Three out of five solicitors at small firms believe the Solicitors Regulation Authority (SRA) is acting against their interests on client fees and potentially causing significant risks, according to the 2018 Bellwether Report.
The SRA confirmed last week that it has agreed proposals to make firms publish pricing information for certain mainstream services and display a badge highlighting consumer protections on their website—it has dropped plans to publish details of client complaints against law firms. The ‘Better Information’ proposal will now go forward to the Legal Services Board for approval and could be in pace as early as December 2018.
This year’s LexisNexis Bellwether Report, however, found widespread dismay among solicitors, with many believing the proposal would ‘degrade the profession’s image’ and ‘encourage lower standards’ due to the potential for some legal providers to feel pressured to cut quality for cost.
Meanwhile, about 700 new law firms are opening each year and the balance of power has tipped in favour of the client, who can shop around on price comparison websites and expects their solicitor to act more like a service provider as a result. While 97% of solicitors agree that a client-first culture is important to the success of their firms, there was concern that the client-centred culture could have a negative impact on fee structures. Some 58% agreed, and a quarter disagreed, that ‘today’s price/customer driven culture is impacting on lawyers being able to uphold the integrity of the law’. When asked for the reason for their answer, 26% said ‘reducing costs at expense of quality’, five per cent said ‘client doesn’t realise skills dropping’ and three per cent said ‘encourages unethical practices’.
Nevertheless, the report reveals a bullish attitude among solicitors—87% are confident about what the future will bring for their firms and for their area of practice. When asked about their future plans, nearly three-quarters said growth was their primary focus. This result is consistent with previous Bellwether Reports, which began in 2013. However, the report notes: ‘Plans for growth have been on the cards for five years, but only marginal gains have been achieved in that time.’
The respondents named their top three challenges as attracting new business, keeping up to date with industry changes and the continuing demands of compliance regulations.
