Reinventing the wheel

At the top of a rain-lashed Gherkin on a chilly February night, yet another review of the legal profession’s regulatory system was discussed, as industry experts came together for dinner to debate some of the most important issues facing law firm managers as we enter a new decade.

A key message to emerge from the third annual Legal Business/Marsh risk management round table is that the proposed shake-up of the regulatory approach used by the Solicitors Regulatory Authority (SRA) could still fail to deal with fundamental concerns about how the profession is governed.

The discussion opened with some disbelief around the table that the SRA was looking to revamp its regulatory stance yet again. In January, the SRA launched a new consultation, ‘Achieving the right outcomes’, and is seeking views on its intention to move towards ‘outcomes-focused regulation’ in 2011. The new approach will concentrate on the high-level principles governing practice and the quality of outcomes for clients, rather than tick-box compliance with rules. The launch is intended to coincide with the SRA’s new powers as regulator of firms operating through alternative business structures (ABS), which come into being next year.

One of the most significant proposed changes is a planned overhaul of the Solicitors’ Code of Conduct to reflect the new approach, designed to give flexibility by avoiding unnecessarily prescriptive rules on process, while giving clear guidance on what firms must achieve for their clients. In the main, those sat around the table are either ambivalent about or irritated by this news.

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