Are you struggling to get into the groove again after a relaxing break or are you buzzing with positivity and New Year resolutions?! Perhaps a bit of both?

Have you resolved to make positive changes to your health and lifestyle – joined a gym, or (like me) committed to ‘Dry January’? Taking down the Christmas tree also prompted me to start spring cleaning the house and clearing out cupboards, which was empowering!

This made me think about the law firms we work with: January is a great time to give your business a health check and to consider what positive or even transformational changes you could make this year.

We know from the conversations we have that many COLPs, MLROs and Heads of Conveyancing feel overburdened by the SRA’s growing expectations, increased monitoring and eye-watering fines. So perhaps this is the time to ‘take back control’ (to coin a phrase!) and ensure your practice is in good shape.

Here are some ideas:

Book an independent AML audit. This is a legal requirement for most law firms under Regulation 21 of the Money Laundering Regulations 2017. It’s also a good opportunity to kick the tyres and ensure that your Firmwide Risk Assessment and AML PCPs are robust and compliant, and that your team understand and implement them consistently and effectively.

Make or review your firm’s learning, development and training plan. Does it address the training needs of each individual, and the firm’s business objectives? Encourage every fee earner to complete the SRA template learning and development record and review it with them to ensure that their professional knowledge and skills are up-to-date. Are you confident that your fee earners provide a competent service to clients and that you have an effective system in place for supervising all client matters? Remember that the SRA Code of Conduct requires the firm to ensure that all ‘managers and employees are competent to carry out their role, and keep their professional knowledge and skills, as well as understanding of their legal, ethical and regulatory obligations, up to date’.

Use the SRA AML Training Checklist to ensure the firm’s AML training is ‘relatable, ongoing and engaging’, with leadership support, as required.

Review the firm’s cybersecurity. Consider becoming Cyber Essentials accredited to protect your firm and your clients’ data against cyber threats. PwC’s Law Firms survey 2024 showed that cybersecurity is a key threat to law firms meeting or exceeding their growth ambitions over the next two years. Dust down your firm’s Information Security and Data Protection policies. Are they sufficiently robust? Are all your staff trained on them? Training is the best defence! Consider booking your team on to our Fraud and Cybercrime Masterclass run by former Fraud Squad detective Paul Stratton to help them spot cybercrime.

Review your firm’s risk and compliance function. Take a step back and consider whether it’s fit for purpose. Is too much responsibility focused on a single manager? Are COLP, COFA, MLCO and MLRO adequately trained on the requirements of their role? Are you for example using file reviews and AML spot checks effectively to identify problem areas or training needs?

Apply for a quality standard, such as the Conveyancing Quality Scheme or Lexcel accreditation to improve best practice and unlock access to new business opportunities. If your firm is already CQS or Lexcel accredited, review your written policies and procedures against each Standard to be sure they’re up to date and reflect the current structure and practices of the firm. We often come across CQS accredited firms which don’t comply with the 2022 CQS Core Practice Management Standard.

Or maybe 2025 is the year you make the leap and set up your own law firm.

Naturally, we can help with all of these things! Please do take a look at the services we provide, and don’t hesitate to drop either myself (Anne) or Ed a quick message for an informal chat.

We also produce a monthly compliance newsletter which you can subscribe to here: Subscribe to Compliance Lifeline.

In the meantime, we wish you a Happy New Year, and a prosperous 2025!

Anne & Ed Austin