The proposed new SRA regulations – fudged not focused?

A deafening silence when there should be debate…

The Solicitors Regulation Authority has today published the ‘final draft’ of its move to principles-based regulation, which will see a radical overhaul of the current code of conduct, abolishing many of the current detailed rules in favour of 10 broad principles…. From Law Gazette 20/10/10

The proposed regulations appear fudged not focused. The previous ‘tick box’ method did not improve standards, but did give lawyers certainly as to compliance. It is assumed that non-compliance with these significant regulatory changes is not an option but currently there seems to be negligible interest. Is it unclear what is expected by the new rules? Are they being ignored for a reason or is the profession ready to adapt to the new regime?

The purpose of this document:

Do you want to be part of an entirely independent discussion using social media and discussion groups? The aim is to identify the key issues, clarify and categorise them, to form a consensus on compliance. The objective is to help provide constructive solutions to help law firms demonstrate compliance and quantifiable improvements in service to both the SRA and your clients.

We are seeking a rapid response from solicitors, service providers to law firms and other stakeholders. Your feedback would be welcome.

Background:

Before compliance would generally be achieved by going through the process and ‘ticking the boxes’. Now there is no ‘route map’ and a completely different approach required with the shift to ‘outcome focused regulation’, quite probably with methods showing evidence of measurement and progress.

As an example mandatory principle 5 of the currently proposed SRA handbook, states that solicitors must ‘provide a proper standard of service to your clients’. Two extracts from Chapter 1 of the proposed SRA Code of Conduct mention ‘Helping you and your clients understand each others expectations and responsibilities’ and ‘Ensuring you deliver competent legal services to clients’…

‘Where to start?’ may well be your first question, but for now here are the questions we’re asking:

1) Assuming the regulations cannot be ignored, what are the likely sanctions for not complying?

2) How and with what evidence are you going to be able to produce to showing you are complying with these provisions?

3) Do you think the new ‘guiding principles’ serve to improve standards as well as giving certainty to law firms on compliance? Please give your reasons.

4) SRA auditors used to have had clear criteria to follow and adopt, whereas the new rules introduce subjectivity – is this an alien concept auditors given their approach and training?

5) If the proposed regulations were quantified (where possible) to monitor improvements and solutions offered as to how to achieve these, would that be more helpful?

6) Do the proposed regulations make law firms more susceptible to SRA investigations/client complaints?

Please leave your comments/answers to the questions in the box below and send the link on to other interested parties in your network.