Legal Services Regulation

New SRA Guidance for In-House Solicitors

The Solicitors Regulation Authority (SRA) has introduced updated guidance tailored to in-house solicitors, clarifying regulatory obligations, providing additional information for employers, and addressing specific issues which may arise in in-house practice, including handling internal investigations and guidance on legal professional privilege. The updated guidance reflects growing scrutiny on the role and impact of in-house legal practice, including challenges highlighted by the scrutiny of the role of lawyers in the ongoing Post Office public inquiry.

The revised guidance recognises the key role which in-house legal teams play. In-house legal teams are critical, with organisations employing often large teams handling a range of highly specialist and skilled work in a high profile, sensitive and highly regulated operating environment with a broad stakeholder map. Legal teams must seek to balance their regulatory obligations with the wider public interest, which can be particularly acute, while reflecting the strategy and best interests of their organisations. 

Key elements of the SRA Guidance

The SRA’s updated guidance seeks to address the complexities of practising in-house. The new guidance includes the following elements:

• Identifying your client: distinguishing between individuals, the organisation and group entities, protecting confidentiality and identifying and managing conflicts of interest;
• Reporting concerns about wrongdoing: reconciling duties to employers with wider public interest duties, when concerns should be reported internally and externally, obligations when wrongdoing persists, restrictions on use of NDAs, and confidentiality and privilege;
• Internal investigations: establishing terms of reference, acting with independence, managing the process, decision-making and reporting obligations;
• Legal professional privilege: the purpose and preconditions for privilege, protecting and maintaining privilege, losing privilege: iniquity and waiver, disclosure and reporting obligations;
• Guidance to employers:
  • Guidance for organisations and senior staff: what you can (and cannot) expect of in house lawyers, and the support which should be provided;
  • Guidance for governing boards, chief executives and senior officers: the role of in house lawyers in supporting good governance, managing risk and supporting culture, the support which boards can provide.

Key themes

The guidance reflects a number of key themes:

• Independence and Ethical Standards: the guidance emphasises the importance of duty to act independently, even when under pressure to align with organisational commercial or strategic objectives. The guidance refers to the SRA Principles and Code.
• Confidentiality and Privilege: the guidance re-states the importance of safeguarding client confidentiality and legal privilege, including when working with multidisciplinary teams or third parties, and includes practical steps to identify and mitigate risks to sensitive information.
• Managing Conflicts of Interest: the guidance provides a reminder that In-house solicitors may encounter potential conflicts of interest, and should take steps to anticipate and manage risks.
• Providing Legal Services to External Parties: the guidance includes reminders on the scope of potential recipients of services, and the restrictions on providing services other than to an employer organisation  

The guidance is supported by a number of examples and case studies.  

What does the guidance mean for employers?

Organisations employing in-house solicitors should familiarise themselves with the guidance to support their legal teams effectively.

How can we help?

Bevan Brittan’s sector-leading regulatory team has many years’ experience of advising on the regulatory obligations of in house teams.  The support we can provide includes:

• Training for in house legal teams on compliance with regulatory obligations;
• Advice and representation on responding to regulatory oversight and investigation;
• Advice on structuring in house legal service delivery to ensure compliance with regulatory obligations, including restrictions on reserved legal activities.

Get in touch with Daniel Purcell and the team to learn more about how we can help you navigate these revised regulations.