UK Solicitors Regulation Authority prepares for review of LPO deals

The Solicitors Regulation Authority in the UK has moved to regulate outsourcing agreements for the first time, and will publish a Code of Conduct next week. The new Code will require forms to give the SRA access to their outsourcing contracts and files, an may require that the SRA be given access outsourcers' premises for the conduct of regulatory checks. SRA head of standards Richard Collins said: "Our primary aim is to ensure that outsourcing does not reduce our ability to thoroughly regulate what law firms do and that they can still prove that the work is up to our requirements." The proposed Code has come under criticism by law firm representatives, who claim that the new rules lack clarity or are impractical. Norton Rose head of compliance Jonathan Ody, for example, said: "The SRA has every right to approve the terms of an outsourcing contract but I don't see how it can ask us to make sure it gains entry to the property of a third party, especially not if it is based in India, South Africa, or even Belfast. The SRA has no standing outside England and Wales."

UK Solicitors Regulation Authority prepares for review of LPO deals legalweek.com Thu, Mar 31, 2011