Themes from the Annual Institute of Legal Finance and Management Spring Conference

The annual Institute of Legal Finance and Management Spring Conference returned earlier this month, marking the first conference since the Covid pandemic. I was delighted to be among the delegates at the conference venue, the Law Society on Chancery Lane.

The conference featured an excellent lineup of speakers who were willing to share their considerable knowledge. It provided an excellent opportunity to network with fellow delegates and share experiences.

The conference saw strong representation from the SRA (Solicitors Regulation Authority), with the keynote speaker being Paul Philip, Chief Executive of the SRA. He explained the SRA’s priorities for the next 3 years.

The Chief Executive began by commenting that he had personally never witnessed such a period of change, which the 9,600 law firms regulated by the SRA in England and Wales have had to grapple with in recent times. Supervising staff in the post-Covid workplace raised many issues and challenges of a regulatory nature for law firms.

The SRA’s current 3-year strategy ends on October 23, so the focus is now on establishing the priorities for the next 3 years, starting from November 23.

The CEO identified “doing the day job quicker and better,” improving customer care, and shaping the SRA’s culture to ensure the delivery of high customer care standards as major focal points for the SRA over the next 3 years.

With a multitude of law firms to regulate and finite resources to deliver the regulation, the SRA intends to strengthen its intelligence-driven risk-based approach to determine where to focus its priorities. It aims to make greater use of data to inform decision-making compared to previous practices.

Moving forward, the SRA will be more proactive in visiting firms to verify the presence of a robust compliance regime. This is something the profession will need to become accustomed to as part of the updated SRA business plan and approach over the next 3 years.

Workplace culture and wellbeing are also likely to be prominent in the updated business plan, with a particular emphasis on toxic workplaces and mental health issues. In 2022, the SRA conducted a Workplace Culture thematic review, which revealed that 25% of workplaces reported a poor workplace culture. The SRA is committed to implementing the recommendations from the review to improve workplace wellbeing.

While the number of reported data breaches from law firms has plateaued, cybercrime remains a significant threat to client funds. It remains to be seen whether this plateau is due to improved protection against cyber criminals or unreported breaches.

However, what is certain is that 82% of all cyber breaches are a result of human error. Therefore, law firms need to ensure their cybersecurity policies are up to date and understood by all staff. Regular cybersecurity training (at least annually) should be mandatory for everyone in the law firm without exception.

If you would like to discuss any of the themes mentioned in this blog, please feel free to contact me at ih@hopkinslegalconsulting.co.uk or call me at 0791 666 9095.