SRA gives legal firms more freedom as it binds solicitors to core professional standards

The Solicitors Regulation Authority (SRA) has unveiled a phased review of its regulatory approach with the aim of 'freeing up' legal businesses to 'do business'.

The new approach would allow individual solicitors to deliver non-reserved legal services to the public even while practising in an unauthorised entity.

The regulator said its vision for the future represents a shift away from formerly prescriptive rules in favour of protecting the public by setting out the principles solicitors should follow.

In it positon paper, 'Looking to the Future', the SRA explained its reforms were in response to the rapidly changing legal services market, its intention not to hamper innovation in the sector, and to reduce current levels of unmet legal need.

The SRA accepted that regulation was a hindrance to innovation and that solicitors were not competing on a level playing field.

Public protection

In her foreword to the paper, Enid Rowlands, chair of the SRA board, said: 'Do we really need such complex and restrictive rules when solicitors are already bound by core professional standards and principles such as integrity, confidentiality, and independence?

'Freeing up businesses to do business benefits everyone and we need to do more to help and make sure we do not hinder.'

Rowlands explained the review was also an opportunity for the regulator to ensure it provides proportionate public protection.

'We want to help people to understand what to expect from a solicitor and what safeguards are in place as well as doing more to allow flexibility for solicitors and freedom for firms to grow, innovate, compete, and develop high quality services,' she said.

Paul Philip, chief executive of the SRA, observed that the market was developing at an 'unprecedented rate' and that the review of the Legal Services Act (LSA) may bring further changes.

'We have to design an up-to-date and fit-for-purpose approach that will protect the public and give flexibility to the profession,' he said.

'I want to see an end to the long and unwieldy handbook and instead give the profession simple, clear guidance on what we require. And I think we can do much more to help the public find the services they need and to know what to do if things go wrong.'

Philip added that the new approach would boost competition while 'ensuring a focus on the greatest risks to consumers and helping people to use legal services effectively'.

Access to justice

In addition, the SRA said it would take account of its regulatory objectives enshrined in the LSA, including the improvement of access to justice.

Asked by SJ how the regulator plans on achieving this following the government's continued swingeing cuts to legal aid, Philip said it was the SRA's job of making sure regulation did not 'get in the way' of solicitors helping the public.

The SRA also suggested that it needed a more proportionate and targeted regulatory approach in relation to pro bono work undertaken by solicitors.

Philip admitted he was expecting a mixed reaction from the profession, with those involved in pro bono activities likely to welcome the review.

Meanwhile, those involved in large practices who 'don't go around with the handbook strapped to their back' will probably wonder why the regulator was undertaking a review as 'they rely on their compliance people'.

'Solicitor brand'

The regulator's position paper argued that the changes would not 'water down' the solicitor brand but would instead strengthen it.

'Ultimately, the "solicitor brand" will stand or fall on whether it remains relevant, and in particular if the reputation for excellence is matched by actual consumer experience,' said the SRA paper.

The SRA will launch a formal consultation on the proposed changes in spring 2016 and further consultations of the phased review over the next 18 months.

John van der Luit-Drummond is deputy editor for Solicitors Journal
john.vanderluit@solicitorsjournal.co.uk | @JvdLD