30 - Norfolk Law - Advertorial
Greater scrutiny required for remote working practices A year after the new Solicitors Regulation Authority Accounts Rules have come into force, the biggest game changer has been the impact of COVID-19 on the legal profession, according to a partner at accountancy and advisory firm, MHA Larking Gowen.
John Atkins (pictured), who is a partner in the East Anglia-based firm’s legal team, said remote working was likely to lead to an increase in SRA rule breaches as well as a reassessment of legal practices’ business strategies. He said remote working has made legal firms more open to the possibility of targeting clients who are further afield.
Breaches are more likely to arise as a result of the pandemic and the change in working practices, for which operating systems and internal policies will need to be revised accordingly.” The firm’s national legal sector survey looked at over 100 legal practices who were asked what challenges they faced as a result of COVID-19. The survey provided insight on how the sector is responding to the challenges, focusing on seven key areas, including fee income, cashflow, business strategy, and working practices going forward. “One of the big current issues arising from COVID-19 is the professional indemnity insurance renewal process. There will be a lot of scrutiny from insurers about how firms reacted to new working conditions under COVID and whether sufficient protections are in place,” John said.
John explained, “A recent client survey we conducted has shown that when we went into lockdown 1, 85% of firms reported a downturn effect on legal fee income. This has since been partially offset by an upturn in business post the initial lockdown, most notably within the conveyancing and family law business units. However, the surge in demand for these business units has put increased strain on professional practices, in an already challenging environment.”
He continued, “MHA Larking Gowen offers a health check assignment for new and existing clients to assist with the practical issues that have arisen as a result of the pandemic.
Continued John, “As far as rule breaches are concerned, these do not seem to have arisen from any confusion over the new rules, which by and large have not significantly impacted the way businesses operate.
For advice and information about any of the issues in this article, please contact John Atkins on 01603 624181 or email john.atkins@larkinggowen.co.uk
www.nnls.org
“Similarly, if a practice is unsure about any other compliance issues, they can come to us for advice. Early action can prevent significant issues further down the line.”
