The Law Society has criticised proposals which will allow newly-qualified solicitors to run their own unregulated law firms. Which is a bit odd given nothing could possibly go wrong.
Currently, solicitors must practise in a regulated firm, and if they work for an alternative legal services provider they must describe themselves as non-practising solicitors. But under SRA plans to split the Code of Conduct in two, with one governing solicitors and one covering regulated firms, the prohibition will be lifted and solicitors will be free to work in alternative providers with their title intact.
They still won't be permitted to offer reserved legal activities: the conducting of litigation, probate activities, the administration of oaths, the exercising of rights of audience and the drinking of port before 4pm. But they also won't have to wait until they're 3PQE before they can set up and run a firm as a solicitor. And they could save a lot of cash, because there is no requirement for an unregulated firm to hold professional indemnity insurance, which is one of the largest drains on regulated firms' coffers.
The SRA anticipates that the change will result in "better and cheaper" access to solicitors, give them wider employment opportunities and "help to strengthen the overall solicitor brand". But the Law Society's chief executive Catherine Dixon warned it would end in global catastrophe.
Dixon said the proposals could result "in two tiers of solicitors, those working in a regulated entity and those who are not". She said that NQs generally appreciate the support and guidance of more senior colleagues and that if that's not available, "it could place clients at risk, as well as risking the standing of the solicitor profession".
A spokesman for the SRA told RollOnFriday, "Our proposals will not create two tiers of solicitor – all will be subject to the same education and training and high professional standards as is the case now." He said, "it makes no sense that under current restrictions, solicitors are among the only people unable to offer legal advice through an unregulated business".
The SRA consultation is open for your considered contributions until 21 September.
Tip Off ROF
Currently, solicitors must practise in a regulated firm, and if they work for an alternative legal services provider they must describe themselves as non-practising solicitors. But under SRA plans to split the Code of Conduct in two, with one governing solicitors and one covering regulated firms, the prohibition will be lifted and solicitors will be free to work in alternative providers with their title intact.
They still won't be permitted to offer reserved legal activities: the conducting of litigation, probate activities, the administration of oaths, the exercising of rights of audience and the drinking of port before 4pm. But they also won't have to wait until they're 3PQE before they can set up and run a firm as a solicitor. And they could save a lot of cash, because there is no requirement for an unregulated firm to hold professional indemnity insurance, which is one of the largest drains on regulated firms' coffers.
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The SRA anticipates that the change will result in "better and cheaper" access to solicitors, give them wider employment opportunities and "help to strengthen the overall solicitor brand". But the Law Society's chief executive Catherine Dixon warned it would end in global catastrophe.
Dixon said the proposals could result "in two tiers of solicitors, those working in a regulated entity and those who are not". She said that NQs generally appreciate the support and guidance of more senior colleagues and that if that's not available, "it could place clients at risk, as well as risking the standing of the solicitor profession".
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A spokesman for the SRA told RollOnFriday, "Our proposals will not create two tiers of solicitor – all will be subject to the same education and training and high professional standards as is the case now." He said, "it makes no sense that under current restrictions, solicitors are among the only people unable to offer legal advice through an unregulated business".
The SRA consultation is open for your considered contributions until 21 September.
Comments
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Leave the NQ stooges to take the rap.
Will this be in by the time I get out of prison in 3 years time? Please can somebody confirm today so me and the other lags can get planning?
Thanks
Sammy "the fox" Guilliano
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Trade Mark Attorneys have faced the "two -tier" issue for years. It isn't pretty - its worse for you guys if the unregulated peeps can even use the title solicitor...
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Like Sammy gives a toss about directors duties.
Sammy is in prison so he probably took little notice of laws relevant to theft, fraud and who knows what.
On the back of your advice though, he is bound to be taking a closer look at directors duties before concluding that the establishment can stick it up the pipe.
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Scaremongers should Better Call Saul, but if the profession could even the field for the NQs, there are much brighter, more entrepreneurial and committed lawyers itching to break away from the staid and (dare I say) redundant overlords to which they feel their life has been committed since regrettably joining the profession.
I don't know the answer but to properly and efficiently regulate such an initiative will stimulate greater competition.
I've worked in enough fvcking big ticket shops in the UK over the years, and since moved to emerging markets, to appreciate how this should make the wastrel, dead-wood-laden top firms get their fvucking act together.
It's a fvucking goldmine to be tapped for the over-lawyered UK legal industry. I have my doubts the SRA has the means to follow-through without changing gruds.
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