File Review Policy (Jan26)

Introduction

File reviews (also sometimes known as audits) involve the firm reviewing a selection of files at regular intervals to promote best practice and to ensure that appropriate procedures are being followed.

They are designed to assist in risk management as regularly reviewing files helps to ensure that a systematic and consistent approach is being taken throughout the firm. This in turn assists with the delivery of a competent and timely client service, a requirement set down by the SRA Standards and Regulations.

Undertaking file reviews also assists with compliance with accreditations – it is a requirement under Lexcel and CQS, for example, for firms to have a procedure for regular, independent file reviews of both the management of the file and its substantive legal content.

On the whole, file reviews help to improve compliance across all areas and are undertaken in employees’ best interests, as well as those of clients and the firm.

Purpose

This policy sets out an effective and risk-based file review procedure which enables adequate oversight of the work produced in our firm and allows us to manage risk, compliance and quality appropriately.

Scope

This policy applies to all employees, including managers, consultants and any third-party that this policy has been communicated to.

Responsibility

Timothy Halliday (COLP) is responsible for this policy and monitoring our compliance with it.

Number and frequency of reviews

The number and frequency of files reviewed will depend on the experience of the person whose files are being reviewed and their risk profile.

• For all fee earners (including Directors), at least one file will be reviewed each month – unless the fee earner has received a high number of complaints, in which case their risk profile will be higher and two files will need to be reviewed every month until their risk profile improves. The file reviews will take place at the monthly fee earners meetings. For trainees, others with less than one year’s post qualification experience and those working in a high-pressure/volume practice area, two files will be reviewed every month.
• The COFA will also review one file each month per fee earner. This review will be specifically looking at account’s rules compliance.
• In line with our Anti-Money Laundering Policy, one file per fee earner will be audited each month by the MLRO. This audit will be specifically looking at compliance with our AML Policy & Procedures.

How are files selected for review?

When considering which matters are selected, it is recommended that the following areas are deemed as high priority:

• high-risk matters;
• matters with high client account balances;
• matters which have been opened for a relatively long period of time or which exceed average timespan for a case of that type;
• matters with little or no time recorded within the last one to three months/ lengthy period(s) of inactivity;
• matters where client care paperwork has not been returned;
• matters with incomplete CDD checks;
• matters identified by the fee earners as ready for closure;
• matters where the client has made a complaint/claim; and

Where none of the high priority areas are identified, it is recommended that files are selected at random, perhaps from a list using a random number generator system online.

The reviewer should also try to ensure that the full range of matter types handled by the fee earner, as well as files at different stages of completion, are selected for review, so that the sample is an accurate representation of the work undertaken.

In addition:

• Conveyancing files will be reviewed prior to exchange and recorded on Access Compliance (Pre Exchange-Review).
• Probate files will be reviewed prior to distribution (Pre-Distribution Review).

It is important that a consistent approach is taken to file reviews throughout the year as part of the firm’s proactive risk management strategy.

 The Review Process

It is the responsibility of the COLP/COFA/MLRO to determine which files are reviewed for each fee earner, however when considering which matters are selected, high risk matters are deemed high priority.

File reviews must be undertaken by using the Audits Module in Access Legal Compliance.

Where a corrective action task is set in Access Legal Compliance, the file handler must complete the corrective action within the specified timescale and no later than 28 days. The reviewer must then verify to his/ her reasonable satisfaction that the corrective action has been completed by completing the verification task in Access Legal Compliance.

The reviewer may also give personal feedback to the fee earner and/or to the supervisor.

Failure to complete corrective action will be used in the risk profiling of the fee earner and could lead to disciplinary action being taken.

Root cause analysis

In addition to the regular file review process, Nicola Robinson will undertake a root cause analysis exercise on an annual basis which involves a deep dive exercise to identify the origin/ root cause of any issues which have consistently been raised in file reviews. This can help to identify key concerns that need addressing from a risk perspective.

The exercise involves undertaking specific steps to find the primary cause of the problem to:

1. Determine what happened.
2. Determine why it happened.
3. Understand what to do to reduce the likelihood that it will happen again.

There are many different approaches for undertaking a root cause analysis, for example the ‘Five Whys’ technique which involves asking, five times, why the situation occurred to drill down into systemic issues in the business to collect data.

The risk data from file reviews and root cause analyses will be monitored by the COLP at least annually and the information fed back to key staff, such as Heads of Department, those undertaking file reviews and supervisors for follow-on actions to be taken, for example implementing remedial action and updating internal practises and procedures.

Review of this policy

This policy will be reviewed at least annually by Timothy Halliday. The COLP is responsible for reviewing all file review data at least annually.

January 2026