future legal leaders - morning masterclass · 2019. 11. 10. · future legal leaders - morning...

Future Legal Leaders - Morning Masterclass

Monday 23 April 2012

WIN: What in-house lawyers need

Knowledge, support and networking for the in-house lawyer community

www.dlapiperwin.com

http://www.dlapiperwin.com/

Introduction

Duncan Pithouse

Partner

DLA Piper UK LLP

Introducing WIN's Future Legal Leaders

Our WIN programme originated in 2008, after surveying 400+ in-house lawyers to find out what

they wanted from their external law firms

Survey results led to key elements of WIN programme (What In-house Lawyers Need), which

operates internationally

Key elements of WIN are:

Knowledge: providing you with information that is targeted, relevant and covers key business

issues as well as legal topics

Support: we identify key legal and commercial issues you face and tailor our services

accordingly

Networking: we aim to create an opportunity to share practical experience with other in-house

lawyers

We recognise that as in-house counsel, you face a unique set of challenges. Our Future Legal

Leaders Programme is shaped around those challenges, and aims to support your growth into a

leadership position through an evolving series of events, tools and forums dedicated to your

changing needs

We bring together lawyers from a variety of industries to deliver different perspectives on the issues

you are facing, and encourage you to join our online community at www.dlapiperwin.com

If you are interested in joining our Future Leaders Advisory Committee of in-house lawyers who are

helping to shape the agenda, please email [email protected]

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What's next for WIN?

WIN: What in-house lawyers need

Knowledge, support and networking for the in-house lawyer community

www.dlapiperwin.com


What's next for WIN

Client Advisory Group and Future Legal Leaders Committee

Client advisory dinners and events where we listen to what you want from WIN

If you want to get involved please email: [email protected] or nominate your interest on the feedback form on

your chair

Future Legal Leaders – Events & training

July (date TBC) – Summer cocktail party (cocktail making class) and networking training from Masterclass

October (date TBC) – Charting your course: Taking control of your career development (2 hour workshop &

drinks)

"Helping you WIN" hotline / online forum for ad hoc queries

A platform for speaking to other in-house lawyers for guidance

This will be launched in the Summer of 2012

WIN Wise - Practical briefings on key topics tailored for you

Our recent editions include Cloudbusting (a checklist when drafting "cloud" commercial contracts), employment

law considerations during the Olympics, and guidance for in-house lawyers considering pro bono

WIN's Heads-of-Legal Roundtable Series

Intimate events aimed at General Counsel / Heads of Legal with a sector / industry focus

The first event will be held on 29 May in conjunction with a partnering professional services firm

Cab Cribs (the App) – available on your mobile devices

We are delighted to launch our first DLA Piper WIN App: "Cab Cribs". This follows on from the hugely

successful "Cab Cribs" guides which are sent to lawyers and contract managers and designed to explain

commonly used legal phrases and concepts

The App is available via iTunes and the Google App store

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mailto:[email protected]

WIN Website – join the discussion

You can register at www.dlapiperwin.com

Join the discussion at www.dlapiperwin.com

for access to:

• Tailored information

• A personal library

• Best practice guides & toolkits

• A secure discussion forum

• Events & training information

• Exclusive invitations

• Recordings & materials from previous

events

For a personal reminder on WIN registration, please drop your

business card in the silver bowl at the side of the room.

A member of our team will be in touch with registration information.


REGULATION

The SRA Handbook and Outcomes Focussed

Regulation

WIN's Future Legal Leaders Masterclass

Michael Pretty, Head of Compliance, DLA Piper

23 April 2012

Overview

Outcomes Focussed Regulation ("OFR") – why and what

The Solicitors Regulation Authority ("SRA") Handbook

The SRA Principles 2011

The SRA Code of Conduct 2011

Structure

Substantive changes

Application to in-house practice

The SRA Accounts Rules 2011

Rule 4 of the SRA Practice Framework Rules 2011

Regulation

What OFR means in practice

Questions

23 April 2012 SRA Handbook and OFR - WIN Masterclass 8

The Legal Services Act 2007

Main effects of the 2007 Act

set consumer and public interest as the key regulatory objectives

obliged regulators to separate representative and regulatory functions

created the Legal Services Board as oversight regulator of the front

line "approved regulators" (The SRA, BSB, ILEX, CLC etc)

vested responsibility for dealing with complaints in an independent

Legal Ombudsman (implemented 6 October 2010)

facilitated new forms of practice:

Legal Disciplinary Practices (LDPs)

up to 25% non-lawyer ownership

interim status, must convert to Alternative Business Structures (put back to 2013)

Alternative Business Structures (ABSs)

full non-lawyer ownership/external participation

first licences issued from October 2011 (by the CLC)

SRA licensed its first 3 ABSs in March 2012


Outcomes Focused Regulation ("OFR")

"OFR amounts to a shift of emphasis from prescriptive, rigid rules

to flexible outcomes-focused requirements …… the way the legal

services market is evolving demands that regulation should focus

more on the quality of clients' experience and less on prescribing

the approach the firm should take"

Charles Plant, Chairman of the SRA Board

The main objectives are:

to facilitate the licensing and regulation of alternative business

structures ("ABS")

to empower firms and solicitors to implement an approach which

better meets the specific needs and expectations of their clients, as

opposed to the one-size-fits-all approach of the Solicitors Code of

Conduct 2007


The SRA Handbook–content and key provisions

Came into force on 6 October 2011

Brings together all the rules which regulate the profession

23 sets of provisions/rules running to over 500 pages

Rewritten to support Outcomes Focused Regulation

The key rules for people in day-to-day practice


equivalent to the "core duties" in the Code of Conduct 2007 ("old code")

The SRA Code of Conduct 2011 ("the new code")

equivalent to the detailed rules in the old code

The SRA Accounts Rules 2011 - encompassing the content of

the Solicitors' Accounts Rules 1998

the Overseas accounts provisions from rule 15 of the old Code.

SRA Practice Framework Rules 2011



The SRA Handbook is prefaced by 10 "principles" which

define professional standards and ethical behaviour

underpin all other requirements contained in the Handbook

are all-pervasive

First 6 principles reproduce the "Core Duties" from the old code

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

2. act with integrity

3. do not allow your independence to be compromised

4. act in the best interest of each client

5. provide a proper standard of service for your clients

6. behave in a way that maintains the trust the public places in you and

in the provision of legal services



Old “Core Duties” are supplemented with 4 new principles

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

These new principles signal the intentions of the SRA to promote

good governance

self-regulation

equality of opportunity and diversity


The SRA Code of Conduct 2011 - structure

Completely rewritten to support Outcomes Focussed Regulation

Divided into 5 "sections"

1. you and your client

2. you and your business

3. you and your regulator

4. you and others

5. applications, waivers and interpretation

These sections are divided into 15 "chapters"

broadly equate to the old code

deal with familiar topics such as client care, conflicts, confidentiality

and disclosure etc.


The SRA Code of Conduct 2011 - structure

Chapters 1 to 12 comprise:

Outcomes

mandatory obligations

describe what firms and individuals must achieve in order to comply with

the principles in the context of a particular chapter

Indicative behaviours

non-mandatory

describe the type of behaviour which tends to establish compliance

have evidential force when deciding whether an outcome has been

achieved

The structure is new - the content eerily familiar

Most provisions from the old code are reproduced


The SRA Code of Conduct 2011 – what's new

Four substantive changes:

Financial benefits - commission, rebates etc. (chapter 1)

the provision allowing retention if below £20 has been withdrawn

all financial benefits must now be accounted for except by express agreement

Conveyancing conflicts (chapter 3)

the "exceptions" in the old code have been withdrawn (eg. where both were

established clients and had given express consent)

normal conflicts/considerations provisions now apply–effect on panel solicitors

Referral arrangements (chapter 9)

fundamental principles that independence and the client’s best interest be

protected, and of full transparency remain

the prescriptive disclosure obligations have been withdrawn

the exemption for referrals between lawyers has been withdrawn

Fee sharing (chapter 9)

the prohibition on fee sharing with non-lawyers has been withdrawn


The SRA Code of Conduct 2011 – application

For in-house solicitors (and RELs and RFLs)

The majority of the outcomes in chapters 1 to 12 apply but see notes

marked “IHP” for differences

Principal exceptions are some client-facing provisions in Chapters 1

(Client Care) and 2 (Equality and Diversity)

Some key points to note if acting for someone other than your

employer:

only enter into fee agreements which are legal, suitable to the client’s

needs and take account of their best interests (O1.6)

inform clients at the onset of their right to complain and how do to so

(O1.9)

inform clients of their right to challenge your bill and of any liability for

interest on an unpaid bill (O1.14)

comply with the SRA Practice framework rules re PI insurance (IHP1.1)


The SRA Code of Conduct 2011 – application

The new code emphasises good management/governance

Whether you are a manager or an employee, everyone has a part to

play in helping to ensure that your business is well run

more prescriptive obligations in Chapter 7 for those with "in-house

management responsibilities"

Well-run businesses should have little to worry about

"Firms/Solicitors who operated effective policies and procedures to

achieve compliance with the old code are likely to continue to comply

with the new code"


The SRA Accounts Rules 2011

Substantively unchanged by Outcomes Focussed Regulation

Guidance notes are no longer mandatory - critical obligations have

been moved into the mandatory rules

Continue to be presented as prescriptive rules with two exceptions

Client account signatories

the prescriptive list of those permitted to sign on client account has been

withdrawn

discretion allowed to decide who is an "appropriate person"

Payment of interest on client account balances

the prescriptive rules on when and what interest must be paid and how the

amount have been withdrawn

interest must now be paid "when it is fair and reasonable to do so"

firms/solicitors are obliged to set their own policy and communicate this to

clients at the onset of the retainer


The SRA Practice Framework Rules 2011

The situation is largely unchanged for solicitors practising in-house

You can act for your "employer" which includes

a work colleague (rules 4.4 and 4.5) who is or was formerly an

employee, manager, company secretary, trustee, board member of

your employer or a "related body" if

the matter relates to or arises out of the above capacity

does not relate to a claim arising as a result of personal injury

you are satisfied that the person does not want to instruct another lawyer

no charge is made for the services unless recoverable from another source

related bodies(Rule 4.7)

other entities within the your employers Group

joint ventures in which your employer has an interest

trade associations of which your employer is a member

schemes operated by your employer for the benefit of employees


The SRA Practice Framework Rules 2011

(4.1)If you are employed in house you must not act for clients

other than your employer except where you are able to do so

without compromising the Principles or your obligations under

the SRA Code of Conduct, and

(4.2) Subject having an appropriate indemnity in place

Special conditions apply to in-house solicitors acting for clients

(4.10) on a pro-bono basis

new restriction on undertaking reserved activities "unless the provision of

such services is not part of your employers business"

(4.14) providing a telephone legal advice service

(4.16) employed by a law centre or advice service

(4.19) employed by a foreign law firm


Regulation

Success or failure will depend on how the SRA tackles regulation

Change of approach

Old = reactive, tick box, disproportionate, confrontational

New = risk based, targeted, proportionate, supportive but not "light touch"

Risk based approach to regulation

collection and analysis of risks presented by firms, individuals, thematic

risk affecting groups or sectors, reported breaches/risks

targeting time and resources where risk is identified

Restructuring of SRA and re-skilling of staff

authorisation

supervision

enforcement


Regulation - authorisation

Authorisation

vetting applicant firms/individuals and excluding unsuitable entrants

Authorised bodies

recognised bodies – traditional law firms and in-house legal departments

licensed bodies – LDP and ABS

Solicitors of the Senior Courts of England and Wales

Registered Foreign Lawyers

Registered European Lawyers suitability test introduced from 31 March 2012

European Exempt Lawyers

reviewing the suitability of regulated firms/individuals at renewal

recognition and licensing

practising certificates and registrations

vetting applications from new "managers" and officers

members/partners – lawyers and non-lawyers

owners of ABS – corporate and individual investors


Regulation - supervision and enforcement

Supervision

monitoring, anticipating and managing down unacceptable risks to

regulatory objectives

delivered through

relationship management – likely only for large national and global

firms who are perceived to present a risk due to size, complexity and

profile

desk-based review

visits

random or as part of a periodic inspection regime

as part of thematic reviews

as a result of an event

Enforcement

used where a deterrent is needed, and firms cannot or will not deal

appropriately with risks


What OFR means in practice

Following policy and procedures slavishly and to the letter cannot

guarantee that you achieve the outcomes and are compliant

outcomes are contextual by definition

In the absence of prescribed rules, self-regulation becomes

critical

remember the new principle 8 "carry out your role in the business

effectively and in accordance with proper governance and sound

financial and risk management principles"

the SRA expects solicitors and firms to be able to evidence

compliance, manage risk and deal with issues as they arise

everyone has obligations to themselves and their employer to

ensure their own compliance with the new Code

maintain proper record and audit trails for what they do

report any breaches internally (should they occur)


Questions from the floor?

Powerful Presence &

Personal Impact

Effective communication, negotiation and influencing

skills to make an impact in the workplace

Caroline Newman

Pro Bono: Guidance for in-

house counsel

Nicholas Patrick

Partner and International Head of Pro Bono

DLA Piper Australia

Thank you for listening

We appreciate your feedback

Please complete the feedback forms provided on the chair and help shape

the agenda

future legal leaders - morning masterclass · 2019. 11. 10. · future legal leaders - morning...

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