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The Law Society has produced an array of materials on various aspects of closing down a firm. www.lawsociety.org.uk/topics/ professional-indemnity-insurance/what-happens-if-youcannot-renew-your-pii and www.lawsociety.org.uk/topics/ coronavirus. ■
New choices D
epending upon your health age appetite and experience there may also be alternatives where having closed a firm or lost your employment in a firm. You may wish to continue in practice and be able to do so either as an employee with another firm or an unregulated organisation, or on your own as a freelancer. See guidance at www.lawsociety.org.uk/topics/regulation/ freelance-solicitors and unregulated firms at www.lawsociety. org.uk/topics/business-management/solicitors-offeringlegal-services-to-the-public-from-unregulated-entities. In all these cases, it is essential to have a plan. As a freelancer, a solicitor can carry out reserved activities (if they are more than 3 years qualified) but cannot be in partnership, a limited company or have employees. There may be difficulties in obtaining any suitable form of insurance particularly if less than 4 years qualified and if solicitors become freelancers, thought needs to be given as to how to manage an exit and to discharge the liabilities of that new business in due course. Another option is to become employed as a solicitor in a limited company not regulated by the SRA. This may be attractive where they are not carrying out reserved work, as they are not required to hold PII at the minimum level of the minimum terms and conditions. Alternative cover with policy premiums may be lower. Other partners are considering putting their firms into run-off, thus taking advantage of lower premiums paid in 2019, and then continuing their career as freelancers. In that case there remains an obligation where freelance solicitors or employed solicitors undertake reserved activity work to hold an adequate and appropriate level of cover. From a regulatory perspective options that involve putting the firm into run-off trigger a number of important considerations. For example, client consent to transfer work to a new entity, closing off client account and dealing with residual balances, the return of deeds and storage of the records of former clients. The SRA must be given notice and have prepared guidance www.sra.org.uk/closing-down-your-practice. You can also obtain help by contacting Professional Ethics on 0370 606 2577 or email professional.ethics@sra.org.uk. In summary to prepare your plan or even alternative plans you need to be aware of the possible options both inside the regulated sphere sector and outside it. If you choose to operate outside the regulated sphere and are not holding out as a solicitor do remember it is advisable to remove yourself from the Roll. ■
SRA recruiting four new Board members
T
he Solicitors Regulation Authority (SRA) is recruiting four new Board members as two lay and two solicitor members reach the end of their terms. The regulator is committed to increasing diversity on its Board and is looking to recruit people who reflect the communities that solicitors serve and the increasing diversity of the profession itself. The SRA is looking for candidates from every background with the ability to think strategically, an appetite for contributing to strategic change, a demonstrable commitment to equality, diversity and inclusion and enthusiasm for acting as an ambassador externally and within the organisation. The role of the Board is to oversee the work of the SRA as it regulates more than 150,000 practising solicitors and 10,000 firms across England and Wales. Member responsibilities include setting the strategic direction for the SRA, making sure that issues are explored from a range of viewpoints and holding the executive to account for its performance. Potential lay members should also have understanding or experience of one or more of: ■ using key professional services, including legal, from the perspective of a small business ■ offering support and advice to consumers ■ competition within markets ■ a relevant academic field. Those looking for solicitor positions should have understanding or experience of one of more of: ■ providing regulated legal services through an alternative business structure in England or Wales ■ practice in a high-street solicitor firm in England or Wales ■ an organisation that provides digital/online advice ■ a relevant academic field. Anna Bradley, Chair of the SRA Board, said: “I am keen that we bring real diversity to our thinking, whether that is diversity of race, of gender, or of thought and culture. That’s key to delivering what is a busy and dynamic programme of work as we bed in a comprehensive reform programme, transform the way that would-be solicitors qualify and support the sector to make the most of technology.” “These are challenging times and we want to hear from people from every background who want to make a difference for the users of legal services in this complex and fast-changing landscape.” The closing date for applications is Tuesday 22 September. New members will take their places on the Board from 1 January, 2021. Further details of the new Board roles are available to view at: https://jobs.lawgazette.co.uk/job/706078/ four-board-members/ ■
The Bill of Middlesex | 21
