Implications for practising certificatesSolicitors who are asked to advise professional colleagues in financial difficulties, or who face those difficulties themselves, should note the effect that various financial arrangements will have on a solicitor's practising certificate.Bankruptcy -- Under s.15(1) of the Solicitors Act 1974, an adjudication in bankruptcy of a solicitor operates immediately to suspend his or her current practising certificate.

The effect is that the person may not practise as a solicitor as long as the situation continues.-- By s.16(2) of the Act, the annulment of an adjudication in bankruptcy brings to an end the automatic suspension referred to above.-- By s.16(3), a solicitor whose practising certificate is suspended following an adjudication may apply to the Office for the supervision of Solicitors (OSS) (to whom the Law Society's Council has delegated its powers in these matters) to terminate the automatic suspension.

The 055 has the power to restore the practising certificate without condition, to do so subject to such a condition as it thinks fit, or to refuse to do so.-- A solicitor whose practising certificate is restored subject to a condition, or whose application for restoration is refused, may appeal to the Master of the Rolls within one month of being notified of the decision.-- Under s.12(1)(h) of the Act, a bankrupt solicitor wishing to renew his or her practising certificate at the beginning of the next practice year must give the Law Society six weeks notice of his or her intention to do so, and must submit a certificate signed by two practising solicitors, relating to his or her fitness to practise.Individual voluntary arrangements (IVA) -- By s.13A(2)(c) of the Act, a solicitor who enters into an IVA is liable to have an immediate condition imposed on his or her current practising certificate.-- A solicitor aggrieved by the imposition of a condition or by the terms of the condition may appeal to the Master of the Rolls.-- By s.12(1)(i) of the Act, a solicitor who has entered into an IVA must give notice of intention to apply to renew his or her practising certificate, accompanied by a certificate of fitness, as described above.Partnership voluntary arrangement (PVA) The OSS takes the view that a PVA, being a composition with creditors, has the same effect on a solicitor's practising certificate as an IVA.Reference has been made to the circumstances in which conditions may be imposed on practising certificates: either on renewal at the end of the practice year; restoration following bankruptcy; or following the making of a composition with creditors.The identification of an appropriate condition is a matter for senior staff at the OSS at first instance, with an appeal to the compliance and supervision committee, and thereafter to the Master of the Rolls.When considering what condition may be appropriate in particular circumstances, the OSS, following guidance from the Master of the Rolls, has regard to the interests of the profession and the public and will select a condition that affords protection, while at the same time enabling the solicitor to continue in an appropriate form of practice.

For example, a bankrupt solicitor may have his or her practising certificate restored subject to a condition that he or she should practise only as an assistant solicitor, ther eby freeing the solicitor from the financial strains of practice while his or her financial difficulties are being resolved.A partner who enters into an IVA may have a condition imposed on his or her practising certificate to the effect that he or she should remain with the current firm, assuming that the other partners are not in similar financial circumstances.When any of these circumstances come to the attention of the OSS, normally on receipt of information from the solicitor concerned, the office will write to the solicitor proposing an appropriate practising certificate condition.

The solicitor will have an opportunity of commenting and, in most cases, an agreed solution is identified.

The solicitor's rights of appeal, however, are as mentioned above.In general, the intention of the OSS is to enable the solicitor to return to practice with as little interruption as possible -- his or her practising certificate bearing a condition commensurate with the OSS's duty to afford maximum protection to the public and the profession.

The legislation referred to aims to enable solicitors to return to practice, subject to appropriate safeguards, and it is no part of the OSS's function to do other than facilitate that return with the minimum of delay.For advice on any matter of professional difficulty, call the professional ethics division of the standards and development directorate on 0171 242 1222 or 01527 504450.The professional ethics division provides confidential advice, and it can also refer a solicitor to a member of the solicitors assistance scheme (SAS), a confidential service established by, but independent of, the Law Society to help solicitors who find themselves facing professional difficulties.Members of the SAS have commented that they often find that solicitors are reluctant to seek advice on their own affairs, and scheme members have seen many examples of situations that have been allowed to grow from manageable to near disastrous proportions through delay on the part of the solicitor recognising the need for independent advice.