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The Solicitors Disciplinary Tribunal has allowed a solicitor to continue to practise despite the fact he used “his incompetence as a shield” against the lack of integrity that was alleged, after he unwittingly facilitated a mortgage fraud that cost his lender client £744,000.

Solicitors have been given another wake-up call with regards to criminal clones this month by their regulator. In its second annual risk outlook, delivered last week, bogus law firms were elevated to being one of the key risks facing the profession. How does your firm protect itself from this risk?

The defence protecting honest solicitors duped by mortgage fraudsters that was erected by the Court of Appeal last year has been reinforced by the High Court. A law firm can be relieved of consequential liability for a breach of trust if it acts honestly and reasonably.

The “popular myth” that conveyancing is low value is not borne out by the evidence, the Solicitors Regulation Authority has found. But property work is continuing to cause the regulator problems, with stamp duty land tax schemes and ‘right to buy’ negligence litigation firmly on its radar.

Regulators should explore alternatives to conveyancers holding client money in a bid to tackle the risks of fraud, the Legal Services Board has recommended. However, it found regulators are working hard at the issue and that it need not intervene any further.