In-house lawyers could pay less for practising certificates once the Solicitors Regulation Authority decides how it will fund itself in the new era ushered in by the Legal Services Act.

The Gazette has learned that the SRA is about to consult the entire profession on how a higher annual fee for ‘recognised bodies’ – a charge payable to the SRA by each firm, legal disciplinary practice and multi-disciplinary practice – should be applied.

By increasing the recognised body fee, the SRA expects to be able to reduce the amount of money it draws from the practising certificate fee – which in 2007/08 was £466 of the £950 annual charge. Because most in-house lawyers do not pay a recognised body fee, they will end up paying less for their practising certificate.

The SRA said the consultation will help determine the fee payable by each type of recognised body, with size and turnover among the considerations. A further consultation is likely before proposals are laid down in 2010.

The SRA has already proposed to ask firms for information on turnover, work type, number of solicitor fee-earners and negligence claims as part of the October 2009 renewal process. It is seeking views on the ‘effectiveness and clarity’ of the requirements as part of a separate consultation, which closes on 31 March.

The recognised body fee paid by each individual practice may eventually be based on the regulatory risk it poses – mirroring the Financial Services Authority’s approach.

‘With increased data it may be possible to say objectively that particular types of firms pose a different regulatory risk,’ an SRA spokeswoman said. However, this is ‘unlikely’ to occur until after 2010.