Professional Conduct

This Practice note provides an overview of the money laundering regime that applies to lawyers pursuant to the Money Laundering Regulations 2007 (2007 Regulations). The 2007 Regulations came into force on 15 December 2007 and replace the Money Laundering Regulations 2003 (2003 Regulations). They bring the 2005 Directive on money laundering into effect in the UK. The 2007 Regulations introduce new requirements and vary requirements that were in the 2003 Regulations. In particular, the 2007 Regulations require that: The lawyer is able to identify the beneficial owner of client trusts, companies and partnerships. The lawyer applies customer due diligence measures and monitors client activities according to a risk-based approach, applying less stringent procedures for low risk situations and more stringent procedures in higher risk situations. Training for staff is both regular and covers terrorist financing issues. Lawyers are also to have regard to the Law Society's anti-money laundering practice note published on 6 October 2011, and the Solicitors Regulation Authority's warning cards on money laundering (April 2009), property fraud (April 2009) and bogus law firms and identity theft (March 2012).   Property lawyers should also take account of the joint Land Registry and Law Society practice note on property and registration fraud (September 2010), and the Law Society's note on mortgage fraud (October 2011).

The House of Lords, in Royal Bank of Scotland v Etridge (No 2), gave practical guidance for dealing with taking a guarantee from a person, where the relationship between the guarantor and the principal debtor is non-commercial. This note sets out that guidance, explaining the roles and relationship of the bank, the solicitor, and the guarantor.

The Solicitors' Code of Conduct 2007 (the Code) came into force on 1 July 2007. The Code replaced, with effect from 1 July 2007, the rules of professional conduct contained in the Solicitors' Practice Rules 1990. The Code applies to all solicitors in England and Wales. This Practice note deals with the rules of conduct in the Code where a solicitor is asked to deal with more than one prospective buyer in a conveyancing transaction, more commonly known as a "contract race". Note: The Solicitors Regulation Authority (SRA) Handbook, which is fully in force from 6 October 2011, replaces the Solicitors' Code of Conduct 2007. PLC has published the following Practice notes on the SRA handbook: SRA Handbook 2011 and Code of Conduct. SRA Handbook 2011 and Code of Conduct: issues for property lawyers. SRA Handbook: ten top things for in-house lawyers to think about.

The Solicitors' Code of Conduct 2007 (the Code) came into force on 1 July 2007. The Code replaced, with effect from 1 July 2007, the rules of professional conduct contained in the Solicitors' Practice Rules 1990. The Code applies to all solicitors acting in England and Wales. This Practice Note deals with the rules of conduct in the Code with which a solicitor must comply when asked to act for both a seller and a buyer in a conveyancing transaction. Note: The Solicitors Regulation Authority (SRA) Handbook, which is fully in force from 6 October 2011, replaces the Solicitors' Code of Conduct 2007. PLC has published the following Practice notes on the new handbook: SRA Handbook 2011 and Code of Conduct. SRA Handbook 2011 and Code of Conduct: issues for property lawyers. SRA Handbook: ten top things for in-house lawyers to think about.

Rule 6(3) of the Solicitors' Practice Rules 1990 (SPR) provides that, as a general rule, a solicitor cannot act for both the lender and the borrower on the grant of a mortgage of land. Where the mortgage is a 'standard' mortgage, however, Rule 6(3) of the SPR allows joint representation, subject to there being no conflict of interest and to certain conditions being complied with. This practice note explains Rule 6(3) and provides links to the text of the rule and to a flowchart illustrating how the rule operates. The practice note also provides links to the CLLS Certificate of title and short form report on title, approved by the Law Society for the purposes of Rule 6(3) as amended with effect from 27 April, 2001. NOTE: The Solicitors' Code of Conduct 2007 repealed the SPR with effect from 1 July 2007 (see Practice note, Solicitors' Code of Conduct 2007). The Solicitors Regulation Authority (SRA) Handbook, which is fully in force from 6 October 2011, replaces the Solicitors' Code of Conduct 2007. PLC Property has published the following Practice notes on the SRA handbook: SRA Handbook 2011 and Code of Conduct. SRA Handbook 2011 and Code of Conduct: issues for property lawyers.

From 6 October 2011, solicitors must comply with the SRA Handbook, which includes the SRA Code of Conduct and the Property Selling Rules. This note looks at the Property Selling Rules and at the impact of the SRA Code of Conduct on the following aspects of property transactions: Acting for a buyer and seller, or landlord and tenant. Acting for a borrower and lender. Contract races. Acting where the solicitor has an interest in the transaction. Ceasing to act. Undertakings. Referring your client to a third party (such as another solicitor or an insurer). Client care information (for example, telling clients about the Protocol). Litigation and Advocacy. For general information about the SRA Handbook see Practice note, SRA Handbook 2011 and Code of Conduct.

The Solicitors' Code of Conduct 2007 and all other existing Solicitors Regulation Authority (SRA) rules have been rewritten and reformatted into a new SRA Handbook. The date for implementation of the Handbook is currently scheduled to be 6 October 2011. This Practice note highlights the ten key points that in-house lawyers need to consider in advance of its introduction.

An overview of the money laundering and terrorist financing offences set out in the Proceeds of Crime Act 2002 (POCA) and the Terrorism Act 2000 (TACT) respectively. POCA and TACT form part of the UK's anti-money laundering (AML) and counter-terrorist financing (CTF) regime.

A practice note on the guidance published by the Law Society's Conveyancing and Land Law Committee on acceptance of undertakings from a seller's solicitor to discharge a mortgage on sale of registered property as part of the completion arrangements.