New choices

New choices

Depending 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. ■