PSU inspection points

Major points to emerge

  Reference (code or other) Description Complied with?
1 Rule 2.02

Retainer: have all of the issues raised in 2.02 been dealt with in standard letters or files inspected? Note in particular:

  • Client objectives
  • Level of service
  • Lien for unpaid bills
  • Details of adviser (including status) and supervisor
  • Introduction arrangements
  
2 Rule 2.03

Adequate costs information? Simply stating the hourly rates will only be the 'best information possible' in exceptional cases.

Has costs information been provided within a reasonable time when not at first immediately evident (e.g. probates)?

Has initial costs information been kept up-to-date?

Advice on cost-effectiveness (2.03:6)

  
3 Rule 2.05

Complaints handling

Written procedure which meets requirements of guidance note 48? Partners and staff trained in their responsibilities?

Client care letters worded appropriately?

LCS referred to if acknowledging complaint

  
4 Rule 5.01

Is there evidence of the necessary management 'arrangements' for all of the items listed in 5.01:

  • Supervision (see also 5.03:3)
  • MLR 2007 (applicable to the firm or all of it?)
  • Regulatory formalities
  • Conflicts screening
  • Rule 2 (above)
  • Control of undertakings
  • Custody of documents, deeds, wills etc.
  • Rule 6 (below)
  • Training for roles within the firm
  • Finance controls (see below)
  • Business continuity
  • Risk management
 Note the need for training for all 'relevant employees' in AML awareness under the MLR 2007 where they apply.
5 Rule 5.03(3) File reviews and/or other supervisory processes  
6 Rule 6.03 Has the firm adopted its own equality and diversity policy that meets all of the requirements of guidance note 22? Has there been any circulation of the policy and training?
7 Rule 7 Are all of the necessary details of the firm included on all communications, including e-mails? Check SRA number shown.  
8 Rule 9 Referral arrangements! Often linked to issues under rule 1 (core duties) and rule 4.01 (confidentiality). Amount of commissions reasonable (new)?  
9 Accounts SAR.32(7) and appdx 3 to rule 29 Have 'three way' reconciliations been monitored at partner level (balance client account/statements and passbooks and liabilities to clients)?  
10 Accounts SAR r.22

Outstanding balances cleared in reasonable time?

Are all disbursements accurately described and charged for?

  
11 FSA

Investment business and insurance mediation status issues

  

Other issues to feature, depending on firm type:

  • Separate businesses (rule 21)
  • Sharing offices (rule 4.01)