File Management, Records and Information Technology
File management is the operational backbone of a compliant firm. Candidates must understand the matter-opening process (conflict check, due diligence, engagement letter, file reference), the file lifecycle (creation, maintenance, review, closure, retention, destruction), and the standards for a well-kept file: chronological notes, dated attendance notes, copies of correspondence, and clear records of instructions and advice. Records management must satisfy retention obligations, data protection, and the firm's own policies.
Information technology raises confidentiality, security, and business continuity issues. Understand access controls, encryption, secure remote working, email risk (misaddressing, phishing), backup and disaster recovery, and the duty to supervise outsourced IT and cloud providers. Data protection principles apply to client and staff data: lawful basis, minimisation, accuracy, retention limits, and breach notification.
Traps: assuming an electronic file is automatically compliant; failing to record oral advice; retaining documents beyond the lawful retention period; and treating IT security as purely an IT department concern rather than a professional duty of the firm. Questions may test what belongs on the file, how long to retain records, and what to do after a data breach.
Worked example: a fee earner takes a key instruction by phone. The attendance note should record date, time, caller, content, advice given, and next steps, and be filed the same day. Rule of thumb: if it is not on the file, it did not happen; if it is on the file, it must be accurate, dated, and retrievable.