Martin Partington: Spotlight on the Justice System

Keeping the English Legal System under review

Posts Tagged ‘solicitors regulation authority

‘Looking to the future’ – proposals for regulatory changes from the Solicitors’ Regulation Authority

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In June 2018, the Solicitors Regulation Authority published its Looking to the Future reforms which include a range of changes to how it regulates solicitors. In outline, they are

Shorter, simpler rules and standards

  • A shorter, more accessible Handbook – focussing on the behaviours and principles that support high professional standards.
  • A separate Code of conduct for solicitors and one for firms.

Greater flexibility for solicitors and firms

  • Opportunities for solicitors to provide ‘reserved legal activities’ on a freelance basis, in certain circumstances. They will need to have at least three years’ experience, appropriate indemnity insurance, and will not be able to hold client money.
  • Opportunities for solicitors to do non-reserved legal work in a business not regulated by us or another legal services regulator. They will be bound by our solicitors’ Code.
  • In both instances, solicitors will need to be clear with prospective clients about the protections they bring.
  • Our new, simpler rules will also give firms greater flexibility to make decisions about how they work, helping to make doing business easier.

Simpler Accounts Rules more focused on keeping client money safe

  • Less prescriptive Accounts Rules which focus less on technicalities, and more on issues directly linked to keeping client money safe.
  • Providing a definition of ‘client money’ which maximises the need to protect the public while not placing unnecessary burdens on firms.

Improving clarity on when we take action

  • Our new enforcement strategy will provide greater clarity for the public and profession about when and how we would – or would not – take action against a solicitor or law firm.
  • It will also help us focus on the most serious matters.

Better information on price

  • All regulated firms will need to publish price information for the public and small businesses for seven types of legal services.
  • This includes conveyancing, employment tribunals and probate.

Better information about protections

  • SRA-regulated firms will be expected to display an SRA digital badge on their websites, which will provide a direct link to information on the protections their regulated status gives customers.
  • A modern digital register that will help people more easily find core information about who we regulate.

The proposals are currently with the Legal Services Board. The SRA hopes that the proposals on the publication of price information will come into effect in the autumn of 2018; the rest during 2019. They are at least in part a response to the Competition and Markets Authority Report on competition in legal services published at the end of 2016.

One of the most interesting proposals is that solicitors should be able to work in contexts other than solicitors’ offices, which may create opportunities for the development of new types of legal service work.

For further information see https://www.sra.org.uk/sra/policy/future/looking-future-reforms-summary.page from which this entry has been adapted.

 

 

 

 

 

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Written by lwtmp

October 14, 2018 at 2:47 pm

How diverse are law firms?

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One of the challenges facing the legal profession is trying to ensure that it offers opportunity to all. For the last four years, the Solicitors’ Regulation Authority has conducted surveys which seek to measure diversity in law firms. The most recent report was published in February 2018. While data for any one survey year may not reveal very much, the creation of comparable datasets over a period of years can reveal trends.

The survey looks at a number of characteristics to assess the extent to which law firms offer diversity in employment. This note reproduces and highlights some of the primary factors identified in the survey.

  1. Gender

Women make up 48% of all lawyers in law firms compared with 47% on the overall UK workforce.

Looking at seniority, in 2017 women make up 59% of non-partner solicitors compared to just 33% of partners (though this is up from 31% in 2014).

In the largest firms (50 plus partners) 29% of partners are female. The proportion of female partners has risen steadily from 25% in 2014 to 29% in 2017.

There is a greater proportion of female lawyers in mid-size firms – women make up 54% of all lawyers in firms with six to nine partners and those with 10 to 50 partners. The highest proportion of female solicitors is in firms which have six to nine partners. In these firms, two thirds (66%) of solicitors are female and this has grown over the past four years (from 60% in 2014). Over a third of the partners in these mid-size firms are female (37%) and this has also grown from 31% in 2014.

There are variations by the type of legal work undertaken by firms. While overall women make up 48% of all lawyers, 52% of lawyers in firms mainly doing private client work are female, whereas 40% of lawyer in firms mainly doing criminal work are female.

  1. Ethnicity

There has been an increase in the proportion of black, Asian and minority ethnic (BAME) lawyers working in law firms, now one in five lawyers. This is up 6%, from 14% in 2014 to 21% in 2017.

This increase is largely due to the rise in Asian lawyers in the profession, up from 9% in 2014 to 14% in 2017. Asian lawyers make up two thirds of all BAME lawyers.

Black lawyers make up 3%, which has risen by 1% since 2014 and now reflects those in employment in the UK (3%).

Unlike the profile for women, there is very little difference by seniority among BAME lawyers, 21% of solicitors are BAME compared to 20% of partners.

However, differences become apparent when the breakdown of partners in firms by size is considered. The largest firms (50 plus partners) have the lowest proportion of BAME partners – only 8% which has risen by 1% since 2014. This contrasts with one partner firms, where just over a third (34%) of partners are from a BAME background.

There are differences in the proportion of BAME lawyers according to the type of legal work undertaken by firms. Firms mainly doing criminal work and those mainly doing private client work both have a higher proportion of BAME lawyers, 33 and 37% respectively. Firms doing a mixed range of work and firms doing mainly corporate work both have the lowest proportion of BAME lawyers, 12 and 19% respectively. 

  1. Social Mobility

The survey used attendance at a fee paying school and whether someone was the first in their generation to attend university, as a proxy for social mobility in this survey.

  • Attendance at fee paying schools

There is a significant gap between lawyers and the general population. 22% of all lawyers attended fee paying schools, compared with 7% in the general population. There has been no change since 2015, though the proportion of lawyers attending fee paying school fell by 4% between 2014 and 2015.

There is a difference between partners (24%) and solicitors (20%) who went to fee paying schools. The proportion of partners from fee paying schools in the largest firms (with 50 plus partners) has fallen from 43% to 36% since 2014

The firms which mainly do corporate law have the lowest proportion of state educated solicitors at 56%. Three quarters of solicitors in firms doing mainly criminal and litigation work are state educated (77 and 76% respectively) compared to just over half in corporate firms (56%).

  •  First generation in the family to attend university

In contrast, there is a higher proportion of partners who were the first generation in their family to attend university (59%), compared to 49% of solicitors.

The proportion of partners who were the first generation to attend university is highest within the smallest firms and this decreases with size of firm. This ranges from 63% of partners in one partner firms, to 52% in firms with 50 plus partners.

Only 5% of lawyers did not attend university at all. This has fallen since 2014, when 7% did not attend university.

The principal conclusion to be drawn from these data is that while some increase in diversity can be seen, the legal profession can and should still do more.

Full details of the survey and its findings are at https://www.sra.org.uk/sra/equality-diversity/key-findings/law-firms-2017.page#

Written by lwtmp

March 3, 2018 at 12:41 pm