Solicitors Regulation Authority may undertake thematic review of the LPO sector in 2011

The Solicitors Regulation Authority (SRA) is considering legal process outsourcing (LPO) as part of the consultation in Chapters 4 and 7 of the current draft of the Handbook. The SRA is considering to undertake a thematic review in 2011 to identify whether there are any particular issues or risks that require changes to our current regulatory requirements..The Solicitors Regulation Authority (SRA) is considering legal process outsourcing (LPO) as part of the consultation in Chapters 4 and 7 of the current draft of the Handbook. According to media reports, this Handbook is due to be launched in April of 2011..Speaking to Bar & Bench, spokesperson Geoffrey Negus said, “The key issue for us is that it should not absolve the delegator (i.e. a legal service provider) of responsibility for the matter delegated”..He added, “However, although we have not made any final decision, this is such a growing and fast-developing issue that we may undertake a thematic review in 2011 to identify whether there are any particular issues or risks that require changes to our current regulatory requirements or whether certain outsourcing arrangements need particular attention in the supervision process”..Bar & Bench has got a copy of the clauses SRA intends to add:.*Chapter 4 on Confidentiality and Disclosure – “IB(2) you only outsource services, such as word processing and photocopying, when you are satisfied that the provider has taken all appropriate steps to ensure that your clients’ confidential information will be protected” Chapter 7 on Management of your business –“O(9) where legal activities or operational functions are outsourced you ensure such outsourcing does not:(i) jeopardise the quality of your legal activities no impair the quality of your internal controls; and(ii) impact on the SRA’s ability to monitor your compliance with all obligations in the Handbook”.SRA is said to have taken this step after a series of outsourcing deals that have been in the news over the last year starting with Simmons & Simmons – Integreon deal, Microsoft outsourcing to CPA Global and Wipro Technologies and recently with CMS Cameron Mckenna signing a $850 million outsourcing deal with Integreon.