Law Society Regulatory Compliance Policy

Purpose

NEO Legal Services Professional Corporation is a paralegal professional corporation. The corporation and every licensee who practises through it are regulated by the Law Society of Ontario. This policy lists the obligations that come with that, and who keeps track of them, so that nothing lapses.

Who it applies to

• The principal, who is responsible for the corporation's compliance and for their own licence.
• Every licensee practising through NEO, including independent contractor paralegals, for the obligations of their own licence.
• Employees and students who help with records, filings or communications with the Law Society.

The professional corporation

1. Certificate of authorization. NEO may provide legal services as a corporation only because the Law Society has issued it a certificate of authorization under By-Law 7. The certificate expires on December 31 each year. The principal applies to renew it every year, at least 90 days before it expires so there is no gap, and pays the renewal fee. A certificate that isn't renewed within 12 months after it expires is automatically revoked.
2. Ownership and control. All of NEO's shares must be legally and beneficially owned, directly or indirectly, by licensed paralegals, as the Law Society Act requires. Every director and officer must be a shareholder, and every director must be a licensee whose licence is not suspended.
3. Our name. The corporation's name includes the words "Professional Corporation", as the Business Corporations Act requires. Our firm name is part of our marketing, so it must be true and not misleading, and we always identify ourselves as licensed paralegals.
4. Legal services only. NEO carries on only the business of providing legal services and activities related to it, as its articles must provide.
5. Changes. NEO notifies the Law Society in writing immediately after any change to the information in its certificate application or renewal, such as its address, or to its articles, and tells it of any change in its shareholders.
6. No shield from responsibility. Practising through a corporation doesn't reduce a licensee's professional, fiduciary and ethical obligations to clients, or their liability for professional claims.
7. Closing down. NEO's shareholders would not wind up or dissolve the corporation until the Law Society has given permission to surrender its certificate. Before giving permission, the Law Society must be satisfied, among other things, that all trust money has been accounted for and paid to the people entitled to it, and that every client's matter is finished or their file has been returned to them or passed to another licensee.

Each licensee's obligations

1. Annual report. Each licensee files the Law Society's annual report for the previous year, including the questions about the firm and its trust account. A licensee is in default if it isn't filed by March 31.
2. Annual fee. Each licensee pays the annual fee for each year. A licensee who hasn't paid it by March 31 of that year is in default, and non-payment can lead to suspension.
3. Keeping information current. Each licensee files a notice of change for any change to their name, personal or business contact information, whether and in what capacity they provide legal services, the trust account they use, or any authorization they hold to practise law outside Ontario or another regulated profession. A licensee is in default if the notice isn't filed by the end of the month after the month of the change. For example, a new business address in October must be reported by the end of November.
4. Reporting events. A licensee tells the Law Society, as By-Law 8 requires, about a criminal charge or other listed charge and its outcome, any related bail conditions, a finding of contempt, and other events the By-Law lists, as soon as reasonably practicable, and about a bankruptcy immediately.
5. Continuing professional development (CPD). Each licensee completes one hour of CPD for each month in the year that they practise (12 hours for a full year). At least 25% must be accredited hours on ethics, professionalism or practice management. Hours can't be carried over to another year, except as the By-Law allows for its one-time courses. CPD is reported each year, with a default if it isn't reported by March 31 of the following year, and proof is kept until December 31 of the year after it is reported. Licensees also complete any one-time course By-Law 6.1 requires of them, such as the Law Society's Indigenous cultural competency course (for licensees to whom the CPD requirement applies on January 1, 2027, between January 1, 2026 and December 31, 2028). See our Professional Development and Competence Policy.
6. Insurance. Each licensee keeps the professional liability insurance By-Law 6 requires. See our Professional Indemnity Insurance Policy.
7. Contingency plan. Since January 1, 2025, By-Law 7.1 has required the licensees it applies to, including the principal, to keep a contingency plan that is current at all times. It appoints an administrator, another licensee who can preserve and carry on or wind up the practice, and says where to find client property, trust and other accounts, accounting records and the contact details of any bookkeeper or accountant. It is reviewed at least once a year, and compliance is reported to the Law Society in the annual report. See our Business Continuity and Succession Policy.
8. Family law authorization. A licensee who provides family law services must have completed the Family Legal Services Provider requirements and be registered with the Law Society as a Family Legal Services Provider. See our Scope of Paralegal Practice Policy.

The trust account and the Law Society

• The trust account is kept as By-Law 9 requires, under our Trust Accounting and Client Money Policy and Books and Records Policy.
• The principal gives the Law Society the irrevocable written authorization By-Law 9 now requires, directing our bank to give the Law Society information about the trust account when it asks: for a trust account already open when this requirement began, by March 31, 2027; for a new trust account, within 30 days of opening it; and after that, whenever the Law Society specifies.

Audits, reviews and investigations

The Law Society may audit our financial records (a spot audit), review our practice to check that it meets standards of professional competence, or investigate our conduct. The person doing it may come to our office between 9 a.m. and 5 p.m., Monday to Friday, or at another time we agree, examine our records and client files, and ask anyone who works or worked with us for information.

1. We co-operate fully and promptly, and give the Law Society everything it is entitled to ask for, even information that is privileged or confidential. The Law Society Act requires us to, keeps the privilege in place for every other purpose, and requires the Law Society to keep that information confidential, with limited exceptions.
2. We never alter, backdate, hide or destroy a record.
3. Staff tell the principal at once about any contact from the Law Society.

Responding to the Law Society

We reply promptly and completely to every communication from the Law Society, as the Paralegal Rules of Conduct require. The principal makes sure every deadline is met. If we need more time, we ask in writing before the deadline.

Reporting misconduct

A licensee must report certain conduct of another licensee to the Law Society, such as misusing trust money or abandoning a practice, unless that would be unlawful or breach client confidentiality. Our Reporting Misconduct Policy explains how, and that no one is penalized for reporting in good faith.

Our title and our staff

We use the title "licensed paralegal", never call ourselves lawyers or NEO a law firm, and make the limits of our licence clear, under our Marketing and Advertising Policy. Employees and students are never presented as licensees and work under a licensee's direct supervision, under our Supervision and Delegation Policy.

Our compliance calendar

The principal keeps a calendar of every deadline in this policy, including:

• each month: the trust reconciliation, within 25 days after month-end;
• by March 31: annual fee, annual report and CPD report;
• through the year: CPD hours, and notices of change by the end of the month after any change (and the corporation's own notice immediately after a change);
• at least 90 days before December 31: renewal of the certificate of authorization;
• every year: insurance renewal and the contingency plan review;
• by March 31, 2027: the trust account authorization;
• by December 31, 2028: the Indigenous cultural competency course, for each licensee it applies to.

Review

This policy is reviewed at least once a year, and whenever the Law Society Act or the Law Society's By-Laws or rules change. The principal approves every change.

Questions

Questions about this policy go to the principal. Email info@neolegalservices.com, call 647-200-3526 or toll-free 888-519-2435, or write to us at Unit 236, 1099 Kingston Road, Pickering, Ontario L1V 1B5.