Regulators have discovered hundreds of potential breaches of the new code of conduct during visits to law firms.

The Solicitors Regulation Authority says it found a lack of understanding of the code during its survey of 200 firms carried out before the new code’s release in October 2011. More than 170 breaches were found of the rule insisting that clients receive the best possible information at all times about the likely costs of their matter.

On 124 occasions, clients were not put in a position to make informed decisions about the services they need, or how their matter would be handled. There were also dozens of examples of breaches of the rules on informing clients about the complaints procedure or inclusion of basic details on letterheads, websites or emails.

To get the results, old file reviews were carried across to the new code, with 80% of firms found to be non-compliant with the revised version. Less than 10% were found to be fully compliant with both the 2007 and 2011 codes.

But the study, Attitudes to Regulation and Compliance in Legal Services, found most firms were breaching rules unconsciously through a lack of understanding. Most responded to say that while they rated their knowledge of the code of conduct highly, their comprehension was not as consistent.

When asked to rate their level of compliance out of six, most said they were either a four or a five.

The research also highlighted perceptions that the SRA would be likely to discover a breach through a visit, and that firms did not feel they would be caught out by consumers or peers. The vast majority of firms said they were not happy merely to satisfy the regulator, and wanted to pass inspections to preserve their reputation and bolster their personal pride.

Firms reported that they, and the profession overall, feared visits from the SRA and took them as a sign they were suspected of doing something wrong. Firms were largely unwilling to question the imposition of sanctions, but most were prepared to say that regulation could be handled better.

The SRA will carry out further surveys next year using an independent partner, after admitting the reliability of responses may have been ‘questionable’ given that the exercise was conducted by the regulator itself.