All change for the SRA Accounts Rules?
On the whole, most of the proposed changes seem sensible, although an unexpected proposal is a change to the definition of client money, so that money received in advance for the payment of the firm’s fees and disbursements for which the solicitor is liable (for example counsel fees and expert fees) will in future be office money. Currently, for the majority of practices, money in advance for fees must be held in client account until an invoice is raised. It is difficult to understand why the SRA is looking to make a change here.
Making an investment in your law firm’s technology? Think long term
Law firms spend less than other comparable sectors on IT investment – just 4.1% of turnover, compared to consultancy (4.9%), and accountancy (5.1%), according to our latest research. Equally, displaying conservatism towards innovation as well as investment, a third of law firms have not been involved in any business innovations in the last two years, a considerably higher percentage than both accountants (22%) and consultants (19%).
Six things we learned from the SRA consultation on the new code of conduct
It’s shorter, but there are two. Gone are outcomes, indicative behaviours and the rather confusing definition of the word ‘you’ to mean just about anybody, depending on its context. However, there are now two codes, one for individuals and one for firms, again aimed at making it a bit clearer as to where responsibility lies.
Employment opportunities
For years, insurance companies have used risk management services as a tool to engage with their customers and improve the risk that is being insured. If a customer feels that their insurer is invested in their business and actively wants to help them succeed, they are far more likely to renew their policy, purchase additional products and recommend them to their contacts. Therefore, it shouldn’t be a surprise that legal expenses insurers, to varying degrees, look to help their customers in managing legal exposures and the costs from employment claims.
Focusing regulation on risk
The Council for Licensed Conveyancers has long argued that the scope of regulation of legal services is a muddled patchwork. The system of ‘reservation’ of legal services has grown up over time on no systematic basis and needs to be reviewed to ensure it is genuinely protecting consumers and supporting innovation and growth.
