Q Does The Law Society have any information on computer software for solicitors?

A Yes. In February the Law Society launched the 2008 edition of the Software Solutions Guide. It sent a copy of the guide to all partners in firms with ten or fewer partners, and to the senior partners of larger firms. The suppliers featured in the guide have all taken part in a rigorous vetting procedure by a Law Society selection panel, and the guide includes extensive feedback from existing users. The guide is on the Law Society website (www.it.lawsociety.org.uk), or it can be purchased from the Law Society bookshop (tel: 020 7320 5640).





Q I have just started my own practice. What help can the Law Society give me on a day-to-day basis?

A The Law Society has four specialist sections that solicitors can join which have all negotiated discounts on various publications for their members. They also produce specialist materials and organise courses. These sections are probate, law management, alternative dispute resolution and property. There is also an international division which may be of interest if your work crosses borders.



Practice notes on current matters of concern, such as money laundering and the new lasting powers of attorney, are posted on the Law Society’s website. This website and that of the Solicitors Regulation Authority contains much archived material of guidance. It is also possible to sign up to six e-newsletters and seven updates on single-issue campaigns or the website.



The practice advice service offers telephone guidance from experienced solicitors on a variety of topics encountered in practice, tel: 0870 606 2522, between 9am and 5pm on weekdays. The Law Society’s library can undertake research on behalf of members and can now offer faster, easier online access with free content from Lexis Nexis Butterworths. To call the library, tel: 0870 606 2511.





Q My client wishes to enter into an enduring power of attorney. Is this possible now that the Mental Capacity Act 2005 is in force?

A No. The enduring power of attorney should have been created before 1 October 2007. Your client would now have to consider entering into a lasting power of attorney (LPA) under the new regime. A property and affairs LPA can be used to appoint attorneys to make a range of decisions – including the buying and selling of property, operating a bank account, dealing with tax affairs and claiming benefits. A personal welfare LPA might authorise the attorneys to make decisions about where the donor should live, consenting to or refusing medical treatment on the donor’s behalf and day-to-day care.



For more information please see Lasting Powers of Attorney – Law Society Practice Note 2007, which can be found at www.lawsociety.org.uk.





Q I work as practice manager at a firm dealing predominantly with wills and probate matters. The firm is in the process of reviewing its file retention policy. Is there any information on retaining client files and papers?

A Yes. You may wish to refer to the Law Society’s practice note on file retention for wills and will files. The wills and equity committee of the Law Society has set out information to help practitioners identify issues that should be considered before relevant files are ‘weeded’ or ‘destroyed’. For details of the Law Society’s practice note, File retention: records management-retention and wills, deeds and documents together with supporting data, see www.lawsociety.org.uk.





Q My firm is concerned that in trying to comply with the anti-money laundering (AML) regulations we will be incurring additional costs. Can my firm charge the client for checking the client’s identity? Or, if we need to make a report to the Serious Organised Crime Agency (SOCA), can we charge the client for that?

A Compliance costs generally fall within a number of categories. The Law Society has considered the costs burden and its conclusions are as follows as applied to non-contentious business:



1. Compliance with regulation 21 requires ‘relevant employees’ to be trained so that they are made aware of: (i) the provisions of the money laundering regulations, part 7 of the Proceeds of Crime Act (POCA), and sections 18 and 21A of the Terrorism Act 2000; and (ii) given training in how to recognise and deal with transactions which may be related to money laundering. The cost of staff training is normally treated as an overhead.



2. Solicitors must comply with the AML Regulations 2007 when they conduct ‘relevant business’ as defined by regulation 3(9). When the regulations apply they require solicitors to check the identity of their clients before forming a ‘business relationship’. There is no rule/regulation preventing solicitors from charging their clients for checking identity provided the client is informed of the level and method of charging. Charges for identity checking are also subject to the normal constraints, including whether the charge is ‘fair and reasonable’. Please see article 3 of the Solicitors (Non-Contentious Business) Remuneration Order 1994 (SI 1994/2616).



3. Another requirement of the 2007 regulations is for firms to employ systems to prevent and forestall money laundering. The Law Society suggests that solicitors approach additional ‘know your client’ checks on a risk basis. Often solicitors will make such checks without their client’s knowledge, and certainly not on their instructions. There does not appear to be any settled authority on whether solicitors can charge clients for such broader checking.



4. Compliance with POCA and counter-terrorism legislation also requires solicitors to make reports to SOCA. It is not possible to charge clients for work which is not in accordance with their instructions.





Q Do sellers of properties under construction require Energy Performance Certificates (EPC) to be included in their home information packs?

A Sellers of properties under construction must provide a predicted assessment of energy efficiency of the property, but a full EPC should be provided to the buyer when the home is completed. A property under construction must be provided with an EPC if it becomes ‘physically complete’ during the marketing period.



Please refer to regulation 2 of the Energy Performance of Buildings (Certificates and Inspections) (England and Wales) Regulations 2007 and regulation 22 of the Home Information Pack (No 2) Regulations 2007 and the Law Society publication Handling Hips, which is available free of charge to members of the property section (£25 to

non-members), at www.propertysection.org.uk.



This column is compiled by the Law Society’s practice advice service (0870 606 2522). Comments relating to the questions should be sent to Nasrin Master, practice advice service manager, The Law Society, 113 Chancery Lane, London WCA 1PL. While every effort has been made to ensure the accuracy of the information in this article, it does not constitute legal advice and cannot be relied upon as such. The Law Society does not accept any responsibility for liabilities arising as a result of reliance upon the information given.