With effect from 26 March 2010, the prohibition in the UK Bar’s Code of Conduct on barristers (other than employed barristers) supplying legal services to the public through or on behalf of any other person ceases to have effect. Instead, barristers are permitted from that date to supply legal services to the public in three different ways: as a self-employed barrister (as previously), as a manager or employee of a recognized body, subject to the rules of the approved regulator of that body, or as an employed barrister (to the same extent as previously permitted under rule 502).
Recognized bodies include what are generally known as Legal Disciplinary Practices (LDPs). These are a creature of the Legal Services Act 2007 (the Act). At present, only the SRA can regulate LDPs that are authorized to conduct litigation and exercise rights of audience, though the Council for Licensed Conveyancers (CLC) also has power to regulate LDPs. They can have different kinds of qualified lawyer and non-lawyers as managers and employees (or just lawyers). At present, no more than 25% of the managers (or shareholding) in an SRA-regulated LDP can be non-lawyers, and only non-lawyers who are managers can own a shareholding. At present, recognized bodies can only supply legal services (restricted or not) to the public, not other services such as accountancy or valuation services.
The significant change is accordingly to permit barristers to practice as managers of “recognized bodies”. So, e.g., a law firm regulated by the Solicitors Regulation Authority (SRA) is a recognized body. These are entities of all kinds, or sole principals, authorized to provide reserved legal activities by an approved regulator other than the Bar Standards Board (BSB). A “manager” for these purposes is a partner of a firm, a director of a limited company or a member of a limited liability partnership which is a recognized body, as the case may be.
