Updated CQS Core Practice Management Standards (CPMS) have come into force from 1st May 2019 to which all accredited Conveyancing Quality Scheme (CQS) firms must adhere to.
A recent Solicitor’s Regulations Authority review found that a number of firms were not highlighting the different types of property ownership and subsequent implications to their clients. Following on from this, the new Core Practice Management Standards state that all practices must have a policy relating to leasehold properties. The review found that 23% of firms observed did not explain sufficiently the difference between leasehold and freehold titles. It was also found that some leasehold owners believed that they were not provided with enough information about the implications of owning a leasehold property.
The new Core Practice Management Standards state that the conveyancer must explain the length remaining on a lease and costs attached. Redbrick Solutions provide a simple lease apportionment calculator which will help firms be compliant with these aspects of the new standards.
The new standards are also focusing on cyber security and state that ‘practices must have an information management and security policy, which should be accredited against Cyber Essentials.’ Redbrick Solutions has always placed a high priority on cyber security and we are in the process of gaining The Cyber Essentials Plus standard which is independently verified by an independent certification Body.
Money laundering and fraud prevention
New regulations relating to the prevention of money laundering and mortgage fraud are included in the new standards. From 1st May, all CQS practices must have a policy on mitigating and managing money laundering and terrorist financing. This includes the appointment of a Money Laundering Reporting Officer (MLRO). They will be responsible for procedures for checking the source of funds and for making disclosures to the authorities. All CQS practices must have in place policies which deal with high-risk transactions and enhanced identity checks. Redbrick Solutions provide innovative solutions to address these new requirements. We provide comprehensive AML checks using extensive data sources which are fully compliant and with a full audit trail.