regulatory update - the law society · getting started and regulatory help statutory background –...
TRANSCRIPT
To be covered
Getting started and regulatory help
Statutory background – LSA and its framework for legal practice
SRA and its regulatory changes – and their impact on you and your firm/practice
Sources of help
www.sra.org.uk
Contact centre: 0370 606 2555
Ethics guidance: 0370 606 2577
Law Society – practice advice: 0370 606 2522
Returning – where to start?
Register with MySRA
Obtain practising certificate (fee for full year 2016/17 £290)
Notify SRA of your practising address within 7 days
Note - new training requirements
Do I need a practising certificate?
Practising certificate necessary:
Sections 1 and 1A Solicitors Act 1974
Effect of Rules 9 and 11 Practice Framework Rules
Accepting position as paralegal
Becoming an in house solicitor
Extensive SRA guidance:
http://www.sra.org.uk/solicitors/code-of-conduct/guidance/do-i-need-a-practising-certificate.page
Coming off the roll an option
Setting up in practice
As a sole practitioner/recognised body - must be authorised
i.e. a firm which has been recognised by the SRA and in which all the managers and owners are lawyers
As an ABS – must be licensed
i.e. a firm which has been licensed by the SRA and which includes non-lawyers as managers and/or interest holders and at least one lawyer manager
Authorisation Rules – your starting point
Legal Services Act 2007
Main objectives:
Open up legal services market
New transparent regulatory framework (NB government review)
Separation of regulatory and representative powers
New efficient complaints regime
Introduction of regulatory objectives
Opening up of legal services market
Legal Disciplinary Practices - 2009
Alternative Business Structures - 2012
Multi-disciplinary Practices - 2014
New Regulatory Regime
Legal Services Board
Ten Approved Regulators
Office for Legal Complaints/Legal Ombudsman
Legal Services Consumer Panel
LSA – approved regulators Legal Services Board (LSB) - Independent statutory body overseeing nine approved regulators
Law Society (SRA)
Bar Standards Board
Chartered Institute of Legal Executives
Council for Licensed Conveyancers
Chartered Institute of Patent Attorneys / Institute of Trade Mark Attorneys – now IPREG
Master of Faculties (notaries)
Costs Lawyers Standards Board
Plus three accountancy bodies
Approved regulators – what they regulate
“Reserved legal activities”
Defined in LSA:
Advocacy and litigation
“Reserved instrument activities” – conveyancing
Probate activities
Notarial activities
Administration of Oaths
Will writing – an interesting story!
The Office for Legal Complaints
Independent ombudsman service known as LeO
Deals with consumer complaints – i.e. redress for poor service – in respect of any regulated firm or individual, not just SRA firms
Powers include:
Requiring firms to pay a charge
Requiring firm to carry out remedial work
Refunding / reducing legal fees
Awarding compensation up to £50,000
SRA – how it describes itself
An outcomes focused, risk based regulator
Proactive – not reactive
A proportionate regulator
Wants to work with firms to help them improve
What it has done
Became a licensing body – December 2012
Introduced the SRA Handbook – October 2011
Developed risk framework/risk index
Re-structured itself:
Authorisation
Supervision
Enforcement
SRA – outcomes focused, risk based regulator
Outcomes focused approach to regulation means “our goal is to ensure that legal services providers deliver positive outcomes for consumers of legal services…” [SRA] Risk based regulator – goal is to identify and manage risks to the public/regulatory objectives
Risk framework and index Risk outlook – updated twice yearly Risk profiling of all firms
SRA Handbook 2011
Manifestation of OFR/risk based approach
Contains all SRA’s regulatory requirements including:
Set of Principles
Code of Conduct
Accounts Rules
Authorisation Rules
Most up to date version online
SRA Handbook - contents The Principles Code of Conduct Specialist Services Rules Authorisation Rules Practice Framework Rules Accounts Rules Indemnity Insurance Rules/Compensation Fund Rules Disciplinary Procedure Rules All training requirements Glossary
The SRA Principles 2011
Mandatory and overarching – you must:
Uphold the rule of law and administration of justice;
Act with integrity;
Not allow your independence to be comprised;
Act in the best interests of each client;
Provide a proper standard of service to your clients;
Behave in a way that maintains the trust the public places in you and the provision of legal services;
The SRA Principles 2011
Comply with your legal and regulatory obligations and deal with your regulators and ombudsmen in an open and timely manner;
Run your business or carry out your role in the business effectively and in accordance with proper governance and sound financial and risk management principles;
Run your business or carry out your role in the business in a way that encourages equality of opportunity and respect for diversity;
Protect client money and assets.
SRA Handbook – the use of outcomes
All rules prefaced by high level outcomes
The Code of Conduct –
Outcomes replace rules
Indicative behaviours support outcomes – tell you what achieving/not achieving outcomes looks like
SRA Code of Conduct
Comprises four sections:
You and your client
You and your business
You and your regulator
You and others
Each section is subdivided into chapters
Code of Conduct - chapters
Section 1 - You and your client
Chapter 1 Client care
Chapter 2 Equality and Diversity
Chapter 3 Conflicts of Interests
Chapter 4 Confidentiality and disclosure
Chapter 5 You client and the court
Chapter 6 Your client and introductions to third parties
The SRA Handbook – compliance officer regime
All firms must have approved at all times:
a COLP and a COFA
Must be:
manager or employee of firm
of sufficient seniority and responsibility to fulfil role
Approved by SRA – but solicitor COLP/COFAs deemed approved in small firms
(COLPs only) a lawyer
Important messages from the Handbook
Firms must have compliance plans – incorporating effective risk management
These must be updated and reviewed
Everyone is responsible for compliance
All non compliance must be recorded
“Material non-compliance” must be reported immediately to the SRA
But – changes on the way
SRA reviewing the entire Handbook
Main proposals
Fewer Principles
2 Codes of Conduct – firm Code and individual’s Code
Standards – not outcomes, no IBs
Shortened simplified Accounts Rules
Solicitors able to provide services to the public through non-authorised entities
Questions
Any Questions?
Bronwen Still Director Infolegal Ltd
Email: [email protected]
Website: www.infolegal.co.uk