1. Looking to the future

2. Innovation and growth Can also mention:
Cut over 40 pieces of unnecessary regulation in the last 18 months
Developed support for small firms
Engaged and listened through Virtual Reference Groups
Encouraged innovation and growth in legal service market
Helped consumers understand legal services

3. Looking to the Future
Revised Principles that set out the fundamental tenets for those we regulate A new code for individual solicitors -sets standards, behaviours and ethics wherever they practise A new code for firms entitled to carry our reserved activities – sets standards, systems and controls Simplified accounts rules Clear and flexible Practice Framework Rules
We consulted on 6 Principles rather than 10. The reduction comes form moving some existing principles to the a revised Code of Conduct because they relate to practice specific rather than over arching values and behaviours we expect of solicitors.
No principles have been "lost" - the new structure separates issues that are "practice specific" (in the Code) from those which are more values based (in the Principles)
Standard of service and protection of client money are now Standards in the Code.
There is no hierarchy between Principles and Standards – all have equal weight and are mandatory and we enforce against both
A new code for firms entitled to carry our reserved activities – sets standards, systems and controls
There is no area of conflict nor duplication between the two Codes - these apply to different regulated persons/roles, and are aligned in their outcomes and drafted in the same terms except where allowance needs to be made for the difference between an individual or firm based response.
The new streamlined rules leave less room for confusion in content (shorter and sharper); purpose (more focused); and lines of accountability (removing the 'you' problem). The language we use is flexible, allowing for a judgment as to what is reasonable in the circumstances.

4. A changing legal market
Growing alternative legal services market
Changing consumer purchasing behaviour
New delivery models and structures
Unmet need
Some Context:
World changing as:
Competition from GROWING ALTERNTIVE MARKET will-writers, Employment and HR advisers, McKenzie friends etc
Competitors delivering services in different ways ON-LINE, SUBSCRITION SERVICES etc
Partly reacting to WHAT CLIENTS WANT
AND opportunities to try and GET SERVICES to those that don’t access now –TLS (increasing access and unblocking demand)
TLS FUTURE of LEGAL services report Increasing pressure to change to keep up with competition ....DON’T WANT TO GET IN THE WAY and don’t want to change rules every 5 MINS to keep up (V.17)

5. Key areas of interest
Waivers and encouraging innovation Our approach to enforcement
Support and guidance
Information for consumers

6. Waivers and innovation
SRA Innovate provides support to firms that want to develop innovative approaches
We can provide flexibility in our regulations so that they don’t hinder new ways of working
Reviewing our waiver policy
 Waiver policy bullet point:
Our current waiver policy is not as flexible as we would like and lacks consistency
We are proposing a new waivers policy with a single set of simplified criteria - this will based on whether granting the waiver is compatible with, or promotes the regulatory objectives in the LSA 2007
Decisions will be made in line with our approach to regulation as set out in our November 2015 policy statement
In future we will be allowed to waive any rule that is not a legislative requirement, subject to meeting our criteria
.In the interim we will apply new policy under the current Handbook
Alongside the new waivers policy we will have a new criteria and processes as part of our SRA Innovate ‘Space for Innovation’
Innovate
I will get some examples from Warren

7. Our approach to enforcement
We are reviewing our enforcement strategy
Using feedback gathered from thousands of stakeholders as part of a Question of Trust to help shape and inform a proposed new approach
Where things do go wrong, we will take a proportionate response
The new strategy will cover who we enforce against as well as what - e.g. individual -v- firm.
We would trust solicitors and firms to use their judgment about how to meet standards
We would trust solicitors and firms to use their judgment about how to meet higher level standards
There would be a proportionate response if things go wrong. Where there is wilful, careless or negligent misuse if their position, the response can be robust. We would consider the context. We will assess risk to consumers, rule of law and proper administration of justice.
Although the new Codes cover all aspects of a solicitors conduct (or entity’s management) – they are only part of the overall picture
We are undertaking a comprehensive review of the enforcement strategy we use in both supervision and enforcement matters.
Internal review of our current framework – and using QOT feedback from 1000s of stakeholders to help inform and shape a proposed new approach
Where things do go wrong, we will take a proportionate response
But where we find that solicitors have wilfully, carelessly, or negligently misused that freedom, our response can be robust
Within our enforcement strategy we will look at the context of the wrongdoing and how serious we believe the issue to be – given full consideration of the circumstances.
The new strategy will cover who we enforce against as well as what – eg individual v firm.
We may take account of private conduct in some cases, when considering if there has been a breach of our Principles – this may depend on proximity to practice or impact on public confidence in the profession, or delivery of legal services
We will consider the relative seniority of the wrongdoer, and the degree of harm caused, and to whom, when considering regulatory sanctions
Patterns of behaviour will also be relevant.
Some questions / requests for guidance:
 If I am compliant now, would I be compliant in the new world?
Why have references to firms being reasonable been dropped?
When will you enforce against individual and when entity?
Will you look at my private conduct?

8. Support and guidance Internal analysis to identify areas for support
user research
web searches
contact with our Ethics helpline and web chat
Engagement with Virtual Reference Group, workshops and webinars
Profession wide survey. We want your views
Endorsing your guidance
We will provide a range of material to help you understand and to comply with our new Handbook.
We want to develop a toolkit that is genuinely helpful and targeted at the issues that you face most difficulty with.
We do not plan to recreate our current prescriptive guidance - but rather to provide you with the tools that help you to tackle the range of issues that you face.
Our starting point is to develop something along the lines of our tool kit to support the implementation of our new approach to Continuing Competence. This has received very positive feedback from those that have used it – over 90% of those that used found it very helpful in helping them implement our new approach.
We are keen to work with you as we begin to develop the toolkit materials - to ensure that the early areas we develop cover those issues that most concern those that we regulate.
It Is not just about the topics we provide support on.
We need to make sure that the way we provide guidance is accessible.
Today we have launched a profession wider survey to understand the areas where you think support may be required and how should provide that support – webinar, guidance, FAQs etc. Encourage you to respond
Also – endorse your guidance – but no safe harbour.

9. Managing conflict and confidentiality including informed consent
Emerging topics
Managing conflict and confidentiality including informed consent
Section 15 and definition of public
Guidance on client care, breaches and what is reportable
Acting with integrity and dealing with conflicts between Principles
What is expected of a regulated solicitor working in an unregulated entity
How PII will apply under new arrangements
Through monitoring consultation responses and our stakeholder engagement work, we have developed a long list of areas where further support may be required.
We have recently added PII to the long list.
Questions TBC

10. Information for consumers
Draft Codes will require that both solicitors and regulated firms help inform consumers as to the level of protections available to them We are considering whether regulated firms should be required to make positive references relating to access to the Compensation Fund in their marketing material Continue developing information for consumers – Legal Choices
Questions:
What would help promote the solicitor brand and brand of regulated firm? Note – lots of feedback in engagement events that this is an issue whether or not we allow solicitors to work in unregulated practice as the threat from the unregulated is there anyway.
Could the use of logos for regulated firm and for the compensation fund help?
What have consumers said would help? Opportunity for us to feedback some of the findings from the focus group

11. What is next
Our response early next year Further consultation on other rules and regulations (including Overseas Rules, Practice Framework Rules, Authorisation Rules, Enforcement Strategy and disciplinary procedures) early next year Implementation no earlier spring 2018
Development targeted and accessible resources to support implementation