Handbook lays out ten principles for law firms

The Solicitors Regulation Authority (SRA) has released a handbook laying out details of outcomes-focused regulation and alternative business structures (ABS's).

The SRA has laid out ten principles for the regulation of law firms to avoid wasting lawyers' time on complicated rules and regulations.

SRA chief executive Antony Townsend said: "This is not light-touch regulation, it is a framework that will allow the SRA to regulate firmly and fairly while legal services providers are given the chance to serve their clients in the best possible way.

"Our primary concern will be to work with firms to improve standards. Only when failures are serious or a firm does not show the will to improve will we consider taking formal action."

The handbook says that newly-formed ABS's licensed by the SRA will need the same professional standards as traditional firms and that clients and funds will receive the same level of protection.

Anyone with an interest in an ABS will take a suitability test, and the SRA's existing indemnity insurance and compensation fund provisions will apply to ABS's for all 'regulated' activities.

Firms have six months to familiarise themselves with the handbook and 15 roadshows have been organised around England and Wales to educate interested parties.

The ten mandatory principles are:

1. Uphold the rule of law and the proper administration of justice

2. Act with integrity

3. Not allow your independence to be compromised

4. Act in the best interests of each client

5. Provide a proper standard of service to your clients

6. Behave in a way that maintains the trust the public places in you and in the provision of legal services

7. Comply with your legal and regulatory obligations and deal with your regulators and ombudsmen in an open, timely and co-operative manner

8. Run your business or carry out your role in the business effectively and in accordance with proper governance and sound financial and risk management principles

9. Run your business or carry out your role in the business in a way that encourages equality of opportunity and respect for diversity

10. protect client money and assets.

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