As the reforms to regulation of solicitors begin to take shape, Janet Paraskeva gains some valuable insights into solicitors’ thinking and calls for further feedback to help the Law Society plan for the future

The Law Society is working energetically to prepare for the new legal landscape set out by Sir David Clementi in his review of legal services.


The reforms to regulation are now beginning to take shape and as this process continues the Law Society is making every effort to hear the profession’s views and to understand the varied perspectives taken by solicitors.


This is important both in relation to the reforms to regulation and to the reform and renewal of the non-regulatory role that the Law Society delivers for the profession. The feedback the Society receives will help guide its council in the decisions that it has to make.


What might surprise many is the great appetite for some of the proposals now on the table right across the profession. Many solicitors see that there could be real and exciting opportunities for them in the new environment.


In March, there were some extremely valuable insights into the profession’s views at the annual conference of the Law Society’s Law Management Section. The feedback from an electronic straw poll was fascinating and showed the extent of interest in innovative ways of delivering legal services.


Conference delegates were first asked what they believed would be the most positive impact of the Clementi proposals.


Given six options, a large number of those at the conference (49%) said the principal benefit was the fact that Clementi was a wake-up call to the legal profession about the need for modernisation of legal services. Some 16% thought the main benefit of the review was the fact that it demonstrated the need to streamline resources in their law firms.


Slightly more than 10% said that, as a result of the proposals made by Sir David, there might be new sources of external funding to relieve financial pressures, while a similar percentage said the most positive outcome of the review would be better quality legal services for the client. Only a tenth of respondents thought that the Clementi review would have no positive impact at all.


Of course, this does not mean that there were no anxieties. Inevitably, with reforms as profound as those now on the table, it would be surprising if the profession were unconcerned. While nearly everyone questioned indicated that the changes would bring benefits, they also showed a healthy regard for the possible pitfalls.


The concern for most was the challenge of having to compete with external owners with bigger resources, a view expressed by slightly more than half of those at the conference. This demonstrates that those challenges are beginning to be understood and prepared for.


Other worries were much less widespread – some were concerned about having to drop fees in the face of increased competition (16%), others that talented staff might move elsewhere (8%) – or that clients would do so (3%).


The Law Society’s long-standing policy in support of solicitors going into partnership with other professionals was strongly backed by the response of conference attendees. Legal disciplinary partnerships seemed to be an attractive proposition to the majority of those at the conference. A remarkable 61% said they would be interested in forming a partnership with barristers, legal executives, licensed conveyancers, or patent and trade mark agents so that they could offer an enhanced service to clients.


On the question of taking non-lawyers into partnership, there was a similarly enthusiastic response. Nearly half of the delegates said there was at least an 80% chance of non-legally qualified staff being offered partnership in their firms.


Among non-lawyer delegates at the conference, 85% expressed an interest in partnership if it were opened to non-legally qualified staff. Even more striking was the response from lawyers in the audience – 93% said that they would be happy for partnership to be opened to non-legally qualified staff. That incredible uniformity of view shows that the time has come for change.


Finally, on the question of external investment in law firms there were mixed views. About a third of those surveyed were most concerned about how increased competition would force them to reduce fees. About a quarter said their greatest concern about external investment was the pressure to fight for new clients, while another quarter were more concerned about retaining existing clients under the new arrangements.


These responses give a vivid picture of how solicitors at firms of all sizes feel about the future. There is an important recognition of the challenges ahead. Many solicitors welcome them; and while others are more cautious, most recognise the need to prepare for change, and acknowledge the magnitude of the reforms. This is essential.


It is important to make the most of the time available to prepare for the new regulatory structure and for the new business climate that will exist once the government has introduced a new legal services Act. With a White Paper later this year and legislation the next, we expect that to be in 2008. Now is the time to start planning for that future.


Janet Paraskeva is the Law Society Chief Executive