Winter2013
unamended form because institutions in other jurisdictions frequently did not understand the client money rules or the purpose of the document. The Committee also expressed its view that “re-papering” existing arrangements was unnecessary where those arrangements already conferred adequate protection on clients.
Disclosure to clients
The Committee questioned why the FCA had introduced proposed rules requiring the information in COBS 6.1.7R (broadly, information on the investments or client money of the client held by a third party on the firm’s behalf, the responsibility for the firm for that third party’s acts and omissions and the implications on the third party’s insolvency) to all clients, rather than just retail clients. The Committee argued that this went further than is required by the current MiFID Implementing Directive and would be onerous for firms with few or no retail clients, without leading to increased client protection.
The Committee also identified potential difficulties with the proposed requirement to provide a Client Assets Disclosure Document, which outlines key provisions within client agreements modifying rights or protections that would otherwise apply under the client asset or client money rules. In particular, the response explained that the benefits of such a document for professional clients were not immediately clear, given that they were likely to be aware of the relevant terms anyway. In addition, the requirement to explain the consequences for a client following insolvency of the firm would be extremely onerous and was inappropriate given that it would necessarily involve a firm advising on the complex and potentially uncertain area of insolvency law.
Particular thanks to Richard Everett (Lawrence Graham LLP) for his work on this submission.
Margaret Chamberlain, Chairman, Travers Smith LLP
Training Committee
The Solicitors Regulation Authority has set out its plans for the future of education and training in its Policy Statement “Training for Tomorrow”. (The link to that Statement is
http://www.sra.org.uk/sra/policy/ training-for-tomorrow/resources/
policy-statement.page)
With a view to establishing the CLLS as a key stakeholder in the work which will flow from the Policy Statement, the Training Committee set up a meeting with Julie Brannan (the SRA’s Director of Education), Martin Coleman (the Chair of the SRA’s Education & Training Committee) and Nick Eastwell (who acts as the SRA’s liaison with City firms).
Set out below is a summary of the issues which came out of that meeting.
SRA aims The SRA’s main aims are to:
• allow more flexibility in the permitted pathways to qualification;
• require high standards of competence at qualification and after;
• remove unnecessary regulation.
The SRA is holding a series of roadshows around the country discussing the Policy Statement.
Competence framework
The SRA has started work to produce a framework.
In order to compile accurate data about the activities of solicitors at all levels of qualification, the SRA has commissioned BMG Research to conduct a survey of the profession. The Training Committee stressed the need for the survey questions to be sufficiently precisely framed so as to obtain information about activities in different types of practice (and
practice areas) as well as at different levels of seniority.
An issue is whether one statement of competences should apply to all areas of
practice and all sectors.
The Training Committee thought that this would be desirable. Many CLLS member firms have competence frameworks which apply across all practice areas by employing generic standards for legal knowledge and practice skills.
In terms of legal competence required upon qualification, the Training Committee favoured a requirement for a broad legal base so that each solicitor has a basic underpinning of background legal knowledge. The precise subjects to be included as part of this core of knowledge need to be determined.
The competence standards will include many non-legal skills in areas such as communication, client management, business development, ethics, advocacy and financial/commercial awareness.
The Training Committee made the point that newly qualified lawyers needed to possess a high level of communication skills, both oral and written. The written skills of a solicitor in practice extend beyond essay writing; the Training Committee regarded it as important that entrants to the profession were trained to write in other formats (e.g. in short notes of advice) and trained in drafting (e.g. drafting contracts).
Period of work-based learning
Adoption of a competence-based approach to qualification might allow
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