Professional and financial risks
SRA v Ryan Beckwith and the regulation of the private lives of solicitors
In October 2019, the Solicitors Disciplinary Tribunal (SDT) upheld professional misconduct allegations against Mr Ryan Beckwith, an ex-magic circle partner. The Tribunal’s reasons were published on 30 January 2020.
Read moreLegal advice privilege not lost by repeating the client's instructions
In Raiffeisen Bank International AG v Asia Coal Energy Ventures Ltd (1) Ashurst LLP (2) [2020] EWCA Civ 11, the Court of Appeal has confirmed that legal advice privilege over a client's instructions to their lawyers is not lost, merely because the client authorises their lawyers to repeat the substance of those instructions to another party.
Read moreFRC - The Final Curtain Call
The FRC has released its draft budget plan and budget for 2020/21.
Read moreCourt of Appeal overturns decision that negligent failure to register restriction caused no loss
Read moreHigh Court grants proprietary injunction over Bitcoin cyber ransom payment to a third party
Instances of Ransomware are becoming increasingly common. We regularly deal with these types of cases and are seeing an escalation in both the sophistication of the attacks and the ransom demands being made.
Read moreBossing the rules: lowering the standard?
Solicitors everywhere will be concerned at the recent move of the Solicitors Disciplinary Tribunal, alongside the recent SRA Standards and Regulations reforms, to alter the standard of proof to be applied in disciplinary proceedings. This article looks at the background to the Tribunal's recent decision, the reasons for the change, and the concerns around it.
Read moreDisciplinary investigations against architects #2 - Complaints to the ARB
Further to our previous article which provided an overview of the Architect Registration Board's disciplinary process, we explain the first stage of a disciplinary investigation against an Architect, the complaint stage.
Read moreBossing the rules: Your obligations to report concerns
Our lawyers' liability and regulatory team continue their series demystifying the SRA's new Standards and Regulations in this article looking at solicitors' revised reporting obligations under #StaRs Rules 7.7 and 7.8.
Read morePart 36 – Stick, Twist…. or Stay?
The case of Allen Campbell v Ministry of Defence [2019] EWHC 2121 (QB) provides useful guidance on the appropriate way to respond to a Part 36 offer when you are unsure of the value of the claim (and therefore the merits of the offer), in order to avoid the costs consequences of late acceptance.
Read moreBossing the Rules: StaRs Rule 1.4: “you do not mislead anyone”
The Solicitors’ Practice Rules 1990 (“SPR”) did not contain any express prohibition on misleading anyone; although, depending on the circumstances, such conduct was likely to have contravened the basic principles. Like today’s principles, these required solicitors not to do anything in the course of practising as a solicitor (or permit anyone to do anything on their behalf) which compromises or impairs (or is likely to compromise or impair) the good repute of the solicitor or the profession or the solicitor’s duty to the court.
Read moreDisciplinary investigations against architects #1 - the process
In this series of articles, we explain the procedure for disciplinary investigations against architects. This article gives an overview of the process. The remaining articles will examine each stage of the process and highlight the dos and don'ts for architects unfortunate enough to be the subject of investigations. In essence, there are 4 stages.
Read moreBossing the rules
Watch out for RPC's new blog mini-series on the SRA Standards and Regulations 2019.
Read moreCosts proportionality: answers at last?
Practitioners have been waiting six years for authoritative guidance on how the new post-April 2013 proportionality test applies in the hope that we will be better able to predict the outcome of costs assessment and, therefore, better equipped to advise our clients. A recent Court of Appeal decision has been described as delivering this; however, it raises a number of new issues which are sure to give rise to further satellite litigation. As such, proportionality remains the great unknown.
Read moreRegulatory change as far as the PI can see
Dramatic regulatory change, and an increase in regulatory action, is affecting a number of important sectors in the professional indemnity market, as we exit 2019 and look ahead at 2020. We consider below some key points to be aware of.
Read moreThe Supreme Court holds that "subsequently acquired evidence" is to be disregarded in assessing loss of chance in a DTI compensation scheme
On 20 November 2019 the Supreme Court handed down its second 2019 judgment on loss of chance principles in Edwards v Hugh James Ford Simey Solicitors [2019] UKSC 54. It held in favour of the claimant rejecting the lawyers' argument that the issue of loss should be determined based on all of the facts available at the date of the professional negligence proceedings.
Read moreTravelers Insurance Company Ltd (Appellant) v XYZ (Respondents) [2019] UKSC 48
The Supreme Court has reviewed the principles concerning third-party costs orders and ruled that an insurer was not liable for uninsured claimants' costs.
Read moreChallenging extensions of time to serve writs on defendants in Hong Kong
In another recent high profile judgment, the High Court of Hong Kong has (in effect) sent out an important warning to plaintiffs who apply to the court for an extension of time in which to serve their writ on a defendant. On making such applications, plaintiffs must be very careful to discharge their continuing and important duty to be full and frank with the court – in particular, in the evidence filed in support of such applications, plaintiffs must specifically and clearly confirm the position regarding the limitation periods for different claims in the writ and whether any claim is time barred.
Read moreAbridged Advice and Workplace Pension Schemes - digging deeper into the FCA's Latest Pension Transfer Consultation Paper
Now that the dust has settled on the FCA's latest Consultation Paper on Pension Transfers (CP19/25), is there more to the regulator's proposals than first met the eye?
Read moreThe problem of integrity
Integrity is beginning to look like the indispensable quality that we could all do without.
Read moreLost chances à la Moda
Lost chance case-law has come a long way since the ground-breaking decision in Allied Maples. One of its more interesting offshoots is the case of Moda International Brands Ltd v Gateley LLP & Anor. Moda is required reading for any firm of solicitors who wants to defend a lost chance claim arising from its transactional work for a claimant.
Read moreWhat’s gone wrong with putting things right?
Solicitors are becoming concerned about their ability to put things right when they make mistakes. We do not consider that much has changed in this area. It is as important as it has always been for a solicitor to realise if he or she has made a mistake and to think carefully about how to remedy it. This is not an easy task. We hope this article will assist in guiding solicitors and their insurers through this complex area.
Read moreCourt of Appeal considers the test for dishonest assistance following Ivey
In Group Seven v Notable Services LLP the Court of Appeal considered and applied the two stage test of dishonesty set out by the Supreme Court in Ivey v Genting in a claim for dishonest assistance in a breach of trust by various members of a legal disciplinary practice.
Read moreAudit profession – a year of reflection
In this legal update we look back at some of the key developments for the audit profession in 2018 and consider what the rest of 2019 may hold for the industry.
Read moreJudge makes alarming comments about validity of standstill agreements in Inheritance Act claims
In a recent judgment, the High Court has cast doubt on the extent to which the court will recognise standstill agreements in applications under the Inheritance (Provision for Family & Dependents) Act 1975.
Read moreLaw Society introduces new Code for Completion by Post
Conveyancing practitioners need of course to familiarise themselves with the new Code, in advance of its implementation date of 1 May 2019. Following Dreamvar, the new Code underlines the fact that the burden of detecting fraudulent sellers falls squarely on the sellers' solicitors.
Read moreSupreme Court Refuses to allow a Claim against Lawyers for Loss of a Dishonest Claim
On 13 February 2019 the Supreme Court handed down judgment in its first decision on loss of chance principles for 14 years (in Perry v Raleys Solicitors [2019] UKSC 5).
Read moreSAAMCo and BPE re-affirmed: the proper approach to loss in professional negligence cases
A recent Court of Appeal decision reaffirms the importance of the "information" and "advice" categories when considering the losses for which a professional should be held liable.
Read moreFour UK financial crime compliance predictions for 2019
Last week we published our "UK white-collar crime enforcement predictions for 2019". This week, it is the turn of financial crime compliance.
Read moreFour UK white collar crime predictions for 2019
The coming year presents itself as particularly unpredictable for white collar crime enforcement in the UK, given the shadow of Brexit, changes of staff at the SFO and a series of long-standing cases due for resolution. Nostradamus would struggle, but, nevertheless, here is RPC's forecast of what to expect in 2019.
Read moreLSB approves SRA’s revolution in legal services regulation
The Solicitors Regulation Authority’s new regulatory arrangements were approved by the Legal Services Board on 6 November 2018. Part of the changes will allow solicitors of England & Wales to sell legal advice to the public from within unregulated firms, as long as they steer clear of reserved legal activities such as conveyancing and litigation. These firms will not be regulated by the SRA and will not need to take out full SRA-mandated professional indemnity insurance. These new kinds of legal practice offer unique opportunities for competition with big law firms, and for in-house legal teams to be converted from a cost to a profit centre. RPC has exceptional degree of experience in advising on innovation in the the provision of legal services.
Read moreCourt of Appeal enforces fraudster’s claim against lawyers
In Stoffel & Co v Maria Grondona the Court of Appeal applied Lord Toulson’s judgment in Patel v Mirza to permit a fraudulent mortgagor to enforce her claim against her conveyancing solicitors. There may though be stronger grounds for the defence in other claims against professionals.
Read moreSection 14A, don't delay!
The Court of Appeal has upheld a judge's decision to deal summarily with a dispute as to the claimant's date of knowledge under s14a Limitation Act 1980. The judgment also contains a handy summary of the key law in the area.
Read moreDreamvar and identity fraud in conveyancing transactions
The issue at stake in the combined appeals of Dreamvar (UK) Ltd v Mishcon de Reya and P&P Property Ltd v Owen Catlin LLP was a fairly fundamental one, namely: “Who ought to bear the risk of loss when a fraudster pretends to sell a property?”
Read moreProfessional negligence adjudication – it's all part of the Protocol
On 1 May 2018, an amendment to the Professional Negligence Pre-Action Protocol saw a further attempt to encourage parties to use the professional negligence adjudication scheme first devised as a pilot scheme in February 2015.
Read moreAsset management market study update
On 5 April 2018 the FCA published proposals to address concerns identified in its asset management market study
Read moreEnhancing the cross-border distribution of collective investment funds
The European Commission has published a draft Regulation and Directive on the cross-border distribution of investment funds. The aim is to establish a genuine internal capital market by addressing fragmentation and removing regulatory barriers (namely Member States’ marketing requirements, regulatory fees and notification and administrative requirements), which can all prevent the cross-border distribution of investment funds in the European Union.
Read moreFrederick & Others v Positive Solutions Limited – a win for principals on vicarious liability
The Court of Appeal has reinforced the idea that liability will only attach to a principal in cases where a tort committed by an agent can be shown to have been completed as an integral part of the business activities of the principal. Furthermore, all elements composing the tort must take place within the course of the agency. The case thickens the lines defining what conduct of an agent could lead to recovery from the principal.
Read moreBad news for litigants in person?
When a litigant in person fails to correctly serve a claim form they can expect the courts to take a firm approach, following the Supreme Court's decision in Barton v Wright Hassall
Read moreInsuring Cryptocurrency risk, and why a duck might not actually be a duck
Cryptocurrencies have dominated headlines with their soaring value and accelerating use. Their regulation has remained somewhat of an afterthought, however. This blog post looks at some of the pitfalls and the larger implications for financial professionals and the insurance industry that the risks of cryptocurrency present.
Read moreFOS consultation on SME access to Ombudsman service
The FCA is currently consulting on proposed new rules to allow larger small and medium sized enterprises to refer complaints to the FOS.
Read moreTo each his own: which papers belong to the solicitor?
Although it has previously been established that clients don't necessarily own all of their solicitors' file, clients don't always appreciate this when making a file request. Some recent case law provides support to solicitors when dealing with such requests.
Read moreName and Shame: HM Land Registry to publish list of worst offenders
HM Land Registry has announced plans to publish a list of the top 500 entities responsible for the highest number of applications and ranking them by their track record of correctly completing Land Registry forms and applications.
Read moreUnauthorised introducers, the Pension Ombudsman and SSASs
The Pension Ombudsman has rejected a complaint against a SSAS provider in relation to investments in carbon credit investments made on the instigation of an unauthorised introducer. In contrast to FOS decisions we have seen, the Pension Ombudsman appeared to put the onus and risk on the consumer for engaging with an unauthorised introducer.
Read moreBroken bonds - the FCA clamps down on firm promoting mini-bonds
According to a recent article in Citywire, the FCA has ordered a firm promoting mini-binds to "cease all regulated activity" following a series of losses being incurred by investors in respect of mini-bonds.
Read moreFavourable approach for insurers to the construction of exclusion clauses
In a recent decision the Commercial Court has followed the Supreme Court in the Impact Funding case. It declined to apply the contra proferentem rule to an exclusion clause in an insurance policy. Insurers will welcome the decision.
Read morePE funds: Risks to LP limited liability status
One of the key attributes of an English limited partnership is that the general partner has unlimited liability for the debts and obligations of the limited partnership.
Read moreTransferring limited partnership interests
A limited partner may assign its interest in a limited partnership, subject to the general partner's consent and any contrary agreement between the limited partners.
Read moreAre there dark clouds on the horizon for SIPP providers?
According to Citywire, the FCA is poised to complete further supervisory work on the SIPP industry with a specific focus on non-standard investments. We understand that the FCA has questioned SIPP providers on the number of high risk investments they hold following a spate of complaints about such products in recent years.
Read moreOver the Insured's Dead Body
One year on from the entry into force of the Third Parties (Rights Against Insurers) Act 2010 and the fun and games are just getting started.
Read moreA level playing Field?
Frank Field's Work and Pensions Select Committee is intending to review the impartiality of defined benefit pension transfer advice. What could this mean for the advisory industry and its PI insurers?
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