The Access Group blog: Is your law firm CQS-accredited?

The Access Group has published a blog on the subject of the Conveyancing Quality Scheme and checking whether your law firm is CQS-accredited.

A guide to CQS accreditation for law firms  

As the only authorised CQS Training provider outside of the Law Society, and a market-leading supplier of software for law firms, including conveyancers, Access Legal has a lot of experience when it comes to CQS accreditation and best practice for law firms.

In this article, we explore the Conveyancing Quality Scheme (CQS) accreditation process in depth and offer five things you should consider before starting your CQS application. The article also lists a seven-point checklist for you follow on your way to getting yours.

What is the Conveyancing Quality Scheme (CQS)?

The Law Society’s Conveyancing Quality Scheme (CQS) is the gold standard for measuring the competency of law firms that practice residential conveyancing law in England and Wales.

The scheme went live in early 2011 and is available to law firms that provide residential conveyancing services. Law firms must be SRA (Solicitors Regulation Authority) authorised/regulated to be allowed to apply.

The accreditation, once attained, lasts 12 months and up to six weeks before the firm’s accreditation expires, conveyancing practices can apply to be re-accredited. Assessment follows a three year cycle. Year one is the main assessment and then during years two and three short re-assessment audits take place.

What does it mean to be CQS-accredited?

The CQS quality standard that shows clients, lenders and all parties involved in the conveyancing community that your firm is a trusted resource for conveyancing advice. The accreditation will reduce risk for the firm in terms of arming its people with the skills to recognise and avoid risks in the conveyancing process. This in turn bolsters the Practice’s reputation by showing that all your conveyancing processes used are managed to an expected standard. It also underpins the profession’s overall effort in educating the general public about buying conveyancing services, and it helps firms get onto Lender Panels.

CQS Accredited firms will be able to display the Law Society’s Conveyancing Quality Scheme badge as part of their branding on and off line, to reassure clients they are in safe and qualified hands with regard to the sale or purchase of their homes.

Is CQS mandatory for all conveyancers?

CQS itself is not mandatory, however, for accredited firms there are mandatory courses to be completed, together with training on the firm’s policies, controls and procedures. The stipulated, mandatory CQS training is essential for the whole conveyancing team for accreditation.

There must be evidence of the effectiveness of your policies and procedures as well as understanding and application by staff. Testing staff understanding will come through robust supervision and file audits which is also a requirement of CQS Management Standards.

There is a time-limit of six months for completing the training, from your CQS accreditation date.

Conveyancing firms have a choice of two training providers authorised to deliver CQS training:

How much does CQS accreditation cost?

Becoming accredited involves paying two fees. Firstly, there is an application fee, followed by a membership fee before a firm can become accredited. Application fees range from £170-£1190 + VAT, and membership fees from £227- £1,133, depending on size.

In addition there are training costs:

1. Law Society Learning charges £35 per person + VAT for each of the five mandatory courses. This is capped at £1100 + VAT for firms that have more than 16 people requiring update courses (correct at time of publishing).

2. From the Access Legal Learning and Compliance Division, for just £70 per user, law firms get all mandatory CQS courses (except the SRO Core Course), plus a suite of additional materials. These include compliance webinars, the Access Learning Management System, and a number of other law firm courses via ‘Learning Lite’ which is part of Access Workspace. We also offer Collaborate – an online file and project management tool for sharing and managing your CQS documents and certificates – and a range of apps to assist you with everyday tasks e.g. a company notice board.

Access Legal offers a variety of tools that make CQS Accreditation easier for law firms. 

There are a number of law firm practice management software options available from Access Legal with specific conveyancing modules. We also offer a wide range of digital learning and compliance products, and as the only authorised CQS Training provider, outside of the Law Society, our CQS Training is worth a look. This includes a ‘CQS Accreditation Review’ service. 

Download a brochure to find out more. 

5 things law firms should consider before applying for CQS-Accreditation 

Here are five topical areas of conveyancing development that will currently impact your CQS-Accreditation. All of these areas are covered in depth as part of the Access Legal CQS Conveyancing Update Courses:

1. The latest on Stamp Duty Land Tax (England) and Land Tax Transaction (Wales)

It is important for firms going for CQS to ensure they are fully up-to-speed with the latest on Stamp Duty Land Tax (SDLT) in England, and Land Transaction Tax (LTT) in Wales. It is a good idea to refresh the basics, review rates, thresholds, reliefs and timings, and ensure you have the relevant documented procedures in place in line with CQS Standards.   

Firms applying for CQS Accreditation should look at the latest details regarding chargeable considerations, amending tax returns, first-time buyers’ relief, levy for overseas buyers, the complexities of multiple dwelling relief, surcharges on additional homes (annexes/granny flats), mixed use transactions, and other SDLT reliefs.

An important requirement of the accreditation is to check SDLT and inform clients of leasehold provisions. Firms must also document their processes for informing clients with leasehold information up front, ahead of exchange of contracts, so they can make informed decisions.

2. Long leases and ground rents

Conveyancing firms going for CQS should consider the robustness of the processes they have in place for explaining the difference between freehold and leasehold to clients to ensure it is sufficient. Also, all the ever-present problems with high ground rents, rent increase clauses, how the law is changing, and the issues that can arise if a long lease qualifies as an assured tenancy and rights to terminate under the Housing Act 1988 become available. All key areas for firms applying for Conveyancing Quality Scheme Accreditation.

3. Land registry requisitions and restrictions

The new RXC form, which assists conveyancers in complying with consent or certificate restrictions, is something to look at. As well as the changes in time limits relating to land registry and the need to avoid unnecessary requisitions which can cause delays in registrations.

4. Cladding and from EWS1 

Cladding is a continuing challenge for the sale or purchase of leasehold flats in high rise buildings, and the EWS1 (External Fire Wall Review) Form is in place for this purpose. Conveyancing firms wishing to achieve CQS Accreditation need to be up-to-date on this. They should also be in a position to refer client to the funding sources available for removing cladding and be familiar with the Royal Society of Chartered Surveyors provides guidance.  

5. Anti-money laundering

Conveyancing firms are at high risk of money laundering due to the nature and kind of transactions they handle on behalf of clients. Source of funds and source of wealth are two aspects of high importance. Both should be obtained at the earliest opportunity at the start of the matter, along with client due diligence as part of understanding the client and the transaction. Client questionnaires are a useful tool to gain an understanding of how a purchase is being funded, and to inform what further information and evidence is required. Robust anti-money laundering policies, controls and procedures are needed to give the firm confidence in application and the ability to spot red flags.  

Supporting resources and information

Mandatory courses for law firms

Core Training for the Senior Responsible Officer (SRO).

The Senior Responsible Officer (SRO) must complete a core training course covering all aspects of the role in depth. The post holder must ensure that all conveyancers in the Practice also complete their mandatory CQS training. This includes all conveyancers, qualified and non-qualified, permanent and locum, management and non-management.

Following training, the firm’s SRO will be fully aware of his/her CQS responsibilities and they will know precisely who, at the Practice, needs to be CQS trained, depending upon criteria regarding the how involved each individual is with the conveyancing process.

In order for the firm to be successful with the CQS Accreditation its SRO needs to complete an online assessment of 15 questions based on the responsibilities of the role. He or she is allowed only two attempts to achieve the pass mark, which is currently set at 80%. It is unlikely an SRO would need to take the assessment more than once during the three-year CQS Accreditation period. Newly appointed SROs must complete assessment within six months of their start date.

The mandatory SRO course is currently only available from the Law Society. Although all the other CQS courses are available from the Access Group too, this course is not, at this time.

  1. Core Training for Financial Crime

Again within six months, all relevant conveyancing staff are mandated to complete financial crime training to ensure they are aware of issues affecting residential conveyancing. Any new members of staff joining the team, after accreditation, must also complete the course withing six months of commencing work at the firm.

  1. Core Training for protocol in Practice (new for 2021)

This mandatory course, new for 2021, is specifically for new starters or members of the conveyancing team who have not completed CQS courses before.

Training Costs

Law Society Learning charges £35 per person + VAT for each of the five mandatory courses, capped at £1,100 + VAT for firms that have more than 16 people requiring update courses (correct at time of publishing).

From Access Legal, the cost is the same – i.e. for either two core or two mandatory courses it is priced at £70 + VAT per user (£35 + VAT per user per course), and it is also capped at £1,100 per firm.

From Access Legal for this investment law firms get:
  • The mandatory CQS courses they need (i.e. two courses per user, either core or update).
    • CORE: Financial Crime and Protocol in Practice.
    • UPDATE: Conveyancing Practice and Risk Compliance and Client Care
  • Additional compliance Webinars
  • The Access Learning Management System
  • Policy and Precedent Templates (seven documents)
  • A number of other law firm courses via ‘Learning Lite’ (such as Working From Home Policy, Mental Health for Lawyers and Phishing) which is part of Access Workspace for Legal
  • Collaborate – an online file and project management tool for sharing and managing your CQS documents and certificates
  • A range of apps to assist you with everyday tasks e.g. a company notice board.

Mandatory update courses 

  1. Conveyancing Practice

All members of the conveyancing team must complete this course, which covers any recent developments and updates in residential conveyancing law, policy and practice as well as any changes affecting transactions. It must be taken within six months of accreditation or joining the team.

  1. Risk, compliance and client care

Again, within six months, all conveyancing staff must be trained on:

    • Transparency rules for conveyancers
    • Client care best practice
    • The new code for completion by post
    • Fraud risks in conveyancing
How to get your CQS Accreditation: 9 essential steps:

Below are nine steps for completing a successful application for the Conveyancing Quality Scheme Accreditation.

1. Appoint a senior responsible officer (a CQS SRO) and develop a healthy compliance culture

A Senior Responsible Officer (SRO) must be appointed to make sure the firm has a trusted executive completely accountable for the CQS Accreditation commitment. The SRO needs to embrace the project to ensure everyone at the firm involved in conveyancing is on board and adheres to the scheme’s rules.

Well-documented policies, control and procedures alongside robust training will take the Practice towards obtaining and maintaining the CQS Accreditation. However, there must also be a strong compliance culture from the top down and vice versa. Promoting this across the firm and within the conveyancing department is paramount.

The SRO remit is to encourage this Practice-wide, ensuring they lead by example and have an ‘open-door policy, working in unison with the firm’s Compliance Officer for Legal Practice (COLP) and its Money Laundering Reporting Officer (MLRO). Avoiding an atmosphere of fear or blame is key. A motivational culture is more likely to drive a hunger amongst the whole team, for achieving and maintaining compliance.

2. Ensure your software is being used to its full potential 

A good legal practice management system, with conveyancing workflow and other related modules will make your CQS Accreditation process easier, and give you a better chance of success.

With the Conveyancing Quality Scheme Accreditation in mind, we recommend you review the configuration of your system to ensure the Practice is making the best use of the software you have.

The Access Group has three different software packages designed especially for law firms, which all include functionality designed specifically for conveyancing firms, as well as many time-saving, efficiency enhancing tools for best practice for general practice management. Book a free demo for our Access Legal software. 

If you are an existing Access Legal software customer, and you wish to contact an Account Manager about booking some consultancy time to review the configuration of your system, in light of your CQS application, please contact your account manager via our website today.

3. Study closely the scheme’s core practice management standards

Study closely the Law Society’s Core Practice Management Standards (CPMS) and determine how well you are doing against them and where work is needed.

The CPMS document provides specific direction regarding core standards relevant to the Conveyancing Quality Scheme. They are designed for those conveyancing firms that either already have CQS accreditation or are working towards the very first accreditation application, and fully clarify the meaning of all requirements, and provides further guidance for firms.

The CPMS document covers six areas:
    • Risk Management
    • Financial Management
    • Supervision and Operational Risk Management
    • Client Care
    • File and Case Management
    • Information Management

4. Check out the Law Society’s LEXCEL / CQS comparison document 

Firms should check out the Law Society’s Lexcel / CQS comparison document, because if the firm has been awarded the Lexcel Standard, it is already part of the way there to achieving CQS Accreditation.

For example, for the Lexcel accreditation, practices must have a risk management policy – including a compliance plan, a risk register, defined risk management roles and responsibilities and arrangements for communicating risk information. This is an identical requirement for the CQS Accreditation. Therefore, if a conveyancing firm has Lexcel, no further work is required to satisfy the CQS Audit.

As well as ‘Risk Management’, overlap between CQS and Lexcel exists in many other areas, under the six categories of the CPMS listed above, including:
    • Money Laundering
    • Mortgage Fraud
    • Bribery Prevention
    • Business Continuity
    • Financial Management
    • Management Structure, Responsibility and Accountability
    • Personnel Supervision
    • File Reviews
    • Handling of Conflicts
    • Client Care
    • Complaint Handling
    • Client Satisfaction
    • Matter Strategy, Management & Progression
    • Declining Instructions
    • Client Communication
    • Discharge of Undertakings
    • Data Protection

For any firm requiring a Lexcel compliance review, get in touch with Access Legal.

5. Use the comprehensive CQS guidance notes 

There are lots of useful guidance notes for your SRO (Senior Responsible Officer) and other staff regarding the Conveyancing Quality Scheme available from the Law Society.

Here are the main downloads you will need:

In addition to these guidance notes, there are additional notes for firms that have not yet been running for three years. Also for firms with more than 10 partners the advice is they should contact the Law Society for advice on which Partners need to be included in their CQS application. The Law Society’s ‘How to apply’ page provides contact details.

6. Make sure you fill in all the correct forms  

There are a number of forms to complete, and submit by email for the firm’s application for CQS Accreditation. The SRO has a form to complete, but also all relevant members of the conveyancing team, and others within the practice, must complete separate forms to support the application.

These are:

7. Make sure you are well prepared for your audit

Firms need to demonstrate compliance with the CQS Management Standards through their policies, controls and procedures. The questions firms can expect to be asked are quite specific, and so a thorough review should be part of the preparation process for firms going for CQS.

Once your SRO passes the 15-question, online CQS assessment (with a pass mark of 80% or over) the firm will be able to move forward with its CQS Accreditation. The application is assessed and the Law Society will contact the firm with the outcome.

Conveyancing CQS Accreditation follows a three-year assessment cycle. In year one the main assessment is carried out, and during years two and three, short assessments/audits take place. After 3 years, Practices can apply to be re-accredited.

Download your free CQS Accreditation Review Service brochure from Access Legal. This service involves a full review of the firm’s policies, controls and procedures against the CQS Management Standards. An Access Legal CQS expert will have a detailed discussion to understand how the policies, controls and procedures work in practice. This is followed by a report of our findings and with any recommendations for improvement either in relation to obtaining the accreditation for the first time, or maintaining the accreditation.

8. Be aware you can make an appeal if your application is not successful

There is an appeals policy for firms that are unsuccessful with their CQS Accreditation. If a firm’s application for CQS is unsuccessful, or a decision has been made to revoke accreditation the law firm can lodge an appeal with the Law Society’s accreditation appeals panel.

When notified that an application has been rejected, it will be in writing to the firm with a list of reasons why. The firm can appeal the decision in writing, at a cost of £258 + VAT, within 28 days of the rejection letter. The Practice must provide the appeals panel with full details of the reasons why the Practice does not agree with the decision, and it is prudent to include any supporting documentary evidence with your appeal letter.

The panel will only consider the appeal once the fee is received and there are only two likely outcomes; the panel will agree and reinstate accreditation, or they will uphold their original decision and write to the Senior Responsible Officer explaining their reasons. Following the appeals process the firm has no further right to appeal. However, the firm may reapply for CQS again in the future if confident sufficient improvements have been made.

Amongst other reasons, the breach of scheme rules, omitting to do something detrimental to the reputation of the scheme , or posting an unacceptable risk to the scheme are all examples of grounds for CQS Accreditation application rejection.

To ensure success next time round, you may decide to consider new software. For more information about what Access Legal has to offer conveyancing law firms by way of practice management software, view our conveyancing software. Additionally, the Access Legal team of CQS experts are available for CQS Accreditation Reviews to help you prepare for success.

9. Put a CQS training plan in place 

Once your Practice is accredited there is a six-month window in which all staff involved in conveyancing must complete mandatory CQS training. Any new staff joining an already accredited firm are required to take CQS Update Training, within six months of their start date.

 

Kindly shared by The Access Group

Main photo courtesy of Pixabay