REGULATORY SETTLEMENT AGREEMENT
1 Mr Colin Peter Frazer, a former partner in the firm of Fox Hayes and subsequently a consultant of Fox Hayes LLP agrees to the following outcome of the investigation into his professional conduct under reference TRI/2488-2007. References in this Agreement to the Firm are references to Fox Hayes and Fox Hayes LLP
Background
2 On 13 February 2004 the Law Society commenced an inspection of the Firm resulting in a Report dated 13 April 2005 ("the First Report"). A further inspection of the Firm was undertaken by the Law Society on 24 January 2006 resulting in a Second Report dated the 28 June 2006. The First and Second Reports stated inter alia that:-
2.1 The Firm acted on a number of commercial/property transactions where they acted for more than one party involved in the transaction giving rise to a conflict of interest between the respective clients. Certain partners (not Colin Frazer) also had personal interests in some of these transactions giving rise to a conflict of interest between the partners' own interests and those of the clients.
2.2 In relation to the commercial/property transactions referred to above, monies were transferred between client ledgers without written consents being obtained from the clients, the firm failed to keep appropriate records of dealings with client money and also facilitated withdrawals from client account contrary to the Solicitors Accounts Rules 1998 (SARs).
2.3 The Firm used separate letterheads in relation to the conveyancing services that it provided which were inaccurate and misleading and failed to list the names of all of the partners within the Firm contrary to the Solicitors Publicity Code 1990.
3 Other issues were raised by the First and Second Reports but these do not concern Mr Colin Peter Frazer.
4 Proceedings were commenced in the Solicitors Disciplinary Tribunal ("Tribunal") on 22 September 2008 following a decision of the Adjudication Panel dated 9 August 2007. There have been subsequent negotiations with Mr Colin Peter Frazer leading to this Agreement.
Undertaking
5 Mr Colin Peter Frazer having retired from practice confirms that he has retired from practice and has not applied for a practising certificate for the year commencing 1 November 2009 and undertakes not to apply to the Law Society for any practising certificates in the future.
Submission to Findings
6 Mr Colin Peter Frazer agrees to submit to the following findings being made by the SRA:-
6.1 That he failed to comply with Rule 1 of the Solicitors Practice Rules 1990 ("SPR") in that he acted in circumstances of conflict between the interests of the clients and/or where the interests of the partners conflicted with the interests of the clients in relation to a loan to a Mr R-S and a loan agreement between a Mr D and a Mrs W.
6.2 That in his capacity as a partner of the Firm he acted in breach of the SARs in that money was transferred between client ledgers without the clients' written consent, dealings with client money were not appropriately recorded and withdrawals from client account were made contrary to the Rules.
6.3 That in his capacity as a partner of the firm he acted in breach of the Solicitors Publicity Code 1990 in respect of conveyancing services provided by the firm in that the letterheads used were inaccurate and were misleading and failed to list the names of all partners in the firm.
Mitigation
7 Mr Colin Peter Frazer puts forward the following mitigation in relation to the above.
8 That in relation to the loan made to Mr R-S, Mr Colin Peter Frazer was not the partner instructed by the client. His involvement was limited to the preparation of a first draft of a Legal Charge pursuant to a request from the partner instructed by the client, Mr Robert Manning. Mr Colin Peter Frazer was unaware of the background to the document, did not have any contact or meet with the participants nor did he have any knowledge of the transaction of which the document was part, or the facts giving rise to the conflict of interest.
9 That in relation to the W and D loan agreement, he was involved in the preparation of the loan documentation between the 12 and 18 December 2002. So far as he was concerned the transaction was abortive because the loan documentation had been incorrectly executed by Mrs W and therefore he took no further part in the matter. Furthermore, he was unaware that his partner, Mr Robert Manning, had any connection with any of the parties involved in the transaction nor that Mr Robert Manning and/or Fox Hayes had previously acted for Mrs W.
10 That in respect of the admissions at paragraph 6.2 and 6.3 above although he was a partner at the relevant time he had no direct knowledge of or involvement in any of these matters.
11 That he acted in good faith and admits responsibility as a partner in the firm.
Conclusion
12 The Firm's handling of the matters outlined in paragraph 2 above have been referred to the Tribunal and the proceedings against Mr Robert Manning, Mr Stephen Coupland, Mr Malcolm Jones, Mr Ian Coupland and Mr Philip Drazen will continue.
13 Whilst it would be a matter entirely for the Tribunal, Mr Colin Peter Frazer is 74 years old and is no longer in practice and on a full consideration of all the facts it is unlikely that the Tribunal would impose a sanction on him restricting his ability to practice. An outcome that involves Mr Colin Peter Frazer undertaking not to apply for a practising certificate in the future and the findings set out in paragraph 6 above is proportionate to the circumstances.
14 Mr Colin Peter Frazer is therefore reprimanded for the breaches admitted in paragraph 6 above.
15 Application will be made by consent for the Tribunal's permission to withdraw the proceedings with no order as to costs.
16 Mr Colin Peter Frazer agrees that he will not act in any way that is inconsistent with this Agreement such as, for example, by denying the misconduct found in paragraph 6 above.
17 If the undertaking referred to in paragraph 5 above is not complied with or if Mr Colin Peter Frazer acts in any way inconsistently with this agreement the application to the Tribunal will be renewed and Mr Colin Peter Frazer agrees that it is not open to him to challenge the validity of such proceedings on any basis connected with the withdrawal of the present application.
18 Mr Colin Peter Frazer agrees that this outcome may be published by the SRA and that it may also be disclosed to any person upon request or otherwise.
19 The date of this Agreement is 2 December 2009
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Colin Peter Frazer
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[David J Middleton
Legal Director
For the Solicitors Regulation Authority]