GCs have expressed dismay over the Solicitors Regulation Authority’s latest review on the in-house sector – criticising the regulator for ‘understating’ the severity of the risks faced by solicitors.

In a response posted on LinkedIn, several GCs criticised SRA chief executive Paul Philip for describing the findings of the regulator’s in-house review ‘generally encouraging’. 

The response is signed by 19 GCs, including Maaike de Bie, group GC of Vodafone group; Elizabeth Dyce, group GC at Innovation Group Global; Richard Given, group GC at Openpayd; Ben Watts, GC at Kent County Council; and former Lawtech UK director Jenifer Swallow.

The response said: ‘The review understates the severity of the risks present in the in-house environment and misinterprets or is inadequate in its conclusions as to their cause. It does not reflect the collective experience in-house or what was communicated by and to a number of us during the review, and it offers insufficient action and support in addressing concerns in the interests of stakeholders and society. The data gathered is useful, but the review’s conclusions are not supported by that data.’

Ethical challenges and pressure to compromise on their regulatory obligations are common, the response said.

‘To conclude otherwise indicates underreporting, undue optimism and or other deficiencies in the review. Underreporting is likely for a range of reasons, including low levels of recognition of the issues by interviewees, potentially narrow or leading framing of survey and interview questions, or presenting a confident view to the regulator upon which your career relies.’

The response said some of the findings, such as half of GCs feeling isolated and 64% not raising their regulatory duties with client-employers 'should be a real cause for concern'. That one in three in-house solicitors is struggling to obtain sufficient resource to discharge their duties 'is a red flag that needs understanding and addressing'.

The SRA is urged to re-evaluate the tone and conclusions of its review to ensure the risks are correctly understood, framed and addressed.

Immediate actions are also recommended, such as sending out a template letter to company CEOs and boards outlining an in-house solicitor's regulatory requirements soon after they are appointed.

A spokesperson for the SRA said: 'We welcome all feedback on our thematic review. One of the key purposes of the report is to raise awareness of issues within the inhouse sector, while highlighting both good practice and areas of concern. This report is very much a first step in our development of a range of bespoke resources to support the inhouse community. We will continue to work with the inhouse profession to help shape this.'

To coincide with the review's publication, the SRA held a 'Working in-house: challenges, priorities and opportunities' event, attended by more than 130 in-house solicitors. The regulator said feedback from the event was broadly supportive, with discussion about the issues at hand, practical tips and suggestions to help inform future SRA work.