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LMS Financial Benchmarking Survey 2007 launched

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The eighth annual Law Management Section Financial Benchmarking Survey is now available. Produced in association with Robert Mowbray of MacIntyre Hudson LLP, the survey has become the annual financial health check of the Law Society’s Law Management Section (LMS), and it represents the most in-depth research of its kind. The results are based upon responses to a questionnaire that was sent to all LMS members in 2007.

The two most revealing indicators that reflect the state of health of respondent firms are fee income and employment costs. However, the research delves deeper than that, and for example, firms were asked to provide detailed statistical information about their treatment of working capital.

As well as looking at the economic wellbeing of law firms, the survey also seeks to identify best management practice in the legal profession. In particular, the survey quantifies the importance that firms attach to quality marks, such as Lexcel, as well as measuring time spent on practice management within the firm.

The survey looks at an increasingly complex and ever-changing profession and seeks to identify and measure new trends as they arise. Respondents were asked to indicate how receptive they were to new corporate structures, such as limited liability partnerships. Firms were asked to provide information about how they fulfil obligations under the Money Laundering Regulations 2007, as well as their experience of reporting suspicious activities to the Serious Organised Crime Agency.

The areas surveyed are as follows:

• fee income;
• employment costs;
• net profitability;
• working capital management; and
• best practice. 

Click here to download any associated documents

(Posted: 22-04-2008)

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SRA consultation: Draft Practising Regulations (2009)

The Solicitors Regulation Authority (SRA) invites you to participate in a consultation on the draft SRA Practising Regulations, which they hope to introduce in July 2009.

The SRA Practising Regulations are designed to implement a number of changes made by the Legal Services Act 2007. They deal with practising certificates for solicitors and registration of European and foreign lawyers, authorisation of solicitors and European lawyers who are sole practitioners, and associated processes.

The consultation is aimed at everyone who is interested in the provision and regulation of legal services, including consumers.

The SRA Practising Regulations are likely to affect anyone wishing to practise as a solicitor, registered European lawyer (REL) or registered foreign lawyer, and any solicitor or REL practising or intending to practise in England and Wales as a sole practitioner.

The consultation period ends on 9 June 2008.

Download the consultation paper

Details

(Posted: 14-04-2008)

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Company law changes: help on high street for small business

More than 20,000 high street accountants and solicitors are set to receive leaflets explaining important changes to company law, which will have a big impact on their professions.

The Companies Act 2006 makes sweeping changes to improve and simplify company law. To ensure a smooth transition, it is being phased in over a three-year period, and the first set of measures came into force on 6 April 2008.

Department for Business Minister Gareth Thomas said: "The business world doesn't stand still, and the law is changing to reflect this. The Companies Act 2006 provides a real step forward in the reform and modernisation of company law. It contains a number of deregulatory measures and will make the UK an even more attractive place to invest and do business."

The measures that came into effect on 6 April are particularly relevant to solicitors and accountants; they include the following:

• The accounting and reporting requirements for small companies are being brought together into a single set of regulations; this will make things simpler for small companies and their advisors.
• Private companies will no longer be required to have a company secretary.
• The time in which private companies can file their accounts with the Registrar of Companies has been reduced from 10 to nine months.

• Companies can make greater use of electronic communications for contact with shareholders.
• Private companies do not need to hold an annual general meeting unless they positively opt to do so.

(Posted: 31-03-2008)

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Law Society launches complaints management practice note

The Law Society is boosting excellence in client care and complaints management by issuing a new practice note.

The practice note outlines good practice in client care to help solicitors increase client satisfaction, promote their practice in the competitive legal services market, lower their insurance premiums, demonstrate their professionalism and enhance the reputation of the profession.

The initiative is aimed at supporting solicitors to deliver a more client focused service and highlights the Law Society’s commitment to help solicitors achieve good practice in complaints handling.

The move coincides with a decision by the Legal Complaints Service (LCS) to consult on whether they should start publishing the complaints records of solicitors who are found to have provided inadequate professional service. They say they are doing this to support solicitors to improve their client care.

Des Hudson, Law Society chief executive, says: "The Law Society has a different view of how one actually supports a solicitor to improve their performance. We do not name and shame them. We give them real tools, which demonstrate good practice and provide them with training.

"Not only has the LCS not provided any evidence to demonstrate that it is effective within a professional context, the move will apply to only a small number of firms so will not really assist clients in picking between most firms."

These initiatives build upon the existing Law Society services provided to solicitors to pursue excellence in client care including, Lexcel practice management standard, Law Management Section services, and the Law Society Excellence Awards.

Read the complaints management practice note

Read more about what the Law Society is doing to support solicitors with client care by visiting www.lawsociety.org.uk/clientcare.

The Law Society has set up a series of spring training sessions on client care and complaint management, which are already fully booked. Further seminars on a wide range of client care issues are being developed to start in May and proceed through the autumn.

Details

(Posted: 11-04-2008)

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Publication of the Finance Bill

In his Budget statement, the Chancellor set out measures to deliver the government's objectives of building a strong economy and a fair society, where there is opportunity and security for all. Finance Bill 2008, which enacts many of the Budget measures, is published 27 March.

The Financial Secretary to the Treasury, Jane Kennedy, said: "Today's Finance Bill furthers the progress this government has made in building a stable, competitive economy that supports a high level of enterprise and growth. Measures in this Bill will contribute to a more sustainable future, and continue to support our goals of fairness and opportunity for all."

The Lobby notes, also published 27 March, briefly describe the clauses and Schedules in the Bill and can be found on the HM Treasury website. More detailed Explanatory Notes on clauses are available from Stationery Office bookshops and also on the HM Treasury and HM Revenue & Customs websites.

Further details on the Bill will be published on the HM Treasury and HM Revenue & Customs websites as the Bill progresses through Parliament.

Read the full Finance Bill 2008
Further information from HM Treasury website

(Posted: 27-03-2008)

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Measuring the true value of firms

The Law Society is taking forward an initiative to explore ways of measuring the success of law firms. The initiative will look beyond the blunt instrument of profit per equity partner to the longer-term sustainability of firms, including business strategy, client care, employee engagement, innovation, social capital and efficiency.

The initiative is prompted by a significant and innovative project launched by Allen & Overy during 2007, and follows their request that the Society takes the project profession-wide.

Next steps

During the first half of 2008, the Society will consult with firms of all types and sizes to refine the ideal model for analytical tools. The Society aims to make these tools available in the second half of the year.

Stay updated

Regular information will be posted to the Law Society website, and updates will be posted in the weekly e-newsletter for solicitors, Professional Update.
Sign up for this e-newsletter

More information

On 15 November 2007, a wide range of firms met to discuss early proposals for measurement approaches at a seminar at Allen & Overy's offices.
Read a meeting summary

Presentations:

• A Law Society view – Andrew Holroyd, Law Society president
• Measuring law firm performance: a proposed analytical framework – Guy Beringer, John Kelly and Ilian Iliev
• Measuring law firm performance: a US (economist’s) view – Bruce MacEwen, founder and publisher, Adam Smith, Esq.
• Measuring the success of law firms – Quentin Poole, Senior Partner of Wragge & Co

(Posted: 10-03-2008)

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Law Society launches free online library service

The Law Society has launched a free online legal information source for solicitors and their employees. Law Society Library Online is the result of a collaborative venture between the Law Society and LexisNexis. It brings you fast, easy access to the library catalogue and value added legal information sources, plus selected free LexisNexis content.

Details

(Posted: 21-02-2008)

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Law Society issues new client care publication

The Law Society has released an updated version of Your clients – your business, an information booklet designed to encourage solicitors to consider how they can improve their relationships with clients.

The publication draws on experiences of those with direct involvement with solicitors and their clients. It refers to regulatory requirements and best practice in an easy-to-use format that highlights some of the problem areas that can arise.

It looks at four main areas of client management from when a solicitor first meets a client, through to matters that solicitors should consider for their client care letter and terms and conditions and, finally, how to deal effectively with complaints. 
 
It is available via the Law Society website and will also be distributed to firms visited by members of the Practice Standards Unit and at Law Management Section events. To request a hard copy, contact Practice Advice (email practiceadvice@lawsociety.org.uk).

Download a copy

(Posted: 04-10-2007)

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LMS Legal Aid Toolkit launched

The LMS Legal Aid Toolkit was launched at the LMS LAPG Annual Conference 2007 on Friday, 19 October in Oxford.

The toolkit is chapter-based and deals with topics such as finance, management, strategy and growth, mergers and disposals, preferred supplier, fixed and graduated fees, criminal contracts and related timetables.

It includes a number of checklists, a usual diagnostic tool and a specially designed benchmark calculator – which is available electronically via the Section’s website.

The toolkit is designed to help practitioners understand how to operate under the new fee regime and prepare for the next wave of changes. The contributors are experts in the legal aid sector who have pooled their resources to produce the very best advice available to help users make sound business decisions.

The LMS produces five other toolkits on mergers, risk management, business development, human resources and Internet policies. Each toolkit is chapter-based with new additions issued periodically. Written by experts in the fields, they are designed to provide an initial reference source for managers and include summaries of key issues and techniques, checklists, hints and tips, and suggested reading.

Recently released chapters include:

• putting it together, due diligence and integration (LMS Merger Toolkit);
• intellectual property and the management of personnel, and identity management (LMS Internet Policy Toolkit);
• statutory risks (LMS Risk Management Toolkit); and
• social media and client feedback (LMS Business Development Tookit).

(Posted: 19-10-2007)

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Earn up to eight hours free CPD points each year with MFS

The Law Management Section has introduced a way for members to meet CPD requirements via its Managing for Success magazine:

• Fifteen multiple choice questions will be published on the Section’s website to coincide with the release of every issue (January, April, July and October).
• The questions will only relate to articles in that issue and are designed to ensure practitioners have read and understood the content. 
• After submitting all the answers in one sitting, members will be notified online immediately of their result. 
• If successful, members can claim two hours unaccredited CPD. To be successful, the score most be more than 12. Answers cannot be re-submitted.
• Members will have until a week before the next CPD-based issue to complete the quiz. 
• Past results can be viewed and printed via the Edit my Profile area of the website.
• Members need to use their current website username and password. To request a new one, please email lawmanagementsection@lawsociety.org.uk or telephone 020 7316 5707.
• This is only available to members. If you normally pass your copy to colleagues, contact the Section and change to corporate membership so they too can join and take advantage of the service. If you're not a member, join now.

(Posted: 10-10-2006)

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