Chester 01244 405555

Grosvenor Court
Foregate Street Chester
Cheshire CH1 1HG
DX: 19990 Chester

Shrewsbury 01743 443 043

Lakeside House
Oxon Business Park
Shrewsbury SY3 5HJ
DX: 148563 Shrewsbury 14

Manchester 0844 800 8346

Pall Mall Court
61-67 King Street
Manchester M2 4PD

Send us a message
Our Offices

Investment Schemes – An Update

10th January, 2017

You may recall that we released an article entitled Investment Schemes: A Further Warning to Law Firms in November. This is an emerging area and we believe all law firms advising on investment schemes now need to review the risks and ensure they comply as changes emerge.

The article addressed the further warning notice released by the Solicitors Regulation Authority (SRA) in relation to fraudulent investment schemes and can be accessed by clicking here.

It appears identifying and combating fraudulent investment schemes has become a focus of the SRA. There have been three cases brought before the Solicitors Disciplinary Tribunal (SDT) involving schemes where investors have lost considerable sums of money and six solicitors have been sanctioned for involvement in questionable investment schemes. Sanctions have ranged from strike off to a fine (one fine being £40,000) along with costs orders.

In addition, the level of reports made to the SRA involving investment schemes has substantially increased; six reports between October 2016 and December 2016 compared to eighteen reports made in the eighteen months previous.

The risks associated with being involved in such schemes are not limited to an individual’s professional capacity; a solicitor has been jailed for eight years for fraud and money laundering. The solicitor had been used to give credibility to a fraudulent investment scheme. Firms and individual solicitors need to ensure they review their client base and we can offer structured support to help.

The SRA has published a report on solicitors and investment fraud. SRA Chief Executive, Paul Philip stated:

“We have warned the profession in the past and taken action to stamp out law firm involvement in fraudulent schemes… We are aware that some solicitors believe that they can act in relation to these schemes as long as they limit their involvement. But where there are warning signs, they will be at risk of serious misconduct and often of dishonesty”.

If you deal with investment schemes and you are unsure if you are limiting your risk appropriately, contact our Professional Practices department immediately. Do not accept instructions which you are unsure of until you have taken expert advice as managing your risk could end up saving your practising certificate and help maintain professional reputation.

For advice on individual situations please contact Paul Bennett.

Paul Bennett

Partner in Professional Practices and Employment Law
Email: [email protected]
Tel: 01743 453685

You might also be interested in...

Legal expert’s data protection workshops pull in the crowds

22nd May, 2018

With the General Data Protection Regulation (GDPR) coming into force in May, businesses across Shropshire have been flocking to hear more about the new laws Paul Bennett, a partner at law firm Aaron & Partners LLP, has been delivering seminars in partnership with the Shropshire Chamber of Commerce An employment solicitor from Shrewsbury is urging businesses across the... Read More »

Experienced HR leader joins Aaron & Partners LLP

15th May, 2018

Experienced HR leader joins Aaron & Partners LLP Law firm with offices in Chester and Shrewsbury appoints Kate Robertson to drive HR strategy for more than 120 staff and to support the company’s growth Chester law firm Aaron & Partners LLP has strengthened its senior leadership team with the appointment of an experienced human resources manager. Kate Robertson... Read More »

When you should NOT pay the bailiff…

24th April, 2018

Jan Chillery, Insolvency Partner at Aaron & Partners LLP, shares her experience and the reasons why we should be cautious before paying so-called “bailiffs” over the phone or online without vetting them first. My neighbour has told me that recently he had a CCJ (County Court Judgment) against him. A day or so later, he received a phone call... Read More »

Contact Us