Law Society president Paul Marsh has unveiled plans to revise current regulations, including changes that could see corporate firms regulated under different terms to their high-street competitors.
However, the SRA has expressed concerns over the new plans, stating they were not given adequate notice of the proposed changes.
The SRA, launched in 2007 as part of the Law Society, was designed to act as the regulatory body for solicitors and law firms.
SRA chair Peter Williamson said: “The absence of real advance consultation, coupled with comments about the review by the Law Society chief executive, suggest that the Law Society is confusing representative and regulatory functions.”
Law Society vice president Bob Heslett will chair a reference group made up of corporate lawyers from large firms and their clients to review risk affecting different law firms and their clients.
Marsh said: “The profession wants the Society to consider how to optimise regulation interests of all. Solicitors want an effective regulatory system that is relevant to the markets firms operate in, whatever the size and location of the firm.”
Separately, the Law Society has also issued guidance for law firms concerned about client accounts in the event of a bank’s collapse.
The practice note gives interim advice to firms about how to mitigate any risk of liability for client funds they have deposited. The guidance suggests that it is unlikely firms will be liable if client money is lost through a bank’s collapse.
However, it suggests firms should update their terms of engagement to warn clients they may not be liable to repay any money lost through a banking collapse.
It also stresses that firms should consider moving clients’ money if there are doubts about a bank’s solvency and states that firms can divide money into different accounts to help reduce risk.
