The Solicitors Regulation Authority (SRA) has backed controversial proposals to allow non-solicitors in law firms to handle client money – despite opposition from members of a profession labelled ‘historically obsessed with status’, the Gazette has learned.
The SRA board decided at last week’s meeting to recommend changes to the Solicitors’ Accounts Rules (SAR) allowing non-solicitor managers of legal disciplinary practices to authorise client account withdrawals.
The board rejected proposals for compulsory accounts training and the need for two signatories where one was a non-lawyer. The changes arise from the Legal Services Act 2007, to be implemented in 2010-2011.
Richard Barnett, senior partner at north-west firm Barnetts, said the changes were overdue in a profession ‘historically obsessed with status’.
He said: ‘Even under the old rules there was always the risk of a fraudulent partner. The headline concern must be a firm’s security procedures. There has to be a robust form of accountability in place.’
Law Society council member and consultant Simon Young said there was never any logic in distinguishing between a lawyer and a non-lawyer. ‘A barrister, for example, has no training in the SAR. And anyway, the old restrictions only applied to the client account – non-lawyers have always been trusted to write cheques against the firm’s own account.’
There was opposition to some of the proposals within the SRA board itself. Yvonne Brown, board member and principal of London legal aid firm Yvonne Brown & Co, backed the call for SAR training.
She said: ‘Understanding the accounts rules was one of the most difficult aspects of qualifying as a solicitor. It’s not surprising that lawyers from other jurisdictions fall foul of the rules and end up before the Solicitors Disciplinary Tribunal. Training would help avoid this.’
Board member Edward Solomons, head of legal services for the Metropolitan Police, said such training was ‘in the public interest.’
SRA policy adviser Alison Crawley argued that there was no need for ‘prescriptive training requirements when most firms already have the most stringent procedures in place’.
‘Are firms going to force training on financial directors who are made up to partner?,’ she added. ‘They already know the SAR inside out.’
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