Following the Post Office Horizon scandal, the SRA is turning up the heat on in-house solicitors and their employers. Jenifer Swallow and Omar Salem dig into what it means for City firms

SRA guidance and regulatory focus for solicitors has been orientated towards solicitors in private practice. However, it has recently issued new guidance targeted at in-house solicitors and their employers.

In response to the Post Office Horizon Inquiry and pressure from the general counsel and wider community, this recognises the unique issues and challenges that in-house solicitors face. While the guidance does not change the existing professional duties owed by in-house solicitors, it highlights aspects that are particularly relevant to in-house solicitors, while providing greater focus and specificity in some areas.

With thousands of legal professionals working in financial services, often in strategic and sensitive roles, the SRA’s guidance is especially relevant for the industry. FCA and PRA authorised firms will need to consider this guidance in light of their obligations under the FCA Principle 3 and the PRA Fundamental Rule 6 regarding system and controls.

The FCA’s new Enforcement Guide also highlights that industry guidance has an important part to play in a principles-based regulatory environment, regardless of past........

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