The Law Society

REPORT

The Law Society

By Beth Quinn, Key Account Manager, The Law Society

INTERNATIONAL

Russian invasion of Ukraine

The Law Society have condemned the Russian Federation’s invasion of Ukraine and have praised the defence of the Ukrainian nation by its armed forces and its civilian citizens. We express solidarity with our fellow lawyers and their families in Ukraine and pledge to do what we can to help in the coming days, weeks and months.

The Law Society have reached to the Ukrainian National Bar Association and the Ukrainian Bar Association. We also stand with the Russian people who oppose their government’s illegal invasion of Ukraine and lawyers who are defending the rule of law in the region. We have put out a strong statement in support of Ukraine which you can view on our website.

Law Society statement on Ukraine:

“The Law Society are gravely concerned with the news from Ukraine and are continuing to support our members in the region. A clear principle of international law is that a state is prohibited from the use or threat of force against another state. We are standing in solidarity with the Ukranian people, the Ukranian National Bar Association, the Ukranian Bar Association and with the Russian people who oppose their government’s illegal invasion of Ukraine, and lawyers who are defending the rule of law in the region.”

Our internal international policy advisor continues to monitor developments before international tribunals and should there be any developments here, I shall let you know.

Our ongoing Lawyers at Risk programme supports lawyers and human rights defenders who are hindered in carrying out their professional duties. We provide support by sending letters to state authorities about specific cases and we carry out more substantive and strategic work to improve lawyers’ safety. This applies less to Ukraine at present, which is a conflict situation where everyone is at risk, but more so in Russia we are keeping an eye on lawyers who may be at risk for assisting protesters, amongst other things. This has always been the case, however, despite the current conflict.

We submit briefs to domestic high courts and international tribunals to change legislation and practices that pose a threat to the independence of the legal profession and are detrimental to the effective functioning of the judicial system. We also carry out trial observations in different countries to support lawyers at risk.

The programme aims to: raise awareness of the risks and challenges associated with being a lawyer; highlight the importance of an independent legal profession; foster solidarity with colleagues abroad. We collaborate with a network of nongovernmental organisations, international institutions, state agencies and bar associations for advocacy and follow-up on interventions and submissions.

Our intervention tracker compiles data and helps us to analyse regional trends of intimidation and identify places where the independence of the legal profession is particularly threatened. The programme is supported by our International Action Team (IAT), a volunteer group of practising and retired solicitors, as well as the Lawyers at Risk core group of law firms that are members of the Law Society.

Our Immigration Law Committee also reviews and promotes improvements in immigration and asylum law, practice and procedure – something apt at present with refugees from Ukraine who are facing a difficult process when trying to get to the UK. Christopher Cole, a member of the committee, recently spoke with LBC about this process.

We also have a page dedicated to how lawyers can show support for people in Ukraine. This includes information on Pro Bono initiatives Ukraine Advice Project UK and Ukraine Justice Alliance as well as resources for UK nationals in Ukraine.

Sanctions

The Law Society supports sanctions as a response to Russia’s illegal invasion of Ukraine, which are aimed at encouraging Russia to cease actions destabilising, undermining, or threatening the territorial integrity, sovereignty or independence of Ukraine.

Law firms and their clients – like all other businesses – must comply with the government’s sanctions regime. Solicitors have an important role advising their clients to ensure they comply with the rules. Solicitors employed by government also play a key part in drawing up the sanctions and making sure that they are watertight.

However, we are again hearing rhetoric about solicitors as ‘professional enablers’ – this is a concerning and damaging narrative on the reputation of the profession. The Law Society will continue to champion the profession and counter the narrative on this topic.

All solicitors operate within a strong regulatory framework overseen by the Solicitors Regulation Authority (SRA) and must have appropriate policies in place to make sure they comply with sanctions legislation. This includes carrying out regular and appropriate checks of sanctions lists.

The Law Society has guidance on the UK sanctions regime which sets out:

The criminal offences under the regime H

ow to carry out a risk assessment

Obligations to check clients against sanctions lists

How to apply for a licence to act for a client on a sanctions list Y

our reporting obligations

You can check our guidance on the UK sanctions regime to find out what steps you and your firm must take to comply. UK sanctions list (https://www.gov.uk/government/ publications/the-uk-sanctions-list) UK sanctions on Russia (https://www.gov.uk/government/ collections/uk-sanctions-on-russia) SRA statement on sanctions compliance (https://www.sra. org.uk/sra/news/press/financial-sanctions-russia/) FCA statement on new financial sanctions on Russia (https://www.fca.org.uk/news/statements/new-financialsanctions-measures-relation-russia)

UK/New Zealand trade deal

The UK is continuing to develop its Asia-Pacific focus by agreeing a free trade agreement (FTA) with New Zealand, which reflects the importance of market access for professional services in both economies.

The UK-NZ FTA commits to liberalising services in a way that strengthens bilateral relations and deepens market access, making it easier for professionals like lawyers to operate in each other’s economies. Professional services and mechanisms to facilitate further recognition of professional qualifications are also outlined in the agreement.

The Professional Services Annex confirms existing rights of UK and New Zealand lawyers to advise clients in their home country and international law and to provide arbitration, mediation and conciliation services in the other country’s territory using their original qualifications and title.

The agreement also establishes a legal services regulatory dialogue, which will help relevant legal bodies to facilitate a route for requalification that’s transparent and proportionate. It will also encourage greater collaboration and knowledgesharing on regulatory matters and wider issues affecting trade in legal services.

UK workers will benefit from improved business travel arrangements and professionals such as lawyers will be able to work in New Zealand more easily, allowing UK companies to set up shop with the best British talent to grow a sophisticated international legal market across both jurisdictions.

The agreement includes a domestic regulation chapter – a first in New Zealand and UK FTA practices – reflecting both countries’ support for ambitious rules building on those currently under development in World Trade Organisation negotiations.*

The Law Society look forward to contributing to discussions on improving smoother trade in legal services with key bodies, including the New Zealand Law Society, and welcome the clear framework proposed under the FTA with New Zealand to further this opportunity.

REGULATION

Economic Crime Act

The Economic Crime Act has received Royal Assent and has been welcomed by the Law Society of England and Wales.

The Act will help the government uncover potential criminal activity in the UK and we have welcomed the amendments which have improved the legislation for the benefit of both consumers and professionals. We have supported the government’s aim to improve transparency of property ownership in the UK and a new register for overseas entities.

During the Act’s passage through parliament, we highlighted ways to strengthen the legislation and address potential gaps with existing regimes and are pleased to see that, following the introduction of amendments, many of these have now been taken forward.

The Act now gives investigators much improved ability to shine a light on who the beneficial owner of a UK property is. We understand the Act needed to be brought in quickly, given the recent events in Ukraine. Further improvements should be possible via implementation of the legislation and related workstreams.

This includes completing the reform of Companies House and resolving some of the tricky issues that remain in the People with Significant Control regime – which enhances the transparency of ultimate ownership of UK companies.

Moving forward, the Law Society is happy to offer our expertise on these matters to make sure that the Act meets its ambitions.

Read the Economic Crime (Transparency and Enforcement) Act 2022 at https://bills.parliament.uk/bills/3120.

Consultation: SIF/PSYROC

We have been clear as an organisation that we are opposed to the potential closure of SIF and termination of PSYROC and have now submitted a response to the SRA’s consultation.

This response, when it was in draft format, was shared with you in confidence via the Local Law Society Bulletin to assist you with your own responses to the consultation. We also made available a short template response on our website to assist the wider membership with their responses.

A summary of the consultation, and the implications for the profession and the public is available on our website (https://www.lawsociety.org.uk/campaigns/consultationresponses/sra-post-six-year-run-off-cover-and-solicitorsindemnity-fund).

The SRA will consider all responses received and we expect a decision to be announced in the spring. If the SRA decides that, having considered the matter further, it would be better to retain the SIF for the ongoing provision of PSYROC then the Law Society would offer our support. However, should the closure of SIF press on we shall be forced to consider other options. We will remain active in the pursuit of a solution that will protect the interests of the profession, consumers and the public at large.

Consultation: Financial Penalties

In November 2021, the SRA consulted on proposed reforms to its approach to financial penalties in relation to traditional law firms and individuals. Amongst the proposals, the SRA sought an increase to its internal fining powers from its current maximum of £2,000 to £25,000 – more than 12 times the current limit. The Law Society has said that such a steep rise is inappropriate, and we share our members’ concerns about the SRA acting as an investigator, prosecutor and judge without independent scrutiny. We have instead suggested a more appropriate limit between £5,000 and £7,500.

Read the Law Society’s full response at https://www. lawsociety.org.uk/campaigns/consultation-responses/srareview-of-financial-penalties-for-individuals-and-firms.

SQE

In November 2021, over 1000 candidates (including 27 solicitor apprentices) took the first-ever Solicitors Qualifying Exam (SQE) – SQE1. The candidates received their results a few weeks ago, and the Solicitors Regulation Authority (SRA) has revealed an overall pass rate of 53%.

The SQE1 assessment is made up of two parts – Functioning Legal Knowledge (FLK) 1 and FLK2 – which candidates are required to pass in order to pass the SQE1 overall.

Of the 1,090 candidates that took the SQE1 in November, 683 were women, 376 were men and 25 preferred not to say – the SRA reported no difference between the pass rates (54%) of men and women. That said, there was a reported difference between the pass rates of white candidates (464) compared to candidates of colour. According to the SRA’s report, the percentage from each group that passed is as follows:

White candidates – 66%; A

sian/Asian British – 43%;

Black/Black British – 39%;

Mixed/multiple ethnic groups – 58%;

and other ethnic groups – 41%.

There has been continued coverage of the pass-rate disparity between white candidates and candidates of colour, and the Law Society has welcomed the news that the SRA has commissioned in-depth research so it can better understand the causes of differential attainment in legal qualifications.

Research will be conducted by the University of Exeter, and the SRA will continue to monitor and report on performance by candidates by ethnicity after each assessment. The SRA have noted that one of the benefits of the SQE is the rich dataset that it will provide over time to help explore this issue. They have said that they will provide more detailed analysis across a number of assessments in Kaplan's annual report, the first of which will be published in 2023.

First SQE assessment results and breakdown of available data is available at https://www.sra.org.uk/SQE1results.

A2J/ RULE OF LAW

Nationality and Borders Bill

The Nationality and Borders Bill, which is set to overhaul the immigration system for asylum seekers and refugees, is currently at the committee stage in the House of Lords. We believe that, if signed into law, this bill will contravene international law, damage access to justice, and have an impact on lawyers working on immigration cases.

This will be of utmost importance to many of our members and we ask that you familiarise yourself with the Law Society’s stance on the matter and alert any of your peers who need to see it: https://www.lawsociety.org.uk/ topics/immigration/nationality-and-borders-bill?sc_ camp=EF0D3A16FB1F40E0CE95D51522FEDBFF.

Procurement of the 2022 Standard Crime Contract

The Legal Aid Agency (LAA) has announced its intention to begin the procurement of the 2022 Standard Crime Contract in October 2021 for services to commence on 1 October 2022.

The 2022 Contract will run for an initial one-year period, capable of extension in further increments of up to one year each, with a maximum term of three years. The aim is to provide flexibility in order to try to align the contract with the outcome of the Independent Criminal Legal Aid Review.

While we welcomed the opportunity for new firms to enter the market, we expressed some concerns about the difficulty of planning for the future that a series of one-year contracts will present. Financial commitments such as leases generally require a commitment of far longer than one year. There also remains a lack of clarity as to how any changes that may arise from the ICLAR will be incorporated into the contract.

DIVERSITY & INCLUSION

Diversity Access Scheme

Part of our purpose at the Law Society is to drive excellence in the legal profession. We want to make sure that the profession is more representative and inclusive.

Our Diversity Access Scheme (DAS) (https://www.lawsociety. org.uk/campaigns/diversity-access-scheme/) helps to make positive changes around diversity and inclusion within the profession. Applications for 2022 are now open and we’re inviting talented aspiring solicitors to apply.

The scheme aims to help improve social mobility and diversity in the legal profession by supporting people who face exceptional social, educational, financial or personal obstacles to qualifying as a solicitor. It is open to those looking to complete the Legal Practice Course (LPC) or the Solicitors Qualifying Exam (SQE) who need help with funding, accessing real work experience opportunities or meaningful mentoring and might otherwise struggle to get the support they need to succeed.

To date, the scheme has supported more than 260 talented awardees to pursue their career ambitions. During the 2021 application process we received 277 applications, shortlisted 34 applicants for interview and made 15 awards.

You can see the results of the 2021 scheme in our report which shares insight on:

the application and interview process H

ow DAS was marketed and promoted

Commentary from our awardees

Anonymised diversity data of applicants through different stages of the application process

The 2022 application period opened on 23 February and will close at midnight on 20 April 2022. There’s more information (including how individuals can apply) at https://www. lawsociety.org.uk/campaigns/diversity-access-scheme.

If you are interested in hearing more about how you can support the DAS scheme, please get in touch with beth.quinn@lawsociety.org.uk.

Other resources

Race Equality Week was held in February – and was a time to reflect on what you and your firm or organisation are doing to address barriers to equality and inclusion faced by your Black, Asian and ethnic minority colleagues. The Law Society has produced a practical toolkit to aid you in this: promote race inclusivity in the workplace.

It has also been two years since the first ‘Legally Disabled?’ research report was published, exploring the experiences of disabled people in the legal profession and identifying ways in which we can create change to become more inclusive and accessible.

On the theme of disability inclusion, we have a new article (https://www.lawsociety.org.uk/topics/lawyers-withdisabilities/from-access-to-inclusion-neurodiversity-atwork) from Arwen Makin (senior crown prosecutor at CPS) who provides practical examples of reasonable adjustments, at recruitment and employment level, for neurodivergent people. It’s a great article that discusses the importance and impact of adjustments and inclusion.

We’re also really pleased to share the recordings of our diversity and inclusion conference. Across six recordings, speakers explore several strands of D&I (mental health; LGBT+, disability, race/ethnicity; gender; social mobility) by discussing their perspectives and offering insights to individuals and organisations alike. The conference was held last September in conjunction with Leeds Law Society, and if you were unable to attend, I would encourage you to catch up and listen to personal experiences, practical advice and insights from expert panelists.

Beth Quinn

By Beth Quinn, Key Account Manager, The Law Society