Jacqueline Wilkinson
Employee
671123

Decision - Control of practice

Outcome: Condition

Outcome date: 21 August 2021

Published date: 24 August 2021

Firm details

Firm or organisation at date of publication and at time of matters giving rise to outcome

Name: BROWELL SMITH & CO SOLICITORS LTD

Address(es): Unit 42-44 Apex Business Village, Annitsford, Cramlington, NE23 7BF

Firm ID: 545141

Outcome details

This outcome was reached by SRA decision.

Decision details

1. Agreed outcome

1.1 Jacqueline Wilkinson, an employee of Browell Smith & Co Solicitors Ltd (“the Firm”), agrees to the following outcome to the investigation of her conduct by the Solicitors Regulation Authority (“the SRA”):

1. to the SRA making an order under section 43 of the Solicitors Act 1974 (a section 43 order) in relation to her that, from the date of this agreement:
   1. no solicitor shall employ or remunerate her in connection with his practice as a solicitor
   2. no employee of a solicitor shall employ or remunerate her in connection with the solicitor's practice
   3. no recognised body shall employ or remunerate her
   4. no manager or employee of a recognised body shall employ or remunerate her in connection with the business of that body
   5. no recognised body or manager or employee of such a body shall permit her to be a manager of the body
   6. no recognised body or manager or employee of such body shall permit her to have an interest in the body

   except in accordance with the SRA's prior permission

2. to the publication of this agreement
3. she will pay the costs of the investigation of £600.

2. Summary of facts

2.1 Since February 2005, Ms Wilkinson has held the role of Finance Director at the Firm. Between January 2013 and February 2018, she was also the Firm’s Compliance Officer for Finance and Administration (“the COFA”).

2.2 At all material times, she was in a position of trust and responsibility, which involved ensuring compliance with the SRA Accounts Rules.

2.3 The Firm held a substantial amount of residual client monies in a designated deposit account that it had failed to return to clients promptly in accordance with the SRA Accounts Rules 2011.

2.4 Ms Wilkinson knew that those monies belonged to various clients and that the Firm had no legitimate interest or entitlement to them.

2.5 In 2018, in her role as the Finance Director, she recommended and subsequently requested three transfers totalling £139,743.93 from the designated deposit account to the office account. This created a client account shortage.

2.6 Ms Wilkinson knew when she recommended and requested the transfers that the client monies would be used improperly to pay the Firm’s VAT liabilities and staff salaries.

2.7 On each occasion, the Firm replaced the client monies in full within 32 days, rectifying the client account shortage.

2.8 On 21 December 2018, the Firm reported the concerns to the SRA.

3. Admissions

3.1 Ms Wilkinson makes the following admissions which the SRA accepts:

1. That, by recommending and requesting three improper client account to office account transfers, when she knew the client monies would be used to pay the Firm’s business expenses, she has been involved in conduct which means that it is undesirable for her to be involved in a legal practice.

4. Why a section 43 order is appropriate

4.1 The SRA’s Enforcement Strategy and its guidance on how it regulates non-authorised persons sets out its approach to using section 43 orders to control where a non-authorised person can work.

4.2 When considering whether a section 43 order is appropriate in this matter, the SRA has taken into account the admissions made by Ms Wilkinson and the following mitigation which she has put forward:

1. She takes full responsibility for her conduct.
2. She has co-operated with the SRA in its investigation.

4.3 The SRA and Ms Wilkinson agree that a section 43 order is appropriate because:

1. Ms Wilkinson is not a solicitor.
2. Her employment or remuneration at the Firm means that she was involved in a legal practice.
3. By recommending and subsequently requesting the residual client money to be transferred to the office account, knowing it would then be used to pay the Firm’s business liabilities, Ms Wilkinson has occasioned or been party to an act or default in relation to a legal practice. Ms Wilkinson's conduct in relation to that act or default makes it undesirable for her to be involved in a legal practice.

4.4 Ms Wilkinson's conduct makes it undesirable for her to be involved in a legal practice because it undermines the trust the public places in the legal profession. Clients are entitled to rely upon people they deal with at solicitors’ firms to handle their money properly.

5. Publication

5.1 The SRA considers it appropriate that this agreement is published in the interests of transparency in the regulatory process. Ms Wilkinson agrees to the publication of this agreement.

6. Acting in a way which is inconsistent with this agreement

6.1 Ms Wilkinson agrees that she will not deny the admissions made in this agreement or act in any way which is inconsistent with it.

7. Costs

7.1 Ms Wilkinson agrees to pay the costs of the SRA's investigation in the sum of £600. Such costs are due for payment within 28 days of a statement of costs due being issued by the SRA.