Sarah Keegan highlights the importance of compliance with the Conveyancing Quality Scheme (CQS) for law firms to enhance best practices, mitigate risks, align with regulatory expectations, attract lenders, and remain competitive in the evolving conveyancing sector.
Adherence to the Conveyancing Quality Scheme (CQS) remains essential for law firms looking to implement best practices, mitigate risks, and maintain their reputation in the market. Yet the CQS is not universally followed by all accredited firms, largely because the Law Society does not enforce compliance with the scheme. But even without direct enforcement, there are good reasons to ensure that your conveyancing teams are compliant on every matter.
The CQS was introduced in 2011 and was aimed at improving conveyancing practices and fostering greater transparency in the home-buying process. It provides a framework to ensure participating firms follow best practices, deliver high-quality client service, and uphold professional integrity. Although compliance is voluntary, the benefits of accreditation are clear. To achieve and maintain CQS accreditation, firms must demonstrate adherence to:
- The Law Society’s Conveyancing Protocol
- Rigorous training and competency standards
- Robust risk management systems
- Regular audits and reviews
Despite its voluntary nature, the CQS sets the gold standard for conveyancing services, and failing to follow its guidelines can leave firms vulnerable to inefficiencies, client dissatisfaction, and reputational risks.
So, why follow the CQS despite its voluntary status? Below we set out the key reasons:
- Regulatory and Disciplinary Trends
Recent decisions by the Solicitors Disciplinary Tribunal (SDT) highlight the risks faced by conveyancing firms that fail to adhere to high standards. In 2024 alone, multiple firms have faced sanctions for issues ranging from inadequate anti-money laundering procedures to breaches of duty in property transactions. The Solicitors Regulation Authority (SRA) has also flagged conveyancing as a high-risk area for professional misconduct, citing fraud and procedural lapses as recurring problems.
While the Law Society does not enforce the CQS, following its framework aligns closely with SRA requirements and can help firms avoid disciplinary actions. By adopting the CQS, firms proactively address areas of concern identified in regulatory reports, reducing the risk of sanctions or reputational damage.
2. Meeting Lender Expectations
Major mortgage lenders favour CQS-accredited firms for their conveyancing panels. Without accreditation, law firms risk losing out on vital opportunities to act for lenders, which can significantly impact revenue streams.
3. Reducing Risk and Liability
Conveyancing is fraught with risks, including fraud, procedural errors, and compliance failures. Recent SDT cases underline how failures in due diligence can lead to severe penalties, both financial and reputational. The CQS framework equips firms with tools to mitigate these risks through robust anti-fraud measures and adherence to strict protocols.
Professional indemnity insurers (PIIs) take note of CQS accreditation. We believe that the trend in recent Solicitor’s Disciplinary Tribunal decisions, and the clear path that the SRA has laid out for 2025 and beyond, will be reflected in PIIs offering more favourable terms for law firms that can demonstrate that they have reverse engineered CQS standards into every matter, particularly in areas such as anti-money laundering, client communication, and fraud prevention
4. Operational Efficiency and Competitiveness
The CQS promotes the adoption of standardised processes and best practices, which can streamline operations and improve efficiency. Firms adhering to the scheme’s guidelines can reduce errors and delays, enhancing the overall client experience. Moreover, the scheme’s focus on continuous professional development ensures that staff remain well-versed in evolving legal and procedural requirements, keeping firms competitive.
5. Future-Proofing in a Changing Landscape
The conveyancing sector is evolving rapidly, driven by technological innovations, and changing client expectations. The CQS framework provides a foundation for adapting to these changes, from embracing digital conveyancing tools to implementing electronic signatures. Firms that align with CQS standards are better positioned to navigate these shifts and remain relevant.
In summary, although the Conveyancing Quality Scheme is not legally mandated, its value as a framework for best practices cannot be overstated. For law firms and conveyancers in England and Wales, compliance with the CQS is a strategic choice that enhances trust, mitigates risk, and aligns with regulatory expectations. In addition, the SRA has signalled its intent to scrutinise conveyancing practices more closely, making proactive compliance more important than ever.
By following the CQS, firms can stay ahead of regulatory changes and secure their place in an increasingly competitive market. Choosing to follow the CQS is not simply good practice; it is a forward-thinking strategy for long-term success.
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