Lawyers switch to outcomes-focused regulation

The Solicitors Regulation Authority (SRA) has marked the arrival of a new type of law firm and a more radical approach to its work, with the publication of a handbook containing regulation that comes into force on 6th October 2011.

The Authority says it is aiming to achieve a common standard of protection for clients, regardless of the type of law firm they use, using “outcomes-focused regulation” (OFR).

Put simply, OFR involves assessing whether a firm can act or is acting in an ethical and principled manner, and securing the outcomes or results to which its clients are entitled.

The SRA is therefore moving away from investigating breaches of rules as an end in itself, towards a more risk-based approach.

At the heart of the new regime are ten mandatory principles that apply to all solicitors and to all firms that are regulated by the SRA and everybody who works in them.

They state that “you must”:

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

Act with integrity.

Not allow your independence to be compromised.

Act in the best interests of each client.

Provide a proper standard of service to your clients.

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

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

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.

Run your business or carry out your role in the business in a way that encourages equality of opportunity and respect for diversity, and
Protect client money and assets.

Of note, the sixth Principle refers to “the provision of legal services” rather than “the legal profession”, reflecting the new types of firm involving non-lawyers.

Tags: new handbook, outcomes-focused regulation, Solicitors Regulation Authority, SRA

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