This website uses cookies

We use cookies to improve your experience on our website. If you continue without changing your settings, we'll assume that you are happy to accept all cookies on the CLC website. You can change your settings at any time.

De-Regulation

Notifying the CLC

 

CLC Registrants (Practices) seeking to surrender an ABS or Recognised Body Licence in order to exit CLC regulation must inform the CLC of their intentions ideally three months or at a minimum 30 days before the date the practice intends to exit CLC regulation. More time may be necessary depending on the volume and type of work in progress.

The Practice should complete the notification form below and the CLC Licensing Team will be in contact to discuss further steps.

The Practice should also notify the Practice’s Regulatory Supervision Manager/Officer by emailing monitoring@clc-uk.org so that an exit plan and timescales can be agreed. The Practice will be required to fulfil all its regulatory obligations and this will include providing standard monitoring and inspection information.

 

Practice Obligations upon Decision to Deregulate

 

When a decision is made to deregulate, the practice must take one of the following actions to ensure compliance with all regulatory and professional obligations.

For Deregulation by 30 June:

By 30 June, the practice must either:

a. ensure all open matters are closed; or

b. transfer any remaining open matters, including those with uncompleted registrations, to another appropriately regulated firm.

 

For Deregulation by 31 October:

By 31 May, the practice must purchase or confirm to the broker its intention to purchase an extension to the current Professional Indemnity Insurance (PII) policy; and ensure that the extension covers the remaining period of the body licence (01 July – 31 October 2025), allowing for the managed closure of any remaining open matters, including those with uncompleted registrations, no later than 31 October 2025.

 

Any of the above scenarios would be acceptable to the CLC. However, the practice must notify us in a timely manner so that the Monitoring and Inspection Team can engage with the practice to ensure all regulatory obligations are met within the appropriate timeframe. 

 

Definition of Open and Closed Matters 

Definitions

 

For the purposes of conveyancing matters:

  • An open matter is one where registration is incomplete.
  • A closed matter is one where registration has been completed.

 

Professional Indemnity Insurance (PII)

 

The three-month extension provision provided in the MTCs is to assist practices to obtain alternative terms annual when they have been declined terms by their existing insurer. It is not intended to provide an extension window for practices intending to exit CLC regulation. The time necessary to conclude matters and close files often takes longer and is dependent on the practice’s circumstances and resources which should remain available to the practice until all files can be properly closed.

 

The CLC does not permit interim or short extensions to the standard annual PII cover. However, when a practice has confirmed its intention to exit CLC regulation and surrender its licence on or before 31 October, the CLC will permit the purchase of an extension to the practice’s current PII cover for the period from 01 July to 31 October (the expiry date of the body licence) to carry out the managed closure. The taking of new instructions is not permitted in this period. All registrations must be concluded in this period.

 

Practices must verify the PII and run-off position with their PII Insurer and confirm this to the CLC.

 

The practice must obtain a Run-off endorsement from the CLC Insurer or provide written evidence of confirmation of successor terms.

 

Important Information about Annual Practice Licence Fees

 

The entity and individual licence fees are due at the point of first issue or renewal. Those fees are payable in full regardless of whether the individual or entity is active under CLC regulation for the whole of that year. Entity licence holders may have applied to take advantage of the monthly payment instalment arrangements that are offered. 

The practice licence fee is due at the point of first issue or renewal each year. Those fees are payable in full regardless of whether the individual or entity is active under CLC regulation for the whole of that year. When a practice notifies the CLC that it intends to exit CLC regulation before the end of the licensing year any balance of fees becomes due.

Please be aware that the entity and ultimately its owners and registered managers remain liable for the total amount of fees for the year even if they are not in practice and should the entity cease to trade or exit CLC regulation (voluntarily surrender its licence) before the next standard licence renewal point, i.e. 01 November. 

 

Please familiarise yourself with the CLC’s Risk Agenda to ensure your exit plan supports the owners and registered managers of the practice to meet their regulatory obligations (inclusive of all post trading and closure, including formal wind up requirements).

Please find the Guidance for Surrendering the Practice Licence here:

De-Regulation Guidance

Notification Form

 

 

About

Consumers

Lawyers

Trainee Lawyers

Regulation