By Carolyn Beal, Legal Compliance Consultant, Beal Cooper Compliance Ltd
How law firms can beat it.
I recently spoke about legal compliance fatigue at an event for different sized law firms from across the country, and it sparked a lot of discussion about how it affects compliance role holders and firms’ employees.
It was clear, whether in large practices with dedicated compliance teams, or smaller firms where compliance responsibilities sit alongside fee-earning work, many people feel overwhelmed by the volume and frequency of regulatory change.
What is it?
Compliance fatigue is the exhaustion and emotional burden that comes from navigating constant change in compliance requirements or systems, leading people to feel overwhelmed and disengaged. It can create frustration about the time spent responding to new requirements and reduce focus on core work.
The challenges
Law firms receive updates from multiple regulators, often through different channels, while also responding to evolving cyber threats, money laundering risks and the possibility of human error. Keeping pace can feel relentless. That’s before firms even begin deciding how those changes should be recorded and implemented, and employees are trained on new processes.
The challenges for COLPs, COFAs and MLROs are huge. For smaller firms, people in those roles face the challenge alongside managing client work and running the business.
The challenges for employees revolve around the struggle to keep up with frequent internal changes and understanding how the changes apply to them. The reason for new requirements is often lost, leading to increased systems but reduced compliance.
How to deal with it
For me, the best way of dealing with it is to focus on quality and effect. Consider the following strategies:
Identify a small number of trusted information sources and use them consistently. The SRA sends monthly emails with compliance updates. The Law Society has a Risk and Compliance section. Find a few reputable compliance professionals to follow on LinkedIn. This reduces the feeling of being bombarded from multiple sources or worry about missing something.
Centralise information. Create a centralised source of information for employees to consult. It’s much quicker to navigate when there is only one place to check, reducing the back and forth of questions or ignoring requirements.
Assign clear roles. One person doesn’t have to do everything, even if there is no dedicated compliance team. Junior fee earners wanting to develop their career may be able to help by monitoring updates or maintaining documentation, as long as responsibility remains with the compliance lead.
Filter and translate information for employees. Where possible, provide a summary of what is different. Consider impact: What has changed? Who does it affect? What must be done differently? For new procedures, give practical, pre-completed examples to show what is expected. Try not to circulate the whole policy with an instruction to ‘read it and follow it’ with no additional break down.
Provide regular, bite-sized training. Lunch and Learn sessions work well in all sizes of firm and can be implemented departmentally.
Communication is key. Find a method that works for your firm. Use face-to-face updates, monthly communications, ‘How to…’ guides, or attend team meetings. Circulate a regular piece on frequent or unusual questions. Compliance teams: Make sure you are regularly seen and heard from by your colleagues across the firm, because it really helps with engagement.
The challenge for law firms is to move away from a culture of endless box-ticking with additional requirements, towards more effective and efficient compliance. Those that achieve this balance will be better placed to protect their clients, their firm and reputation, and will find less of an impact on a day-to-day basis. It can take time to change, but it is worth it.
www.bealcoopercompliance.co.uk