How to stay compliant when onboarding new clients part 3: Common conflict check pitfalls most SME law firms face and how to overcome them 

Conflict checks are a critical part of the client onboarding process, ensuring that law firms comply with professional conduct rules and avoid conflicts of interest that could damage their reputation or lead to legal complications. However, despite their importance, many small to medium-sized enterprises (SMEs) in the legal sector struggle with efficiently performing conflict checks due to a variety of pitfalls. 

In this blog post, we’ll explore the most common conflict check mistakes SMEs make and provide strategies for overcoming them to ensure compliance with industry regulations and enhance client satisfaction. 

For more information, please visit the SRA conflict of interest here.

2. Failure to include all relevant parties in the search 

A common oversight in conflict checks is failing to check for conflicts with all relevant parties associated with the matter, such as opposing parties, witnesses, and even individuals involved in previous legal matters. 

How to overcome it: 

• Comprehensive search criteria: Ensure that your conflict check system includes all related parties, such as directors, officers, stakeholders, and related companies. Osprey Approach allows law firms to include multiple parties in the search and track all relevant relationships. 
• Document everything: Make sure that all stakeholders and third parties involved in the case are well-documented and considered during the conflict check process. This will help ensure that no potential conflicts are missed. 

4. Not conducting regular conflict checks 

While conflict checks are often performed during the initial client onboarding process, many firms fail to regularly re-check for conflicts as the matter progresses. Changes in circumstances, new parties entering the matter, or additional work being undertaken can create new conflicts that were previously undetected. 

How to overcome it: 

• Track changes proactively: Keep track of any developments in the matter, including new instructions, to ensure that conflicts are continuously monitored. 

5. Inadequate follow-up on conflict alerts 

When a conflict alert is raised, law firms must take immediate and thorough action to investigate the issue. However, without an effective follow-up system in place, conflict alerts can easily be ignored or left unresolved. 

How to overcome it: 

• Set up workflows and reminders: Leverage Osprey Approach’s workflow automation to ensure conflict alerts trigger follow-up tasks. By automatically assigning tasks, setting deadlines, and tracking progress, firms can guarantee that all conflicts are appropriately addressed. 

• Document all follow-up actions: Ensure that all steps taken to address conflict alerts are well documented for future reference and audit purposes. 

6. Lack of staff training on conflict checks 

Often, law firms experience pitfalls with conflict checks simply because their staff members are not adequately trained in how to perform them correctly. Without clear guidance, staff may overlook essential steps or not understand the full scope of what needs to be checked. 

How to overcome it: 

• Offer comprehensive training: It’s essential to provide your team with regular training on how to conduct thorough conflict checks. This training should cover both the use of the tools at your disposal, such as case management software like Osprey, and the firm’s internal procedures for conflict resolution. 

• Provide ongoing support and guidance: In addition to initial training, it’s important to offer refresher courses and continuous support. With Osprey, users have access to unlimited training materials, ensuring that staff members stay up to date with the software’s features, including conflict check functionalities. This ongoing education can help maintain accuracy and consistency in conflict check procedures, preventing errors and ensuring that staff are always prepared to meet compliance standards. 

7. Not recording conflict check results 

Failing to record the outcome of a conflict check can lead to potential compliance issues and difficulties in proving that a check was performed if questions arise in the future. 

How to overcome it: 

• Document conflict check results: Ensure that all conflict check results are recorded and stored for future reference. With Osprey Approach, the system automatically stores conflict check results in the case management system, ensuring that you have a clear and auditable record of every check performed. 

• Create audit trails: Use the system’s built-in audit tools to maintain detailed records of all conflict check actions, including who performed the check, when it was conducted, and what the outcome was. 

Avoid common conflict check pitfalls with Osprey Approach 

Conflict checks are vital to ensuring compliance with SRA regulations and protecting your firm from reputational and legal risks. By addressing the common pitfalls listed above and implementing the right processes and tools, such as Osprey Approach, law firms can streamline their conflict check process, reduce the risk of errors, and ensure full compliance with the SRA rules. 

Osprey Approach offers law firms an automated, user-friendly solution that integrates conflict checks directly into case management workflows, ensuring that your firm meets SRA compliance every step of the way. Protect your firm, maintain client trust, and stay compliant with Osprey Approach’s comprehensive conflict-checking features. 

Book a consultation to discover how Osprey Approach can help you effectively complete client and matter risk assessments across your teams. 

For further advice and best practices you can view parts one and two of our SRA Accounts Rules guides.

Disclaimer 

This guide is for informational purposes only and does not constitute legal advice. For detailed guidance on the SRA Transparency Rules, please visit the official Solicitors Regulation Authority website.