Licensed Conveyancers Conduct Rules

Introduction

Licensed conveyancers are subject to a number of different rules, the principal of which is the Licensed Conveyancers Conduct Rules 2009. These rules, which were amended to take account of the provisions of the Legal Services Act 2007, provide, amongst other things, for:

• the manner in which a licensed conveyancer may practice (rules 3.1 – 3.4)
• where he or she may practice from (rule 3.5)
• the information which must be provided to those with whom he or she deals (rules 3.6 – 3.8)
• stipulations as to the conduct of the licensed conveyancer, including to act with integrity, honesty, reasonable care, skill and diligence (rule 4.1)
• requirements when practising through a body regulated by a regulator other then the Council for Licensed Conveyancers (rule 4.3)
• requirements when practising through a recognised body (rule 4.4 – 4.6)
• the licensed conveyancers conduct towards clients (rule 5)
• reporting requirements (rule 6)
• inspection and disciplinary consequences

A major change which was incorporated into these rules was that, whereas prior to these rules the CLC had regulated recognised bodies directly, and partnerships through those licensed conveyancer who were partners, with the introduction of the Regulation of Practices (Recognised Bodies) Rules 2009, all practices (including sole practitioners) became regulated separately from the individuals who were the owners and Managers of those practices. Thus, the Conduct Rules 2009, the Regulation of Practices (Recognised Bodies) Rules 2009 and the Licensing Rules 2009 have together had the effect, inter alia, of:

• allowing licensed conveyancers to be managers of practices regulated by other regulators (e.g.the SRA)
• allowing the CLC to require that all Managers of CLC regulated practices comply with the CLC?s Rules
• permitting a CLC regulated firm only to have one licensed conveyancer manager rather than a majority who were licensed conveyancers
• ending the previous requirement that firms submit audited annual accounts to the CLC

It should also be noted that under Rule 20.04 of the Solicitors Code of Conduct 2007 (as amended) a solicitor employed in connection with the provision of legal services by a firm of licensed conveyancers will no longer be a non-practising solicitor, and will therefore have to obtain a practising certificate from the SRA. Additionally, a solicitor is now allowed to become a “manager” or owner of a firm of licensed conveyancers.

In addition to the the Conduct Rules 2009, the Regulation of Practices (Recognised Bodies) Rules 2009 and the Licensing Rules 2009 referred to above, Licensed Conveyancers continue to be subject to a number of other rules, including:

• Training Rules 2004
• Continuing Professional Development Rules 2004
• Probate Rules 2008
• Fees Rules 2003
• Designated Professional Body Rules 2004
• Accounts, Deposit Interest and Accountant?s Report Rules 2008
• Indemnity Rules 2005
• Compensation Fund Rules 2008
• Investigating Committee Rules 2004
• Discipline & Appeals Committee Rules 2009

In addition to these rules there are a number of useful guidance notes, practice notes and suggested procedures, including notes addressing:

• Practising Address and Communications
• Undertakings
• Supervision
• Management Arrangements
• Conflicts of Interest
• Complaints Procedures
• Anti Money Laundering
• Dealing with Unqualified Third Parties
• Acting for Lenders
• Mortgage Fraud

Suggested procedures covering topics including:

• Complaints
• an Anti-money laundering toolkit

and practice notes dealing with:

• Insurance Intermediaries
• Aged Balances, and
• Arrangements for Incapacity and Death

Full details of all of the rules, regulations, guidance and practice notes and suggested procedures will be found on the CLC website in either the CLC Rules & Regulations section or in the Download Centre section.