After 12 months of operation, senior transactional lawyers still feel detached from the Solicitors Regulation Authority (SRA) despite risk and compliance heads’ assertion that the body has been giving City firms more attention.
Next week (29 January) will mark the one-year anniversary of the Law Society’s separation of its representative and regulatory arms, a move that created the SRA. Since then, City firm general counsel and compliance heads say the organisation has been more in touch with the profession.
However, the message has yet to filter through to some senior City lawyers, who believe the body remains detached. Travers Smith managing partner Chris Carroll said: “Although I think separating the bodies is important, it has not had much impact other than having to announce to our clients we are now regulated by the SRA. I just do not come across them, and I certainly do not regard them as any more fearsome.”
One corporate partner at a leading City firm added: “I do not think any of us feel we have anything to do with the SRA. Clearly they will have more relevance when the Legal Services Act goes through, but at the moment they have a lot of catching up to do, from the perspective of City firms.”
Slaughter and May corporate partner Nigel Boardman said the SRA did not impinge on his or most other lawyers’ daily lives. But he added that the situation had improved a little, saying: “Anecdotally, people are more likely to feel more positively towards the regulator than before. The old Law Society was just treated with contempt.”
The SRA has worked to establish closer links with the City and meets regularly with the City of London Law Society; particularly its professional rules and regulation committee, headed by Clifford Chance general counsel Chris Perrin (pictured). It has also held a number of roadshows with regional law societies across the UK and has sought to address criticism that it is detached from City firms by consulting with the National Consumer Council on how to better engage with its consumers.
Linklaters general counsel Raymond Cohen commented: “We have seen an SRA that is professional and interested and willing to engage with the City. Certainly, in contrast to what we had before, they are committed to take account of all parts of the profession. It is a new regime with new priorities, but I doubt this has percolated out into the City.”
In the last 12 months the SRA has kicked off reviews in a number of areas, covering topics from conflicts to education and the Legal Services Act. In 2008, it has made issues surrounding alternative business structures one of its main priorities, including launching a consultation into character suitability tests for non-lawyers joining legal partnerships.
SRA chair Peter Williamson said: “Over the last year we have consolidated and informed our policy, particularly regarding education and training. Our new code of conduct has been well received and we were pleased to have a big debate over what is now the Legal Services Act. We are also looking at powers to fine, which will bring us into line with other regulators such as the Financial Services Authority (FSA).”
However, despite the positive steps made by the SRA, the profession still feels it has a long way to go to match the FSA. Perrin added: “They are moving in the right direction, but we now need to see how they will enforce the rules. As yet there has been no public enforcement, and we do not know whether it has teeth.”
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