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Today's Conveyancer Moving With The Times 2011 - Des Hudson CEO Law Society


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Des Hudson CEO of The Law Society speaks at Today's Conveyancer Moving With the Times Conference 7th September 2011

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Today's Conveyancer Moving With The Times 2011 - Des Hudson CEO Law Society

  1. 1. Desmond Hudson Chief Executive The Law Society
  2. 2. Welcome
  3. 3. FUTURE SHAPE OF THE MARKET? <ul><li>Who knows? </li></ul><ul><li>fundamental changes = “Generation Rent” </li></ul><ul><li>rapidly changing but suppressed market </li></ul><ul><li>environment </li></ul><ul><li>hunt for profit..... </li></ul>
  4. 4. FUTURE SHAPE OF THE MARKET? <ul><li>referral fees </li></ul><ul><li>regulation and delivery of policy </li></ul><ul><li>thematic review and panel management </li></ul><ul><li>mortgage fraud </li></ul><ul><li>too many conveyancers....costs outweigh the benefits </li></ul><ul><li>panel access </li></ul>
  5. 5. IMPACT OF LEGAL SERVICES ACT AND ABS <ul><li>not opposed to ABS – there are benefits </li></ul><ul><li>one factor rapidly changing market </li></ul><ul><li>reduced solicitor numbers and consolidated practices </li></ul><ul><li>tough conditions </li></ul>
  6. 6. REFERRAL FEES <ul><li>The Law Society will continue to lobby for their prohibition </li></ul><ul><li>- ethically wrong </li></ul><ul><li>- distorts the market </li></ul><ul><li>- unhealthy dependence relationship </li></ul><ul><li>- impossible to ensure quality </li></ul>
  7. 7. <ul><li>increased risk of regulatory arbitrage </li></ul><ul><li>potential for ‘drive to the bottom’ </li></ul><ul><li>lack of consistency </li></ul><ul><li>need for level playing field </li></ul><ul><li>excellent customer service </li></ul>REGULATORY ARBITRAGE
  8. 8. PII AND ARP <ul><li>indemnity insurance market is tough </li></ul><ul><li>rapid reform of the ARP </li></ul><ul><li>SRA implementing our proposals through EPP reforms in 2013 </li></ul><ul><li>effective management of the pool </li></ul>
  9. 9. MARKET AND LAW SOCIETY RESPONSE <ul><li>England and Wales not like Australia </li></ul><ul><li>you will need to think differently </li></ul><ul><li>we will provide the right support </li></ul><ul><li>I need to see movement from the profession </li></ul><ul><li>Conveyancing Quality Scheme </li></ul>
  10. 10. HOW ARE LENDERS RESPONDING? <ul><li>FSA and mortgage fraud thematic review </li></ul><ul><li>tackling mortgage fraud </li></ul><ul><li>areas for improvement </li></ul><ul><li>CQS makes a significant contribution </li></ul>
  11. 11. HOW ARE LENDERS RESPONDING? <ul><li>conflation of panel management enhances fraud suppression and detection </li></ul><ul><li>some solicitors contribute to mortgage fraud they are not the only ones </li></ul><ul><li>differentiate between risk based approach and “blunt instruments” </li></ul><ul><li>mortgage fraud is not an excuse </li></ul>
  12. 12. THE LAW SOCIETY RESPONSE <ul><li>Conveyancing Quality Scheme (CQS) </li></ul><ul><li>trusted community </li></ul><ul><li>- high level of credibility </li></ul><ul><li>- integrity of senior responsible officer </li></ul><ul><li>- good practice management standards </li></ul><ul><li>commitment to tackling mortgage fraud </li></ul>
  13. 13. ENGAGEMENT WITH MARKET AND LENDERS <ul><li>working with ABI, CML and BSA </li></ul><ul><li>two way flow between data disclosure </li></ul><ul><li>500+ CQS members </li></ul><ul><li>700+ branches </li></ul><ul><li>expect to receive over 1600 applications </li></ul>
  14. 14. COMMERCIAL AND PRINCIPLES RESPONSE TO MARKET DEVELOPMENT <ul><li>commercial imperative for us to reassure lenders about the probity of firms </li></ul><ul><li>track record and commitment to quality </li></ul><ul><li>CQS additional opportunities </li></ul>
  15. 15. LAW SOCIETY OBJECTIVES <ul><li>“ to be the leading representative of the world’s best legal profession” </li></ul><ul><li>we will support members and drive up standards </li></ul><ul><li>we will not support our members who are committing or complicit in mortgage fraud </li></ul>
  16. 16. CONCLUSIONS <ul><li>reduction in high street provision of conveyancing firms </li></ul><ul><li>those who remain will need to stand out from the crowd </li></ul><ul><li>bumpy ride </li></ul><ul><li>we intend for solicitors to remain the dominant providers of conveyancing services </li></ul>
  17. 17. Thank you