SRA's In-house Conference - 12 March 2025

A distinguished panel, featuring Juliet Oliver (General Counsel and Deputy Chief Executive, SRA), Natalie Batstone (Legal Director, National Highways), Luke Corcoran (Senior Lawyer, Government Legal Department), Phil Fitz-Gerald (Director, Financial Reporting Council), and Jackie Griffiths, (Head of Regulatory Policy, SRA), explored the critical role of employers in supporting solicitors' professional obligations.

The discussion centred on:

• Employer Responsibilities: Examining how organisations can effectively support solicitors in navigating their regulatory duties.
• Governance Best Practices: Sharing practical examples of robust governance frameworks.
• Unique In-House Challenges: Addressing the specific dilemmas faced by in-house legal teams, operating within non-regulated environments while adhering to SRA standards.

Key takeaways included:

• Open Communication: The importance of fostering open dialogues regarding regulatory obligations, potentially formalised through employment contracts or annexes.
• Navigating Conflicts: Practical examples of requests that could potentially conflict with regulatory duties were discussed.
• Addressing Isolation: Recognising the challenges faced by isolated, particularly junior, in-house lawyers.
• Promoting a "Speak-Up" Culture: Emphasising clear reporting lines and a culture where lawyers feel empowered to raise concerns.
• Leveraging Governance Codes: Referencing the Financial Reporting Council's Corporate Governance Code as a model for mature internal governance.
• Corporate Culture and Early Involvement: Stressing the significance of a strong ethical tone from leadership, and the necessity of involving lawyers early in decision-making processes, ensuring they are not treated as a mere "checkbox". Lawyers should have a seat at the relevant meetings and be able to speak freely.
• Client Autonomy: Reinforcing that while lawyers provide legal advice, clients retain ultimate decision-making authority and responsibility, and that it is not sufficient for them to say that they had legal advice
• Shared Dilemmas: Acknowledging that accountants often face similar ethical challenges.
• "General Counsel" Term: Addressing that "General Counsel," is not a protected term,  a matter the SRA is considering.
• Civil Service Code: A brief mention of the civil service code and its relevance to the government legal department.

This session provided valuable insights into the complex regulatory landscape faced by in-house legal professionals.

Jim Baxter, (Professional Ethics Consultancy Team Leader at the University of Leeds,) presented the Law Society's upcoming ethical framework for in-house lawyers, developed by the IDEA Centre. He emphasised that this project compliments the SRA guidance.

This three-year initiative addresses the growing complexity and vulnerability faced by in-house legal teams. 

Key goals include:

• Enhancing Ethical Decision-Making: Strengthening in-house lawyers' critical thinking and skills in navigating complex ethical dilemmas.
• Improving Corporate Influence: Empowering lawyers to effectively influence corporate decision-making processes.

The framework aims to achieve this by:

• Clarifying Obligations: Encouraging the use of engagement letters to clearly define professional obligations.
• Building Community: Fostering a supportive community through local law society membership, networking, and peer-to-peer support.
• Providing Whistleblowing Resources: Developing practical tools, including a whistleblowing policy template and guidance, to support ethical reporting.

Mr. Baxter highlighted the importance of in-house lawyers viewing themselves as integral members of the broader legal profession.

The tools and resources developed through this project are scheduled for launch later this spring [2025].

An expert panel, comprising Luci Henderson (Head of Regulatory Management, SRA), Claire Benneyworth (Legal Capability Manager, BEA Systems PLC), Louise Portman, (Legal Director, National Highways), Lucinda Soon (Legal Ethics Solicitor and Consultant), and Sangita Talati Bodalia (Head of Early Notification (Legal) NHS Resolution), explored the nuances of ethical conduct within in-house legal teams.

The session emphasised:

• Ethical Leadership: The critical role of leaders in setting and maintaining high ethical standards, fostering open communication, and creating a culture of trust.
• Interpersonal Relationships: The importance of strong relationships and two-way communication in promoting ethical behaviour.
• Learning Through Example: The concept of "learning therapy," where ethical conduct is absorbed through exposure to an ethical environment, rather than solely through mandated rules.
• Positive Behavioural Commitment: Encouraging a proactive approach to ethical behaviour and fostering a culture of "bringing people with you."

Key insights and recommendations included:

• Supporting Junior Lawyers:
  • Prioritising transparency, consistency, and trust.
  • Implementing formal whistleblower and escalation policies.
  • Providing readily accessible support and advice.
• Building an Ethical Culture:
  • Promoting ethical leadership and a balancing obligations.
  • Integrating ethical training into on-boarding and ongoing professional development.
  • Establishing a clear code of conduct and encouraging reflection on company values.
  • Cultivating a "speak truth" culture, facilitated by volunteer ethics officers or "speak-up guardians."
• Behavioural Ethics:
  • Recognising the interplay between formal controls (codes and policies) and informal systems (values, culture, and peer influence).
  • Acknowledging that strong policies are ineffective without consistent implementation.
  • Analysing organisational challenges, including decision-making processes, reward systems, and underlying informal values.
• Addressing Ethical Sinkholes:
  • Identifying factors that can compromise ethical decision-making, such as uncertainty, time pressure, and isolation.
  • Recognising how isolation can lead to reliance on sub-cultures that diverge from organisational ethical values.
• Practical Suggestions:
  • Ensuring the "right to speak up" for all lawyers.
  • Conducting interactive training sessions using real-life scenarios.
  • Building strong lawyer networks.
  • Providing targeted training on SRA guidance and its application to in-house practice.

Notable quotes:

• "It is never wrong to do the right thing."
• "Surprises are only good at birthdays and Christmas."