On 1 June the Solicitors Regulation Authority published its consultation, "Looking to the Future". The SRA is planning to radically simplify the Handbook, starting with revising the Principles and the Code of Conduct. In particular, they are proposing two separate codes – a Code of Conduct for Solicitors and a Code of Conduct for Firms.
The SRA is also proposing that solicitors should be able to freely deliver services outside of regulated firms. In particular, this means that: Unregulated firms would be able to employ solicitors with practising certificates and provide unreserved legal services: the individual solicitors would be regulated but the firm would not be; In-house solicitors would be able to provide legal services to the public without having to establish an ABS or being granted a waiver. The Law Society is concerned that the SRA’s proposals could result in two tiers of solicitors: those working in a regulated entity; and those who are not, whose clients would have significantly less protection and redress, except standard consumer redress for unreserved work.
Under the new proposals, unregulated providers would not have any indemnity insurance, not be subject to regulation around conflicts of interest, not have legal professional privilege and not claim or make payments into the Solicitors Compensation Fund. This could undermine standards, increase consumer confusion and ultimately cause significant damage to the standards of the solicitor profession.
There is also a risk that the proposals would undermine or ultimately deplete the Compensation Fund. In light of the consultations, the Law Society has decided to convene a series of events across England and in Wales, under the Chatham House Rule, to consider the SRA’s proposals and the risks and opportunities they would seem to create. This will inform the Society’s response to the consultations though we would of course also urge anyone with a view to submit a response directly.
Liverpool Law Society members were invited to hear more about the proposals and share their views on the consultation with Janice More, General Counsel for the Law Society, on Thursday 11th August at Liverpool Law Society, Second Floor, Helix, Edmund Street, Liverpool, L3 9NY from 11am to 12.30pm.
Registering for this event has now closed.
A copy of the SRA’s consultation Looking to the Future: Flexibility and Public Protection is available here in parallel with a consultation on the Accounts Rules which is available here The deadline for responses is 21 September.