£2.50Edition 64May 2011
www.clc-uk.orgt
Regulation and Innovation Delivering better outcomes
Sense of ReleaseToby Richmond discusses
equity release
Susan Weeden on missing wills
LeO assess their first
six months
: Probate Case Study Sarah Beeny
writes on the property sector
property
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Welcome
Welcome to the May 2011 edition of Chronicle.
After the UK Met office recorded April as the warmest on record, it looks as though a sizzling barbeque summer may be in store. And here at CLC, after a winter of preparation, attention is now focused on the interesting times lying ahead for the legal sector with the introduction of alternative business structures from October.
In this edition Victor Olowe, CLC Chief Executive, takes the opportunity to explain how he hopes the CLC will come to be seen by stakeholders as ‘the innovative legal regulator’.
And following the transfer of legal service complaints from CLC to the Legal Ombudsman last autumn, we hear how the Birmingham-based body are getting on - courtesy of Alison Robinson, Legal Ombudsman’s Head of Policy and Communication.
We also get Sarah Beeny’s view on the property sector and Susan Weeden shares another thought-provoking case study in her Probate column. Simon Law
is the subject of this edition’s ‘Spotlight’, David Kempster tells us no amount of technology cannot compensate for bad customer service and Toby Richmond explains why equity release could be a growth area for licensed conveyancers. And, of course, all the latest news from the CLC is covered in Chatter.
We are also sad to announce that Sam Moggan, formerly Editor of Chronicle, has left her position at CLC for pastures new. I am sure you will join me and everyone at CLC in wishing Sam all the best for the future.
Finally, should you have any feedback on Chronicle, our features, or suggestions for topics you would like to see covered in future editions, please don’t hesitate to contact me at [email protected]
David GladwinDeputy Editor
In this issue
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Update Regulation and Innovation - Delivering better outcomes Legal Ombudsman LeO assess their first six months ChatterThe latest news from the CLC Review: Probate Susan Weeden shares another case study Sarah Beeny The TV property expert gives her view on the property sector
Customer Service Unplugged David Kempster on the importance of balancing new technology with the human touch Fileshare Columnist Matthew Noble shares exam tips plus news of new Licences Sense of Release Toby Richmond tells Chronicle why licensed conveyancers may consider offering equity release services to clients
SpotlightSimon Law is this edition’s focus
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Regulation & Innovation – Delivering better outcomes
Some of you may be aware from the new corporate strategy on our website (at http://www.clc-uk.org/about_us.php) that we aspire to be seen by stakeholders as the ‘innovative legal regulator’. We are committed to driving innovation in legal services through our approach to regulation. A commonly held view about regulation is that it stifles innovation. I agree that in some situations regulation does have an adverse effect on innovation, and the ongoing challenge for all regulators is to reverse such tendencies. However, it is also fair to acknowledge that regulation does not usually get adequate credit for facilitating innovation in a range of sectors. This observation reflects the findings of the Department for Business Enterprise & Regulatory Reform (BERR) paper on ‘Regulation and Innovation: evidence and policy implications (2008)’
that ‘the relationship between regulation and innovation is complex, multi dimensional, ambiguous and dynamic.’
I am sure there are those who may take a sceptical view about the CLC’s aspiration to facilitate innovation in legal services through its approach to regulation. I would therefore would like to briefly set out how we intend to drive innovation through regulation as the CLC recognises that greater innovation is ultimately of benefit to consumers.
What is InnovationBy innovation, I mean the successful exploitation of new ideas resulting in positive outcomes for consumers of legal services. According to the Organisation for Economic Co-operation and Development (OECD) there are essentially four types of innovation which are outlined below.
Product InnovationProduct Innovation involves a good or service that is new or significantly improved. This includes significant improvements in technical specifications, components and materials, incorporated software, user friendliness or other functional characteristics.
Process InnovationProcess innovation involves a new or significantly improved production or delivery method. This includes significant changes in techniques, equipment and/or software).
Marketing InnovationMarketing innovation involves a new marketing method. This includes significant changes in product design or
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packaging, product placement, product promotion or pricing.
Organisational InnovationOrganisational innovation involves introducing a new organisational method in the firm’s business practices, workplace organisation or external relations.
Source: OECD (2005)
The Legal Services Board has now approved the CLC’s application to regulate Alternative Business Structures (ABS) and has made a recommendation to the Lord Chancellor that an order is made designating the CLC as a Licensing Authority. The CLC is using the introduction of ABS later this year as an opportunity to increase the opportunities for organisational innovation in the legal services market by rolling out a principles based and outcomes focused approach to regulation not only for ABS, but also for all the other types of practice we regulate.
The different types of innovation outlined above provide broad scope for regulated entities to demonstrate and deliver the benefits of such diversity of innovation to consumers. Regrettably, there are some barriers which must be addressed in order to remove the brakes of innovation imposed by regulation.
Barriers to InnovationThis step change in our approach to regulation will address the major barriers to innovation:
• Prescriptive based regulation• High level of regulatory uncertainty
by Victor Olowe
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• New regulatory requirements met by existing ways of working
• Insufficient time for regulated entities to adapt to new regulatory arrangements
• Regulatory compliance costs• Duplication with regulatory
requirements from other agencies Our strategy over the next three
years is to seek to minimise the effects of these barriers to innovation through our regulatory approach.
Prescriptive based regulationWe are moving away from specifying in detail the approach that regulated firms must adopt to deliver positive outcomes for consumers. Regulated firms will have increased flexibility to experiment with new ideas and ways of working to meet consumer needs underpinned by the assurance that the CLC is not waiting to pounce on them with enforcement action if the experiments prove to be unsuccessful.
High level of regulatory uncertaintyWe recognise that the loss of certainty provided through prescriptive rules and guidance could be a disincentive for some regulated firms to innovate due to the perceived risks of adverse regulatory consequences. We intend to develop stronger relationships with the regulated firms in order to maintain and enhance a culture of open dialogue, constructive challenge and the provision of clear, unambiguous advice where appropriate.
New regulatory requirements met by existing ways of workingWe will aim to strike the right balance between introducing new regulatory requirements which encourage regulated firms to consider incremental improvements to their ways of working and achieving proportionality. For example: although ABS entities will be required to have two nominated roles
of Head of Legal Practice (HOLP) and Head of Finance & Administration (HOFA), we have not prescribed the same requirement for other regulated firms but will give them the flexibility to adapt their arrangements so they can choose which of their Managers discharge these responsibilities.
Insufficient time for regulated entities to adapt to new regulatory arrangementsWe recognised that the introduction of outcomes focused regulation is a major change of regulatory approach. We therefore started consulting about this approach last year to enhance understanding of and engagement with the new requirements. We recognise that a consequence of regulated firms not having sufficient time to adapt to the new requirements could be the adoption of inappropriate ways of working. We will address this through our inspection process by monitoring responses to the new requirements and providing guidance where appropriate.
Another related issue is the length of time it takes for a regulator to respond to complex enquiries from regulated firms about new requirements. We shall continue to be swift and authoritative in our responses particularly to complex enquiries from the regulated community.
Regulatory compliance costsThe opportunity costs of complying with excessive regulatory requirements is some cases is ‘lost’ innovation. We intend to maintain our drive to keep regulatory compliance costs as low as possible by consistently adopting a proportionate approach throughout our regulatory
process from standards setting to supervision and enforcement. We will continue only to adopt regulatory requirements that address risks that are detrimental to the delivery of positive outcomes to consumers.
In addition, we are committed to reducing the unit costs per regulated entity by spreading those costs across a wider and larger regulated community. Achieving this longer term aim will enable regulated firms to reinvest the reduced cost of regulation to fund innovation projects in their businesses.
Duplication with regulatory requirements from other agenciesWhere possible, we aim to reduce duplication of regulatory requirements by adopting a joined up approach with other relevant agencies. We are aware that regulated firms are providing similar sorts of information to multiple agencies which adds to the costs of compliance. We will therefore be exploring in the future how by utilising technology in collaboration with other agencies we can minimise duplication in a way which is consistent with data protection principles.
SummaryRegulators are not direct participants in the markets that they regulate but they can still have a positive impact on innovation, particularly, I suggest, if they work to remove the barriers to innovation which are attributable to regulation. This is not an attempt to oversimplify the BERR’s observations about the complex relationship between regulation and innovation. But it provides a pragmatic perhaps simple approach to influencing innovation positively which the CLC intends to adopt over the coming years. This approach is complemented by our commitment to act in accordance with our other positive obligations in the Legal Services Act 2007 particularly promoting competition in the legal services market.
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“We are committed to driving innovation in
legal services through our approach to
regulation.”
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“The overall pattern of complaints is largely what we predicted:
conveyancing, family law and wills and
probate”
Alison Robinson, Head of Policy and Communication at the Legal Ombudsman, assesses the progress of the legal service complaints handler six months on from its 6 October 2010 launch
Here, following our six-month anniversary, the Legal Ombudsman has cranked properly into business. We’ve now made over 100 Ombudsman decisions – all but one of them in the last three months. Our first, in December, was nothing startling, nothing spectacular - a £150 remedy ordered for a poor transaction around conveyancing. A minor error and a minor consequence.
And that, indeed, has been the broad pattern so far. In the thousands of complaints we’ve seen and the hundreds of resolutions reached (there is a necessary time lag between the work coming in, and conclusion), little has arisen which we hadn’t expected.
The overall pattern of complaints is largely what we predicted: conveyancing, family law and wills and probate remain the main areas of work.
Most are brought to us prematurely, before complainants have raised them with the lawyers concerned. And the vast majority of those we do accept for investigation are, pleasingly, being settled by informal – and genuine – agreement: we’re very conscious of the need not to put either lawyer or complainant under pressure to sign up to an outcome with which they don’t agree.
And our resolutions are now settling down into a reasonably predictable pattern, some reaffirming that the service wasn’t flawed, some requiring lawyers to provide redress (financial or otherwise). None of them yet has been groundbreaking, none worthy of national attention.
Which isn’t to say that we haven’t begun to pick up some useful lessons from our first few months. Complaints about firms of licensed conveyancers make up a small proportion of our number, at around 50 in our first five months. However, we are aware that the work of some solicitors can be similar to that of a licensed conveyancer and the practical lessons apply across the board.
Practical action
To us, one thing is clear already: if legal professionals want to avoid receiving complaints – and particularly any which end up with the Ombudsman – one of the first things to focus on is the way they explain costs to their clients.
From a certain airline-style of headline pricing with many ‘extras’ in the terms and conditions... to costs that change as a matter takes time... to costs rising because of unforeseen complications... to genuine misunderstanding about quotes and
“If legal professionals want to avoid receiving
complaints – and particularly any which
end up with the Ombudsman – one of
the first things to focus on is the way they
explain costs to clients”
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Case Study One
Mr A instructed a firm to assist him with the purchase of his new home. On the morning that completion was due to take place, Mr A heard on the radio that new legislation exempting homes under £250,000 from stamp duty would take effect the next day.
Mr A realised that, if he could delay completion by a day, he’d potentially save nearly £2,000. He contacted the firm to ask them to postpone completion, and they said they’d look into it.
Next day, Mr A got an email from the firm stating completion had taken place and the funds had already been transferred. But they’d been transferred before midnight, so he was still liable for stamp duty.
Our investigation found that the firm had failed to keep Mr A adequately informed. It had been the firm’s view that they couldn’t postpone completion due to the risk of incurring penalties because the transaction was part of a chain. The firm accepted that it was poor service only to inform Mr A the day after completion had taken place. They agreed to pay £150 compensation and provided a formal apology. Mr A was happy with this resolution.
Case Study Two
Ms B had broken up with her partner, so needed to sell the house they both owned. They instructed a firm to value and sell it on their behalf.
There was some confusion over whether the washing machine and the fridge would be included in the sale, because Ms B and her ex-partner couldn’t reach an agreement over ownership.
Whilst carrying out the valuation, the firm included the fridge and washing machine because they were initially told that these would be included. The firm were later advised that the fridge and washing machine would no longer be part of the sale, so they would need to amend the completion statement to reflect this.
The house was sold, but Ms B was informed that there was a shortfall of £700 when settling the mortgage.
Our investigation found that there had been an administrative error by the firm, due to their failure to update the completion statement. But the investigation also found that Ms B and her ex-partner had failed to be clear enough with the firm about which fixtures and fittings were to be included in the sale.
Following an explanation from the investigator, Ms B and the firm agreed that she would pay £350 for her half of the £700 shortfall and the firm would pursue her ex-partner for the rest. The firm also gave Ms B a formal apology for the admin glitch.
estimates. Costs are a major area of client concern. And with areas such as conveyancing affected by the current economic climate, it is little wonder that clients might be watching the pennies more now than ever.
There is a common fallacy that Ombudsman’s decisions are all about singling out the wicked and the incompetent, and punishing them for their sins. In truth, our role is both more banal and more important.
For the consumer, we offer access to redress or, at the least, an explanation of why their concern is misplaced. For the lawyers, we offer a mechanism for helping to work with individual complainants and, more particularly, a way of feeding back to you, the profession, how to avoid complaints in the future.
And the cases we have seen about costs so far, individual as they are, do start to point out the vital importance of the client care letter. It is this letter that sets out the terms of engagement between service provider and service consumer. The letter says – or rather should say – what service will be provided, for what cost, in what period, and to what standards. And it should do it in an open and clear way. And because legal proceedings are, by their very nature, unpredictable, the letter should also set out how the consumer will be kept informed about progress and any changing costs.
Getting that letter right is a massive step towards avoiding an unhappy customer as well as ensuring the endorsement of the Ombudsman.
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The News Service of the CLC
CLC WebsiteWe hope visitors to our website, which re-launched earlier this year, are now becoming familiar with the new layout. Extranet - Many users have now logged on to the individual practice, licensed conveyancer and student extranet areas, which host the CLC Forum. A payment facility has now been added, allowing students to book examination and revision day places and purchase course manuals. We have also begun to issue notices via the extranet and therefore encourage all users to log in regularly to check for new messages. It is our intention to increase communication via the extranet so it is important that licence holders and students become familiar with this area of the site. Logging In - Practices regulated by CLC , licensed conveyancers and CLC registered students were sent a unique MemberID or PracticeID and password when the extranet was launched. In order to view the contents of the extranet, users need to log in using these details. There are three distinct separate areas for logging in: one each for practices, licensed conveyancers and students. When attempting to log in for the first time, it is recommended that users ‘copy and paste’ their password, which is case sensitive. Once successfully logged in, users should take a moment to verify their contact details and e-mail address.
If you have not received an e-mail containing your MemberID or PracticeID and password, or have been unable to successfully log in to the extranet, please e-mail [email protected]
Diversity Profiling
One of the regulatory objectives of the Legal Services Act 2007 is to encourage an independent, strong, diverse and effective legal profession. The Legal Services Board (LSB) identified a lack of comprehensive data on the make-up of the existing legal workforce to be a barrier in determining whether this objective is being achieved. The LSB’s subsequent ‘Increasing diversity in the workforce’ consultation ended in mid-March.
The consultation proposed that Approved Regulators (such as the CLC and the SRA) should require firms to annually collect and publish data about the diversity make-up of their workforce. It suggested that the data should cover all of the protected characteristics – i.e. age, disability, gender reassignment, pregnancy and maternity, religion or belief, sex or sexual orientation – as well as socio-economic status.
The CLC responded to the consultation, suggesting individual respondents anonymously complete the diversity questionnaires to encourage a high rate of return; we also proposed that every three years would be a proportionate data collection timescale rather than every year. All responses to the consultation can be viewed at: http://www.legalservicesboard.org.uk/what_we_do/consultations/closed/submissions_received_to_the_consultation_on_increasing_diversity_in_the_workforce.htm
We await the LSB’s decision paper before determining our approach to diversity profiling.
Complaints
Earlier this year the LSB commissioned YouGov to survey a sample of dissatisfied legal service consumers. Forty-one of those persons surveyed had procured the service from a licensed conveyancer.
Only 24% of these persons believed they were advised at engagement of an in-house complaints procedure and only 10% of the opportunity to escalate a complaint to the Legal Ombudsman.
Of the 41, the most cited causes of dissatisfaction were:• Delays to amount of time the matter
took (49%);• Mistakes made (44%); and• Not kept up-to-date, quality, lack of
knowledge (37%). Of these, 31.7% (13) made a
complaint to the licensed conveyancer. Positively, 70% (nine) of complainants were satisfied with how the licensed conveyancer dealt with it. However, 40% (five) stated they were charged for making the complaint.
Though we acknowledge the sample is not statistically significant we would like to take the opportunity to remind licensed conveyancers that:• Item 5.2 of the Conduct Rules and
item 2 of the ‘Guidance Note (9) Complaints Procedures’ require that clients are advised at engagement of the existence of a complaints procedure and that a complaint may be escalated to the Legal Ombudsman;
• Item 3 of the Guidance Note is clear that complaints procedures must be ‘well-publicised and free’.The LSB is placing increasing emphasis
upon usage of first-tier complaints
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The News Service of the CLC
CLC Chronicle
Re: Update on Lenders Panels
I was obliged to receive Mr Olowe’s Update on 8 April 2011 with regard to Lender panels. As a matter of interest, at a recent seminar I attended at the NEC in Birmingham, Paul Marsh, one of the speakers
and former Law Society president, advised the audience that it was not the intention to include licensed conveyancers on the Law Society’s Conveyancing Quality Scheme. The relatively small size of the profession and the fact that licensed conveyancers were so well policed by the CLC meant that they did not need a Quality Scheme, he continued.
I took this to mean that Lenders already had a high regard for licensed conveyancers and panel membership was not a problem provided the appropriate criteria applied.
I would like to thank Mr Olowe for re-affirming this.
Yours Sincerely,Frank E L Spiers, Frank E. L. Spiers & Company
I attended a CPD course recently, addressed primarily by solicitors for solicitors. Paul Marsh, former Law Society president and the principal promoter of the Conveyancing Quality Scheme (CQS), was one of the speakers. He made it clear that he thought mortgage lenders would require solicitors to have the CQS “badge”, in order to continue on their panels. He also stated clearly, however, that this did not apply to licensed conveyancers as they are more closely monitored by the CLC.
Yours Sincerely as always,Michael Timms, M.R. Timms & Company
information. The CLC is currently determining its approach; we need to ensure client experience informs our risk profile of your service but that any data collection requirements are proportionate.
Outcomes-focused regulation
Our current rules seek positive outcomes though they are not explicit as to what these are; the rules can be overly-prescriptive; and documents labelled ‘Guidance Notes’ are often mandatory
requirements rather than guidance. Our consultations from August to December of last year looked at how to address these issues.
The CLC Handbook devised as a result of that consultation was submitted to the LSB in February. Its 20 specified Outcomes and six Overriding Principles of behaviour set out the regulatory responsibilities of our regulated community. It embodies our commitment to regulatory arrangements transparently focused upon Client Outcomes and to
regulatory relationships informed by the risk an individual, body or activity presents to these Outcomes.
Following the LSB’s decision to approve our new regulatory arrangements, the Handbook has been published on our website. Is it accompanied by a series of Quick Start Guides, for those in need of a steer.
The CLC Handbook will go live on October 6 2011.
Victor’s Update on Lenders Panels can be viewed by logging on to the CLC licensed conveyancer’s extranet at https://www.clc-uk.org/practice.php
To comment on any of the features in Chronicle, or other issues impacting the profession, write to [email protected]. Please mark your comments ‘for publication’ if you are happy to be published in Chronicle.
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CLC Chronicle
: Probate Case Study
The claimant, Rowena Ferneley, met Charles Napier in 2005 and a relationship developed between them, although Mrs Ferneley stated to Mr Napier that, for financial reasons, she was unable to leave her husband. Following Mr Napier’s death from cancer in 2008, Mrs Ferneley claimed that he had told her he had made provision in his Will which would enable her to live independently of her husband. This evidence was substantiated by the ex-wife of Mr Napier’s son, Major Stephen Napier.
Mr Napier’s estate was valued at some £500,000, the bulk of which comprised a house on the Isle of Wight. After his death, Mr Napier’s family searched the house looking for a Will. An electrician, Stephen McQuaid, was working in the house at the time and recounted that he had heard someone say they had “found it”. He went on to say that he heard the Will being read out and he confirmed that most of Mr Napier’s estate had been left to Mrs Ferneley. The Will also included a clause stating that no provision had been made for Mr Napier’s children, from whom he said he was estranged. Mr McQuaid heard a date of 2007 mentioned and his
evidence was so detailed and precise that there was clearly no doubt this is what he had heard. Further, he discussed the incident with other people. However, he did not see the Will and, therefore, was not in a position to know whether or not it was executed.
Whilst it was conceded that the document which Mr McQuaid had heard read out was, indeed, a Will, the defendants claimed that it was merely an unsigned draft dated 2002 and not an executed Will, whereby Charles Napier purported to leave the bulk of his estate to his former mistress, Terry Hayden. Unsurprisingly, the claimant did not accept this and contended that the family had conspired to suppress the 2007 Will when they discovered that it left most of the estate to her. Justice Mann found that it would have been necessary for a number of people to be party to such a conspiracy and he did not think they would all have been “capable of or willing to enter” into it. He went on to say “the suppression conspiracy has not been sufficiently established and I am not satisfied that the relevant standard of proof applicable to a missing valid Will has been reached, either. There are
unexplained facts on each side of the case, whatever hypothesis one is testing, but the question for me is whether the claimant has proved her case to a sufficient standard. I find that she has not”.
Mann J stated in his judgment that he believed the claimant had convinced herself that a valid 2007 Will existed but that he could find no admissible evidence to support this.
Despite testament from Mr Napier’s financial adviser that Mr Napier was a very well-organised and meticulous man who had told him he was intending to marry Mrs Ferneley and who would almost certainly left his affairs in order, the fact remained that no valid Will could be traced after his death. The judge declined to pronounce in favour of an intestacy on the ground that a valid 2002 Will might exist but ordered that the estate be shared between Charles Napier’s two children.
The decision confirmed that the standard of proof required to admit a lost Will to probate is on the balance of probabilities and that the civil standard of proof, not the criminal standard, applies to a conspiracy to suppress a Will.
The recent case of Ferneley v Napier [2010] EWHC 3345 (Ch) tells an intriguing tale about a missing Will and highlights for practitioners the necessity for advising clients to ensure they keep a copy of their Will and information as to where the original is held, writes Susan Weeden.
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CLC Chronicle
Sarah Beeny writes on the property sector – as she sees itThis spring saw coalition Chancellor George Osborne throw a supposed lifeline to first-time buyers, in the form of a £250million assisted deposit scheme for new homes. The First Buy scheme, announced as part of the Chancellor’s budget speech in March, will see those eligible provided with a loan of up to 20% of the value of new build properties. I don’t think this is going to be helpful. It is a PR move, pure and simple.
The scheme doesn’t seem to have been particularly well thought through and I don’t think it will make any difference to the larger context of the property market whatsoever. There are all sorts of other things that could have been done which would have been much more productive. Planning law urgently needs to be looked at and this is what really cramps people in the housing market.
I would also counter that it is not the tax payer’s responsibility to be helping what, in reality, will be a very small amount of people buy their first homes. If it was up to me how my tax was spent, it would be on increasing the number of nurses in hospitals and teachers in schools, rather than helping a few individuals buy subsidised property.
Moving on, I am often asked how technology is changing the way we work for the better. A good example is how we buy a package holiday. Twenty years ago, we all went to an agent on the high street. These days, we think nothing of booking a cheap flight online - the internet has made the process quick, efficient and easy for the consumer.
In modern business, it is important to empower the consumer. This was certainly the aim of Tepilo.com, which was designed to make the home buying process simpler and, most importantly, is
totally free to use. But while technology and the internet continue to change the way we work, there are some industries were the traditional values of offering good, honest and reliable customer service remain at the forefront. I do very much see the value of consulting with legal professionals face to face and don’t expect this to change any time in the near future.
property
“It is not the tax payer’s responsibility to be
helping what, in reality, will be a very small
amount of people buy their first homes.”
“In modern business, it is important to power
the consumer.”
Without a doubt, the Internet and other technologies have transformed communications across a wide variety of industries, and conveyancing is no exception. Already, new developments in electronic communications – combined with a clearer understanding of how future high-tech trading platforms are likely to evolve – are changing the industry for the better.
Although initially viewed with scepticism, electronic communications have now woven their way into most firms. Take the property search market for example: instead of manual paper chases and the associated delays in accessing records by post (or on foot) via the local authority, law firms can now access official searches from any local authority in England and Wales, right from their desktop.
However, even though this kind of technology is enormously useful, it shouldn’t come at the expense of ‘the human touch’ – especially when dealing with clients. After all, whether it’s conveyancing or any other industry, quality customer service is a vital component for building a successful business – and there are many customer needs that can’t be satisfied with technology alone.
Exemplary service requires exemplary employees
A crucial part of a firm’s ability to work with clients effectively is whether
or not its employees understand the services being offered, as well as any other related issues that might be important. At SearchFlow, we’ve learned that our employees not only need to demonstrate that they truly understand the client’s problem, but also that they feel they are empowered with the resources, expertise and authority to deal with the issue at hand.
By incorporating this human element where it matters the most (for example, by having real people available to answer the telephone, respond quickly to email enquiries and/or to make proactive calls to seek feedback from clients), forward thinking firms can reap enormous benefits. In addition to making sure that employees understand the importance that this human touch has in the mix, however, firms will need to take the time to implement the specific technical training that employees will need to support the services being offered.
Of course, new technology will play a vital role in making all of these client-facing interactions much more efficient, since the e-conveyancing market of the future will rely on sophisticated software to provide a fast, electronic network that links local authorities, the Land Registry, licensed conveyancers, mortgage lenders, surveyors, estate agents, buyers, sellers and more. Within this same framework, law firms will also be able to use technology to help them demonstrate solid audit and process control in order
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Customer Service
UnpluggedNew developments in technology have revolutionised the conveyancing process, says David Kempster, Sales and Marketing Director at SearchFlow, but these high-tech solutions should not come at the expense of the human touch
“Prices can be matches and services
can be copied, but customer service
stands out as a powerful way for a firm to gain a real advantage over its
competitors.”
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to make them more attractive to lenders, and perhaps to win more favourable treatment from PI insurers.
The key to all of these improvements, however, will be to ensure that all of this new technology is supported by high quality human interaction. Firms that are willing to address this challenge by combining dedicated customer service initiatives, comprehensive staff training programmes and the latest electronic systems will be in a much better position to win new clients, retain their existing business, and extend their efficiency savings as new technology and trading platforms emerge in the coming years.
Balancing IT with the ‘human touch’
Customer service has become a key differentiator when it comes to gaining market advantage: prices can be matched and services can be copied, but customer
service stands out as a powerful way for a firm to gain a real advantage over its competitors. Of course, price will still be an important consideration for many clients, but it is ultimately the service, the brand and the products themselves that actually influence clients’ purchasing decisions the most.
At the same time, firms also need to be aware that their clients’ needs and priorities are constantly changing. As a result, it’s important to make sure that the firm understands these changes and is able to adapt its customer service to meet these evolving needs.
For example, at SearchFlow, we regularly survey our clients to ask how we’re doing and to see whether there is anything that they’d like us to change or do differently. We also analyse all of our incoming calls (including any complaints) on a regular basis in order to see where processes can be improved. Armed with this information, we can make any adjustments needed, and then work with our sales staff to gauge how effective these changes have been.
Activities like these all underline the same basic tenet: good service is good service, and bad service is bad service. The technology that firms are using may be new, but the challenges are still the same. As such, all of us should be using the latest technology to facilitate our
commitment to customer care in order to enhance the human interaction that we have with clients, not to eliminate it.
Think of the traits that typically impress clients the most: your firm is easy to do business with, you treat customers fairly, you ‘get it right the first time’, you follow-up consistently, you deliver results and so on. Whilst all of these things can be supported by technology, they mainly rely upon the personal qualities of the people representing the firm, and so that is ultimately the balance that we all need to achieve.
“‘We should be using the latest technology
to facilitate our commitment to
customer care in order to enhance the human
interaction we have with clients, not to
eliminate it.”
“Firms need to be aware that their clients’ needs
and priorities are constantly changing.”
CLC Chronicle
14
Exam Preparation and Revision
I often dream that I have an exam the following morning. Gripped by the fear that can only be induced by an impending examination, the main fear is trying to recall what the exam is and whether I have prepared sufficiently.
How then do we prepare? Dolores Umbridge, who you may recall as the rather unpleasant Defence Against the Dark Arts teacher in the Harry Potter films, advocated copying out a text four times to ensure maximum retention. As you read this there will be those of you nodding sagely, recognising a well-used and trusted method of committing information to memory. If this approach works for you, all is well and good.
However, there really are no short cuts for committing information to memory. In my opinion, the repeated redrafting of notes, possibly highlighted in multiple colours and decorated with post-it notes, is an example of where time and effort could be used more productively. Committing information to memory is certainly a part of the revision process, and one of the best methods of remembering case names is to use mnemonics. However, students are not asked to merely recite everything they know on a particular topic. Both essays and problem questions require application
of information to the facts. Past papers form a fundamental part of a successful revision programme, enabling you to test your understanding of legal concepts and the usefulness of your revision notes. As far as possible these past papers should be completed under timed conditions. Answers should then be distilled down into paragraphs, each of which should focus upon a main point, and a list of cases. It is this that I would commit to memory. Should a similar question arise, a mnemonic will enable you to recall the min point of each paragraph and the associated case law.
Exam Presentation
How important is neatness, and quality of presentation? As a sometime examiner, I would have to admit that if a script is well-presented, with headings for ease of reference, it is likely to receive a higher grade than one resembling a stream of consciousness. Whether this is due merely to aesthetics or the fact that the use of headings is indicative of a more structured argument is unclear. Nevertheless I would urge students to use headings and sub-headings in both essays and problem questions. It is an excellent way or ensuring your answer remains focused on the topic and assists the marker, which can only be to your advantage.
Exam Tip - Planning
Planning is a vast and complex area of law, governing such matters as tree preservation orders, general permitted development, listed building control, s106 agreements, and changes of use between and within classes: many of which topics are tested in the conveyancing examination. The law relating to listed building control is found in the Planning (Listed Buildings and Conservation Areas) Act 1990 (see http://www.
legislation.gov.uk/ukpga/1990/9/contents) and associated regulations. Under s1 LCBA 1990 the Secretary of State for Culture, Media and Sport, currently Jeremy Hunt MP, is required to compile or approve lists of buildings of special archaeological or historical interest. It is very often not the owner or occupier who applies for listed building status, and given the restrictions on development, extension and demolition of listed properties this may not be surprising. What is the situation where a buyer purchases a property for development on one day to discover the day after exchange that a building preservation notice has been placed on the building, thereby greatly diminishing the value of the property? Can the contract be rescinded on the grounds of mistake? The case of Amalgamated Investment & Property Co Ltd v John Walker & Sons Ltd [1976] 3 All ER 509 is evidence that such a contract will not be rescinded, on the basis that there was no mistake at the time the contract was made. The Court of Appeal held that the loss must lie where it fell.
Matthew Noble ,NCAS Legal [email protected]
This edition, trainer and course designer Matthew Noble takes a look at revision techniques and explains the importance of a well-presented examination paper
CLC Chronicle
15
Certificates of Recognition
COnVeyanCing expert Ltd
pauL WiLks & CO
derek r adkins LiCensed
COnVeyanCer
New Manager Licences
karen BisseLLgaVin WaLLdarren riCh
JOdanna MerreLLsuzanne henry
pauL WiLksderek adkinssaLLy green
anthOny LeWissarah ryan
reBeCCa ninnis
The CLC is delighted to announce that 11 new Manager Licences have been issued since the last edition of Chronicle. Furthermore, nine Probate Licences have been issued while three practices have been awarded a Certificate of Recognition.
Probate Licences
karen BisseLL
gaVin WaLL
darren riCh
pauL WiLks
derek adkins
heLen BeaL
sarah CLintOn
susan sandersOn
shian hughes
2011 CALENDAR
JUNE 20th Final Probate Examination Final Accounts Examination
21st Foundation Land Law Examination Final Conveyancing Law & Practice Examination
22nd Foundation Law of Contract Examination Final Land Law & Tenant Examination
NOVEMBER 5th and 12th Saturday Revision Days
In the past, equity release appears to have been ignored by the vast majority of licensed conveyancers. Perhaps as it is not a straightforward area of the industry. But, just how many cases on your desk really are straightforward? Equity release is a growth area as clients look to release lump sums of cash, pay off their mortgage, buy a second home or top up their pension. The UK population is getting older and the increasing popularity of equity release is expected to continue as lenders re-enter the market.
Lawyers have often been accused of not marketing themselves properly or pushing forward with the advantages that they have. Too often we sit in our offices waiting for work to come to us rather than actively going in search of it – we are, after all, a service industry.
It is therefore important to keep an accurate database of the full details of clients in order to market the services you offer. Do licensed conveyancers really know how old their clients are, how many are approaching their fifties and therefore may need help and ideas in planning for their future? By providing advice and options to our clients we are able to offer a fuller service. It can be surprising how well clients respond
and the amount of work that can be generated.
As a practice, Key Property Lawyers provide monthly newsletters to clients which include articles from experts on topics such as equity release. The number of new instructions a firm receives as a result of a newsletter would perhaps normally be at around 2%, particularly considering you are delivering to many clients whom you have already helped move home. However, the response we are receiving is in the 7-9% bracket, dependant on the articles in the newsletter.
The topics may not seem the most exciting subjects in the world but people do think about these matters and need specialist help and advice. We receive regular enquiries on a weekly basis as a result of friends and family talking to one another about equity release, having read a newsletter we sent. We are very proud of the fact that we serve the local community and that families trust our firm to seek advice on highly personal matters.
As a licensed conveyancer you are very much part of the local community and equity release provides a great opportunity to build close client relationships and show the true worth of
CLC Chronicle
16
Sense of ReleaseBuilding closer relationships with clients, lenders and the local community are just some of the reasons why licensed conveyancers should consider offering equity release services, says Toby Richmond, Director of Key Property Lawyers
“The UK population is getting older and
the increasing popularity of equity release is
expected to continue.”
“The area needs licensed conveyancers –
passing it up would be an opportunity
missed.”
CLC Chronicle
17
independent legal advice. Practitioners gain the opportunity to meet a client’s family and enjoy good networking experiences with other professionals. It is an area which is attracting attention from both legal and financial sectors.
Equally, it is very important to remember why a client is releasing equity and to consider the effect that the transaction can have on benefits, wills, and their future financial plans. It is always best to talk to an experienced specialist financial adviser. At Key Property Lawyers, we have great relationships with such advisers and are able to provide to the client with the advice and support they require to make an informed and confident decision. Licensed conveyancers must also consider that elderly clients are more often than not in a vulnerable state and may need more time and patience than other clients. However, this will be reflected in your fees. Clients of the older generation understand more than most the value of money and know that it is better to pay for the right service than go cheap and suffer in the long run. It is a great opportunity to develop client relationships and build your client base through contact with family and friends - don’t forget, the most powerful advertising is still word of mouth.
Safe Home Income Plans (SHIP) believe that significant growth in the use of equity release is only a matter of time, given the extent to which consumers have opted for property over pensions in saving for retirement in the recent past. The area needs licensed conveyancers – passing it up would be an opportunity missed. A small amount of research by visiting http://www.ship-ltd.org/shipmembers.aspx will demonstrate how many lenders are now getting involved and reinforce that as licensed conveyancers we need to act now so that we are able to provide the much needed assistance our clients will require. Like with the many other changes taking place in the legal industry, if you are not ready then you will ultimately lose your clients.
Equity release is an area of the property market that provides not just financial benefits but also re-affirms why you first became a licensed conveyancer; to help, advise and protect your clients in a manner appropriate to our profession and also to show to the public why they still need us.
Licensed conveyancers are regulated by the CLC to undertake conveyancing matters
concerning equity release. Licensed conveyancers should not offer any financial advice on these matters but should make clients aware of any unduly onerous terms of the agreement. Clients should be provided with financial advice by a
suitably qualified financial adviser.
CLC Chronicle
How did you become a licensed conveyancer? I initially joined Shoosmiths aged 18 as a junior assistant straight from college, as a direct route in to a law firm. A job opportunity then arose in the conveyancing department and I found it a perfect fit. I was offered the opportunity to train as a licensed conveyancer, studying while I continued to work, and qualified in 2002.
What is your proudest professional achievement? I was proud to initially qualify as a licensed conveyancer, and to have passed all my examinations at the first opportunity. However, the biggest thing for me was opening my own practice in May 2010. It is a challenge, perhaps more than I expected, but incredibly rewarding.
I now employ nine members of staff, with myself and my fellow co-director as licensed conveyancers and two further unqualified conveyancers.
…and your biggest challenge? The end of 2009 was a difficult time. Like many others, I was made redundant through no fault of my own and the future looked dark. Perhaps the hardest part was no longer being around the people that you have enjoyed working with.
Who has been the biggest influence on your career? I’m lucky to have received fantastic support from a number of people throughout my career to date. However, the greatest influence has been my co-director at Secure Legal Solutions, Anne Hartley. I have known Anne since we worked together at Shoosmiths many years previously; she has a great wealth of knowledge through many years of experience in the conveyancing industry. My former head of department at Shoosmiths, Karen Wickens - who gave me my first break - was also a big influence.
What are the most important skills for a licensed conveyancer to have? It is important to be well organised and to attempt to see the ‘bigger picture’. I always balance a problem up from both sides – seller and purchaser – and suggest alternatives to the client, rather than focusing on just one problem. It’s important to be down to earth. Anyone who has experience of buying a property will know how stressful and difficult the process can be.
Patience is also key virtue for any licensed conveyancer. It is important to empathise with the client, treating each as an individual.
What advice would you give to student licensed conveyancers? I would advise that you never stop learning; passing examinations is just the start of this process when it comes to conveyancing. No licensed conveyancer ever knows everything and there will always be something new just around the corner. A good licensed conveyancer is aware of this and isn’t afraid to ask questions when they are unsure. Studying while you work is extremely helpful in this regard.
What are you professional aspirations for the next 12 months? My aspiration in the short term is get through the next 12 months and from there to grow the firm; there are many different directions that could take, but I believe I have got the structure and the backing in place. Ensuring that service delivery is right will be the most important challenge.
Simon Law was speaking to David Gladwin.
spotlightSimon Law, Director of Secure Legal Solutions, speaks to Chronicle about the challenge of running his own practice while offering advice to student licensed conveyancers
“Ensuring that service delivery
is right is the most important
challenge.”
18
CLC Chronicle
19
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