SRA’s New Regulatory Model Gives Legal Firms Opportunity

The new regulations offer firms an opportunity to reassess what they are currently doing, and make changes to improve processes that are currently in place.

The SRA states that the new regulatory model will focus on simplicity and flexibility. There are a number of key changes ahead, including:

• new Accounts Rules which are much simpler and more principles based
• separate codes of conduct for firms and individuals
• permitting freelance solicitors to provide reserved legal services
• allowing solicitors to carry out non-reserved work when operating within a business that is not regulated by a legal services regulator.

The new Accounts Rules aim to be shorter, simpler and to reduce the number of prescriptive and date-sensitive requirements, which caused a number of trivial breaches of the 2011 rules.

National audit, tax, advisory and risk firm, Crowe UK, advises that, while awaiting further supporting guidance from the SRA, legal firms should consider which areas are likely to be impacted by the new regulations and begin to prepare for the changes ahead.

Ross Prince, Partner, Professional Practices, Crowe UK, said: “Despite the significant rewrite, for most firms there should be few significant changes to implement. That being said, the new regulations will create space for firms to take a more autonomous role in the way they work and do business.

“We anticipate that these changes will provide a catalyst for solicitors to explore new business models and service delivery outside of traditional firm structure.”

Steve Gale, Partner, Professional Practices, Crowe UK, said: “The SRA’s new Accounts Rules present an opportunity for firms to do things differently. The principles based approach for the new Accounts Rules marks a step forward as it allows firms the flexibility to implement their own guidelines and policies.

“The November implementation date gives firms some time to look at their systems and policies and think about how they might want to change. We await the release of the toolkits and guidance from the SRA as these should aid firms as they do this.”

(Source: Crowe UK)