SRA: Chancery Lane concerned at decision to grant waiver


The Law Society this week accused the Solicitors Regulation Authority (SRA) of allowing the creation of alternative business structures 'through the back door', after the regulator granted a waiver to a non-solicitor body allowing it to provide police station advice under the Criminal Defence Service (CDS) Direct scheme.



The SRA granted the waiver last week to permit Bostalls, a legal support agency, to fulfil its contract to operate the Legal Services Commission's (LSC) expanded telephone advice service.



Rules 12 and 13 of the Code of Conduct prohibit a solicitor employed by a limited company or by a non-solicitor to provide legal services to the general public, with the exception of the provision of telephone advice direct to the client.



Chancery Lane said the decision will allow an unregulated commercial body to deliver the majority of the CDS Direct service. Law Society chief executive Des Hudson said: 'The SRA decision amounts to setting up alternative business structures through the back door. How can the SRA meet its regulatory obligations in respect of this organisation, given that its powers only cover the solicitors working for the company and do not stretch to regulating the organisation itself?'



An SRA spokesman confirmed the waiver had been granted, but said he was unable to discuss the reasons. 'We have taken legal advice and are confident that the scheme is lawful.'



Bostalls managing director Andy Scripture said: 'It would not be appropriate to go into the details, but the SRA screened our application and granted it. I don't see any regulatory issue - we are regulated by the SRA and the LSC and peer reviewed.'



Catherine Baksi