Legal Services Act – update on our work

Last updated 29 August 2008

Work has been fast and furious. Within days of the Council of the Law Society delegating its rule-making powers, the SRA Board on 24 July made the package of rules and regulations that will, in due course, support LDPs and firm-based regulation.

We received high quality and constructive feedback from our consultations. Thanks to all who contributed—you helped us design a platform on which to base the changes that the Legal Services Act will bring in.

The provisions aren't yet it force. We must wait for the Master of the Rolls and Lord Chancellor/Secretary of State to agree and approve them.

The provisions will need to be changed before they come into force. This is because it is possible that, during the approval process, we'll identify some improvements. We'll also need to make some further changes to deal with "tiers of ownership". This will allow a recognised body to have more that two tiers of corporate ownership. The Legal Services Act will need to be amended before we can make the necessary changes to these provisions.

In spite of this glitch, we are currently on course to regulate LDPs on 1 March 2009.

Although we have achieved a major milestone, a lot of work remains to be done. We continue to redesign and adapt our processes—so that they are appropriate for the new regime. We are also starting work on amending the guidance notes that support the rules of the Solicitors' Code of Conduct.

We are now beginning to look at the sort of issues we'll need to consider when we work with the Legal Services Board on designing a regulatory framework for alternative business structures.

We'll continue to keep you up to date about significant developments and changes. Towards the end of 2008, we'll also tell you more about the SRA's new processes for regulating LDPs and firm-based regulation as these are refined (e.g. what the various application forms will look like). Meanwhile, see our Legal Services Act FAQs.

If you'd like to tell us about any related issues, please email LSA@sra.org.uk.