Conflict of interest rules hold lawyers back, says report

The Law Society's conflict of interest rules are 'uncompetitive, confusing and out of date', a review by the City of London Law Society has said.The review, held at Chancery Lane's request, says the rules are unclear and more restrictive than those in continental Europe.

'This makes solicitors uncompetitive...

in a manner likely to be relevant to the Office of Fair Trading's review of competition restrictions in the professions,' it said.Tony Sacker, chairman of the City of London Law Society, said: 'Strong conflict rules are essential to protect clients' interests.

At the same time, City firms are regularly working for highly sophisticated users of legal services who will often prefer to see flexibility in rules so they can make use of particular expertise.'The society has proposed a new set of rules, written from a City perspective, for consultation.

The review was headed by Clifford Chance partner Chris Perrin.

Neil Rose