Compass blog: Compliance is not a Four Letter Word, but ‘Fine’ is…

Compass have published their latest blog on the subject of Compliance entitled Compliance is not a Four Letter Word, but ‘Fine’ is.

Today’s conveyancer reports that four firms have now been named as having received fines from the SRA under its new, wider powers, in place since July 2022.

The SRA, having announced the intention to clamp down on firms not complying with its transparency rules, has demonstrated the will behind the words, with its chief executive Paul Philip rubbishing claims by some firms that those rules are somehow ‘unclear’:

“(These are) lawyers, who are used to dealing with detailed propositions and it’s not that detailed.”

He went on to indicate that the SRA fully intends to take action on these matters more going forwards:

“…we intend to take a more robust enforcement approach. Longer term we will also be looking to utilise the proposed new fining powers as part of this enforcement exercise.”

Three London-based firms faced fines for transparency failures, including failure to publish details about fees, failure to properly detail complaint procedures and use of the SRA’s digital badge on websites.

Another firm, based in Oxfordshire, faced a £20,000 fine for failures relating to Anti Money Laundering procedures.

While none of these relate to SDLT, given the stated position of the SRA and the rapidity with which these fines were levied, with no referral to the Solicitors Disciplinary Tribunal, it must be a concern that SDLT matters could be brought up next. With the CQS guidelines now requiring firms to have in place a full process for dealing with SDLT, including verification of the amount payable and an audit trail for how it was arrived at, it can only be a matter of time before a complaint surfaces which invites the attention of the SRA.

Complaints about SDLT against firms have been on the rise for the last few years now, with missed Multiple Dwellings Relief claims leading the charge but others such as missed Mixed Use Relief and errors involving the 3% ‘Surcharge’ on second properties rising fast. Add to this the current uncertainty as to exactly how long the current thresholds, introduced in Kwasi Kwarteng’s infamous mini budget last year, will last (the matter currently being debated as a bill is considered) and it becomes clear that SDLT is a potential minefield for firms.

SDLT Compass not only provides the process and full audit trail necessary for full compliance with CQS guidelines, but also indemnifies your firm with regards to SDLT calculations by effectively outsourcing the responsibility. Add in that Compass is constantly updated in line with any and all legislative changes (including being updated within hours of the mini-budget, as opposed to HMRC’s official ‘calculator’ which took several weeks) and it becomes obvious that it’s the best solution for any firm seeking to minimise risk in a new and challenging era of conveyancing.

Pick up the phone today and call us on 0333 305 0956 or email us at [email protected] to see how we can help your firm avoid the pitfalls of SDLT.

Kindly shared by Compass

Main article photo courtesy of Pixabay