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Are you a solicitor considering stepping outside traditional legal entity models? The Solicitors Regulation Authority (SRA) has opened new doors, allowing solicitors to work and offer services to the public in flexible, independent ways. Whether referred to as a “freelance solicitor” or an “independent SRA regulated solicitor,” this path offers both opportunities and responsibilities. Let’s explore what this means and how you can successfully navigate this career choice.
Introduction
So, you’re thinking about becoming an independent SRA regulated solicitor? Whether you have a personal client following, a niche practice, or simply crave the autonomy of self-employment, this guide is designed for you. We’ll walk through key considerations, obligations, and practical steps to help you make an informed decision and thrive in your independent practice.
Understanding the Independent Solicitor Model
What Is an Independent SRA Regulated Solicitor?
An independent SRA regulated solicitor, also known as a freelance solicitor, is a self-employed legal professional who:
- Practices on their own, using their personal name (without trading names or companies)
- Does not employ anyone else in connection with their services
- Engages directly with clients, receiving fees paid directly to themselves
- Is regulated by the SRA, ensuring they meet professional standards
This model is distinct from traditional sole practitioners or consultants attached to law firms. It’s designed for solicitors genuinely working solo, offering both reserved and non-reserved legal services under the watchful eye of the SRA.
Practice Limitations
Reserved vs. Non-Reserved Legal Activities
As an independent SRA regulated solicitor, it’s crucial to understand the types of legal activities you can undertake:
- Reserved Legal Activities: Include rights of audience, conduct of litigation, probate activities, conveyancing, and more.
- Non-Reserved Legal Activities: Encompass legal advice and services not specifically listed as reserved.
Key Points:
- If you only provide non-reserved activities, you don’t need SRA authorisation but must notify them of your independent status.
- For reserved activities, you must comply with specific SRA regulations, have at least three years of practice since admission, and ensure you’re adequately insured.
Employment Restrictions
- No Employees: You cannot employ anyone in connection with your services if you provide reserved legal activities. This ensures your independence aligns with SRA regulations.
- Administrative Support: You can engage third-party services for administrative tasks (like virtual receptionists), but be cautious to avoid breaching SRA rules.
Holding Client Money
- Client Accounts: You’re not permitted to operate a traditional client account.
- Limited Holding of Funds: You can hold client money under strict conditions, mainly relating to fees and certain disbursements for which you’re personally liable.
- Third-Party Managed Accounts (TPMAs): For transactions requiring the handling of funds, TPMAs can be used to facilitate payments without holding client money directly.
General Obligations
Adherence to SRA Principles
As an independent SRA regulated solicitor, you must uphold the SRA Principles, which include:
- Acting with integrity and in the best interest of each client
- Upholding public trust and confidence in the profession
- Complying with legal and regulatory obligations
- Ensuring your independence isn’t compromised
Insurance Requirements
- Reserved Legal Activities: Mandatory to have “adequate and appropriate” professional indemnity insurance (PII) covering all services.
- Non-Reserved Legal Activities: While not compulsory, it’s strongly recommended to protect yourself and your clients.
- Transparency: Clearly inform clients about your insurance arrangements, emphasising that you’re not covered by the SRA’s minimum terms and conditions for PII.
Transparency and Communication
- Regulatory Status: Inform clients that you’re an independent SRA regulated solicitor.
- Costs and Complaints Procedures: Publish information about your fees and how clients can make complaints, complying with the SRA Transparency Rules.
- Client Understanding: Ensure clients are aware of any limitations in your practice and the protections available to them.
Practical Considerations
Setting Up Your Independent Practice
- Practising Address: Must have a UK practising address if offering reserved services. Consider whether you’ll use a home office, serviced office, or another professional setting.
- Data Protection: Register with the Information Commissioner’s Office (ICO) and comply with data protection laws, ensuring client confidentiality.
- File Storage: Implement secure methods for storing client files—digital encryption, secure cloud services, or physical storage solutions—to maintain confidentiality and accessibility.
Client Engagement
- Clear Communication: Provide comprehensive, written information about your services, fees, terms of business, and your status as an independent solicitor.
- Informed Consent: Ensure clients understand how your independent status affects the services and protections they receive, including insurance arrangements and limitations in handling client money.
- Engagement Letters: Use detailed engagement letters to set out the scope of work, regulatory compliance, and other essential details.
Risks and Challenges
Personal Liability
- Asset Risk: Without the shield of a corporate entity, your personal assets may be at risk if claims exceed your insurance coverage.
- Risk Management: Consider your appetite for risk and implement robust compliance and risk management strategies.
Run-Off Cover
- Future Claims: Obtain run-off insurance cover for potential claims that may arise after you stop practising independently.
- Long-Term Protection: This ensures both you and your clients are protected in the long term.
Reputation and Professional Skepticism
- Perception: Some clients or professionals may be unfamiliar with the independent solicitor model.
- Education: Proactively educate clients and peers about your role, ensuring clarity and building trust.
Planning for the Future
Career Goals
- Alignment: Reflect on how the independent model fits with your long-term career aspirations.
- Flexibility: Consider how independence allows you to tailor your practice to your interests and client needs.
Returning to Traditional Practice
- Transitioning Back: If you choose to return to a traditional firm, be prepared to address potential concerns about past liabilities and insurance coverage.
- Professional Relationships: Maintain strong connections within the legal community to facilitate future opportunities.
Conclusion
Becoming an independent SRA regulated solicitor offers exciting opportunities for autonomy, flexibility, and personalised client service. By thoroughly understanding the regulatory framework, adhering to professional standards, and proactively managing practical considerations, you can build a successful independent practice that serves both you and your clients effectively.
Feedback and Support
Embarking on this journey doesn’t mean you’re alone. Stay connected with professional networks like the Law Society, seek advice when needed, and consider sharing your experiences to help shape future guidance for independent solicitors.
Remember: This guide is a starting point. Always seek personalised advice to ensure you’re fully compliant with all legal and regulatory requirements. Your role as an independent SRA regulated solicitor is both a privilege and a responsibility—embrace it with diligence and integrity.
Ready to Take the Leap?
Becoming a freelance solicitor is an exciting journey that offers control over your career like never before. If you’re contemplating this path and want tailored advice or support, we’re here to help.
Book a discovery call with Regulated Risks today, and let’s explore how we can assist you in building a successful freelance practice.
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