It is said that good things come to those who wait. So if it is to be judged by the length of the wait, the new solicitors’ code of conduct should be an extremely good thing. The Law Society Regulation Board has taken on responsibility for the last stages of producing the code, which are scheduled to come into force in 2007.


Why the need for a new code? One of our primary jobs as a regulator is to have a set of clearly understood rules that set out the standards of professional conduct. This is not just for the benefit of the profession – increasingly, members of the public want to know what they should expect when they employ a solicitor.



As we move towards adopting our new identity as the Solicitors Regulation Authority (SRA) in January 2007, we plan to make consumers more aware of these professional standards. This will boost public confidence as well as helping to remove some of the mystique about solicitors’ work.



The new code will replace the Guide to the Professional Conduct, which dates back to 1960. That guide has grown steadily, and in some ways confusingly, over the years. Many solicitors are puzzled about which parts of the guide are mandatory, what is guidance, and what is best practice. As prohibitions have been lifted or relaxed, this has led to more rules and guidance to explain how things can be done. The raft of rules dealing with issues such as referral arrangements, advertising, separate businesses and publicity, all of which have detailed codes attached to them, emphasises the point.



The new code arrives at an opportune time as it coincides with the launch of SRA, which will have a more modern and proportionate approach to regulation. The new, more direct language demonstrates our approach. Rules are now addressed to ‘you’, which includes all regulated individuals, rather than ‘a solicitor’. Terms such as prima facie – which may well be meaningless to the public – have been removed.



So what is new? First, there will be a simpler set of mandatory rules and supporting guidance. The Regulation Board played its part in framing rule 1, which sets out the core duties of a solicitor. This bedrock rule states that solicitors must uphold the rule of law and act with integrity. Solicitors must not allow their independence to be compromised and they must act in the best interests of each client. They must provide a good service to their clients and they must not behave in a way that is likely to diminish the trust the public places in them or the profession.



In about 70 words, rule 1 sets out what should be at the heart of what it means to be a solicitor. These core duties are the overarching framework within which the other 25 rules can be understood. They should help everyone to navigate their way through those situations not covered in the detailed rules, as it is impossible to predict every dilemma that may arise in legal practice.



The rules will bring about a number of changes to the business management of law firms. Responsibilities for money laundering reporting, the handling of conflicts of interests, storage of documents, staff training and even control of budgets and cash flow will require principals to have systems demonstrably in place. However, it will be left to the individual firms to decide what type of system is appropriate for them.



Two of the new rules are already in place. In April changes were made to the rules on conflict and confidentiality. This is the first time that these issues have been dealt with as statutory rules, rather than matters of conduct. They reflect the fact that clients’ needs, the law and the way in which firms now practise have changed significantly in recent years. While keeping essential client protection, they allow greater flexibility for firms to respond to their clients. For the first time conflict is clearly defined, rather than the previous list of circumstances where a solicitor should not act. The rule also allows solicitors or firms to act with client consent in certain very limited situations of conflict, subject to stringent conditions.



On confidentiality, the new rule clarifies the duties of solicitors in complex situations involving the protection of confidential information. It establishes that where the duties of confidentiality and disclosure come into conflict, the duty of confidentiality must be paramount. There is also new recognition of the use of information barriers, with strict safeguards.



These new rules seek to provide the right balance between protecting the vulnerable and over-regulation. For example, the regulation of City firms needs to acknowledge that they are often dealing with more sophisticated users of legal services. But there is also protection for vulnerable clients needing legal help for the first time.



It is clear that the profession wants the code to be online, and it is important that the public can access it online, too. We

are making every effort to make the website version easy to search. It will also include helpful case studies to illuminate the rules.

The new code and guidance will run to 200 pages, rather than 900 at present. That demonstrates our new style of regulation – clear, proportionate and fit for the future.



Peter Williamson is the Chairman of the Law Society Regulation Board