LSB’s proposed ethics policy risks undervaluing current regulatory regime

News

The Law Society of England and Wales welcomes the broad outcomes of the Legal Services Board’s (LSB) proposal to issue a statutory statement of policy*, seeking to reshape how regulators and legal sectors interpret and uphold professional ethics.

The scope and tone of the LSB’s consultation, however, risks overstating the systemic nature of the issues and undervaluing the current regulatory mechanisms overseen by the Solicitors Regulation Authority (SRA).

Law Society president Richard Atkinson said: “While the LSB’s intention to reinforce public confidence in legal services is understandable, there is a failure to acknowledge the robustness of the current regulatory system.

“Most of what is included in the proposed statement of policy is already covered by the SRA regulations. The LSB identifies issues such as non-disclosure agreements (NDAs) and strategic lawsuits against public participation (SLAPPs), both of which the SRA has taken steps to address.

“The view that professional ethics is not front and centre of how solicitors operate is a misconception which needs to be addressed. Isolated or exceptional events that draw a large amount of public attention are often assumed to be more representative of the way the profession conducts itself than is actually the case.

“The LSB risks drawing disproportionate conclusions that in turn have the potential to lead to overregulation, contrary to the objectives of the Legal Services Act.

“Most of our members are already aware of what good ethical practice comprises. However, with the day-to-day commercial pressures faced by them, ethical dilemmas can arise and prove challenging for many solicitors, at all stages of their career.

“We recognise that more can be done to support the legal profession with the ethical challenges they face. For example, one intervention the SRA might consider is to issue case studies and guidance, to help build awareness of ethical issues, and confidence and skills in addressing them.

“Our in-house ethical framework guides in-house solicitors at all levels and across all sectors to identify and navigate ethical challenges. It also helps in-house solicitors to build the skills, behaviours and workplace culture that enables them to embed good ethical practice and thinking.

“We would challenge the LSB to clarify the extent to which its proposed framework is corroborated by evidence of systemic failures across the diversity of professional practice versus high impact but isolated failings.”

Notes to editors

*Read the statement of policy on upholding professional ethical duties.

Read the Law Society’s full consultation response.

See the Law Society’s ethical practice framework for in-house solicitors.