£150m limit for fines against ABSs is not high enough, says SRA
The miners’ compensation scandal shows that a maximum fine of £150m for misconduct or non-compliance by alternative business structures is too low, the Solicitors Regulation Authority has warned. With new entrants set to enter the legal market after 6 October, it was “perhaps dangerous to rely too heavily upon turnover figures in the current market to assess appropriate fining powers”.
Law firms can indemnify clients against paying other side’s costs, CA rules
It is not champertous for a solicitor to indemnify his client against paying the other side’s costs in the event of not finding insurance, the Court of Appeal ruled yesterday. It is thought that law firms may find themselves offering such arrangements more frequently in a post-Jackson/legal aid reform world so as to secure work.
OFT and LSC join consumer groups in call to name lawyers over complaints
The Office of Fair Trading and the Legal Services Commission have joined a host of consumer groups in calling on the Legal Ombudsman to name lawyers over complaints, with the commission saying it has a “right” to such information. The profession is united in opposition to the idea, with one law firm saying it is “rare” for a client to have a justifiable complaint.
SRA warns firms to be on the lookout for fraudsters cloning their identities
Law firms should search the Internet regularly to ensure their identities have not been “cloned” by fraudsters, the Solicitors Regulation Authority has advised. The SRA issued the warning after recent fraudulent activity where bona fide firms and solicitors have had their identities cloned by criminals particularly operating advance-fee frauds.
Experts call for urgent reform of rules on taking over failing law firms
Rules governing law firms’ ability to acquire the case loads of failing firms should both be relaxed and made more certain for the benefit of the profession and clients, insolvency and legal experts have argued.
College of Law launches two-year LL.B with focus on preparing students for practice
The College of Law is to enter the undergraduate degree market for the first time by launching a two-year LL.B that it says will prepare students for legal practice. Students will be able to choose a degree that focuses on legal issues for individuals or one aimed at business law.
Expert group to advise on advocacy scheme as Bar regulator hits out at LSB once more
Lord Justice Thomas is heading a new expert group to advise the Solicitors Regulation Authority, Bar Standards Board and ILEX Professional Standards on developing and operating the controversial quality assurance for advocates scheme, it has emerged. Meanwhile, the BSB has hit out again at the Legal Services Board’s “unhelpful and ill-timed” intervention over the scheme.
Timetable for outcomes-focused regulation is too tight and too risky, Law Society warns
The timetable for bringing in outcomes-focused regulation is too tight to understand the full consequences, and risks a breakdown in the Solicitors Regulation Authority’s relationship with the profession, the Law Society has warned.
Giving clients complaints information is a marketing opportunity, LSB tells barristers
The obligation on barristers to notify clients of their right to complain to the Legal Ombudsman is more a marketing opportunity than a burden, the Legal Services Board has said. Meanwhile, the LSB reaffirmed that its policy on providing complaints information at the time of engagement will stand, despite a number of concerns raised by the Bar Standards Board.
Hudson lambasts SRA over indemnity reform and for “mismanaging” ARP
Solicitors Regulation Authority proposals to exclude lender and other financial institution claims from the scope of compulsory professional indemnity insurance will be “massively damaging to the profession” and lead to more expensive and longer conveyancing transactions for the public, Law Society chief executive Des Hudson has warned.
