Introduction

We have had several firms approach us with this question. The main attraction for staying with or moving to SQM is obviously the 5-year period between assessments. But all that glitters is not always gold. In this article we go through the considerations firms should be thinking about when making this decision.

Having pored over hundreds of SQM audit reports and pre-SQM agendas, we can more or less predict the likely approach assessors will be taking at future 5-year SQM assessments.

SQM Pre- Assessment Agenda

SQM holders within the current 3-year cycle are used to seeing requests for records and documentation going back 12 months. However, the requests which we have recently seen in a pre-assessment agenda document goes well beyond that. Here are some examples:

• Central records of case file reviews and annual reviews of file reviews from past three years
• Central records of complaints and annual reviews of complaints from the past three years
• Annual reviews of quality processes from the last three years
• Client feedback and annual reviews of client feedback from the past three years

SQM Corrective Action Reports

Throughout these reports, a standard paragraph is used by all the different assessors and which covers all sections of the standard. We would submit that this paragraph clearly sets out the intention the LAA will have when coming back to audit firms in 5 years’ time. Here are some examples:

D2.2 Appraisals

With consideration to SQM accreditation period changing to five years, going forward, please ensure that a performance review/appraisal takes place each year. Reviews should be documented, with a copy of each review documented and retained throughout the accreditation period.

D2.3 Training Needs

With consideration to SQM accreditation period changing to five years, going forward, please ensure training needs are reviewed each year and a plan developed. Reviews should be documented, with a copy of each review documented and retained throughout the accreditation period.

E2.6 Monitoring file review

With the SQM accreditation period changing to five years, going forward, please ensure that file review activities are reviewed each year, with a copy of each review documented and retained throughout the accreditation period.

Summary and Conclusions

So, when considering the agenda and corrective action reports as outlined above and even if the assessors only go back 3 years (but they could theoretically go back 5 years) the following will potentially have to be produced by firms at every audit.

1. File reviews and the last 3-5 years of documented annual reviews
2. Appraisals for the last 3-5 years.
3. Annual budget - evidence of a set budget for the last 3-5 years.
4. Quarterly financial reviews for the last 3-5 years.
5. Training - evidence of 6 hours annual training per fee earner for the last 3-5 years plus regular data protection and safeguarding training.
6. Training and development plans - the last 3-5 years of records
7. Client feedback - the last 3-5 years of annual reviews
8. Business plans - 6 monthly reviews over the last 3-5 years and old versions kept for audit purposes.
9. Central records - documented annual reviews of all over the last 3-5 years

We know from over 30 years of experience that maintaining compliance over a 3-year period can prove very challenging to many firms especially when conducting demanding workloads.

We are more than happy to discuss this in more detail with firms. But even if firms do decide to move to or stay with SQM we would suggest that an annual health check is going to be essential. Please contact one of our consultants on the Contact Us page.

For more information on accreditation go to our Accreditation page.