We provide a clear path through the most complex regulatory issues

This update covers recent developments relating to the regulation of money laundering in the legal sector and implications for legal practitioners and law firms. Specifically, four updates are explored. The first relates the SRA’s AML information-gathering exercise, undertaken as part of its role as anti-money laundering supervisor under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017. Second, we look at HM Treasury’s response to its consultation on reform of the UK AML regime. Relevant changes emanating from this are expected to come into effect on 1 September 2022 by way of new secondary legislation entitled ‘The Money Laundering and Terrorist Financing (Amendment) (No. 2) Regulations 2022’. The third development concerns HM Treasury’s approval of the updated Legal Sector Affinity Group (LSAG) Guidance which was issued in 2021. Finally, and linked to this, two new LSAG Advisory Notes have been published which serve to clarify expectations of the Legal Sector Professional Body Supervisors, including those of the Solicitors Regulation Authority (SRA), in relation to particular topical areas of risk.

Worldwide the #MeToo movement continues to grow and shift. In the past 12 months alone, we have seen a marked rise in the number of reports being investigated by schools and tertiary education providers about allegations of sexual offences, harassment and abuse. It seems that these reports will only continue to grow as children and young adults become more equipped and confident to make reports of such conduct, with more platforms such as Everyone’s Invited (which reached its two-year anniversary this month) accessible for their voices to be heard.

On 27 May 2022, the FRC published their key findings and good practices following audit quality inspections at the seven largest audit firms.

The Government has endorsed all the strategic recommendations set out in the fan-led review of football – paving the way for the establishment of an independent regulator for English football (IREF).

In a bid to better regulate the public sale of legal cannabidiol (CBD) ingestible products, the Food Standards Agency (FSA) has published a list of CBD food products that have been given the green light to remain on sale to the general public in England and Wales, at least for the time being. This is a significant development and places the UK as the first country in the world to regulate these products. In this blog, we take stock of this evolving regulatory landscape, the key events that have shaped and continue to shape it, and what this means for companies and individuals already in the industry, those considering entering it, and those considering investing in it.

At the material time, the Appellant Doctor had been working as a General Practitioner (‘GP’) as a Partner in a GP Practice (‘the GP Practice’) until August 2021; having qualified in 2004 and has practised for more than 15 years with no previous fitness to practise complaints or findings. On 09 November 2021, an Interim Orders Tribunal (‘IOT’) of the Medical Practitioners Tribunal Service (‘MPTS’) imposed an Interim Suspension Order (‘ISO’) on the Appellant’s registration for a period of 18 months. The Appellant appealed the imposition of the ISO. The Court agreed and overturned it whilst providing advice to the GMC that it may want to consider applying for a new Interim Order no more restrictive than conditions

Veeravalli v General Medical Council [2022] EWHC 747 (Admin). At the material time, the Appellant doctor had been working as a Consultant in Obstetrics and Gynaecology at Tameside and Glossop Integrated Care NHS Foundation Trust (‘the Trust’) since December 2010. Following a hearing before a Panel of Medical Practitioners Tribunal (MPTS) in September 2021, the Appellant’s fitness to practise was found to be impaired. The Panel imposed an order of conditions on the Appellant’s registration for twelve months.

'Standards of professional conduct change as time passes. What is entirely proper for one generation may be slightly irregular for the succeeding generation and highly improper for the next.'

In September 2020, the first NHS prescription for cannabis medicine was issued to Billy Caldwell. This brought hope to him, his family and so many others that this medicine would become readily available to those patients who so desperately need it.

The ICAEW Regulatory Board is currently consulting on proposed changes to the ICAEW disciplinary framework, and is seeking views by 15 March 2022, with the intention to launch a new set of “Core Disciplinary Bye-Laws” and a new “Regulations Handbook” this summer.

In a recent report published by the Standards and Regulation Board of the Royal Institution of Chartered Surveyors (“RICS”), a number of major reforms have been proposed to the UK property valuation sector.

Seismic shifts in the audit and accountancy regulatory landscape were set in motion last year, which are expected to continue to take shape and impact the sector during 2022. 

The regulatory year ahead will see the SRA seeking to bolster its fining powers as it turns its attention to law firm culture, NDAs and technology; as well as more traditional areas such as anti-money laundering.

Guest author Edward Henry QC, of Mountford Chambers, considers the ongoing issues regarding access to medicinal cannabis, specifically relating to the treatment of children, in the United Kingdom (UK).

On 5 January 2022, Bupa pleaded guilty at Southwark Crown Court to breaches of the Regulatory Reform (Fire Safety) Order 2005. Bupa were ordered to pay a fine of £937,500 and prosecution costs of £104,000. This is the highest ever fine imposed for fire safety breaches under the Fire Safety Order in the UK.

Last month, the High Court handed down judgement in R (on the application of T M Eye Ltd) v Southampton Crown Court reinforcing the correct approach to applications for an award from central funds for the costs of a private prosecution. Despite clear ‘Jurisdictional error’ on the part of the Crown Court, the appellant court took the opportunity to warn private prosecutors; applications will not be approved ‘on the nod’.

Private prosecutions provide an effective way to seek justice; and particularly in circumstances when the traditional prosecuting agencies are unable or unwilling to act. Conducted appropriately they can be a useful, efficient and cost-effective tool to secure punishment of the guilty.  Conducted badly they can be an expensive mistake with far reaching consequences. 

In this blog series we draw on our experience of both bringing and defending private prosecutions to help clarify some of the common myths and misunderstandings about private prosecutions. In this blog we look at whether having an ulterior motive in starting a private prosecution can lead to problems down the line.

The built environment presents health and safety risks like no other sector. Whether it be the risk of falls from height, hazardous substances, trapped by items collapsing or overturning, fire or moving vehicles there are a wide range of hazards that need to be managed from the outset. Directors can be held personally liable when health and safety duties are breached. In this blog we explore the scope of personal liability for directors in the built environment.