SRA client money consultation
Gazette, Today’s Conveyancer, Today’s Wills & Probate and Today’s Family Lawyer report that the Solicitors Regulation Authority (SRA) is considering whether to change its rules to prevent firms retaining any interest earned on client money. This comes as the SRA launches a wider consultation on consumer protection.
In its most recent Financial Benchmarking Survey, the Law Society estimated that firms could have made as much as £27m total net income in interest on client money in 2022/2023.
Law Society Richard Atkinson said: “Firms should continue to be able to operate client accounts, as they are vital for the effective and efficient delivery of many legal services.
“There is a danger that radical change will add cost and delay for clients and simply transfer the same or even greater risk from the current client accounts system to any new one.
“Following the Legal Services Board’s decision to take enforcement action after its independent review into the SRA’s handling of the collapse of Axiom Ince, a key question that must be asked is how the SRA can improve its own monitoring and enforcement around these kinds of risks as part of its core regulatory function. Simply passing regulatory responsibility elsewhere is unlikely to be the answer.
“We look forward to working with our members to develop our response to this important consultation.”
Criminal legal aid
Solicitors Journal reports that the government has announced a £24 million injection into criminal legal aid work in police stations and Youth Courts, as a first step in plans to support the sustainability of the criminal legal aid sector.
President Richard Atkinson said: “It is extremely encouraging that the lord chancellor sees the important role that solicitors play in our criminal justice system.
“The additional funding brings hope to the criminal defence profession as does her recognition that this is just the first step needed to stabilise the sector.
“We understand that the crisis cannot be solved overnight but the government should set out a timetable for further funding for criminal legal aid solicitors by the end of the year.”
Housing possessions statistics
Inside Housing and Property Industry Eye cover the Law Society’s reaction to rising numbers of landlord and mortgage possession orders, as access to housing legal aid remains out of reach for many.
President Richard Atkinson said: “The rising number of eviction orders reflects the alarming state of our housing crisis and the urgent need for rental reform.
“It is deeply concerning that 25.3m people (42%) do not have a local legal aid provider for housing advice. This means that there is no support for renters who cannot afford legal help.
“It is critical that the government invests in the legal aid system, so that renters have the help they need to avoid losing their homes.
“While we welcome the government’s Renters’ Rights Bill, it will struggle to achieve effective rental reform without funding the justice system and legal aid. The government must immediately invest £4.3 million in housing legal aid alongside the Bill to close this gap in provision.”
AI strategy
Lexology (£) covers the Law Society’s recently published AI strategy. The Law Society has announced its new artificial intelligence (AI) strategy based on three pillars: innovation, impact and integrity.
Climate and conveyancing
Inside Conveyancing, Today’s Conveyancer and Negotiator cover the Society of Licensed Conveyancers’ (SLC) response to the Law Society’s Climate Risk and Conveyancing consultation.
Neurodiversity in the workplace
Jodie Hill, a member of the Law Society’s Employment Law Committee, writes in the Gazette about how technology can be used to support neurodivergent employees in the workplace.
Housing disrepair
Greatest Hits Radio covers the rising issue of housing disrepair and mentions the Law Society’s findings that nearly two thirds of lawyers believe access to justice has worsened over the last decade.
Find a solicitor
Daily Mail, This is Money and MSN mention the Law Society’s ‘Find a Solicitor’ tool in a piece on ‘private residence relief.’
Also worth a read:
- Almost three quarters of lawyers link mental health struggles to their finances – Gazette
- Funding cuts to solicitor apprenticeships threaten social mobility – Legal Cheek
- SRA backs a 70/30 split between individual solicitors and firms in their funding of the SRA Compensation Fund, compared to the current 50/50 split – Legal Futures
- Former criminal bar chair Jo Sidhu groomed aspiring lawyers - Gazette
- New report claims UK made bad decisions in buying ex-prison to house asylum seekers – FT (£)
- Which? files £3bn claim against Apple over competition breaches – City A.M.