Q. I am a practising solicitor. Can I have a separate non-solicitor business that provides claims management services?

A. No. Practice rule 5 and the Solicitors Separate Business Code 1994 prohibit practising solicitors from having any active involvement in a business that provides certain services other than as solicitors, unless the business is a practice regulated by the Law Society.


The services in question are listed in section 3 of the code, and include:


  • The conduct of any matter that could proceed before any court, tribunal or inquiry, whether or not proceedings are commenced; and


  • Giving legal advice.


    • 'Any active involvement' includes actively participating in the business or in the provision of its services to customers, and having any substantial ownership in or control over the non-solicitor business, including indirect control through another person, such as a spouse.


    Solicitors could operate a claims management service as part of their practice.




    New rules


    Last year, the Law Society's Council made practice rules 16D (conflict of interests) and 16E (confidentiality) and the new Law Society's code of conduct. They are all currently undergoing the process of external review under schedule 4 to the Courts and Legal Services Act 1990. This process has no set timescale. It seems unlikely that there will be an early implementation of the rules.


    Once they receive the necessary approval under schedule 4, practice rules 16D and 16E will come into force immediately, and the code of conduct will come into force three months after approval.


    When further information is available, it will appear on www.lawsociety.org.uk.


    Question of ethics is compiled by the Law Society's professional ethics guidance team