The home for CQS accredited law
firms for policy templates and updates
Required to comply with the updated CQS Core Practice Management Standards ready for a CQS audit
Do the Law Society levy a charge for on-site CQS audits?
As of 2022, no costs are being passed on to the firm for a CQS audit. However, this is under consideration and fees are a possibility in the future. During 2022 there is unlikely to be any additional cost to the firm other than the fees for the re-accreditation application.
As of 2022, no costs are being passed on to the firm for a CQS audit. However, this is under consideration and fees are a possibility in the future. During 2022 there is unlikely to be any additional cost to the firm other than the fees for the re-accreditation application.
What percentage of CQS firms will be subject to on-site assessments per year?
There is no definitive answer to this as it depends on the number of auditors, which will undoubtedly increase over time. The number of CQS firms that will be audited in 2022 will start off in small numbers. Over time, as the CQS assessment team obtains and reviews outcomes and data, the process will be refined and the numbers of assessments will increase. There will be more auditors applied as a resource. The stated ultimate aim is that all practices will be CQS audited at some point.
There is no definitive answer to this as it depends on the number of auditors, which will undoubtedly increase over time. The number of CQS firms that will be audited in 2022 will start off in small numbers. Over time, as the CQS assessment team obtains and reviews outcomes and data, the process will be refined and the numbers of assessments will increase. There will be more auditors applied as a resource. The stated ultimate aim is that all practices will be CQS audited at some point.
Does my firm need to inform its insurer if the CQS audit reveals non-compliance in certain areas.
The professional indemnity insurance sector for solicitors is aware of changes to CQS and to the scheme rules. As part of the current PII renewal process, firms are likely to be asked the questions, “Are you CQS accredited? What is your CQS number and date of accreditation?” PII renewal forms have historically asked similar questions concerning whether firms are Lexcel accredited. Some go on to say, "Please provide us with a copy of your most recent Lexcel report." The cognoscenti in the conveyancing sector suspect that, going forward, whether it's this next round of renewals or thereafter, indemnity insurers will start asking for copies of the reports from firms who have had a CQS audit. Conceivably this could equally appear on the lender panel application/renewal forms. Firms will need to check their own terms and conditions of their PI policy as to whether they would need to identify any actions to the insurers in between those renewal dates. This is certainly something that the COLP will need to give serious consideration.
The professional indemnity insurance sector for solicitors is aware of changes to CQS and to the scheme rules. As part of the current PII renewal process, firms are likely to be asked the questions, “Are you CQS accredited? What is your CQS number and date of accreditation?” PII renewal forms have historically asked similar questions concerning whether firms are Lexcel accredited. Some go on to say, "Please provide us with a copy of your most recent Lexcel report." The cognoscenti in the conveyancing sector suspect that, going forward, whether it's this next round of renewals or thereafter, indemnity insurers will start asking for copies of the reports from firms who have had a CQS audit. Conceivably this could equally appear on the lender panel application/renewal forms. Firms will need to check their own terms and conditions of their PI policy as to whether they would need to identify any actions to the insurers in between those renewal dates. This is certainly something that the COLP will need to give serious consideration.
My practice has achieved Lexcel accreditation. Will the CQS audit report be suitable to use as the AML independent audit?
No. A firm's CQS Anti-Money Laundering Policy needs to meet the requirements of legislation. There is the requirement that firms given the consideration as to the size and nature of their practice should carry out an independent AML audit to monitor the controls and measures in place and make sure policies are fit for purpose, and everybody's trained etc. A non-CQS AML Audit is something that is more in-depth. That would be an audit that is carried out on a regular basis depending on what you as a firm decide that regular basis would look like, whether it's six monthly, annually, every two years.
The CQS audit on the AML aspect would be very specific, random selections of residential conveyance files, looking at all different aspects of AML, e.g. source of funds, source of wealth, CDD, PEP exposure. The Lexcel assessment is looking at Lexcel as a whole quality standard, and the same with CQS as well, because the requirements are identical. The AML audit function is very specific. It's far more in-depth, and there is a very specific purpose to that. No CQS nor Lexcel assessment report would not suffice for the SRA's purposes when they come out and do the thematic review and ask you for your AML audit records.
No. A firm's CQS Anti-Money Laundering Policy needs to meet the requirements of legislation. There is the requirement that firms given the consideration as to the size and nature of their practice should carry out an independent AML audit to monitor the controls and measures in place and make sure policies are fit for purpose, and everybody's trained etc. A non-CQS AML Audit is something that is more in-depth. That would be an audit that is carried out on a regular basis depending on what you as a firm decide that regular basis would look like, whether it's six monthly, annually, every two years.
The CQS audit on the AML aspect would be very specific, random selections of residential conveyance files, looking at all different aspects of AML, e.g. source of funds, source of wealth, CDD, PEP exposure. The Lexcel assessment is looking at Lexcel as a whole quality standard, and the same with CQS as well, because the requirements are identical. The AML audit function is very specific. It's far more in-depth, and there is a very specific purpose to that. No CQS nor Lexcel assessment report would not suffice for the SRA's purposes when they come out and do the thematic review and ask you for your AML audit records.
How often will the on-site CQS audits be conducted?
The Law Society has not made a decision on this yet. Ultimately, the intention is that all CQS-accredited firms will be audited. Presumably the Law Society has given some assurances to lenders in this regard. Whether audits become annual or once every two years remains to be seen. If you do have any questions concerning Core Practice Management Standards, CQS policy templates or CQS audits, then please do contact Lexsure or reach out to your account manager who will be able to assist you.
The Law Society has not made a decision on this yet. Ultimately, the intention is that all CQS-accredited firms will be audited. Presumably the Law Society has given some assurances to lenders in this regard. Whether audits become annual or once every two years remains to be seen. If you do have any questions concerning Core Practice Management Standards, CQS policy templates or CQS audits, then please do contact Lexsure or reach out to your account manager who will be able to assist you.
Can I have my CQS policies checked by the Law Society before they schedule an audit?
It is not possible for you to have your CQS policy documents checked by the Law Society. Lexsure can oblige in this area. Please contact the Lexsure Audit Team. In the future, the Law Society may provide a service whereby firms request voluntary CQS assessments. One of Lexsure’s most popular services at the moment is to conduct a mock CQS review (gap analysis) to give practices some indications as to where they would and would not meet the requirements of the CQS practice standards. Lexsure is one of many compliance companies in England and Wales who offer mock CQS audits.
It is not possible for you to have your CQS policy documents checked by the Law Society. Lexsure can oblige in this area. Please contact the Lexsure Audit Team. In the future, the Law Society may provide a service whereby firms request voluntary CQS assessments. One of Lexsure’s most popular services at the moment is to conduct a mock CQS review (gap analysis) to give practices some indications as to where they would and would not meet the requirements of the CQS practice standards. Lexsure is one of many compliance companies in England and Wales who offer mock CQS audits.
My firm uses COMPLETIONmonitor. Can we access and provide reports via the software to the CQS auditor ?
There are various optional reports that you can select for the ‘add-on services’ tab inside the software. These range from undertaking logs to number and nature of disclosures to lenders. Given the amount of CQS (CMPS) areas covered by COMPLETIONmonitor we would recommend that any auditor be given access to the management reports. It is also possible to request retrospective reports, that depending on the nature and complexity of the request Lexsure can collate even whilst the auditor is in your office.
There are various optional reports that you can select for the ‘add-on services’ tab inside the software. These range from undertaking logs to number and nature of disclosures to lenders. Given the amount of CQS (CMPS) areas covered by COMPLETIONmonitor we would recommend that any auditor be given access to the management reports. It is also possible to request retrospective reports, that depending on the nature and complexity of the request Lexsure can collate even whilst the auditor is in your office.