The SRA Standards & Regulations took over four years to finalise and whilst many of the changes they introduced are fairly unnoticeable, this is not so for the ways in which the legal market has been widened by relaxing the ways in which solicitors can practise.
As one example, the scope of solicitors’ independent practice has been expanded, and there is now a new class of solicitors: the “SRA-regulated independent solicitor” or “freelancer”.
The Law Society initially objected to the proposals to open the legal market this way, fearing aspects of the new regime would lead the public to be confused about how this new cohort of practitioners differs from more traditional solicitors. However the liberalisation of regulation offers consumers greater choice, lower priced legal services and flexibility for solicitors.
What’s new?
Before these reforms, most solicitors worked in SRA-authorised law firms and those who worked on their own would be authorised to do so by the SRA as a recognised sole practitioner (RSP).
As of 25 November 2019, however, individual solicitors have been able to practise on their own without being an RSP. The SRA has decided to refer to these solicitors as ‘SRA-regulated independent solicitors’, but many have already coined the term ‘freelance solicitor’.
There are two types of freelancer described by the Regulations: those that provide only non-reserved legal services and those that additionally provide reserved legal services. These changes have therefore created three different ways in which a solicitor could choose to practise on their own, without the need for their practice to be authorised by the SRA.
The SRA Principles and the new Code of Conduct for Solicitors will apply to freelance solicitors regulated by the SRA, whether they undertake reserved legal activities or not, as do the Transparency Rules so it is important that solicitors ensure they are in compliance.
Freelance Solicitors and PII
Freelance Solicitors Professional Indemnity Insurance is mandatory for all practicing Freelance solicitors providing reserved legal services. Providing cover against civil liability claims, PII cover can enhance a freelance solicitor’s financial security whilst simultaneously protecting clients with the required PII cover mandated by the SRA.
Are you defined as a Freelance Solicitor?
· Are you practicing on your own and are not employing anyone else in connection with the legal services you provide?
· Are you practicing in your own name rather that practicing under a trading name or through a service company, and,
· Are you instructed directly by clients and are your fees being paid directly to you by the client?
· Do you possess a minimum of 5 years PQE?
· Do you earn or estimate you will bill over £20k in annual fees?
Few have yet taken the opportunity to take advantage of the new changes to the SRA rules, in part because they have been unable to secure freelance professional indemnity insurance. Our freelance solicitors PII extends to cover both reserved and non-reserved activities being undertaken by freelance solicitors where they are undertaking business on their own.
How LegalEx can help
Our expert team of underwriters apply their comprehensive underwriting experience to calculate the most competitive price for each individual business. In a digital age solicitors need to demonstrate their commitment to reliability, consistency and safety of all client data. Call our team today on 0800 180 4203 to discuss a Freelance PII solution to suit you.