Naturally we can accept undertakings from solicitors acting within a firm. The Law Society has also made it clear in the Conveyancing Handbook that we can "normally" (that is to say, unless you know of a good reason why not and subject to the adequacy of that firm's insurance) accept an undertaking from a licensed conveyancer or a firm of licensed conveyancers. The Council for Licensed Conveyancers (CLC) regulates licensed conveyancers in a similar way to the SRA's regulation of solicitors and can take disciplinary action against those who fail to honour their professional obligations. However, an undertaking given by a licensed conveyancer is not enforceable through the court's supervisory jurisdiction in the same way as a solicitor's undertaking.
Even in the case of solicitors, care should be taken. Following Harcus Sinclair LLP v Your Lawyers Ltd, undertakings given by LLPs are not generally enforceable through the court's inherent supervisory jurisdiction because an LLP is not an "officer of the court". Enforcement may instead depend upon contractual or other legal remedies.
If you are dealing with a freelance solicitor on the other side, you should satisfy yourself that they have at least £2m (and more if the transaction requires it) of PI cover on the SRA's minimum terms.
Before relying on any undertaking, you should consider both the standing of the person giving it and the adequacy of their professional indemnity insurance. Bear in mind that small firms and licensed conveyancers might have modest insurance. The minimum is £2m. When dealing with undertakings for sums bigger than this, you will need to discuss the matter with the client. Best practice is to require the other side to use a better insured firm. This should be unlikely, as it is not in the interests of a firm to take on work with a value higher than their PI cover, but that is not to say it does not happen.
You must not accept an undertaking from:
If there is any doubt as to the enforceability, authority or adequacy of an undertaking, seek guidance from the Director of Operations and Compliance before proceeding.
You should keep copies of all incoming undertakings on your file (along with everything else), but you don't need to log incoming undertakings centrally.