The Law Society Presidential Reference Group

A discourse on the future of legal regulation

Purpose of the group

To develop leading-edge thinking about the regulation of those who provide legal services, with particular attention paid to how to best implement outcome focused regulation (OFR) throughout the solicitors' profession. The Solicitors Regulation Authority (SRA) is aiming to implement OFR by the end of 2011.

The presidential group has three goals:

1. To maintain the momentum created by the Smedley and Hunt reports.
2. To investigate how Hunt's recommendation can be transplanted across the whole profession.
3. To advise the Law Society on any practical issues which may arise during the implementation process.

Background

Over recent years the way lawyers are regulated has changed considerably. The Legal Services Act 2007 has paved the way for the creation of alternative business structures which will allow non-legal entities to realise synergies with legal firms by offering integrated professional services.

How best, then, to regulate all entities undertaking legal work in this brave new world?

The Law Society commissioned two reports related to this topic. Nick Smedley reviewed whether the current arrangements for the regulation of corporate legal work were appropriate, and Lord Hunt of Wirral examined how best to regulate lawyers generally in this new environment. Both reports strongly recommended a shift towards tailored regulation which places more responsibility on firms to manage their own compliance with regulatory requirements. The aim is that the future regulatory system should be targeted, proportionate and outcomes focused. It should also be operated by an expert and empathetic regulator.

We now need a roadmap which will steer us towards this modern regulatory regime.

Working arrangements

The group will bring together solicitors from all parts of the profession as well as members from the SRA, academia and non-legal regulatory backgrounds. A list of the members will be published shortly.

The group does not have a representative role, it will not make decisions or speak for the Society or respond to consultations. These matters will remain the responsibility of the Regulatory Affairs Board and other relevant boards.

Decisions on regulatory matters are for the SRA Board. This group does not trespass on this in any way. The SRA will still have to publicly consult on any regulatory changes it wishes to implement.