SRA proposes easing restrictions on conflicts

Proposed amendments to the Solicitors' Code of Conduct 2007, released by the SRA last week (11 December), could see an increase in the number of circumstances in which law firms are permitted to act for clients with conflicting interests.

The suggested changes to rules three and four, covering conflicts of interest and duties of confidentiality and disclosure respectively, also see the SRA moving to increase the circumstances in which information barriers can be used.

Under the plans, firms will be able to act for two or more clients - provided the clients gives written consent, measures to protect confidentiality are put in place, and an agreement is reached at the outset as to what happens if joint representation becomes untenable.

The exceptions to the rules would only apply to 'sophisticated' clients, which the SRA defines as those that have their own in-house legal department or that have obtained separate legal advice on the issue.

Meanwhile, changes to rule four would allow firms to accept instructions from one client without the consent of a rival client as long as an information barrier is in place.

The SRA said it was considering the proposals in response to issues raised by the City of London Law Society and said change was necessary to ensure that London continues to be seen as a strong business centre without overly restrictive regulations.

The consultation on the proposals is due to end in March 2009.