Elderly Client Matters

honeydewscreenΔιαχείριση

9 Νοε 2013 (πριν από 4 χρόνια)

67 εμφανίσεις

By

Nicholas Gorton, MD of North Laine Financial Management



and

David Seager, Development Director of SIFA

and


Tish Hanifan, Barrister, Legal Support Services


Elderly Client Matters

with an introduction on

The Legal Services Act

North Laine Financial Management Ltd


5 years old


Niche Market for Independent & Impartial Advice


Professional Qualifications


Focus on Costs and Transparency, Fee
-
based


Hove’s only Chartered Financial Planners


SIFA Member


FSA RDR


Strong and Well Capitalised


Planning and Service Orientated Firm

Today’s Agenda

0900




Introduction


Nicholas Gorton

0905




The Legal Service Act
-

David Seager

0950




Tea/Coffee Break

1000




Elderly Client Matters


Tish Hanifan

1230




Questions & Answers




Buffet Lunch

1300




Close

The Legal Services Act 2007 and


THE PROFESSIONAL BIG BANG





Today we are not just solicitors, we
are all business people






Law Society President Paul Marsh



in ‘Financial Services for Solicitors’





Dave Seager, Director, SIFA

North Laine Financial Management

Seminar 14
th

May

The role of SIFA


Solicitors Independent Financial Advice




The support group and FSA and Law
Society recognised trade association for
IFAs working with the professions



80% of FSA authorised law firms are
members



Members now also include accountancy
IFAs and “professional” fee
-
based IFAs

FSA authorised law firms dwindle


Only 86 law firms now authorised by
FSA (less than 1% of the profession)



600 authorised accountancy firms



Financial advice is integral to much
professional work and will be part of the
Big Bang amalgamations



Solicitors need assistance in integrating
financial advice with their proposition

SIFA has launched a major initiative to
assist solicitors to recognise financial
services as a practice development
opportunity and the Law Society has
endorsed the on
-
line SIFA Directory of
Professional IFAs:


www.sifa
-
professional.info



The Legal Services Act 2007








Background to the reforms


The OFT’s contention that the
solicitors’ “closed shop” was
anti
-
competitive



The conflict inherent in the Law
Society being both regulator and
representative



The move towards multi
-
disciplinary practices

Up
-
date on the reforms


Solicitors’ Regulation Authority
now separated from Law Society



LDPs from 31 March 2009



Super
-
regulator Legal Services
Board operative from 2010



MDPs (‘ABS’) from 2011/12

Legal Disciplinary Practices


Any combination of lawyers plus up to
25% non
-
lawyers



Can only provide services currently
permitted to law firms



Firms and individuals regulated by SRA
or other approved legal regulator.
(Regulatory arbitrage?)



All regulators approved by new super
-
regulator Legal Services Board

Alternative Business Structures


ABSs are Multi
-
Disciplinary
Practices by another name



Probably allowed from 2011, Legal
Services Board permitting



External ownership of firms of
solicitors permitted for the first time

Advantages of ABS


Integrated legal and other professional
services, with resulting synergy



Increased access to sources of finance



Easier to acquire and retain high quality
non
-
solicitor staff



Greater innovation



Govt expects cheaper and more
accessible legal services

Threats/ opportunities arising


Basic legal work commoditised via High
Street brands and Tesco Law



Decline of the “Solicitor” brand and the
rise of “lawyers”



Reduced recognition of the solicitor
profession as other legal regulators
extend their remit



Significance of “reserved” work
diminishes


Why solicitors are vulnerable


Too much work is transaction
-
based
so client loyalty is open to attack



Many firms are cottage industries



Little adherence to hierarchy and
management discipline



There are too many solicitors and
much “legal” work can be done by
non
-
solicitors

Change or die!


In order to survive the recession
and the Legal Services Act many
firms will have to change their
business model to provide a
more efficient and more client
-
focused service.

SIFA’s Legal Services Act initiative










SIFA Professional


SIFA’s initiative to assist solicitors to
respond to the challenge of the Legal
Services Act by enhancing their client
proposition through financial services



The FSA has identified in its RDR
consultation a top tier of highly qualified,
fee
-
based professional IFAs



Both RDR and the Legal Services Act
come fully to fruition in 2011/12

The quality criterion


Solicitors (and accountants) tend to
think of IFAs as salespeople



They don’t understand independence
(hence SJP’s success)



They need to hug a professional IFA:


-

Independent


-

Fee
-
based


-

With advanced qualifications

The SIFA Professional Charter

The SIFA Professional web site

Compliance and consultancy


SIFA provides free telephone and e
-
mail helpline advice on compliance
to solicitors working with SIFA
professional firms



Compliance precedents in Financial
Services for Solicitors



Business development consultancy
services available from SIFA’s Legal
Affairs Director

Gazette ads for 2009

FS topics impacting legal work


Investment for trusts & private clients


Collaborative Divorce


Pensions and divorce


Court of Protection



PI Trusts and periodic payments


Solicitors’ own pensions


Financial solutions for estate
planning


Equity release & advice to the elderly


Financial planning for business
owners

SIFA handbooks


Addressing the common ground
between legal and financial work:



Trustinvest



Pensions for solicitors & accountants



Pensions & Divorce



Financial solutions for estate planning


And a new project for later 2009 with
SOLLA and Tish.

The new model law firm



Currently, professional firms consist
of people with the same qualification
but doing different types of work



In future, professional firms will
comprise individuals with different but
complementary qualifications
addressing identified client needs

Client
-
focused combinations



This will enable MDPs and one
-
stop
shops delivering packages of legal
and other services, e.g.
conveyancers, estate agents,
mortgage advisers and surveyors, to
work together to make home buying
easier







(The Lawyer, 26/03/07)

Complementary business interests

Multi
-
disciplinary organisations:



STEP



Resolution



SOLLA

What IFAs can do for solicitors


Complement legal work



Provide basis for regular client
contact



Provide additional revenue



Assist solicitors to regain their role as
co
-
ordinators of their clients’ affairs

Forms of association: referrals

Commission received may be retained only
if the conditions within 2.06 are
complied with and the arrangement is in
your client's best interests
-

either:



(a) it is used to offset a bill of costs; or



(b) you must be able to justify its retention

for example, the commission is retained in
lieu of costs which you could have billed for
work done in placing the business, but were
not so billed.






Solicitors’ Code of Conduct 2007

The new referral relationship


Solicitors who want commission are in
it for the wrong reason. (Would they
expect to be paid by an accountant or
barrister for a referral?!)



Referrals now increasingly based on:


-

the wish to ensure that their clients
are in safe hands who will reflect well
on the referrer


-

reciprocal business


-

perhaps, the possibility of a closer
association

Moving beyond referrals

Joint ventures



Dividends instead of commission
share (reduces administration)



Creates a greater sense of
involvement by the solicitors



Can now use the same name as the
associated law firm

Possible JV models


50/50 joint company between IFA
and solicitors



IFA business issuing a different class
of shares to the solicitors



New FS company managed by IFA
but owned 100% by solicitors



IFA takes responsibility for regulation
-

appoints FS Co as its Appointed
Representative

Ahead of the game


Most of what the Act presages can
already be achieved through Solicitors’
Separate Businesses



Financial services has a vital role to play
in putting solicitors at the centre of
clients’ affairs



The more forward
-
looking law firms are
already selecting business partners



destined to play a pivotal role as far as solicitors
and retail financial services are concerned



(Money Management, February 2008)





Community Care Legislation





Update



Tish Hanifan





Barrister


Legal Support Services




Sussex











May 2009









Demographics

[Source :office of National Statistics 2007}

Legal Framework


Who Pays For Care


NHS or Local Authority ?


NHS Eligibility Criteria


Applicant for Care: Assets and
Charging Procedures (CRAG)



National Health Service
Responsibility


Access to Free Continuing Care


National Service Framework for Older People .


HSC 2001/007: LAC [2001] *


Continuing Care: NHS and Local Councils Responsibility.


28th June HSC 2001/015:LAC[2001]18 effective Oct
2001


Replaced October 2007 :The National Framework for


NHS Continuing Healthcare and NHS
-
funded Nursing
Care








Decision Support Tool

Behaviour
Cognition
Communication
Mobility
Nutrition

Food &
Drink
Continence
Skin &
Tissue
Viability
Breathing
Drug
Therapies &
Medication:
Symptom Control
Psychological &
Emotional
Needs
N
L
M
H
S
P
N
L
M
H
S
N
L
M
H
N
L
M
H
S
N
L
M
H
S
N
L
M
H
N
L
M
H
S
N
L
M
H
S
P
N
L
M
H
S
P
N
L
M
H
N
L
M
H
Altered
states of
Consciousness
P
Free Nursing Care


Registered Nurse Care Contribution[RNCC]


From Oct 2007 there is a Flat Rate


£106.30 per week [April 2009]


Higher Band [for those already receiving
this ] £146.30 per week [April 2009]


Paid directly to the Care Home


Only available to those receiving Nursing
Care












Care Home Contracts


Care Home Contracts


Complexity of number of parties :


3rd party Top Up / RNCC


Office of Fair Trading :” Supercomplaint”


Care Standards Act 2000


Care Standards Act [Establishment and Agencies]


[Misc Amendments] Reg 2006 Effective June 2006

Guidance to Councils on Domiciliary
Care


Dept of health 23rd November 2001


Calculation must implement “basic plus buffer”
principle [25%]


Cost of being disabled should be taken into account


Means

test

(if

used)

excludes

home
.

Other

capital

must

be

assessed

as

for

residential

care
.



Capital

limits

may

not

be

lower

but

can

be

higher

than

for

residential

care





Fair Access To Care Services

Local Authority Circular :LAC [2002] 13


Mandatory Guidance implemented April 2003

Assessed needs replaced by:


Presenting needs


Eligible needs :


allows reference to Local Authorities financial
position


Criteria to be Reviewed annually



Assessment Framework


Seriousness of risk to
Independence


Preventative


4 Bands

:
Critical



Substantial


Moderate


Low Band


Risk Factors : Autonomy


Health and Safety


Daily Routine Management


Involvement in Family Life


What are Clients’ Objectives?

How will care funding Issues impact
upon them ?


Retirement Planning


Jointly owned Assets


Family Businesses : Succession Planning


Inheritance Tax Planning


Family Home

The Family Home



CRAG Guidelines for Disregard.


Practical problems:


Use of home as capital asset in
retirement


What if spouse wants to move and free
equity


Surviving Spouse decides to move in
with children


HSCA 2001 : 12 week disregard


Deferred Loan Scheme



Gifting Assets


CRAG Guidelines : Deliberate Deprivation






Notional Capital Rules


Gifts of Property : Implications for future
liability to pay for long
-
term care
[Guidelines for solicitors prepared by
Mental Health and Disability Committee]

The Society of Later Life Advisers
(SOLLA) & The Later Life Adviser
Accreditation




SOLLA is a Not For Profit Company Ltd by Guarantee


SOLLA was established to
support consumers

and their families
in finding a professional accredited Later Life Adviser


SOLLA promotes comprehensive financial advice for older people
their family and their carers.


The Later Life Adviser Accreditation LLAA was launched in April
2007 in response to the need for consumers and trusted third
parties to be able to find qualified advisers who have beyond
regulatory competence and expertise in providing financial advice in
the older client market


Download


Supporting Background Information is available to
download from our website


www.nlfm.co.uk



Paper versions are also available on request

Feedback and Questions


All Solicitors to complete and hand in your CPD
Course Questionnaire


Please email us with suggested topics for future
training


cpd@nlfm.co.uk


Intention to run 4 to 6 CPD sessions per annum



Any Questions?



By

Nicholas Gorton, MD of North Laine Financial Management



and

David Seager, Development Director of SIFA

and


Tish Hanifan, Barrister, Legal Support Services


*** Advanced Session 18
th

June 2009 ***


Elderly Client Matters

with an introduction on the Legal
Services Act