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Statutory declaration – the basics

Who is authorised to take a statutory declaration? The answer is:

Solicitors (holding a current practising certificate); barristers; notaries at public (but not ecclesiastical notaries); licensed conveyancers; FILEX (if they pay a full sub, but not retired Fellows); patent agents; trademark agents; JPs (but only under Stamp Duties Management Act 1891).

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Contract at home – cancellation

The Cancellation of Contracts made in a Consumers Home or Place of Work Regs 2008 were replaced on 13 January 2014. But, the old Regs continued to cause problems for lawyers.

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Accounts – qualified reports

The current definition of a qualified accountant’s report is one that ‘the reporting accountant has found necessary to qualify’. The new description will be where ‘the reporting accountant forms the judgement that these rules have not been complied with such that the safety of clients’ money is at risk’.

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Professional – update

It has finally been decided that the SRA will regulate firms offering credit services to clients. Previously, the SRA had suggested that the FCA should take over this responsibility, which would have meant a significant dual regulatory burden for many firms. This is important, given the wide definition of consumer credit (eg it can include allowing clients to pay in instalments). See [2015] LSG 14 September 2.

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Accounts – banking glitches

There have been several well-publicised incidents of major clearing banks suffering IT glitches, which have meant that money has not been transferable in and out of accounts. Looking ahead, what should law firms do if client money becomes temporarily inaccessible? The basic guidance is:

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Professional – update

Slater and Gordon are showing that life as a listed company is not all plain sailing. Shares in the world’s largest publicly listed law firm more than halved in the three months of the summer. In large part this was not due to the firm’s £637m deal with Quindell, but to accounting issues arising from the acquisition of Russell Jones & Walker in 2012 (and VAT recording). [2015] LSG 6 July 6.

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Professional – update

The arrival of Gateley as the first law firm on the UK Stock Exchange has received much publicity. It is expected that a few other large firms will follow this route (the main attraction is for those who want to expand, but do not want to borrow significantly, or have to put in their own capital). 

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Undertaking – firm liability

An undertaking is a commitment by a solicitor to do something, cause something to be done, or to abstain from doing something. It can be given orally or in writing (and does not have to include the word ‘undertake’ or ‘undertaking’).

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Professional – update

The number of solicitors in private practice grew at its fastest rate for nine years in 2014; there are 130,000 solicitors (90,000 in private practice). One in three are based in London, with one in five working for a City firm [2015] LSG 27 April 1.

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Solicitors – competence

Version 13 of the SRA Handbook was published in April 2015. The major change is the introduction of the competence statement.

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