Mortgage fraud /CML compliance
The Financial Compliance team assess compliance with some sections of the CML Handbook because it will be necessary for solicitors to comply with certian sections of the handbook if they are to comply with the accounts rules. This is because where the lender is the solicitor’s client, the CML handbook represents the clients instructions. The Guarantee Fund Sub Committee have agreed that “failure to follow the lenders instructions as contained within the CML Handbook is considered a breach of the Accounts Rules (B6.5.1(C)) of the Practice Rules 2011 and prior to 1 November 2011, Rule 6(1)(C ) of the Solicitors (Scotland) Accounts etc Rules 2001).
The approach taken by the Financial Compliance Department & Guarantee Fund Sub Committee is summarised in the 'Regulation and the CML Handbook'.
Several cases of non-compliance with the CML Handbook & the accounts rules can be reviewed in the 2014 Scottish Solicitors Discipline Tribunal annual report.