Rule 5 need not be an irksome imposition, argues
Jay Tayler-Webb
The new Rule 5—Business Management in England and Wales (rule 5) says principals and directors of solicitors’ practices must “make arrangements for the effective management of the firm as a whole”, including:
supervision over all staff;
direction of clients’ matters;
client care, costs information and complaints handling;
equality and diversity;
training;
financial control of budgets, expenditure and cash flow;
business continuity; and
risk management.
Rule 5 also applies to employed supervising lawyers eg heads of department. The latest draft and accompanying guidance are on the Law Society’s website (see www.lawsociety.org.uk).
Compliance and survival
Rule 5 should not be regarded as yet another irksome imposition. Although its purpose is to protect the public, it will benefit law firms too.
Make no mistake, there are expert business managers out there, greedily eyeing up the legal services marketplace. They are jubilant as they watch barriers to entry being demolished by the Legal Services Bill’s progress through Parliament. They have a cunning strategy in place for taking significant market share—your clients—and are already marshalling resources for the onslaught. Their track record demonstrates
