CQS Supporter
The CQS
Core Practice
Management Standards
Introduction
The CQS Core Practice Management Standards
Welcome to this online training course by Peter Rodd and Andrew Baker.
This online course will take approximately 1 hour to complete.
Introduction
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Introduction
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Peter Rodd joined Boys & Maughan in 1976, was admitted as a solicitor in 1978 and
became a partner in 1981. He was appointed a Public Notary in 1989 and is a member of
the firm's senior management team.
He is past president and, for the last ten years, secretary of the Isle of Thanet Law
Society. He is Chairman of the Law Society Property Section and a former member of
the Council Membership Committee. He sits on both the Law Society Money Laundering
and E-Conveyancing Task Forces, and is also past member of the Law Society Home
Information Pack Task Force.
Peter's specialisms lie in commercial and residential property, where he has more than
thirty years’ experience handling a wide spectrum of both sales and purchases of
properties.
Introduction
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Andrew Baker joined Boys & Maughan in 1993, qualified as a solicitor in 1995 and became
a partner in 1998. He is a member of the firm's senior management team. He has been in
charge of quality standards at Boys and Maughan since 2000, seeing through three
Investors in People assessments and preparing the firm for its successful Lexcel
assessment in 2008. Andrew has worked with Peter in developing the CQS Core Practice
Management Standards.
About CQS Core Practice Management Standards
CQS Core Practice Management Standards require practices to
have processes and procedures in place to reduce risks and to
ensure a high standard of work.
They have been developed from the Law Society’s Lexcel
Practice Management Standard but are not as wide ranging as
Lexcel.
CQS Core Practice Management Standards are conveyancing
specific.
In some areas the Core Practice Management Standards specify
a standard which may be higher than Lexcel, for example antimoney laundering and mortgage fraud.
Practices with Lexcel are exempt from proving they meet CQS
Core Practice Management Standards.
Learning Outcomes
This online training course and assessment has been designed to
train conveyancers on the Core Practice Management Standards
of the Conveyancing Quality Scheme.
The course includes an introduction to the Core Practice Management
Standards, an overview of each of its key elements and fifteen multiple-choice
self-assessment questions to test your understanding.
After you complete this course, you’ll have an understanding of:
•
•
the purpose of the Core Practice Management Standards;
the processes that practices are required to have in place relating to:
– risk management;
– financial management;
– supervision and operational risk management;
– client care;
– file and case management.
This course (including the assessment questions and answers) has been
approved as meeting the training requirements of the CQS.
Areas Covered by the Standards
The CQS Core Practice Management Standards are divided into 5 categories:
1. Risk management.
2. Financial management.
3. Supervision and operational risk management.
4. Client care.
5. File and case management.
We’ll learn more about each category in the sections that follow.
Section 1:
Risk Management
Risk Management
There must be a policy in place to cover the management of risk in the
practice. This must specify the person responsible for the policy and a
procedure for reviewing the policy annually to verify it is working across the
practice.
Risk management is divided up into three separate areas of risk:
• Strategic risk;
• Operational risk;
• Regulatory risk.
We’ll take a closer look at each risk area in the following screens.
Question
Which of the following do you think are true?
(a) A policy is required to show that firms have
considered each area of risk independently.
(b) A person within the practice must be appointed
to be responsible for these risks.
(c) The risk management policy must be reviewed
annually to verify it is in effective operation across
the practice.
(d) Areas of risk will vary from practice to practice –
you do not need to consider an area of risk if you do
not think it is relevant to your practice.
Think about your answer, then click submit to continue.
Submit
Question
Which of the following do you think are true?
(a) A policy is required to show that firms have
considered each area of risk independently.
(b) A person within the practice must be appointed
to be responsible for these risks.
(c) The risk management policy must be reviewed
annually to verify it is in effective operation across
the practice.
(d) Areas of risk will vary from practice to practice –
you do not need to consider an area of risk if you do
not think it is relevant to your practice.
The correct answers are highlighted in green.
Strategic Risks
Strategic risks are risks that affect the viability of the business. They are risks
that something could change which could affect the continuity of the business.
Click each dice to learn more:
A SWOT analysis and a business plan and regular reviews of that plan
will assist in reducing these risks.
Strategic Risks
Strategic risks are risks that affect the viability of the business. They are risks
that something could change which could affect the continuity of the business.
Click each dice to learn more.
Over-reliance
on one source
of work.
A SWOT analysis and a business plan and regular reviews of that plan
will assist in reducing these risks.
Strategic Risks
Strategic risks are risks that affect the viability of the business. They are risks
that something could change which could affect the continuity of the business.
Click each dice to learn more.
A change in the
conveyancing market, or
increased competition
from ABSs.
A SWOT analysis and a business plan and regular reviews of that plan
will assist in reducing these risks.
Strategic Risks
Strategic risks are risks that affect the viability of the business. They are risks
that something could change which could affect the continuity of the business.
Click each dice to learn more.
Financial
issues.
A SWOT analysis and a business plan and regular reviews of that plan
will assist in reducing these risks.
Operational Risks
Operational risks arise out of the nature of work that the firm does.
Many operational risks will be reduced by having in place the processes
and procedures required by the Core PMS, for example:
• Supervision
• File reviews
• Client care procedures
Regulatory Risks
Regulatory risks arise out of the regulatory framework in which we practice.
See for example the SRA requirements – Code of Conduct or Data protection
legislation.
Click each box to reveal how you can manage these risks.
Regulatory Risks
Regulatory risks arise out of the regulatory framework in which we practice.
See for example the SRA requirements – Code of Conduct or Data protection
legislation.
Click each box to reveal how you can manage these risks.
Having procedures in
place and someone
responsible within the
firm for dealing with
these with regular
reviews of the risks will
ensure that these risks
are managed.
Regulatory Risks
Regulatory risks arise out of the regulatory framework in which we practice.
See for example the SRA requirements – Code of Conduct or Data protection
legislation.
Click each box to reveal how you can manage these risks.
Terms and conditions of
business, the client care
policy and a data
protection policy all
assist in dealing with
these risks.
Anti-money Laundering
The Core PMS require there to be an anti-money laundering policy.
Click the policy to reveal what this must include:
Anti-money Laundering
The Core PMS require there to be an anti-money laundering policy.
Click the policy to reveal what this must include:
• The appointment of a
Nominated Officer usually
referred to as a Money
Laundering Reporting
Officer (MLRO).
• A process for making
disclosures within the
practice and by the MLRO
to the authorities.
• Identification checking of:
– own client
– conveyancer acting for
the other party.
• Training of personnel.
• The proper maintenance
of records.
Anti-money Laundering
All relevant staff should receive training on anti-money laundering and
conveyancers should be familiar with the SRA money laundering warning card
and Chapter 11 (parts 1, 2 and 4) of the Law Society’s AML Practice Note.
Mortgage Fraud
The Core PMS requires that firms have in place procedures which deal with the
steps taken to avoid the risk of mortgage fraud.
Firms should appoint someone in overall charge of these risks and should make
requirements for regular review and training.
All members of staff should be familiar with:
1. the SRA warning cards about:
- fraudulent financial arrangements;
- property fraud.
2. the Law Society practice notes on:
- mortgage fraud;
- property and registration fraud (produced jointly with the Land Registry).
Business Continuity
The Core PMS requires firms to have a business continuity plan.
Click our business continuity plan expert to discover what this MUST
include.
Business Continuity
The Core PMS requires firms to have a business continuity plan.
Click our business continuity plan expert to discover what this MUST
include.
“Your business continuity plan must include an evaluation
of potential threats and the likelihood of their impact. It
must cover ways to reduce, avoid and transfer the risk.
A business continuity plan should identify the person
responsible for the plan and also outline the processes for
testing and checking the plan.
Finally, it must include a procedure to test the plan
annually, to verify that it would be effective in the event
of a business interruption.”
Business Continuity
Firms should consider areas at risk if systems are not able to function.
Areas that business continuity may cover are:
•
•
•
•
•
IT systems back up and operational failure;
floods and fire;
staffing;
power cuts;
communications failure.
Business Continuity
Business continuity plans can be tested by:
•
•
•
•
fire drills;
power shut downs;
checking computer back ups;
communicating with staff without using the firm’s communication
systems or out of hours.
Records should be made of the checks.
Any failures of the plan should be acted upon and changes made to the business
continuity plan to reflect this.
More information on business continuity can be found in
the Law Society Practice Note on business continuity.
Question
Which of the following areas do you think should
be considered when planning for business
continuity?
(a) IT systems back up and operational failure
(b) floods and fire
(c) staffing
(d) power cuts
(e) communications failure
(f) currency fluctuations
Think about your answer, then click submit to continue.
Submit
Question
Which of the following areas do you think should
be considered when planning for business
continuity?
(a) IT systems back up and operational failure
(b) floods and fire
(c) staffing
(d) power cuts
(e) communications failure
(f) currency fluctuations
The correct answers are highlighted in green.
Section 2:
Financial Management
Financial Management
Responsibility for financial management must be documented.
There should be one person of sufficient authority within the firm who is
appointed to be in charge of financial management. They may be assisted by
a finance group.
Financial Management
There must be an annual:
•
•
•
•
budget;
profit and loss account;
balance sheet;
cash or funds flow forecast.
And at least quarterly analysis of:
• variance of income and expenditure against budget;
• variance of cash flow against forecast.
This is most likely to be through a computerised accounts package. This can
provide the required reports monthly or quarterly. These reports must be analysed
by those responsible for financial management.
Question
Is this statement TRUE or FALSE?
“Just one person should be appointed to be in charge
of financial management.”
(a) True
(b) False
Think about your answer, then click submit to continue.
Submit
Question
Is this statement TRUE or FALSE?
“Just one person should be appointed to be in charge
of financial management.”
(a) True
(b) False
The correct answers are highlighted in green.
Section 3:
Supervision and Operational Risk
Management
Supervision and operational risk management
This is the area of the CQS which assists firms in reducing complaints and claims.
Structure of the firm.
There needs to be a clear structure in place setting out lines of reporting and
detailing who is responsible for what.
Each area of the conveyancing practice should have a named person responsible for
the department.
That person must have the appropriate training and experience to supervise the
department.
Supervision and operational risk management
Click each checklist item to discover which processes should be in place to
support supervision.
Checks on
incoming
and
outgoing
post
Reviews of
matter
details
Allocation
of work
Checking
for
inactivity
Supervision and operational risk management
Click each checklist item to discover which processes should be in place to
support supervision.
Checks on
incoming
and
outgoing
post
Reviews of
matter
details
Allocation
of work
Checking
for
inactivity
These could be checks by the supervisor on all incoming post or regular spot
checks. Firms may consider that in respect of outgoing post checks will
depend on the experience and grade of fee earners. Some will need all post
checked initially whilst others may only need to have outgoing
correspondence checked which deals with substantive issues.
Supervision and operational risk management
Click each checklist item to discover which processes should be in place to
support supervision.
Checks on
incoming
and
outgoing
post
Reviews of
matter
details
Allocation
of work
Checking
for
inactivity
Supervisors should check that financial procedures are being followed and
that fee earners’ matter numbers are monitored.
Supervision and operational risk management
Click each checklist item to discover which processes should be in place to
support supervision.
Checks on
incoming
and
outgoing
post
Reviews of
matter
details
Allocation
of work
Checking
for
inactivity
Supervisors must ensure that fee earners’ workloads are appropriate to their
ability and experience. There should be a documented procedure setting out
fee earners’ abilities and the types of work they are authorised to undertake,
ensuring that fee earners do not take on work outside their experience
without appropriate supervision and training.
Supervision and operational risk management
Click each checklist item to discover which processes should be in place to
support supervision.
Checks on
incoming
and
outgoing
post
Reviews of
matter
details
Allocation
of work
Checking
for
inactivity
Ways of doing this could be through checking lists of all matters or through
case management and diary procedures. It’s important that you find a system
that works for your firm and is effective.
File reviews
File reviews must deal with management of the file and legal content.
Practices must set out in their internal processes:
•
•
•
•
•
•
how files are selected;
the number and frequency of reviews;
keep a record of the review on the file and a central record;
corrective action identified should be actioned within 28 days of the review;
designated supervisor must review and monitor data generated by file reviews;
must be a review at least once per year of all the data generated by file reviews.
File reviews
File reviews should be at least quarterly and files should be randomly
picked.
The reviewer should not be less senior than the person being reviewed.
The frequency and number of files should depend on the grade and experience of
the fee earner.
It’s recommended that practices develop a standard
form for the reviews, which will make analysing the
data from reviews easier.
Risk Management
One person with sufficient authority within the firm must be appointed
to manage risk. This will usually be the Senior Responsible Officer (SRO)
for CQS.
There should be clear lists of the type of conveyancing matters the firm will
and will not undertake to ensure that the firm does not accept instructions
which it does not have the experience or capacity to deal with competently.
These lists must be communicated to staff and kept under regular review.
Risk Management
Click the risk manager to learn more about their role.
Risk Management
Click the risk manager to learn more about their role.
“The risk manager should identify generic risks of the
work undertaken and make sure that these are regularly
updated. Generic risks are those that can be identified
in most or every transaction.
Where instructions represent a high risk there should be
a process to ensure that steps are in place to reduce the
risks. This could be by a regular review with the
supervisor to consider what steps have been taken to
reduce risk.
It’s recommended that a report is made of these cases to
the risk manager, perhaps on a standard document called
a risk notice.”
Risk Management
Once each year the risk manager should carry out a review of risk within
the firm analysing:
•
•
•
•
any indemnity claims;
an analysis of client complaints trends;
data generated by file reviews;
the identification of remedial action.
This should be documented to show that it has been undertaken.
Risk Management
At the beginning and end of a transaction, the risk that each transaction
poses should be considered and recorded.
Throughout matters conveyancers should be trained to consider
any change to the risk profile of a matter and record that
change.
If a matter becomes high risk, fee earners should undertake the process in
the firm’s procedures agreed to manage that risk, for example by review
with a supervisor and forwarding a risk notice to the risk manager.
Email Policy
It’s easy to overlook email correspondence when considering supervision
and risk management. However, email should be treated in the same way as
any other correspondence, with similar processes in place to deal with
supervision and risk management.
Your practice must have an email policy.
Click the email policy document here to learn what it must deal
with.
Email Policy
It’s easy to overlook email correspondence when considering supervision
and risk management. However, email should be treated in the same way as
any other correspondence, with similar processes in place to deal with
supervision and risk management.
Your practice must have an email policy.
Click the email policy document here to learn what it must deal
with.
• The scope of permitted and prohibited use;
• any procedures for monitoring personnel using e-mail;
• procedures for proper management and security;
• procedures for its proper storage and destruction;
• the person responsible for the policy ;
• a procedure for an annual review of the policy, to verify
it is in effective operation across the practice.
Question
How often should file reviews happen?
(a) Weekly
(b) Monthly
(c) Quarterly
(d) Annually
Think about your answer, then click submit to continue.
Submit
Question
How often should file reviews happen?
(a) Weekly
(b) Monthly
(c) Quarterly
(d) Annually
The correct answers are highlighted in green.
Section 4:
Client Care
Client Care
Client care largely follows the requirements of the SRA Code of Conduct.
Click the checklist to learn more about what the main
requirements are:
Client Care
Client care largely follows the requirements of the SRA Code of Conduct.
Click the checklist to learn more about what the main
requirements are:
A documented policy dealing with client care and processes in place to
comply with Rule 2 of the Code of Conduct (Client Relations).
Client Care
Client care largely follows the requirements of the SRA Code of Conduct.
Click the checklist to learn more about what the main
requirements are:
A record of any standing terms with regular clients.
Client Care
Client care largely follows the requirements of the SRA Code of Conduct.
Click the checklist to learn more about what the main
requirements are:
A written complaints procedure that complies with Rule 2 as above together
with specific requirements set out in the PMS.
Client Care
Client care largely follows the requirements of the SRA Code of Conduct.
Click the checklist to learn more about what the main
requirements are:
Processes in place to monitor client satisfaction. These can generally be
undertaken by an ‘end of matter’ questionnaire, but some firms may wish to
measure client satisfaction more regularly or in different ways.
Question
Is this statement TRUE or FALSE?
“Your practice is required to have a documented
policy dealing with client care.”
(a) True
(b) False
Think about your answer, then click submit to continue.
Submit
Question
Is this statement TRUE or FALSE?
“Your practice is required to have a documented
policy dealing with client care.”
(a) True
(b) False
The correct answers are highlighted in green.
Section 5:
File and Case Management
File and Case Management
This section deals with procedures which firms should have in place to manage
instructions and files well.
Click each icon to learn more.
File and Case Management
This section deals with procedures which firms should have in place to manage
instructions and files well.
Click each icon to learn more.
Practices must document procedures for dealing with clients initially by
telephone, in person and by letter and email. This will include who will deal
with these enquiries and how they will be allocated to fee earners.
File and Case Management
This section deals with procedures which firms should have in place to manage
instructions and files well.
Click each icon to learn more.
There must be a procedure for dealing with conflicts of interest.
File and Case Management
This section deals with procedures which firms should have in place to manage
instructions and files well.
Click each icon to learn more.
There must be a requirement in the procedures for fee earners to
establish at the start of a transaction:
• the nature of the transaction;
• likely timescale ;
• financial arrangements for the transaction.
Progression of matters
There must be a documented procedure to ensure matters are progressed
appropriately ensuring:
• Key information is recorded on the file (this can be by electronic or paper
file).
• Key dates are recorded on the file and in a back up diary system (a key date
is a date the missing of which could give rise to a complaint or claim, e.g.
completions, expiry of land registry searches etc).
• Key dates are properly monitored.
• A timely response is made to correspondence and telephone calls made by
the client and other parties.
• Written costs estimates are given at the outset and any change is notified in
writing.
• The client is notified of any changes to the fee earner with
conduct of the matter or the person to whom any complaints should
be addressed.
Undertakings
There must be a documented procedure for the giving, monitoring and
discharge of undertakings.
This might be by ensuring that only certain people are authorised to give
undertakings or by authorising people to give certain types of undertakings,
e.g. standard undertakings to discharge a mortgage on Form TA13 or
undertakings given in the Code for Completion by post
It’s recommended that there is a central register of non-standard
undertakings.
Firms may want a process to mark the outside of the file to ensure that no
files are put away without undertakings being discharged.
Documents
There must be a documented procedure for:
• Identifying documents files, deeds and any other item relating to a matter
(this is likely to be an electronic file indexing system).
• Safeguarding confidentiality of files and all other client information
(consider especially files which may be taken out of the office for any reason
and documents stored electronically).
• Ensuring documents are stored on a file in an orderly way (consider having
subfiles for separate types of documents and ensuring that correspondence is
filed appropriately).
• Ensuring the security of documents and files (especially those stored
electronically).
Concluding Cases
At the end of a matter, there must be documented procedures in place to
ensure that the following happen.
Click each image to learn more.
Concluding Cases
At the end of a matter, there must be documented procedures in place to
ensure that the following happen.
Click each image to learn more.
The practice reports to the client about any
further action required and what the practice
will do.
Concluding Cases
At the end of a matter, there must be documented procedures in place to
ensure that the following happen.
Click each image to learn more.
The practice returns to the client any
property or original documents it holds except
to the extent that it has agreed to store any
original documents.
Concluding Cases
At the end of a matter, there must be documented procedures in place to
ensure that the following happen.
Click each image to learn more.
The practice accounts to the client for any
money it still holds.
Concluding Cases
At the end of a matter, there must be documented procedures in place to
ensure that the following happen.
Click each image to learn more.
The practice explains to the client the
procedure for storage and retrieval of
documents and any charges it may make.
Concluding Cases
At the end of a matter, there must be documented procedures in place to
ensure that the following happen.
Click each image to learn more.
The practice archives and stores documents in
an appropriate way.
Concluding Cases
To ensure that these practices are followed at the end of a matter, you should
have a file closure form and standard letters to clients.
Question
For which of the following must there be a
documented procedure?
(a) Identifying documents files, deeds and any other
item relating to a matter.
(b) Safeguarding confidentiality of files and all other
client information.
(c) Ensuring documents are stored on a file in an
orderly way.
(d) Ensuring global compatibility with all document
viewing software.
(e) Ensuring the security of documents and files.
Think about your answer, then click submit to continue.
Submit
Question
For which of the following must there be a
documented procedure?
(a) Identifying documents files, deeds and any other
item relating to a matter.
(b) Safeguarding confidentiality of files and all other
client information.
(c) Ensuring documents are stored on a file in an
orderly way.
(d) Ensuring global compatibility with all document
viewing software.
(e) Ensuring the security of documents and files.
The correct answers are highlighted in green.
Key point Summary
At the end of this module, you should now be able to:
• understand the purpose of the Core Practice Management
Standards;
• have an awareness of the processes that practices are required to
have in place relating to:
-
risk management;
financial management;
supervision and operational risk management;
client care;
file and case management.
Getting More Assistance
More information and assistance on CQS Core Practice Management
Standards as well as other topics relevant to this course are
available online from the following resources:
Law Society Website:
• Conveyancing Quality Scheme.
Law Society Practice Notes:
• Anti-money laundering.
• Business continuity.
• Mortgage fraud.
• Property and registration fraud Practice Note.
Property and registration fraud
Contact:
Conveyancing Quality Scheme Unit:
Email: CQS@lawsociety.org.uk
Tel: 020 7316 5550