The Law Society of Scotland launches the Innovation Cup 2022 to find the latest idea in risk management

The search for the latest idea in risk management within the Scottish legal profession was launched on 13th June.

The Law Society of Scotland launched the Innovation Cup 2022 and has invited Scottish solicitors, paralegals, trainees, cash-room staff and student associates to submit their ideas for risk management products, tools or strategies.

The winning idea will be developed by Lockton, the brokers for the Law Society’s professional indemnity insurance Master Policy, and rewarded with £1,500 cash prize, provided by insurers RSA.

Read the full story here.

CLIEX and training company Pearson co-operating on the creation of new legal services ‘T-level’ in England and Wales

CLIEX and Pearson begin work on the creation of a new legal services qualification, a ‘T-level’, which will sit alongside the traditional A-level.

The qualification will be for students who want to enter the legal profession, particularly those interested in business administration roles within the legal sector. The qualification will lead directly into a CLIEX professional qualification, opening the door to paralegal work and ultimately a CLIEX lawyer role.

Read the full article here.

The Solicitors Regulation Authority of England and Wales annual compliance officers conference goes hybrid

This key annual conference attracted 600 people to the face-to-face event, followed by more than 33,000 views of virtual sessions the following week.

The programme covered topics including:

  • Money laundering
  • The SQE and what it means for your firm
  • Innovation and technology – how can technology help firms spot risks and comply with regulatory obligations
  • Accounts rules – one year from implementation
  • Anti-money laundering – practical tips for managing AML risks
  • Your compliance queries
  • Cybercrime, Covid and homeworking and increased risk
  • Better information for customers

Read the full article and view the virtual sessions.

Structural Changes to the Legal Service to Deepen Capabilities and Better Meet Evolving Demands

In an attempt to update legal services to meet evolving demand, the government of Singapore has proposed a number of changes, including:

1.Establishing a separate Judicial Service, overseen by a newly established Judicial Service Commission (JSC) headed by the Chief Justice. Legal Service Officers (LSOs) currently holding judicial posts, such as Assistant Registrars in the Supreme Court and District Judges and Magistrates in the State Courts and Family Courts, will be transferred to the new Judicial Service, as Judicial Service Officers (JSOs).

2. Making consequential changes to the Legal Service, which will be overseen by a reconstituted Legal Service Commission (LSC) headed by the Attorney-General. The Legal Service will comprise LSOs holding other (non-judicial) posts in Government, such as in the Attorney-General’s Chambers (AGC) or Ministries.

These changes aim to put legal services in better stead for the future by allowing for more specialisation and allowing more space for adapting to specific management model moving forward.

Read the full story here

Solicitors Regulation Authority of England and Wales publishes results of study into innovation in the legal sector

The Solicitors Regulation Authority of England and Wales (SRA) has published the results of its independent study into innovation in the legal sector, commissioned in March.  The study was carried out on behalf of the SRA by a research team at the University of Oxford which included Professors Mari Sako and John Armour. The study has concluded that the majority of law firms were increasing their day-to-day use of technology, however, the development of bespoke legal technology was largely focused on advances which would benefit larger corporate clients.

The study has found that the pandemic has significantly impacted the uptake of technology, over the past 18 months it has been found that 87% of firms now use video conferencing services to meet clients and 66% store data in the cloud. 90% of firms also reported that changes made during the COVID-19 pandemic will be kept in place to some extent.

Technology usage was found to be highest among younger firms, firms operating through alternative business structures, and firms working in areas where technology was already established, like conveyancing. In terms of more advanced technology use- such as the use of automated documents, interactive websites and artificial intelligence – a little more than a third (37%) of law firms said they were currently using these.

The research found that the key stumbling blocks in innovation were related to funding and scalability. This meant that most bespoke development among technology companies was focused on products for the corporate sector. Firms working with individuals and small businesses stated that the most common barriers to accessing more advanced or targeted technological solutions were affordability, a lack of inhouse technology skills, or uncertainty over the business benefits from making an investment.

Anna Bradley, Chair of the SRA, said: “Supporting innovation and the adoption of legal technology is a key priority, as we set out in our Corporate Strategy. It can help increase access to justice for the public and small businesses, as well as supporting firms to be more efficient, benefitting everyone and the economy as a whole. These findings drive home the fact that when we talk about technology, we need to remember just how broad that term is and how far there is for some to travel. This is not just about artificial intelligence, virtual reality or future technologies. Some of the innovation which has the greatest potential to improve access to justice at pace is already available. Such technology can be applied widely and be used on a day-to-day basis to benefit both consumers and law firms. The challenge now is how we all work together to enable this to happen.”

Mari Sako, Professor of Management Studies at the University of Oxford and project leader for this research, added: “Technology and innovation have already changed, and will continue to change, the face of the legal services sector. Our research provides robust evidence of this. But we also found that benefits from legal technology are not evenly distributed across different market segments. Regulators, including the SRA, collaborating with other stakeholders could play a major role, not only to lower regulatory uncertainty but also to level the playing field across the market segments.”

Based on their report, researchers identified three key areas to be addressed in order to allow for greater development of innovation and technology:

  • Greater support and co-ordination among government, regulators and tech developers – particularly in encouraging innovation and identifying funding paths
  • Increasing public and law firm trust in new approaches and technologies
  • Increasing the technological and innovation skills and knowledge bases within the legal sector.

Read more and access the research here.

Protecting and Promoting Competition in Response to ‘Disruptive’ Innovations in Legal Services: OECD Background Paper

Abstract

Despite traditional resistance to change in legal professions, pro-competitive “disruptive” innovations are beginning to transform legal services and the manner in which they are delivered. Online service delivery is allowing both legal professionals and unlicensed providers to serve clients remotely while taking advantage of the scalability of digital platforms. In addition, ranking and review information regarding legal professionals is becoming increasingly accessible, and is allowing clients to assess the quality of professionals before retaining them – a previously difficult proposition. Further, the unbundling of services, partially driven by increasing client awareness and fee pressure, is transforming the distribution of tasks in legal services and ending traditional “black box” models of service delivery. As a result, standardized activities are being outsourced to low-cost providers (including unlicensed ones), and new billing models are being introduced. Finally, automation is changing the nature, and volume, of tasks that legal professionals perform. Although the extent to which the work of legal professions can be automated is subject to debate, automated systems have been introduced which offer new capabilities and, in at least some instances, improved performance relative to legal professionals.

As a result of these innovations and the new competition they bring, the regulatory framework in which legal professionals operate is under pressure. The exclusivity enjoyed by legal professionals, and the precise scope of activities to which it applies, is becoming unclear as unlicensed entrants offer a widening range of services. Restrictions on the quantity of professionals that can operate in specified regions are being questioned at a time where the services they provide could easily be made available online. Further, legal professional self-regulators may be unable, or ill-suited, to identify accommodations that permit innovative entrants to serve consumers.

Competition authorities, which may have limited experience in legal services markets given that enforcement issues have been rare, should be aware of the challenges described above. Authorities can play a role in advocating for regulatory systems that reflect current market realities and ensure market access for pro-competitive disruptive innovations. Such a role could include advising policymakers who may be seeking to balance the benefits of competition with other policy objectives such as consumer protection. This process will require consideration of the objectives of legal professional regulations, particularly those addressing market failure, as well as the current design of those regulations.

Mancini, James, Protecting and Promoting Competition in Response to ‘Disruptive’ Innovations in Legal Services: OECD Background Paper (March 9, 2016). Working Party No. 2 on Competition and Regulation,

Available at SSRN.

Nigeria Bar Association launches survey on technology and globalisation

Following the creation of the Future of Legal Practice Committee, by the Nigerian Bar Association (NBA), which was recently established with a mandate of facilitating significant improvement in the quality and standard of legal services rendered by legal practitioners. The NBA has now launched a survey of all its members collating the views of both the Bar and the Bench.

The views will be collated into a future report on the effects of technological innovation and globalisation on the legal profession in Nigeria. The results will then be used to inform the future direction of the Committee and its recommendation to the NBA.

View the survey here, or read more here.

Lawyer Ethics for Innovation

Abstract

Law struggles to keep pace with innovation. Twenty-first century advancements like artificial intelligence, block chain, and data analytics are already in use by academic institutions, corporations, government entities, health care providers, and others but many questions remain about individual autonomy, identity, privacy, and security. Even as new laws address known threats, future technology developments and process improvements, fueled by consumer-demand and globalization, inevitably will present externalities that the legal community has yet to confront.

How do we design laws and systems to ensure accountability, equality, and transparency in this environment of rapid change? A solution can be found in a surprising source — the regulation of professional ethics. Lawyers have the capacity to play a critical role both in assessing the risks and benefits of innovation generally and also in deploying innovative tools to enhance the delivery of legal services. This Article is the first to articulate a formal obligation of ethical innovation as a component of professional discipline and licensing rules. This proposal comes at a time when the legal profession is increasingly immersed in innovation — whether measured by the number of “NewLaw” providers, exponentially increasing financial investment in legal tech, or by the American Bar Association’s 2020 Resolution supporting innovation to address the access-to-justice crisis.

Rather than taking a particular side in the debate over whether lawyers and judges should adopt innovations like artificial intelligence or machine learning, this Article acknowledges that technology advancements inevitably are part of modern society, including the practice of law, and advocates for reforms to professional conduct rules to protect individuals in the midst of innovation. This protection is especially warranted when innovation is forced amidst a moment of crisis, for example as seen when the 2020 coronavirus pandemic abruptly halted law practice in its traditional form, canceling office meetings and jury trials and other in‑person interactions. Some lawyers and courts were prepared, others were not. Some clients received the legal advice through virtual consultations or apps, and had their cases decided by judges via Zoom hearings, but many found themselves without the justice they needed. The lawyers and judges at the forefront of ethical innovation before the pandemic hit were the ones best able to serve their clients. Formalizing a duty to innovate as an ethical obligation will make the profession better prepared to serve the public in the future.

(Newman) Knake Jefferson, Renee, Lawyer Ethics for Innovation (April 20, 2021). 35 Notre Dame Journal of Law, Ethics and Public Policy 1 (2021), U of Houston Law Center No. 2021-A-7,

Solicitors Regulation Authority publishes compliance officers conference online

The Solicitors Regulation Authority of England and Wales (SRA), has published recordings of their recent compliance officers (COLP) conference on their website. Due to the content of the conference, looking at regulatory and compliance developments, ICLR members may well find the content interesting and relevant to their own regulatory work.

Sessions included:

  • Discussions around rule changes that allowed for third party management of client accounts and why there hasn’t been more uptake
  • Anti-money laundering
  • Changes to the legal education system with the new solicitors qualifying exam, and
  • The cybercrime risks associated with working from home.

All the sessions are available to watch on the SRA website.

ABA establishes group to look at the post-COVID-19 response

On the 13th May 2020, the American Bar Association announced the formation of the Coordinating Group on Practice Forward, with the aim of providing insight on the emerging challenges and opportunities confronting the legal profession and the justice system arising from the COVID-19 pandemic.  The coordination group will disseminate ABA resources as well as organise seminars, publications and other resources to coordinate ABA members and the profession, and to help to identify innovations and new ways of providing legal services that will arise following the COVID-19 crisis.

ABA President Judy Perry Martinez has said: “The American Bar Association is the preeminent body in the country positioned to exercise its convening power and provide the kind of thought leadership that the legal profession needs now. Adjusting to the new legal realities in the wake of the COVID-19 pandemic will be a major focus for the ABA moving forward. That is why President-elect Trish Refo and I are working together to help the legal profession rethink what may or may not be essential to sustaining lawyer-client relationships, maintaining quality, ethics and competency, and assuring public protection in both the civil and criminal justice arenas.”

Ms Refo has said: “We are going to leverage the power of the entire ABA to address all of the changes to the practice of law that will arise out of this extended period of remote working. Our work will help lawyers in all practice settings to better serve their clients.”

For more information see the full article on the ABA site.