Solicitors Regulation Authority to change “complex, onerous” Handbook

The Solicitors Regulation Authority is to introduce a raft of changes to its Handbook after admitting it was “long, complex, onerous and costly to apply”.

The Handbook currently comprises a 30-page code of conduct and more than 400 pages of rules. The SRA said consultation had shown broad support for simplification.

The watchdog said the first phase of revisions, announced today, would create shorter, clearer principles and codes, as well as much simpler Accounts Rules. “For instance, the new rules have been reduced from 41 to seven pages by focusing on the protections that really matter, specifically keeping clients' money safe,” it suggested.

The revised Handbook will have a Code of Conduct for solicitors and another for firms.

“The aim is that every solicitor is absolutely clear about their personal obligations and responsibility to maintain the highest professional standards, whether they work in-house, inside or outside a firm that is Legal Service Act (LSA) regulated,” the SRA said, adding:

“The separate code for firms aims to make sure they have clarity about the systems and controls they need to provide good legal services for the public.”

The combined length of the two codes, with the principles, is 14 pages.

The watchdog said it also wanted to help tackle the problem that too many people could not access the services of a regulated legal professional.

It plans to remove barriers to solicitors working freely in the legal sector, including in the growing number of ‘non-LSA regulated' firms providing legal services such as will-writing and resolving employment disputes. “Changing outdated rules constraining access to solicitors will make it easier for people to benefit from their expertise and high standards, potentially in more affordable ways,” it claimed.

However, it acknowledged that the proposals in this area were controversial – with opponents including the Law Society – and vowed to keep these changes under review.

The SRA added that it would address concerns around the potential for consumer confusion by making sure there was clear communications around the extent of the protections in place for the public when they are using a solicitor in a non-LSA regulated firm.

Paul Philip, SRA Chief Executive, said: “Clear, high professional standards are at the heart of public confidence in solicitors, law firms and a modern legal sector. Our consultation confirmed that a shorter, clearer Handbook, with a sharp focus on professional standards, is the way forward. Pages and pages of complex rules hinders rather than helps compliance. It drives costs rather than good practice and consumer protection. We want to move away from ticking boxes to putting more trust in professional judgement.

“That means we can make changes to give solicitors and firms greater flexibility. Freeing up solicitors to work where they choose is good for the profession, opening up career opportunities, and good for the public. It will help to tackle the issue that too many people and businesses simply cannot afford to access the help of a solicitor when they have a legal problem. Removing restrictions on where solicitors can work will give the public more choice, increasing access to high quality legal services at a price they can afford."

The SRA said it had engaged with around 11,000 solicitors and members of the public on its proposals. There were more than 400 responses to its consultation on the codes and principles, and Accounts Rules.

The watchdog is to consult on proposed changes to other parts of the Handbook, including the authorisation, practice framework rules and new enforcement policy, later this year. The new arrangements will not be introduced any earlier than autumn 2018.

A summary of the responses to the consultation and the SRA’s decision on next steps can be viewed here.