CLC introduces new reporting requirement for practices

The Council for Licensed Conveyancers (CLC) is introducing a new reporting requirement aimed at upholding high standards within the legal profession and strengthening consumer protections. This initiative forms part of the regulator's newly established Ongoing Competence Code, which serves as a practical guide for lawyers and practices, outlining effective strategies for maintaining and enhancing competence. The introduction of the code aligns with revisions to the CLC's Code of Conduct, which were implemented at the start of last year.

Specifically, individual lawyers are mandated to complete and report on a minimum of eight ongoing competence activities annually, with at least four being assessed activities. These assessed activities may involve documented scores or feedback on work that has been verified by a senior colleague. Such measures are aimed at ensuring that legal practitioners not only grasp the learning material but also reflect upon and integrate it effectively into their everyday practice.

Alongside the individual obligations, the CLC is also mandating a new practice-wide reporting requirement intended to unify learning and development across various operational areas, including supervision, compliance, and management. This approach seeks to embed ongoing competence into day-to-day governance and risk management protocols. Practices will not have a stipulated minimum number of activities to complete; rather, they will be required to record and report pertinent activities to key compliance personnel, such as CLC-registered managers, heads of legal practice (HoLPs), heads of finance and administration (HoFAs), and money laundering reporting officers (MLROs).

Each practice must designate a reporting officer responsible for this reporting activity, with the first deadline set for 31 October 2027. The CLC plans to adopt a supportive stance throughout the initial reporting cycle, which commences on 1 November 2026, as practices acclimatise to the new reporting framework.

Claire Richardson, director of authorisations at the CLC, states, “By introducing a formal reporting requirement for practices, the CLC is the first legal services regulator to require firms to account annually for how ongoing competence is being used in a strategic and structured way to support, improve and assure the delivery of legal services." She adds, “We already know from our close monitoring and inspection work that most practices are committed to maintaining high standards and take ongoing competence extremely seriously." This new framework is designed to bolster ongoing competence planning and ensure transparency around practices that might not strategically implement ongoing competence within their compliance and management operations.

“Our focus, as always, is on improving competence but also supporting better outcomes for consumers and practices through clear expectations, proportionate evidence requirements and a framework that promotes continuous improvement,” emphasises Richardson, highlighting the CLC's commitment to fostering a culture of development within legal practices while prioritising consumer protection.