The definition of ‘regulated work’ is easier to understand because some of the definitions have been improved. The most important category is that involving a ‘financial or real property transaction’ where the firm is ‘participating in’ the transaction. That latter requirement is satisfied if the lawyer is assisting in the planning or execution of the transaction or is otherwise acting for the client. This catches just about any type of involvement, and the sort of transactions involved will include the buying and selling of real property or business entities; managing client money or assets; opening or managing bank and other accounts; organising contributions for the creation, operation and management of companies;and creating, operating or managing trusts or similar structures. In addition, regulated work extends to the giving of tax advice and the provision of trust or company services (this includes the formation of companies and LLPs; acting or arranging for someone to act as an officer of a company or a partner in a partnership/LLP; acting as a trustee or nominee shareholder; providing services such as the provision of a registered office or other business address).

One criticism of the Regs is the lack of definition of a ‘business relationship’ (a concept that is central to the Regs). The key requirement is that a relationship should be expected by the firm ‘at the time when contact is established to have an element of duration’ – just what ‘element of duration’ means is not defined! Overall, the new Regs are easier to understand and easier to apply. Plus, the Law Society guidance is more practical. [2007] NLJ 1314. © Practical Lawyer