesting the file because they are being investigated by HMRC, DTI inspectors, a liquidator or others who may have rights to see documents. If there is any suggestion of an investigation or insolvency event, consult the COLP before handing over the file. There is a risk that someone may request the file in order to destroy evidence.

Bear in mind that in insolvency cases the liquidator or trustee in bankruptcy may be entitled to the file, rather than our original client. However, the liquidator or trustee in bankruptcy will not be entitled to documents subject to legal professional privilege.

Ensure you have the consent of all clients

If we were instructed by two or more clients, they all own the papers jointly. You may need the consent of all clients before handing over documents to one.

Decide what should be handed over

The “Who owns the file?” subsection below summarises the legal position in relation to the ownership of the papers which we hold. However, identifying whether the firm or the client owns individual papers and records may be unnecessary for us and unhelpful to the client. It will often be acceptable to hand over the whole file, after removing copies of time recording data, billing guides and any Suspicious Activity Reports.

If there is any possibility of a claim or complaint by the client, take a copy of the file. Alternatively, if we are handing over the file to a new firm of solicitors, obtain an undertaking from them to give us access to the file should it be needed.

Keep proper records

Keep a record of who requested and received the file. That should normally include a signed receipt from the person who received the file.

Can we charge?

If clients ask for a copy of a document, we may charge for copying and sending it. However, if they ask us to deliver their papers to them, we may not charge other than for the cost of delivery. Nor may we charge for taking copies of documents for our own records. We can charge for copying documents which belong to us.

Consider obtaining an undertaking to preserve our lien

We have a lien over the papers for any unpaid costs and disbursements. If there is a genuine dispute over the amount of our costs, or if a matter is current and the client cannot pay, we may decide to hand over the papers to a new firm of solicitors despite our lien. In that case, obtain an undertaking from the new firm to preserve our lien, and to return the papers to us if we so require.

Who owns the file?

The client normally owns attendance notes, draft documents, copies of our letters to third parties, instructions to counsel and experts, counsel’s opinions, experts’ reports and letters received by us from third parties.

The same applies to any other documents which we have prepared for the benefit of the client, for the preparation of which the client has been charged, and documents sent to us by third parties.

The firm owns copies of letters written to the client, inter-office memoranda, diary entries, timesheets and billing guides and letters written to us by the client. These are mainly documents we have prepared for our own purposes, and for the preparation of which the client has not been charged.

With electronic communications concepts of ownership cannot be so easily applied. The practical point is that unless we have a lien for unpaid costs, we can normally copy electronic communications to the client quickly and cheaply, and so issues of ownership are irrelevant.

File destruction

Nicola Robinson (Finance Director) is responsible for monitoring upcoming destruction dates, which are recorded on ALB. When a file becomes due for destruction, a final review will be undertaken and a director will be asked to authorise destruction of the file.

Review of these procedures

These procedures will be reviewed at least annually by Timothy Halliday (COLP).

May23