First Direct Conveyancing Panel Information

The CML, together with First Direct and other lenders developed a standard set of requirements where a conveyancer is representing a lender such as First Direct alone in a residential conveyancing transaction. These requirements are contained at Part Three of the UK Finance Lenders’ Handbook and are to be read together with Parts 1 & 2. The CML have published an example requirements letter to the borrower’s conveyancing solicitor for adaptation by the lender's conveyancer, and sets out to the borrower's conveyancer, the documentary and information requirements of the lender's panel lawyer.

The criteria to join the First Direct conveyancing panel is likely to be fairly detailed and is unlikely to include signing up to LENDERmonitor alerts.

Each lender has different criteria. We do not hold specific requirements relating to the questions raised as part of the application to be on the First Direct conveyancing panel. Typically lenders need to have full knowledge of a firm including (but not limited to):

House price discrepancies (declared to lender vs. registered at Land Registry)

Full career history for each solicitor including admission date to the relevant Law Society

Summary of annual accounts

Details of any accreditation e.g. Lexcel or

Automated alerting to inform lenders when there is a fundamental change to the firm (e.g. change of name)

Structure of firm and, where applicable, its group

top-up split and history of any refusals

Whether the firm is able to operate in other jurisdictions

Whether the firm has ever applied for accreditation and the outcome of the application

SRA or equivalent regulator registration number where applicable

What you should do largely depends on the reason that your firm has been removed off the First Direct conveyancing panel. The top 3 reasons are as follows:

1. lack of transactions
2. the lawyer is a sole practitioner
3. as part of the HSBC panel reduction.

In these three circumstances it is unlikely that you would expected to take any action. Disclosure and other compliance considerations are more likely to be relevant if the reason for removal is due to breaches of lender requirements or allegations of fraud or negligence. Whether the reasoning should trigger a disclosable 'material' breach will depend on the firm and the circumstances around possible failures to comply with the SRA Authorisation Rules, and the SRA will judge each case on its own merits. Factors such as the detriment or risk of detriment to clients, the scale of the issue and overall impact on the firm will need to be considered in deciding whether a failure is 'material'. As the COLP you will need systems to identify patterns of breaches. Even if you don't consider there to be regulatory implications the firms COFA should give some thought to whether she/he needs to take any action as result of being removed from the First Direct conveyancing panel.

The best placed professionals to answer this question are your insurance brokers. The chances are that on the basis that you have not been removed for fraud or negligence reasons that there will be little or no impact. The main reason why a firm would be removed off of a lender panel is due to low volume of conveyancing cases although there may be a number of criteria for First Direct solicitor panel membership. Please remember that it is always important that you complete your insurance forms accurately.

You should communicate with First Direct to obtain standard documents. The CML Handbook contains an express inquiry for banks to establish who to contact to obtain standard documents. First Direct in their Part 2’s state: Always remember to quote the firm’s First Direct conveyancing panel reference.