How CTT Legacy Software supports Competition Markets Authority (CMA) compliance for professional will writers and estate planners

New Competition and Markets Authority (CMA) regulations are coming into effect in April. These changes are especially relevant for professionals operating in unregulated sectors including will writing, estate planning, and estate administration.

The role of the government’s CMA department is to promote competition and consumer protection. Its primary function is ensuring consumers get good deals and that businesses operate fairly. It also helps protect businesses by providing a set of standards for delivering customer services and handling complaints.

Following an increase in complaints relating to will-writing and pre-paid probate plans, the CMA launched an investigation in October last year into potential consumer law breaches within the sector; April’s changes are a reflection of their findings.

How the new rules affect you

Critical concerns for advisers about the new guidelines include those relating to unfair contract terms and pressure selling tactics in the legal sector.

Non-compliance with CMA guidelines could result in:

• A fine of up to 10% of your business’ annual turnover
• A ban on running a company for up to 15 years
• Loss of reputation and customer trust

Familiarising yourself with the new regulations is essential to protect your business. Here, you’ll find a link to CTT’s exclusive webinar to help you navigate the changes.

Another way to safeguard yourself is to incorporate CTT Legacy estate planning software into your client processes.

CTT Legacy Software: CMA compliance made easy

CTT Legacy is equipped with a variety of features and tools that support your compliance with CMA guidelines. Here's a brief outline of how this user-friendly software gives you peace of mind and traceability in light of the upcoming changes to regulations.

Clear and easy client communications

The will writing and estate planning sector is a potential minefield of confusion for clients.

Not only are some of the legal terms and concepts used in estate planning difficult to get across, but the clients you’re working with are often older people; recently bereaved families; people suffering from long-term illness or relatives caring for someone who is.

This makes things tricky when explaining products and processes in a way that’s clear and easy for your clients to understand – a major factor in the CMA’s new regulations. It also puts increased pressure and responsibility on you as the adviser when recommending and selling products to vulnerable people.

The CMA is very clear on this; the new guidelines state that:

• Consumers must be given the information they need to make informed decisions
• Information must be accurate and not misleading

CTT Legacy addresses the issue of explaining complex legal products and processes to clients through its Legacy Portal app. It allows you to create and share Recommendation Reports with your clients, outlining the most suitable planning solutions for them, in an easy-to-digest way.

The report uses personalised animations that demonstrate the effectiveness of different planning solutions on the client’s estate, with clear graphics that illustrate how and when beneficiaries inherit; the various roles within the will, and the tax-saving benefits of each scenario.

Clients can review their Recommendation Report as many times as they want, discuss it with you, and amend it according to their wishes.

In this way, CTT Legacy Software fulfils your duty of care to consumers, removing any ambiguity over legal jargon or products and empowering your clients with the knowledge they need to make informed decisions about their planning.

Fully traceable audit of client interactions

Demonstrating consistent customer service and due diligence is a challenge when you’re juggling multiple client cases that span months or even years. But a large part of the CMA’s new guidance requires you to do just that; keep records of all client interactions so you can show your services have been performed with ‘reasonable care and skill’ and that you have kept within the agreed timescales for delivery.

It’s also vital you keep thorough records of all instructions relating to work carried out on your clients’ behalf. This covers you in case there should ever be any question over the suitability or effectiveness of the products you've recommended, or why the client has chosen the solutions they opted for. This also protect consumers – and you – from the risks associated with ‘pressure selling’ tactics or upselling products that exceed the client’s needs.

CTT Legacy’s will writing software is a drafting and client management platform in one. As well as providing everything you need to accurately carry out your clients’ planning and draft legal documents, Legacy’s case tracking feature creates a comprehensive audit trail of all your client interactions, demonstrating adherence to best practice and conscientious customer service.

• Secure messaging keeps a record of all client communications
• Reminders and alerts help you complete client tasks in a timely manner
• Automatic Order of Instruction and signed Will Clarity Statement documents record client orders and evidence their choices

Use CTT Legacy’s intuitive drafting software to create client plans that align with the latest legislation while generating supporting documents that back up your processes. A Will Clarity Statement is automatically produced alongside all client plans – this is a comprehensive summary of the choices the client has made and the reasons for those choices.

The statement is then signed by the client, confirming they have understood the planning that’s been put in place and the ramifications of those plans, including acknowledgement of third-party services such as professional trustee and executor appointments.

Not only does the Will Clarity Statement protect you from claims of ‘aggressive or misleading practices’, it also provides you with bespoke terms of business, tailored to your client’s circumstances and demonstrating your commitment to due diligence.

Transparent costing and subscription models

Waterfall pricing structures are a big concern for the CMA – these are tiered pricing plans where consumers are lured in with a very low initial cost (wills for £20, for example) but the true cost of all the work involved in their planning – and the additional admin costs – actually amount to far more.

The CMA is now insisting all providers carry a clear list of pricing for customers that itemises services and outlines any additional costs, including third-party services such as court fees.

With CTT Legacy Software, the costings of all products are itemised within an Order of Instruction, which is generated by the software for the client to then sign. This document not only acts as confirmation of the products and services chosen by the client, but also demonstrates transparency when it comes to your pricing structures.

At Countrywide Tax & Trust Corporation, we’ve redesigned and relaunched our website, making it more user friendly, so clients have easy access to our services and a clear understanding of our pricing structures.

The same transparency also needs to be applied to any subscription models you use such as automatic payments for will storage or annual will reviews.

With CTT Legacy, you can set automated client reminders that let your clients know when their subscription is due to be renewed, or a payment is scheduled to be taken, giving them the required notice and cooling off period to cancel should they wish, covering yourself in the process.

To summarise

Changes to the Competition and Markets Authority guidelines are intended to protect consumers; but they are also an opportunity for you to review your processes and future-proof your practices to safeguard you, your business, and your clients.

CTT Legacy is an easy-to-use solution that updates and digitises your client interactions, ensuring CMA compliance and an audit trail that demonstrates your commitment to best practice and customer service in line with the new regulations.

Discover how CTT Legacy supports your will writing and advisory business here.