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Legal Eye provides independent compliance audits for lenders, banks and building societies seeking greater oversight of the law firms operating on their panels.
Our Enhanced Compliance Audit assesses how effectively each panel firm manages key regulatory and operational risks. It provides an objective and consistent review of the firm’s arrangements, helping you identify weaknesses and strengthen standards across your panel.
The audit is completed remotely over two days and includes document reviews, selected file reviews and discussions with relevant members of staff. Following the audit, clear findings and practical recommendations are provided.
Why independent lender panel audits matter
Law firms operating on lender panels can expose lenders to financial, operational and reputational risk if appropriate compliance standards are not maintained.
An independent audit provides greater assurance that panel firms have suitable controls in place and offers a consistent way to identify weaknesses before they develop into more serious issues.
What the Enhanced Compliance Audit covers
The precise scope can be tailored to your requirements and may include:
- Anti-money laundering and financial crime controls
- Client money protection and financial controls
- Ethical conduct and professional integrity
- Cybersecurity
- Information security
- Service standards
- Regulatory policies, procedures and controls
- Selected client and matter file reviews
- Interviews with relevant members of staff
How the audit supports your panel
How the Enhanced Compliance Audit works
1. Initial planning: We agree the audit scope, panel-firm contacts and practical arrangements.
2. Preparation: The panel firm receives clear instructions about the information and documents required.
3. Secure document access: Relevant documents and selected files are made available securely for review.
4. Remote audit: Legal Eye completes the audit over two days, including document reviews, file reviews and relevant discussions.
5. Reporting and closing meeting: The findings, recommendations and next steps are presented in a detailed report and discussed at a closing meeting.
What the audit provides
Following the audit, a detailed report is prepared setting out the findings, identified risks and practical recommendations.
A closing meeting provides an opportunity to discuss the findings, clarify any recommended actions and agree appropriate next steps.
Experienced and independent compliance advisers
Audits are completed by members of Legal Eye’s wider team of experienced legal-sector risk and compliance professionals. Our advisers understand the regulatory, operational and reputational risks associated with law firm panels and provide clear, objective and proportionate findings.
Discuss Your Lender Panel Audit Requirements
Frequently Asked Questions
Who is the Enhanced Compliance Audit designed for?
The Enhanced Compliance Audit is designed for lenders, banks and building societies seeking independent assurance about the risk and compliance arrangements of the law firms operating on their panels.
How long does the audit take?
The audit is conducted over two days. Legal Eye will confirm the timetable and practical arrangements with the relevant parties before the audit begins.
Is the audit completed remotely?
Yes. The Enhanced Compliance Audit is completed remotely, with relevant documents and selected files made available through secure remote access.
What information must the panel firm provide?
The information required will depend on the agreed scope of the audit. The panel firm may be asked to provide relevant compliance policies, procedures and records, selected client and matter files, and access to appropriate members of staff for interview.
How many files will be reviewed?
The number of files reviewed will depend on the size of the panel firm and the agreed scope of the audit. Legal Eye will confirm the required sample before the audit begins.
What areas does the audit cover?
The audit can cover a range of regulatory and operational risks, including anti-money laundering and financial crime, client money protection and financial controls, ethical conduct, cybersecurity, information security, service standards, and regulatory policies and procedures.
What will be provided following the audit?
Following the audit, a detailed report will be prepared setting out the findings, identified risks and practical recommendations. A closing meeting will also be held to discuss the findings and appropriate next steps.
Can Legal Eye help panel firms address identified weaknesses?
Yes. Where instructed, Legal Eye can provide practical advice and support to help panel firms address identified weaknesses, strengthen their controls and improve their policies and procedures. The scope of any additional support will be agreed separately.
