February Regulatory Update

James Price

Welcome to the February 2025 Regulatory Update, where we bring you the latest developments in legal regulation and compliance. This month, we cover the SRA’s new survey on complaint handling, a marketing warning issued to law firms, an important update on Swiss lawyer recognition, and new statutory guidance focused on preventing economic crime. As always, staying informed and compliant is essential, and we’ll also highlight relevant training opportunities available through Datalaw to help firms navigate these changes.

James Price

The SRA has recently launched a survey aimed at assessing how law firms handle complaints. This survey has been sent to a large number of firms, with questions focusing on whether firms have a formal complaints procedure in place, when they last provided training on handling complaints, and how clients can make a formal complaint. Only those firms that have received notification from the SRA are required to complete the survey, which must be submitted by the 28th of February 2025. To support firms in ensuring they meet best practices in complaint handling, Datalaw currently offers ‘Complaint Responses’ training. Later this year, Datalaw will also introduce a new webinar, ‘COLP and COFA Update – Costs and Charging,’ which will explore the regulatory implications of charging for work when a complaint has been raised.

James Price

The SRA has also issued a warning to law firms about marketing practices that may breach regulatory rules. In particular, they have highlighted concerns around unsolicited approaches, such as door knocking, cold calling, and direct emails to individuals who are not current or former clients. These methods are strictly prohibited under SRA rules. The regulator has also reminded firms to ensure that all promotional materials contain statements that can be substantiated, particularly in relation to claims management and high-volume claims work. Law firms must be especially careful to avoid making misleading claims that could attract regulatory scrutiny. To assist firms in staying compliant with their marketing strategies, Datalaw will be offering a dedicated webinar on SRA Marketing in the summer of 2025.

James Price

In other news, a new recognition agreement has been introduced concerning Swiss lawyers and their professional qualifications. Following Brexit, Swiss lawyers were allowed to continue practising as Registered European Lawyers under a special agreement with the UK. Most other European lawyers, however, were required to transition into becoming Solicitors or Registered Foreign Lawyers. Now, with the new recognition agreement in force, the SRA has issued a statement clarifying the practising status of Swiss lawyers moving forward. This update ensures that Swiss lawyers continue to have a clear and defined pathway for practising in the UK legal sector.

James Price

Another major regulatory change comes in the form of a new objective introduced for legal regulators, focusing on preventing and detecting economic crime. The Legal Services Board has published statutory guidance to support this objective and has outlined four key areas where regulators should take action. First, regulators must identify the risks that could lead to economic crime within the legal sector and take steps to prevent such risks from materialising. Second, legal professionals must be given the necessary education and support to understand their obligations and the risks of economic crime when delivering legal services. Third, regulators are expected to monitor compliance closely, ensuring that legal professionals meet any new standards introduced to combat economic crime. Finally, ongoing evaluation of these standards will be necessary to ensure they remain fit for purpose in tackling evolving risks in economic crime. The consultation on this guidance is currently open, allowing legal professionals to provide feedback on the proposed measures. To help firms stay up to date with these important changes, Datalaw’s live Autumn Update webinar, set to take place in early October, will cover the latest developments in anti-money laundering regulations and economic crime prevention.

James Price

As we navigate these regulatory changes, it is crucial for law firms to stay informed and ensure compliance with evolving legal standards. This update has highlighted key areas requiring attention, from complaint handling procedures and marketing compliance to economic crime regulations and the recognition of Swiss lawyers in the UK. Datalaw continues to provide essential training and webinars to support legal professionals in adapting to these developments. Keeping up to date with regulatory changes is essential for every law firm, ensuring continued compliance and professional integrity in 2025 and beyond.