COMPLETIONmonitor and The Conveyancing Quality Scheme (CQS)

The Conveyancing Quality Scheme (CQS) is a recognised quality standard for residential conveyancing solicitor practices. Achievement of membership will establish a level of credibility for member firms with regulators, lenders, insurers and consumers. The quality mark will be awarded to solicitor practices on an annual basis subject to reaccreditation.

COMPLETIONmonitor (CM) assists law firms in ensuring that they meet much of the criteria when applying or reapplying for CQS accreditation*. This is because, like CQS, the agenda for COMPLETIONmonitor is to help firms Improve efficiency with common, consistent standards and service levels as well as reduce operational risk

A law firm should bear in mind that when completing a CQS application that the Practice could be subject to audit. The Practice may be asked to provide documentary evidence at any time of the processes in place or being ‘worked towards’. There will be serious consequences and sanctions for any Practice which gives false information on the application form.

By virtue of using COMPLETIONmonitor you should be able to give positive answers to approximately one third of the questions on the CQS application form. For example:

Question 18

Is a manager or senior employee at manager level with residential conveyancing experience based permanently in all offices providing conveyancing services? If no, provide details of the supervision arrangement below.

If you have multiple offices then you are unlikely to be permanently based in all. If you use CM you can answer this question as follows:

Senior management including your SRO and COLP will have access to COMPLETIONmonitor reports which include the following live reports which assist in monitoring and supervising lawyers across all offices:

• Average time frames for registration of title
• Average time frame for sending deeds to the lender
• An undertakings record
• Conflict reports
• Disclosures to Lenders
• Missed priority dates and missed retention release dates
• Signed client care letter report (an exception report showing when we are not holding a signed CCL)
• File auditing records and post completion summary overview

Senior management are also sent e-mail alerts on a daily basis highlighting warning or critical cases (e.g. when a priority date is about to expire such as the registration of a charge at Companies House)

Question 20

Please provide the following information for your last 3 financial years or, if your practice is less than 3 years’ old, provide information covering 3 years, giving your cash flow forecast for future years and the information on which it is based.

CM can produce very detailed information about the financial profile of cases historically put on the system. The standard reports can include average purchase price and average mortgage advance as well as highest purchase price and highest mortgage advance. The information is available on a monthly and yearly basis. The system can also calculate your average fee which can assist you in forecasting (a forecasting calculator is available).

What percentage of instructions relate to the purchase of buy to let properties? (%)

CM identifies buy-to-let transactions so will calculate this figure for you. An example report can be seen below.

Question 22

In each of the last three financial years have more than 10% of your Residential Conveyancing transactions originated from:

• any one client or connected group of clients?
• any one development (whether single or multiple phase) or
• any single referral source, e.g. mortgage broker, developer, financial advisor, estate agent, or lender?

If yes to any question, please provide details.

What is the highest percentage of referrals from any one source in each of the last three financial years?

If over 10%, please provide details.

CM can produce reports identifying where your conveyancing clients originated from.

Question 23

Do qualified and non-qualified conveyancers discuss with clients the availability of insurance cover for actual or potential defects in title?

CM highlights cases where indemnity insurance is being taken out thereby enabling a manager to check the file to make sure that the client has received the Key Facts document and that the defects have been fully explained.

Question 25

Has the practice ever accepted instructions in respect of:

• property clubs, or
• investment schemes?
proper

If yes, provide details below or on a separate sheet.

CM identifies and highlights to the COLP situations where the seller or buyer is a Property Investment Club. Associated questions appear as part of the checklist such as checking whether the Scheme or Club is registered with the FSA.

Question 30

Is each Certificate of Title signed by a manager (or senior employee at manager level) who has reviewed the file to which it relates?

If no, specify the name(s) and the role(s) of the persons authorised to sign and the safeguards in place to protect the practice’s position.

No person within the firm should sign off a COT without checking that the case has passed through CM. An additional optional safeguard requires the accounts department ensure that no matter completes unless they can see that the case has been signed off on the system.

Where a firm is utilising COMPLETIONmonitor you can confidently answer “Yes” to the following questions:

Question 19

Do you have procedures in place to ensure that service levels are maintained during both planned and unplanned absences by relevant persons?

CM allows you to easily transfer ownership of an electronic file to another lawyer within the firm so the lawyer taking over will receive the e-mail alerts and see the case on their own dashboard. This prevents a case from slipping through the net.

Question 31

Are all undertakings (whether given or received) logged for monitoring and enforcement purposes (including routine undertakings)?

The system monitors standard undertakings in the conveyancing process and also (dependant on whether you opt for the CQS/COLP upgrade) allows the COLP to track more unusual undertakings which are specified by a lawyer.

Question 32

Does the practice request possession of the CML Disclosure of Incentives form on all relevant conveyancing transactions?

The CM question sets cover incentives and there is a specific report available to management or the COLP to identify cases where a DIF has been sent to a lender as well as the percentage of cases that a DIF applies.

Question 33

Does a manager of the practice directly supervise all the Residential Conveyancing transactions undertaken by the firm?

If no, provide details of supervision arrangements.

It may not be the practice manager that supervises but the COLP or prescribed managers. Firms can chose who has access to detailed reports to help in supervising much of the conveyancing transaction and in particular post-completion activity.

Question 48

Does your practice have systems and processes in place for the supervision of all relevant persons?

This goes to the heart of what CM does. Arguably there is no more comprehensive supervisory system unless a manager manually audits each and every file prior to exchange of contract and post-completion (which for most firms is not practical).

Question 49

Does your practice have processes in place to ensure that all fee earners check their files for inactivity?

CM does not check the extent to which you communicate with a client or whether you are acting in a timely manner prior to exchange. The system will however advise the manger where there has been no activity on a CM case for over a month and will send alerts if there are deadlines approaching on post completion tasks.

Question 50

Does your practice have procedures in place for the regular monitoring and review of files handled by qualified and non-qualified conveyancers?

CM monitors performance in a number of important areas for both qualified and non-qualified staff for cases put on the system. Firms that do not operate CM may have no choice but to employ external auditors to conduct reviews.

Question 51

Does your practice:

• Have written risk management procedures?
• Have reporting processes on risk issues (including potential compliance breaches)?
• List the generic risks and causes of claims associated with the property work undertaken by the Practice? and have procedures for managing higher risk profile work?

Before your firm is setup with CM we agree deadlines for alerts and risk issues. All law firms are different and have different attitudes to certain areas of risk. The risk procedures (for e-mail alerts, reminders and cross audits) are all documented within the Administration Section of CM. There are a number of features that manage or escalate higher risk work.

Question 52

Does your practice collect and analyse risk management data?

This is evidenced through the detailed reports available to the SRO or COLP. CM transforms the way you monitor internal controls from periodic, manual tests to continuous, always “on” monitoring and alerts and live reports, which ensure procedural breaches are escalated and addressed quickly. It also helps to predict potential compliance failures through analysis of trends against historical data. SROs and COLPS can detect abnormal process behaviour before they become compliance violations.

Question 53

Does your practice have a business continuity plan and when was it tested?

CM is an online system and therefore has inbuilt business continuity being accessible you are as long as you have access to the internet.

Conveycentric have also partnered with Depositit, a leading independent UK technology supplier of business continuity and disaster recovery solutions in accordance with SRA requirements.  

The included solutions outlined below benefits thousands of companies both large and small within all sectors, academic and governmental bodies. It is against this backdrop that we are pleased to introduce as part of the CQS/COLP upgrade package a suite of Business Continuity and Disaster Recovery solutions that make use of the latest technology including:

Online Backup

For firms with 1-5 partners the service includes Depositit’s tried and tested proprietary backup software which was the first UK based solution of its kind. Launched in 1999 and currently backing up thousands of companies throughout the world. Military grade encryption, compliance with UK trade regulators and fully endorsed UK infrastructure make it the most solid backup solution available.  This facility will backup all of your firm’s data not just that relating to CM.

Business SAFE

The fast, convenient and secure way to access and store the day to day information required for the running of a law firm (policy details, banking information, credit/debit card details, health & safety, username/passwords, logins etc). Instant access from any device - laptop, ipad, tablet, smartphone - from anywhere in the world!

Emergency ALERT

Quickly notify & communicate with Staff, Suppliers, Lenders, Clients and Others in an emergency. Login to your account from anywhere in the world and from any device including laptop, ipad, smartphone.

Question 60

Does your practice document its arrangements to ensure that conflicts of interest are identified and acted upon?

Depending on the firm’s parameters for being retained to act for buyer and seller the reports will indicate whether the lawyer has complied with the firms requirements such as making sure that the clients have signed the appropriate “consent letter” and that if there is an estate agent involved, who will deal with negotiations should they become necessary. The reports have been built to comply with both COLP regulations as well as CQS and therefore ensure that the firm’s policy on acting for both sides is being complied with in real time. The reports also highlight potential cases where the lawyer has failed to acknowledge that the firm is acting for both sides. This is done by matching post codes and property addresses and highlighting the potential conflict. In such circumstances the SRO or COLP would speak to the lawyers and seek clarification and take appropriate action. The conflict report also shows (for larger firms) where the firm is acting for more than one prospective buyer for the same property.

Question 61

Does your practice have documented procedures to ensure that matters are progressed in an appropriate manner?

CM addresses this specifically in the area of post-completion work via a traffic light system on the dashboard and e-mail alerts. These two visual assistants act to assist the fee earner and, if applicable, secretary progress matters in the appropriate manner and within prescribed time-frames.

Question 64

Does your practice have documented procedures on giving, receipt, monitoring and discharge of undertakings?

Firms that opt for the COLP package will have access to an Undertakings Record which will be made available to the SRO and COLP. These reports will highlight transactions where undertakings are outstanding.

The system monitors standard undertakings in the conveyancing process and also allows the SRO or COLP to track more unusual undertakings which are specified by a lawyer. The system thereby creates a centralised undertaking log. It should also be noted that the system is not simply about reporting and monitoring of staff for potential breaches. The system will send e-mail alerts to the appropriate fee earner and secretary reminding them to comply with their undertakings, or to enforce received undertakings.

Question 65

Does your practice have documented procedures on listing open and closed matters; tracing documents/safeguarding confidentiality/ensuring the status of the file can be checked by other members of the Practice and that documents are stored on the matter file in an orderly way?

CM includes a report showing the number of closed and open cases. The “Post Completion Overview Report” shows the cases that have critical or urgent tasks outstanding or approaching.

Question 66

Does your practice have a case management or other management information system for managing workloads, throughput, file management and compliance whether electronic or otherwise?

CM is a risk management system that contains not only sophisticated checklists but also workflows for certain parts of the conveyancing transaction. Those checklists and workflows produce detailed management information evidencing compliance. One lawyer once said to us that he uses CM because “it is no longer about being a good property solicitor… it’s about proving that you are good solicitor”

Question 67

Does your practice have documented procedures for reporting matters to lenders?

The checklists highlight when it is appropriate to make a disclosure of notification to a lender. CM even produces comprehensive reports showing what disclosures have been made on a monthly and quarterly basis by fee earner.

Question 68

Does your practice have documented procedures for identifying and avoiding mortgage fraud?

The legal team at Conveycentric have consulted with intelligence specialists from SOCA, the National Intelligence Bureau, the National Fraud Authority and underwriters at some of the largest insurers to identify commonalities and characteristic of mortgage fraud. For firms that chose our Mortgage Fraud Overlay Questions then the COLP and SRO can receive alerts about high risk cases. Such cases would be locked down until the COLP or SRO signs off the case.

Question 68

Does your practice have a policy in place to ensure compliance with anti-money laundering legislation?

There are specific questions raised to record whether the appropriate checks have been made. Firms will soon be able to conduct electronic checks directly through the CM system. A case can not be signed off without confirmation that AML checks have been conducted. If the system recognises that someone else is contributing towards the purchase price then the fee earner is reminded to carry out the checks on the other relevant parties and require confirmation that the checks are clear.

There are no detailed prescriptive rules as to when to make disclosures to SOCA but we are happy to work with the MLO and COLP to highlight cases to the MLO that require further consideration.

In conclusion

Conveycentric consultants have experience and expertise in practice management standards and risk management. For guidance and support with preparing your application for membership to the Conveyancing Quality Scheme and implementing the required practice management standards, contact Conveycentric today.

* Some of the above features require additional questions to be added to case set up or pre-completion questions. This may result in additional fees being applicable. For example the cash-flow forecast report costs £25.00 plus VAT a month.