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Mind your step

05 February 2014 / Simon Love
Issue: 7593 / Categories: Features , Regulatory
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Simon Love provides a warning to firms facing financial difficulty

A year ago, the failure of a law firm was virtually unheard of. That sort of thing simply didn’t happen to solicitors. However, a number of high profile failures have made it clear that the solicitors’ profession is not immune to the prevailing harsh economic conditions. Following the intervention by the Solicitors Regulation Authority (SRA) into Follett Stock LLP in November 2013, Helen Herniman, the SRA’s Director of Client Protection, said: “The legal services market is facing a tough economic environment and other firms may find they are in a similar position. We’d urge all those who may be struggling financially to get in touch as soon as possible with either ourselves at the SRA, or other organisations that can offer advice such as their local Law Society.”

Why are more law firms at risk of insolvency?

It is undoubtedly the case that the solicitors market is having to face up to historic challenges on every front. All firms are grappling with the fact

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NEWS
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The Crown Prosecution Service (CPS) has launched a recruitment drive for talented early career and more senior barristers and solicitors
Regulators differed in the clarity and consistency of their post-Mazur advice and guidance, according to an interim report by the Legal Services Board (LSB)
The Solicitors Act 1974 may still underpin legal regulation, but its age is increasingly showing. Writing in NLJ this week, Victoria Morrison-Hughes of the Association of Costs Lawyers argues that the Act is ‘out of step with modern consumer law’ and actively deters fairness
A Competition Appeal Tribunal (CAT) ruling has reopened debate on the availability of ‘user damages’ in competition claims. Writing in NLJ this week, Edward Nyman of Hausfeld explains how the CAT allowed Dr Liza Lovdahl Gormsen’s alternative damages case against Meta to proceed, rejecting arguments that such damages are barred in competition law
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