More than half of independent law firms contributing to this year’s second Bellwether report were unaware of, let alone prepared for, imminent regulatory reforms to allow freelance solicitors.
Among the four out of ten firms that said they were aware of the changes, many were not sure what measures to put in place to safeguard their firm.
The Solicitors Regulation Authority (SRA) ‘Looking to the Future’ reforms, due to take effect later this year and next year, include allowing solicitors to provide non-reserved legal services directly to clients outside of the framework of a regulated law firms. In-house solicitors would be allowed to give legal advice to their employer’s clients, the rulebook would be shortened and separate codes of conduct provided for individuals and firms.
Some 70% of lawyers at independent firms agreed the reforms could compromise the ability of regulated firms to compete effectively with solicitors working outside regulated law firms, and the same number thought the reforms could lower standards in the market, while 65% believed competition would increase.
Sophie Barrett-Brown, senior partner at Laura Devine Solicitors, says in the report: ‘Firms are challenged to do everything faster, cheaper—there are certain ways that you can do that, for example, with AI [artificial intelligence] or technology to streamline work—but there’s only so much that can achieve and for many types of work a certain amount of time is still needed for good, old-fashioned thinking and doing it properly.’
The research also highlighted a general lack of satisfaction with both the SRA and the Law Society. Some 58% of respondents do not believe the SRA has adequately represented small and independent law firms in its formulation of policy and regulation. Half the solicitors surveyed believe the Law Society represents their interests badly.
Viv Williams, consulting director at Symphony Legal Consulting, says in the report: ‘The SRA feels that it needs to pursue certain things regardless of what the Law Society says because there’s something of a struggle for survival between the two.’
The ‘Bellwether Report 2018: Discussion Paper - A dangerous allegiance to the status quo?’ is based on discussions with more than 200 legal professionals and a round table event, and is written by Jon Whittle, LexisNexis market development director.
