The legal services bill promotes good communication between the solicitors regulation authority and the proposed office for legal complaints, says Peter Williamson


The legislation that will shape the future of legal services is reaching an important stage. The Legal Services Bill will shortly be going to the House of Commons. Since its introduction in Parliament, the Solicitors Regulation Authority (SRA) has been pleased that the Bill has been strengthened by several amendments, some of which we have initiated or supported.



The Bill now places a clear duty on the proposed legal services board to set criteria for the separation of regulatory and representative functions. This ensures the SRA’s independence, and has opened a clear and open channel for us to communicate with the legal services board in our own right. In all our work, we shall, of course, continue to work constructively with the representative Law Society, since it is the view of the SRA’s board that the regulator should wherever possible work with the regulated community.



We are pleased that the planned office for legal complaints now has a strengthened duty to share information with us as the regulator – it is important that lessons learned from consumer complaints inform our work as a regulator, and vice versa.



Many of you will be interested in how the Bill will enable solicitors’ firms to take on other lawyers as partners or owners – legal disciplinary practices (LDPs). Many will also be interested in the provisions that will allow for the development of alternative business structures (ABSs), including external ownership.



There has been much speculation on this, and through our roadshows I have been made aware that firms are beginning to plan for both small and significant changes. It is clear that commercial bodies which cannot at the moment provide legal services or own law firms are considering how they may position themselves. All I can say at the moment is that you should not assume the changes can be made overnight. The SRA’s view is that we need to learn to walk before we can run, and that changes to the nature of legal business structures should be made thoroughly, starting with LDPs.



It now looks as though it will be October, rather than July, when the Bill will receive Royal Assent. The government has indicated that the legal services board and office for legal complaints will not be up and running until 2010. It is only after then that licensing arrangements for ABSs can be considered. I may be being unduly pessimistic, but I would be surprised if we were in a position to grant licences for ABSs before 2011.



However, we will not have to wait that long to permit LDPs. We have obtained the technical amendments which give the SRA the power to regulate mixed practices of lawyers. So we will be able to change our rules to regulate such practices before the legal services board comes into full operation.



The powers that are being adapted to permit us to regulate LDPs are our powers in the Administration of Justice Act 1985 that relate to incorporated practices. We envisage that all LDPs – whether a partnership or a corporate practice – will be able to apply for a licence to operate as a ‘recognised body’. We will, of course, be consulting on these changes as we develop them but the earliest they are likely to be in place will be mid-2008.



These issues will be important for the development of the profession and we will keep you informed of any regulatory changes.

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One of the most enjoyable aspects of my job is to be able to meet solicitors, explain our policies, and listen to your views. Last autumn, the SRA started a rolling programme of ‘Regulation Roadshows’ – events held in the early evening at which SRA board members and senior executives join me to make presentations on issues such as the new Solicitors Code of Conduct, and training and education. It is immensely valuable, when issues are discussed by the SRA board, to be aware of what practising solicitors across the land are thinking about them.



One topic nearly always raised is referral fees and our campaign of enforcement. This week has seen another important development in this area with the start of regulation for claims management companies. From 23 April, solicitors will only be able to deal with authorised providers. These measures have been brought in by the Compensation Act 2006 to improve standards in the claims management industry.



The government was aware that the public needed protection from unscrupulous providers using aggressive selling techniques and misleading contracts. There was concern about some of the tactics used to obtain leads. Checks have been made on the 1,000-plus organisations to make sure they comply with their rules of conduct on advertising, getting business, and contracts with clients. There is a website which allows you to verify the status of introducers (www.claimsregulation.gov.uk). Should you fail to make this check, you could be aiding and abetting an offence and be open to disciplinary sanctions.



But back to the road shows. We are planning events in Cardiff on 22 May, London in July, and Newcastle in September. In several instances, we have been delighted to organise the roadshows in conjunction with the local law society. I hope you come along.



Peter Williamson is chairman of the board of the SRA