News releases
Regulator seeks views on who should be allowed to own, run firms
10 January 2008
Until now, the only people allowed to become partners in a solicitors' practice have been practising solicitors and certain registered foreign lawyers. But, thanks to the new Legal Services Act, that's about to change.
In the biggest upheaval in the profession for decades, firms of solicitors will be allowed from some point during the first half of 2009 to be owned and managed by other lawyers, such as barristers, and have up to 25 per cent non-lawyers as partners.
These new forms of practice are referred to as legal disciplinary practices, or LDPs. The non-lawyers in a firm will need to approved as suitable by the Solicitors Regulation Authority (SRA). While they won't have to have any professional qualification, they will have to be involved in the delivery of legal services, and not merely be investors. Firms wanting to bring non-lawyers on board will need to demonstrate that they are fit and proper persons.
The SRA is now inviting comments on the development of a "character and suitability" test for non-lawyers who want to become managers in any LDP that it regulates. It wants to hear from consumers and bodies representing them, all providers of legal services—including those thinking about setting up or working in LDPs—and those who procure legal services.
So what sort of people might be non-lawyer managers in LDPs? SRA adviser Alison Crawley said: "In some cases, firms might want to bring on board people who can add value to the development or management of the firm—perhaps a marketeer or an accountant. In others, they may welcome people who bring particular expertise related to the work done for clients. A firm dealing with medical negligence might want to involve a former surgeon; one dealing with civil engineering might want architects or surveyors. I've heard of a firm specialising in maritime law that might be interested in having a shipwright as a non-lawyer manager.
"There's really no limit to the range of professions that might become partners or owners of legal practices in the coming decade."
This won't come at the expense of protection of the public and consumers of legal services, though. SRA Chair Peter Williamson commented: "The changes enabled by the Legal Services Act are exciting. The new flexibility in how legal firms are constituted will stimulate competition. But our overriding priority must be to ensure that only people with right levels of honesty and integrity are allowed to join legal disciplinary practices. Otherwise public confidence in the legal profession would be harmed."
"We've adopted certain principles to guide our approach to ensuring that non-lawyer managers of LDPs will be suitable people. We are now consulting widely to ensure that our approach is the correct one."
To participate in the consultation, visit www.consultations.sra.org.uk.
For an easy guide to the Legal Services Act and how it will change the legal profession, go to www.sra.org.uk/LSA.