The SRA is undertaking a review of the in-house sector. The main focus of the review will be Rule 4 of the Practice Framework Rules which is set out in the SRA Handbook of regulatory requirements. The aim of the review is to ensure their approach to in-house practice is proportionate and better targeted at delivering outcomes which are in the public interest.
The in-house review is being supported by research being carried out by the economic consultancy Oxera. The research will enable the SRA to obtain base line information on the work of in-house lawyers such as how in-house teams are made up, what work is carried out-reserved or unreserved and what motivates solicitors to work-house rather than in law firms. The research will also help the SRA to understand the sector in terms of emerging risks.
The SRA is very interested to hear about common problems the in-house sector is facing, and plans to carry out a series of extensive stakeholder engagement to help form policy in relation to in-house practice. For example the SRA is aware that changes in legislation and cut backs in funding are forcing some employers to innovate in the way their in-house legal teams deliver legal services, or, in the case of the not-for-profit sector, to consider charging for services that are currently free.
The research from Oxera is due to be completed in the Spring of 2013 and it is anticipated that dates for a consultation on Rule 4 of the Practice Framework Rules will be confirmed in the early part of 2013.
Regulating 'special bodies'
Work is also being undertaken to develop a regulatory regime for 'special bodies' - that is, trade unions, not for profit bodies and community interest companies which currently employ in-house lawyers to provide reserved legal services to the public. Such bodies have a transitional period of protection under the Legal Services Act 2007 to enable them to carry on providing these services without being licensed as ABSs; but they will need to become licensed as special body ABSs if they want to continue to provide these services to the public once the transitional protection is brought to an end.
The transitional protection can only be brought to a end by the Lord Chancellor on the recommendation of the Legal Services Board (LSB) . The current proposal from the LSB is that the period should end in April 2014.
When the new framework is in force, solicitors employed in special bodies will no longer be regulated as in-house lawyers, because they will be employed by fully regulated practices. As with the in-house review, the SRA is actively engaging with stakeholders to develop a framework for special bodies which is proportionate and effective.
Comments
If you would like to provide comments prior to the consultation in Spring 2013 please email:
Rebecca.Maxim@sra.org.uk and Derek.Mitchell@sra.org.uk.