'Tell me and I forget, teach me and I may remember, involve me and I learn' - Benjamin Franklin

By January 2024, the SRA will be anticipated to have executed new guidance measures enabling it to keep a closer check on solicitor competence; identify where improvement is needed; and look to take appropriate action when a solicitor is not meeting the required competence standards.

As I am sure you are no doubt aware, the LSB had told the SRA (and other legal regulators) to tighten their monitoring of lawyers’ professional development, in consideration of concerns identified in a detailed consultation last year, that the current regime is not sufficiently effective to protect consumers.

With customer vulnerability such an important and central issue across the professions, a less light touch approach is in our opinion inevitable. However, this article is not about doom and gloom, but more about alternative solutions for serious consideration.

The need for individual lawyers to be the best that they can be, in order to ensure they are acting in their clients’ best interests, will always rely on those individual’s identifying their own learning and development needs. However, the SRA, as well as updating their ‘Continued Competence’ guidance last August, reminded us that a firm’s management and ultimately the COLP, can assist by organising and supervising this critical requirement, in their new ‘Effective Supervision’ guidance last November.

It is our firm and longstanding belief that because modern-day clients have complex advice needs and problems which will frequently cross over the disciplines, professional advisers, such as solicitors and financial planners, should closely collaborate when it comes to professional development.

There are so many areas of learning and development which will constantly need to be refreshed, where the work undertaken by a lawyer will need complementary financial input. In addition to the actual knowledge that can be shared, it is also vital as a lawyer to be able to recognise at what stage in a process the client they are advising needs to be referred to a carefully chosen third-party financial planning partner. This is particularly the case in the divorce process, when a variety of pension assets, defined contribution or indeed future benefits are involved.

Your financial planning colleagues, have to undertake CPD and so will be well used to designing or sharing access to training in a format covering objectives and learning outcomes, which the SRA wants the lawyers in your teams to record.

Consider for a moment the following areas of advice that your financial planning colleagues are able to provide themselves or via a webinar programme which you can be invited to attend:

Advice specific

• The financial aspects of estate planning

• Tax planning reliefs available via tax efficient investments

• The investment of trust assets in line with the Trustee Act 2000

• Planning for care in later life for self-funders.

Generic

• Vulnerability – how to identify and advise vulnerable clients and the regulators view on this vital subject.

• The use of cash-flow modelling in financial planning and how this can complement your legal advice.

• The importance of a client’s attitude to risk and how this is assessed.

The above lists are by no means exhaustive, and we would encourage you to engage with your external financial planning partners that you trust and work with and look to utilise this resource. There will undoubtedly be specifics of the work you undertake in areas we have suggested, where the financial planners would value some education coming back the other way too.

As suggested, your regulator, and the Legal Services Board applying pressure from above, will not be easing up on professional competence. Indeed, the former has revealed plans for a paper in the summer (not published at the time of writing) outlining the perceived shortcomings, with input from consumer research included. If you are the COLP with supervision responsibility, why not stay ahead of the game and develop a plan to support your lawyers, with the assistance of your trusted financial planning partners?

It is for this very reason that we suggest involving your SIFA Professional member particularly, as they can be a true partner and support when it comes to professional competence.

Pat Seaward, Business Relationship Manager, SIFA Professional

www.sifa-directory.info