January represents the mid-point of the presidential year. As I flew back from my trip to the far east on behalf of the profession last month, I reflected on the events of the first half of my tenure and looked to the priorities of my second six months.

It is clear that providing the profession with the strong leadership and assistance it needs to navigate a very difficult trading period is paramount. In addition, the evolution of the regulatory landscape as defined by the Legal Services Act is entering a critical phase and we need to ensure that we respond to it in the appropriate fashion.

Banking and insuranceYou do not need me to tell you that this is a difficult time. Firms the length and breadth of the country are feeling the impact of the banking crisis and bracing themselves for tougher times to come. My colleagues and I have been working extremely hard with the banking and insurance industries to ensure they understand the needs of the profession.

The Law Society’s chief executive and I have embarked on a comprehensive engagement programme with retail banks and their industry representatives at the British Bankers Association. We have been vocal in expressing the concerns of the profession about the security of client deposits and in calling for greater clarity of available banking support for solicitors. On the whole, our meetings have been both constructive and productive. The notable exception was Abbey/Santander who, for reasons known only to itself, saw no value in meeting. It is our hope that a series of seminars can be arranged with the banks to focus on ways in which solicitors and the banking industry can work together effectively.

The alleviation of problems concerning the renewal of professional indemnity insurance is one of the major tasks of my presidency. It is vitally important that all elements of uncertainty are removed from the process, especially in a business climate which is testing enough as it is. The Society has opened a dialogue with brokers and insurance industry bodies, listening to their concerns and presenting a robust case on behalf of the profession. The Society’s indemnity insurance sub-group has undertaken a series of fact-finding tasks in an attempt to better understand the market and to determine the best way that the Society can help its members. It is essential that suitable advice and assistance is available for members well in advance of this year’s renewal date in October in order to avoid a repetition of last year’s difficulties. I hope to be able to unveil such a package shortly.

We have enjoyed notable success in our negotiations with HM Revenue & Customs regarding arrangements for the deferral of tax payments for those firms that require more time during the downturn. Advice on this and other guidance on negotiating the recession is available on the Law Society website.

While the next few months are going to be difficult, I am very confident that the legal profession will manage better than many other professions. There has been a considerable shift in perceptions about effective business management of legal practices since the downturn of the early 1990s. Most legal practitioners now understand that running a tightly managed ship is entirely consistent with the maintenance of the highest professional standards. I have been extremely impressed by the widespread application of modern business methods on my visits to practices of all sizes across the country. A well-organised business stands a far better chance of protecting itself and its employees, and the practices that I have seen fuelled my belief that our profession is robust.

Of course, a substantial number of solicitors are employees of law firms, companies or government departments, rather than partners or self-employed practitioners. That number is likely to grow. I know that it is a particularly worrying time for legal employees. However, demand for legal services in an economy such as ours will always remain strong and there is cause for cautious optimism.

There are a great many colleagues in local and central government, commerce and industry who are playing a pivotal role in nursing their organisations through difficult times. Their professionalism and insight aids business and both local and central government in making the correct decisions for now and the future, demonstrating the value of high-quality legal advice from in-house teams.

For some, though, it is not so simple. Aside from the faltering economy, some firms are also having to deal with changing markets. As consumers discover new methods of obtaining legal advice and assistance, I am anxious that the Society finds ways to help those firms who find themselves at the wrong end of such a trend. My colleagues and I will work to that end in the second half of my presidential term.

RegulationWe are now moving into a pivotal period in the evolution of the way in which the legal profession is regulated. The Legal Services Act makes it clear that the Law Society is the approved regulator, but it imposes obligations to put in place an independent regulatory arm. Those arrangements are to be scrutinised by the Legal Services Board now that its powers under the act are being fully implemented. We need to ensure that the arrangements in place now and for the future serve the needs of both the consumer and the profession while fulfilling the requirements of the Legal Services Board. What is non-negotiable is that we must have a regulatory regime which preserves both the integrity and reputation of this profession while enabling it to compete effectively with non-solicitor suppliers, both at home and abroad.

Lord Hunt’s independent review into what effective modern regulation of law firms should involve is a key initiative in this regard. We have before us a once-in-a-generation opportunity to craft the regulatory regime that will govern the profession for years to come. I would encourage every solicitor to study Lord Hunt’s call for evidence and to engage in the review, whether through their firm or local law society. There will be other opportunities to contribute in due course, not least through Lord Hunt’s regional roadshow, which will roll into a town near you in May. I hope that as many solicitors as are able will participate.

Paul Marsh is president of the Law Society