Law Society urges solicitors to respond to SRA consultation amid fears of two-tier profession
The Law Society has urged solicitors to respond to a Solicitors Regulation Authority consultation on proposed changes to the SRA Handbook, warning that the changes could create a two tier profession and significantly reduce client protections, depending on where solicitors work.
One of the key reforms would see solicitors able to practise in unregulated businesses. The deadline for responses to the SRA consultation is 21 September.
Chancery Lane said it held “grave concerns” about many of the proposed changes, which it warned risked undermining the quality and standing of the solicitor profession and client protections.
It has produced a template aimed at making the process of submitting a response easier.
Chief executive Catherine Dixon said: “The changes proposed by the SRA have huge implications for the solicitor profession and for clients. It is vital the profession has its say on these proposals.”
She added: 'We know solicitors from all over the country are gravely concerned about the SRA proposals as they fear that the reputation and standing of solicitors will be tarnished if these changes go ahead, resulting in two tiers of solicitors and vital client protections lost depending on where the solicitor is working.
“Each solicitor will have their own experiences and draw their own conclusions on these proposals. A comprehensive response from the profession can only help improve the final decision.”
In a member briefing issued in July the Law Society highlighted the SRA’s proposal that in-house solicitors should no longer be prevented from only acting for their employer.
“This is intended to enhance access to justice for consumers in order to allow primarily local authority legal departments to provide advice to the public, and to others that currently they need SRA waivers to provide advice to e.g. public bodies outside their local areas. In practice, this change will mean any in-house solicitor can provide advice and assistance to the public, provided they are not carrying out one of the reserved legal activities,” Chancery Lane said.
“However, when solicitors working in an unregulated entity provide advice to individuals or organisations other than their employing organisation, it is likely to be the case that their advice will not have the protection of legal professional privilege which will be a significant concern for local authorities, and indeed other inhouse teams. Also many of the issues applicable to solicitors working in unregulated entities as set out in this paper, will apply – including concerns in relation to conflicts and PII.”
Chancery Lane has produced a case study of the regulatory positon that would apply under the forthcoming regime should a unitary authority decide to create a ‘Newco’ to provide non-reserved services to the public in order to establish other income streams. [Rather than an alternative business structure that would allow it to provide reserved legal services]
The case study says that Newco’s clients could include other local authorities, other public service providers within and beyond its local area as well as charities and other special bodies. Legal services could also be provided in various areas including: child care; employment; governance; housing & civil litigation and property. The local authority’s in-house team would continue to advise the council and undertake reserved work where necessary.
The document sets out the position of Newco in relation to issues such as entity regulation, individual regulation; legal professional privilege (which might not apply); PII and other client protections; client money; and conflicts. It also considers the benefits and disbenefits of Newco’s clients.