Council
Wednesday 25 March 2015 at 9.30am
in
The Council Chamber, 113 Chancery Lane, London
COUNCIL
The Council will meet on Wednesday 25 March 2015 at 09:30
in the Council Chamber at 113 Chancery Lane, London
AGENDA
*These papers are for decision in the Law Society’s Approved Regulator Role
1
Welcome and Apologies
2
Requests for Leave of Absence
3
Declarations of Interests
09.30
Part 1 Order of Business
4
Part 1 Announcements
5
Part 1 minutes of the meeting on 11 February 2015
6
Part 1 Matters Arising and Part 1 Question Time
09.30
To Follow
Part 2 Order of Business
09.35
7
Part 2 Announcements
8
Part 2 Minutes of the meeting on 11 February 2015
9
10
Part 2 Matters arising and Part 2 Question Time
Report from the President of the Law Society
09.40
Attached
11
Part 1 Report of the Chief Executive of the Law Society
10.10
Attached
12
Part 2 Report of the Chief Executive of the Law Society
10.30
Attached
11.00
Attached
To Follow
Attached
Attached
To Follow
This paper contains information that is subject to legal professional
privilege and is commercially sensitive and is restricted under
paragraphs 14.8 and 14.9 of the Code of Practice on Freedom of
Information to members of the Council. The contents of this paper may
not be discussed with Law Society members.
13
Reports of the Non-Regulatory Board Chairs (for noting)
These papers concern formulation of policy and contain commercially
sensitive information and are restricted under paragraphs 14.7 and 14.9
of the Code of practice on Freedom of Information to members of the
Council. The contents of these papers may not be discussed with Law
Society members
(i) Regulatory Affairs Board
(ii) Membership Board
(iii) Legal Affairs and Policy Board
(iv) Management Board
COFFEE
11.40
1
25 March 2015 - Council Agenda
© 2015 The Law Society
14
Break from Council
Deputy Vice-President Election 2015: Hustings
LUNCH
11.55
Update on Approach to Strategy Development
14.15
To Follow
15.00
Attached
15.25
Attached
13.25
This paper contains information that is subject to legal professional
privilege and is commercially sensitive and is restricted under
paragraphs 14.8 and 14.9 of the Code of Practice on Freedom of
Information to members of the Council. The contents of this paper may
not be discussed with Law Society members.
15
Legal Services Ombudsman Budget Paper
This paper contains formulation of policy and its dissemination is
restricted under paragraph 14.7 of the Code of Practice on Freedom of
Information.
16
Martin Lane Lease Renewal
This paper concerns formulation of policy and its dissemination is
restricted to members of the Management Board and the Council under
paragraph 14.7 of the Code of Practice on Freedom of Information.
17
Conveyancing Portal (Veyo) Update
15.35
Oral Update
18
Internal Control Framework
16.05
Attached
This paper concerns formulation of policy and contains commercially
sensitive data and is restricted under paragraphs 14.7 and 14.8 of the
Code of Practice on Freedom of Information to members of the Council.
19
Appointment of International Bar Association Representative
16.25
Attached
20
Terms of Reference of Remuneration Committee
16.35
Attached
21
Council Dates 2016
16.45
Attached
22
Council member motion
16.50
23
Any Other Business
24
End
Council meeting dates in 2015:
 Wednesday 20 May
 Wednesday 8 July and Thursday 9 July (meeting on 9 July is morning only)
 Tuesday 22 September
 Wednesday 28 October
 Wednesday 9 December
The meetings will commence at 9.30am
2
25 March 2015 - Council Agenda
© 2015 The Law Society
Glossary of common abbreviations
ABS
Alternative Business Structure
ADR
Alternative dispute resolution
AGM
Annual General Meeting
AM
Assembly Member (Welsh Assembly)
APIL
Association of Personal Injury Lawyers
ARP
Assigned Risks Pool
BACS
Bankers Automated Clearing Service
BOB
Business and Oversight Board
BME
Black and minority ethnic
BSN
Black Solicitors’ Network
CBA
Criminal Bar Association
CBiz
Corporate Business: the Council and committee members section of the
Law Society website
CF
Compensation Fund
CFA
Conditional Fee Agreements
CIG
Commerce & Industry Group
CLAC
Community Legal Advice Centre
CILEX
Chartered Institute of Legal Executives
CJS
Criminal Justice System
CLAN
Community Legal Advice Network
CMC
Council Membership Committee
CMCC
Council Members Conduct Committee
COO
Chief Operating Officer
CPD
Continuing Professional Development
1
10 December 2014 Council meeting
© 2014 The Law Society
CQS
Conveyancing Quality Scheme
CRED
Corporate Responsibility, Equality and Diversity
CRM
Customer Relationship Management
DBA
Damages Based Agreements
D&I
Diversity and Inclusion
DVP
Deputy Vice-President
E&D
Equality and diversity
ERP
Enterprise Resource Planning
ETC
RAB (see below) Education and Training Committee
FAS
Find a Solicitor
FOI
Freedom of Information
GPIF
Group Projects Investment Fund
GR
General Regulation (e.g GR 2 (1) )
GS
Group Solution
HBU
Head of Business Unit (Law Society manager)
IGR
Internal Governance Rules
JLD
Junior Lawyers Division
JV
Joint Venture
2
10 December 2014 Council meeting
© 2014 The Law Society
LAA
Legal Aid Agency
LAPB
Legal Affairs and Policy Board
LDD
Lawyers with Disabilities Division
LeO
Legal Ombudsman
LMS
Law Management Section
LPT
Legal Practice Technologies Ltd
LSA
Legal Services Act 2007
LSB
Legal Services Board
MEP
Member of the European Parliament
MoJ
Ministry of Justice
MR
Master of the Rolls
NFR
Net Funding Requirement
OBC
Outline Business Case
OFR
Outcomes-focused regulation
OH
Office-Holder
OISC
Office of the Immigration Services Commission
OLC
Office for Legal Complaints
PAS
Practice Advice Service
PC
Practising Certificate
PIIC
(RAB) Professional Indemnity Insurance Committee
PSEC
(RAB) Professional Standards and Ethics Committee
PPMO
Programme and Portfolio Management Office
3
10 December 2014 Council meeting
© 2014 The Law Society
QASA
Quality Assurance Scheme for Advocates
QLTR
Qualified Lawyers Transfer Regulations
QLTT
Qualified Lawyers Transfer Test
RAB
Regulatory Affairs Board
RPC
Regulatory Processes Committee
REGIS
Regulation and Information System database (used by SRA)
ROAD
REGIS Office Automation Development (used by SRA and LCS)
RPC
RAB Regulatory Processes Committee
SBA
Solicitors’ Benevolent Association
SDT
Solicitors’ Disciplinary Tribunal
SGM
Special General Meeting
SIF
Solicitors’ Indemnity Fund
SLGG
Solicitors in Local Government Group
SRA
Solicitors Regulatory Authority
SSPG
Solicitor Sole Practitioners Group
STA
Statutory Trust Account
TLB
The Leadership Board
TOM
Target Operating Model
WIQS
Wills Inheritance Quality Scheme
WLD
Women Lawyers Division
4
10 December 2014 Council meeting
© 2014 The Law Society
Posted on Corporate Business on 25 March 2015
as approved by the Chair
COUNCIL
Minutes of the meeting on 25 March 2015
The Law Society, 113 Chancery Lane, London
in the Council Chamber
PART 1
Present
In
attendance
Apologies
Leave of
Absence
60
Andrew Caplen (President)
Jonathan Smithers (Vice-President)
Robert Bourns (Deputy Vice-President)
Robin ap Cynan, Sarah Austin, Paul Barnes, Richard Barr,
Sundeep Bhatia, Christina Blacklaws, John Bleasdale, Clare
Belcher, Stephanie Boyce, Roger Buston, Denis Cameron, Prof
Sara Chandler, Chris Clark, Helen Clarke, Tim Crook, Beverley
Cullen, Helen Davies, Paul Davies, Nigel Day, Allan Devine, Laura
Devine, Emma Dickinson, Christopher Digby-Bell, Clive Dobbin,
David Dixon, Joe Egan, Keith Etherington, Nichola Evans, Anthony
Fisher, Nicholas Fluck, Jeffrey Forrest, Beth Forrester, Michael
Franks, Davina Garrod, Michael Garson, Nicholas GurneyChampion, Keith Hardington, Simon Harker, Bob Heslett, Clare
Johnson, Charlie Jones, Mary Kaye, Ian Kelcey, Philip Kim, Carolyn
Kirby, Steve Kuncewicz, Linda Lee, Denise Lester, Ian Lithman, Pat
Lush, Nicola Mackintosh, Nicola Manning, , Catherine Melis, , David
Merkel, Joy Merriam, Rod Mole, David Morgan, Tim Mutti,
Nwabueze Nwokolo, Tim O’Sullivan, John Perry, John Pickup MBE,
Deborah Prince, Alan Radford, Patrick Richards, Peter Rodd, Lucy
Scott-Moncrieff, Razi Shah, Lubna Shuja, Michael Singleton, David
Steed, Jonathan Stephens, David Taylor, Nehal Vasani, John
Weaver, Rodney Warren, Jo Wharton, Jonathan Wheeler, Fraser
Whitehead, Paul Widdup, Mike Williams, Colin Witherall, , Peter
Wright and Raymond Xu
Catherine Dixon, Chief Executive of the Law Society
Simon Davis, David Fisher, David Greene, Paulette Mastin, Maria
Memoli and Gaynor Wragg
Council granted leave of absence to Richard Barnett and Malcolm
Fowler.
WELCOME
The President welcomed all Council members to the meeting.
61
DECLARATIONS OF INTEREST
There were no declarations of interest.
62
PART 1 ANNOUNCEMENTS
Paul Hemsley
Council welcomed Paul Hemsley as Interim Executive Director of
20
Delivery and Performance for the Law Society. Paul commenced
his role on the 25 February and would be working with the strategy
development team as well as shared services.
Anthony Brooks
Council welcomed Anthony Brooks as Interim General Counsel for
the Law Society. Anthony would oversee the Legal Policy, Legal
Services and Governance teams and would attend all future
council meetings.
Deborah Oliver
Deborah had now joined the Law Society on a permanent basis as
Executive Director of External Affairs. Deborah would oversee
communications, public affairs, city and international and
relationship management teams.
David Morgan
David Morgan had confirmed his intention to step down from
Council at the AGM on 9 July. David has been a Council member
for 10 years and has served on International Issues Committee as
well as Council and been the Law Society representative to the
CCBE. Council thanked David for all his hard work and
contributions over the years.
Filming
The President's report will be filmed today as part of a presentation
for the Staff Conference to raise awareness of the work of Council.
Keith Etherington
Council extended its congratulations to Keith Etherington over his
recent marriage.
63
PART 1 MINUTES OF MEETING HELD ON 11 FEBRUARY 2015
The Part 1 minutes of the meeting on the 11 February 2015 were
approved.
64
PART 1 MATTERS ARISING
There were no matters arising.
65
66
PART 1 QUESTION TIME, PART 1 MOTIONS AND PART 1
ORAL REPORTS
A question had been received regarding the Legal Apprenticeship
Scheme. This question had been answered by the Chief Executive
Officer (CEO), a copy of the answer was tabled. There were not
Part 1 motions or oral reports.
REPORT FROM THE PRESIDENT OF THE LAW SOCIETY
The Vice President invited the President to present his report.
The President confirmed there were no updates further to the report
21
and opened the floor for questions.
Concerns were raised as to whether the report was inclusive of high
street practitioners with the content. The President would take this
feedback into account when drafting the next report to Council.
The President also further to a meeting with Oxfam the Law Society
would not be funding events but assisting in publicising joint works
between the two organisations.
The Council noted the President's report.
67
PART 1 REPORT OF THE CHIEF EXECUTIVE OF THE LAW
SOCIETY
The CEO presented her report to the Council.
The Law Society would be moving away from the current structure
of two main functional areas; Corporate and Commercial affairs.
Instead there would be a wider range of overarching directorates
such as General Counsel, Membership services and External
affairs. Catherine Dixon would be making changes to the
commercial activities department and would keep Council updated
on any structural changes.
Reports presented to Council in future meetings would reflect this
wider ranging structure over the approach taken in the past. A table
would be issued to Council members providing details on the new
Directors, their reporting lines and what areas they were
responsible for.
The Global Law Summit
The CEO gave a breakdown of ticket sales at the Global Law
Summit (GLS).
2361 delegates had registered to attend GLS, representing 100
jurisdictions. 1882 delegates had attended the event but only 422
places had been paid for. Despite the limited number of ticket
purchases, there had been lots of positive feedback received from
those who attended.
The CEO was preparing a report for Management Board capturing
the feedback from the people who attended. A 'Lessons Learnt'
paper was also sent to Management Board before the Summit
which would be followed up. A summary of this paper, along with
information on the expenditure of the GLS, would be issued at the
next Council meeting to help them understand what lessons had
been learnt.
68
Council noted the report.
REMUNERATION COMMITTEE - AMENDMENT TO TERMS OF
REFERENCE
Tim O'Sullivan presented the paper to Council for decision.
22
Council is requested to approve changes to the general regulations
and this requires a two thirds majority of voters.
In 2011 the Law Society had hired Deborah Oliver as an interim
chief of corporate affairs and later Paul Coen as interim chief
executive for a period of 3 months. This has historically not been
within the remuneration committees remit and if these positions are
required the committee can ensure competitive rates of pay and
parity between the Society and SRA.
Council moved to vote
(For 33; Against 1; Abstain 5)
Council approved the amendment.
69
COUNCIL MEETING DATES 2016
Council approved the meeting dates for 2016 as outlined in the
paper.
70
ANY OTHER BUSINESS
No other business under Part 1 was declared.
The meeting finished at 17.00.
Signed: ………………………………………
Andrew Caplen, President
Date: ………………………… 2015
23
PUBLIC
COUNCIL
25 March 2015
Item 10
Classification – Public
Purpose – For noting
PRESIDENTIAL UPDATE
The Issues
This paper presents an update on my recent activities as President, with a particular
focus on the programme of engagement and activity designed to deliver the three major
themes set out in my Presidential Year Plan. This document covers activity since 11th
February 2015.
Remit
This is within my role as president.
Statement of territorial application
Not applicable.
Policy position
This is within my role as President and covers issues (inter alia) included in my
Presidential Year Plan, as approved by the Management Board in June 2014 and
presented to Council in July 2014.
Financial and resourcing implications
Within existing budgets.
Communications
Activity and engagement has been fully supported by the Communications and Public
Affairs teams. Plans are in place to deliver the remainder of the plan.
Equality, diversity and inclusion implications
The equalities implications of my Presidential Year Plan have been considered, and are
compatible with the wider aspects of the Society’s business plan for 2014-15.
Consultation
This paper has been prepared for noting by Council.
Author:
Date of report:
Andrew Caplen
9 March 2015
© The Law Society 2015
Item 10 - Presidential Report to Council
1
PUBLIC
PRESIDENTIAL UPDATE
1. This document is an update on my recent activities as President since the last Council
Meeting in February, including those undertaken within the three main themes of my
Presidential Year being.
1.1. Access to justice;
1.2. The rule of law; and
1.3. Diversity and inclusion.
2.This report will cover the period from the last report to Council on 11 Feb to date.
ACCESS TO JUSTICE
3. Protecting and promoting access to justice.
3.1. In February I met the recently appointed Shadow Attorney General, Lord
Bach together with his colleague, the also recently appointed Shadow Solicitor
General, Karl Turner MP. We discussed the Society’s continuing work in
respect of criminal legal aid and also Labour plans for legal aid if elected into
office at the May General Election.
3.2. In February the Chief Executive and I met with the General Counsel of
Oxfam to discuss the possibilities of working together on an initiative around
the concept of lawyers for justice. This initiative would see members of the
legal profession sharing their expertise in countries where legal advice may be
restricted for those without the means to access such advice.
3.3. On 3 March I met with the Attorney General, Rt Hon. Jeremy Wright MP, to
discuss the Law Society's Manifesto for Justice, court fees, consumer credit
regulation and it’s effect on pro bono work, together with the pro bono ‘spider’
initiative being led by DLA Piper.
3.4. In February the Court of Appeal granted the Law Society and the Criminal
Practitioner Groups leave to challenge an earlier court ruling regarding the
Government’s proposals for criminal legal aid. The legal aid crime duty
contracts tender process will remain suspended until the result of the appeal,
which will be heard on March 10th and 11th.
3.5. The Law Society has issued a Pre-action Protocol letter in respect of the
Lord Chancellor‘s decision to introduce much higher court fees. This letter has
been sent jointly with the Bar Council and CILEx amongst others. We consider
that these court fee hikes will result in the public being priced out of the courts
and will leave small businesses saddled with debts they are due but unable to
afford to recover.
3.6. I am due to debate the cuts to legal aid at the Cambridge Union on 12th
March. On 9th March I will be chairing a Family Justice roundtable at
Chancery Lane.
© The Law Society 2015
Item 10 - Presidential Report to Council
2
PUBLIC
RULE OF LAW
4. Positioning the Law Society, and the profession, as the leading voice on the
importance of adherence to the rule of law is a major theme of the Society’s business
plan.
4.1. A judgment following a legal challenge supported by the Law Society has ruled
that controversial judicial review regulations that came into force in April 2014 are
unlawful. The regulations would have made access to judicial review much more
difficult for some of the weakest and most vulnerable in society and potentially
made it easier for public bodies to act without due regard to the law
4.2. Representatives from 105 jurisdictions came to London for the three day Global
Law Summit from February 23-25. The summit brought together leading
practitioners, business leaders, decision makers and academics from around the
world to discuss legal issues across all jurisdictions. Speakers included Nobel
Peace Prize winner Aung San Suu Kyi, Chairperson of the National League for
Democracy (NLD) in Burma. The event's central theme was the Rule of Law in
light of the 800th anniversary of the signing of the Magna Carta. The Chief
Executive and myself each spoke at a session during the summit and used the
opportunity to express the importance of access to justice and that without
access to justice there can be no rule of law.
4.3. Planning continues for activity around the 800th anniversary of the signing of the
Magna Carta with a dedicated programme of events being planned for June.
4.4. I met with Professor Sir Jeffrey Jowell, the Director of the Bingham Centre for the
Rule of Law to discuss the work of the Bingham Centre. I was subsequently
invited to attend an event with representatives from the Occupied Palestinian
Territories to discuss capacity building in their criminal justice institutions.
DIVERSITY AND INCLUSION
5. I have committed to emphasising the Society’s work to help the legal profession to
promote diversity and inclusion.
5.1. In February I was invited to speak at the Leaders in Law lecture at Birmingham
University. I spoke about the importance of diversity and inclusion within the legal
profession, the issues being faced by certain groups and what the Law Society is
endeavouring to do to address these issues and seek to improve access to the
profession.
5.2. On Friday 6 March I opened a half day seminar at the Law Society to mark
International Women’s Day, discussing key issues regarding the progress of
women in the law including gender targets vs quotas, equal pay and the role that
clients can play to support greater gender diversity in law firms
GENERAL
6.I have visited Chester and North Wales Law Society and spoken to members
working in the region. During the Global Law Summit I took the opportunity to meet
© The Law Society 2015
Item 10 - Presidential Report to Council
3
PUBLIC
with the Japanese and Korean Bar Associations and on February 23 signed a
friendship agreement with the President of the Panamanian Bar Association.
7.I have met with local law society office holders from the West Midlands in February.
I also hosted the first “Meet the President” event at Chancery Lane.
8.I am due to visit Derby, Peterborough and the Isle of Wight between the date of this
report and the March Council Meeting;
© The Law Society 2015
Item 10 - Presidential Report to Council
4
COUNCIL
25 March 2015
Classification – Public
Item 11
Purpose – For noting
REPORT OF THE CHIEF EXECUTIVE OF THE LAW SOCIETY – PART 1
The issues
This edition covers the period between 12 January and 25 February 2015.
This report includes information collated by each directorate covering the business plan of
the Law Society.
Remit
The Chief Executive is responsible for the overall direction and delivery of the Law Society’s
vision and strategy.
Our vision
We aim to be the leading representative of the world’s best legal profession, valued as a
vital partner by all we serve and engage with.
Our strategy to deliver our vision over the next three years
Directly and in partnership we will:
 Improve the competitiveness of the environment for our legal profession
 Provide exemplary services
 Be an exemplary organisation
Policy position
N/A
Financial and Resourcing implications
N/A
Financial Consultation/Review
This report has not been sent to Finance to review.
Equality and Diversity implications
Equality and diversity issues, where appropriate, have been highlighted in the relevant
Directorate reports.
This report has been prepared for Council.
CEO:
Catherine Dixon
Author:
Catherine Dixon
Date of report: 10 March 2015
Item 11 CEO Report to Council 25 March 2015
© 2015 The Law Society
1
Executive Summary
I set out below an executive summary of key issues facing the Law Society at the time of
writing.
Attached to the report at Appendix 1 and 2 is an update from the corporate and commercial
affairs departments.
CEO Key activities
1. Strategy
Following the presentation at Council on delivering a revised strategy for the Law Society,
we have formed a working group made up of Office Holders, Board chairs and members of
Council. By the time of the next council meeting the working group will have had its first
meeting. Council will also have been invited to and taken part in a series of workshops which
are scheduled for the evening before Council's next meeting.
The scope and terms of reference for the strategy development project are being prepared
and are in the process of been discussed by the working group.
The strategy will be informed by a series of work streams which are proposed as follows :
Our members. This will explore our membership, define our members interests in
different parts of the profession and what it means to put membership at the heart
of what we do. We will also explore what services we should (and should not) be
providing to our members.

Future of legal services. We recognise that the legal market is changing significantly
and that it will be important to explore what the opportunities and challenges are
for the Law Society and our members in a changing market including the scope to
provide innovative legal services.

Education and standards. Our role in raising professional standards and
differentiating our members by doing so. We also have a role in education and it will
be helpful to explore what this is and where there are opportunities to develop this
role over and above what is currently provided.

Brand solicitor. This will consider what it means to be a solicitor. Including how to
enhance the brand of solicitor, ethics and our role as officers of the court.

Regulatory position. Exploring our options for the future of legal services regulation
and in particular, issues in relation to funding. Explore our relationship with the SRA,
LSB and other regulators.

External relationships and influencing. It will be helpful to further explore our role
and our relationships with the profession, public and other key stakeholders. It will
also look at the principles which bind the profession together and how we promote
those, including the rule of law, access to justice and human rights.
All the work will be underpinned by financial modelling.
A more detailed report will be delivered at the Council meeting under agenda item 14.
Item 11 CEO Report to Council 25 March 2015
© 2015 The Law Society
2
2. Legal Practice Technologies (LPT)
The joint venture company responsible for the development of Veyo, the web conveyancing
portal, has announced the price for usage. The price has been confirmed as £20 per
transaction and £50 per user licensor per annum.
3. Senior appointments
I am delighted to confirm that Deborah Oliver has been appointed as the permanent
Executive Director for External Affairs and Anthony Brooks has been appointed as the Law
Society's interim General Counsel. Paul Hemsley has been appointed as the Interim
Executive Director of Delivery and Performance and will be, amongst other things, helping
with coordinating the work streams to deliver the strategy. These appointments are part of
a re-organisation of the Law Society's senior executive team.
4. Criminal legal aid
The Judicial Review on criminal legal aid will be held on 10-11 March. Council will be
updated on the result. In addition to the judicial review activity we are continuing to support
members with guidance should the tender process go ahead, and to advise on next steps if it
does not.
On 30 January the Shadow Secretary of State for Justice wrote to the President to promise
that a future Labour Government would not pursue a two-tier contract. He promised to
work with the Society to identify sustainable efficiency savings as a means of avoiding
further cuts. We have responded to continue dialogue on these issues with the Shadow
Secretary of State for Justice.
Sir Brian Leveson's criminal justice efficiency report was published on the 23 January, adopts
many of our suggestions and shares many of our concerns for improving criminal justice
efficiency. We are working with the CPS, HMCTS and others to implement the review,
ensuring that the views of solicitors are taken into account.
5. Court fees
Our coalition of eight legal representative bodies, (The Bar Council; CILEx; Forum of
Insurance Lawyers (FOIL); Association of Personal Injury Lawyers (APIL); Motor Accident
Solicitors Society (MASS); Chancery Bar Association; Action Against Medical Accidents
(AvMA); Commercial Bar Association (COMBAR)), has sent a joint Pre Action Protocol (PAP)
letter to the MoJ, initiating legal action to challenge the increase in court fees. A wider
coalition, (with the addition of the Professional Negligence Bar Association (PNBA); and R3
(Association of Business Recovery Professionals), has issued a briefing to MPs and peers.
We have had coverage in almost all of the major broadsheets on this issue, as well as on Sky
News. We have gathered evidence of the negative impact these increases will have, and we
are using this evidence in our media, political, and legal campaigns.
The Statutory Instrument to increase court fees was passed by the House of Commons on 23
February, and by the House of Lords on 3 March. The new fees came into effect from 9
March.
6. Domestic violence
We are disappointed that the High Court did not accept the Rights of Women's arguments
on the overly onerous evidential requirements for legal aid in domestic violence in the case
of R (on the application of Rights of Women) v. The Lord Chancellor and Secretary of State
for Justice. Judgment was handed down on 22nd January 2015 from Fulford LJ and Lang J.
They dismissed the Rights of Women's application for Judicial Review. We are working with
Item 11 CEO Report to Council 25 March 2015
© 2015 The Law Society
3
medical practitioner groups to provide joint lobbying and guidance to enable more victims of
domestic violence to claim legal aid. We are engaged in a constructive dialogue with the MoJ
to try to amend the regulations.
7. TLS brand
A report by agency Frank Bright & Abel launched on 19 February about membership brands
and visual identity ranked the Law Society at 6 of 56. We are considering their analysis, and
looking at ways to further improve our brand and that of the profession. This work will also
inform the strategy development.
8. Business and Human Rights
We have commenced a Business and Human Rights project to provide members with
guidance to deal with this emerging area of law, and to maintain our predominant
international reputation on this issue. The project will produce a Practice Note, a series of
regional workshops, and practical toolkits to assist members.
9. The Global Law Summit
The Global Law Summit took place from 23-25 February as a celebration of England and
Wales as a global centre for the rule of law and dispute resolution, and 800th anniversary of
Magna Carta. There were over 2300 registered delegates from over 100 jurisdictions. The
president and I participated in panel discussions, using the opportunity to raise concerns
over the rule of law and access to justice. As requested by Council the Society issued a
statement highlighting these concerns on the 23 February.
10. Magna Carta
We are holding a series of events over the coming months to celebrate the anniversary of
Magna Carta including an event with Oxfam.
11. Annual Report
The Law Society Group Annual Report and Consolidated Financial Statements for 2013-14 is
being finalised. The printed Group Annual Report will look significantly different this year. It
will cover achievements from the Law Society, the Solicitors Regulation Authority and
Corporate Solutions, including info graphics of achievements in numbers and highlights from
the 2013-14 year.
The content from Law Society element of the report which tells the story of our work to
support, promote and represent the profession will also be used on our website alongside
new videos of some Law Society members talking about the benefits of membership. All of
this content will be promoted in social media and in print to maximise the impact.
12. Promoting our Law Society Manifesto for Justice and improving political interest in
legal issues
We held a number of political dinners this month at which we highlighted the content of the
Law Society’s Manifesto for Justice.
13. Ben Hoare Bell and others v the Lord Chancellor
This is one of three cases that the Law Society has been supporting under the Public Law
Project Protocol. The High Court (Beatson LJ and Ouseley J) found in favour of the claimants.
The Lord Chancellor had restricted legal aid payments for solicitors in judicial review
permission applications. They would get paid only when permission was granted, not where
permission was refused. The High Court has ruled this unlawful.
Item 11 CEO Report to Council 25 March 2015
© 2015 The Law Society
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Appendix 1
This appendix highlights the work of the corporate affairs team.
A. Gold Campaigns
1. Support and uphold the rule of law
a. We are campaigning to retain the Human Rights Act (HRA) as the best way to
protect human rights and the rule of law. We are producing a report on the HRA, to
include fact sheets, myth busting case studies, and a history of the HRA and its
importance and relevance to law today.
b. We used our new UN special consultative status for the first time to raise concerns
over human rights violations against lawyers in Turkey at a special event in Geneva.
This was covered in the media.
2. Protect and promote access to justice
a. We made extensive submissions to the Public Accounts Committee prior to their
issuing an adverse report on the Government's civil legal aid reforms. We will use
this evidence to support our dialogues with MPs and stakeholders.
b. We held a variety of focus groups and roundtables and meetings this month around
England and Wales on access to justice issues, to engage with members, and to
inform our policy work.
c. We are continuing to make representations on the EU Commission’s proposals for a
Directive on the presumption of innocence, and the Directive on Provisional Legal
Aid for suspects or accused persons deprived of liberty and legal aid in European
Arrest Warrant proceedings. We are trying to ensure that the directive achieves best
practice in terms of the provision of legal aid in the early stages of criminal cases.
d. The President was listed in the Debretts 500 Most Influential list under the legal
section for his commitment to access to justice.
3. Develop and implement a strategy for the future of legal services regulation
a. We continue to respond to regulatory consultations on discrete issues to promote
the interests and excellence of the profession.
Links to the following consultations and the Society's responses can be found below:
 SRA: Separate business rule- our response can be found here
 Draft LSB Strategic Plan 2015-18 and Business Plan 2015/16 - our response can be
found here
In summary our response highlighted:
•Unnecessary regulation costs for firms both financially and in terms of lost
opportunities. Even though the cost of the LSB is relatively small, it should consider
how far all of the work proposed is essential and whether some of it could be
stopped or delayed to reduce that cost still further.
•The LSB could do more to monitor the performance and value for money of the
regulatory arms.
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•We recognise that there are concerns around the unregulated sector but we feel
that, unless the LSB is considering whether individual areas of law should be
reserved, it should be cautious about undertaking major work in respect of this
sector unless this is funded by bodies other than the approved regulators.
•In considering issues around transparency and the provision of information to
consumers, the LSB needs to be alert to the extent this will add cost to the regulated
community which do not apply to the unregulated community and may lead to a
move away from regulation.
 Draft Legal Ombudsman Strategy and Business Plan- our response can be found
here
b. The Chair of the SRA will be holding a number of roadshows with Local Law Societies.
Representatives of the Society will be attending these wherever possible.
B. Silver campaigns
1. Be leaders on the privacy/surveillance challenges posed by new technology
a. We held a session chaired by the CEO, at the Global Law Summit on: 'A digital Magna
Carta and the state of exception' with two prominent EU stakeholders:
Commissioner Vera Jourova and Chair of the European Parliament Civil Liberties
Committee Claude Moraes MEP.
b. The Guardian, the Journal of the Law Society of Scotland, SC Magazine and the
Gazette reported that the legal profession is calling for new laws to prevent police
and security services eavesdropping on meetings between lawyers and clients.
c. On 4 December a 'Surveillance and digital rights' workshop was held at the Law
Society. Invitees from our Human Rights and Technology committees were joined by
guests from business and academia to discuss various aspects of the Data Retention
and Investigatory Powers Act, the Snowden revelations and a global digital bill or
rights.
d. We briefed the Lords prior to the second reading of the Counter-Terrorism and
Security Bill. Our joint call to protect professional communications along with the
Bar Council, the NUJ and the British Association of Social Workers received
considerable media coverage.
e. We refreshed our online document on digital working and cyber security for criminal
defence practitioners on our website in mid February. These activities are raising the
profile of the issue and of the Society as an authority on the subject.
2.
Support our members to improve the diversity of the legal profession
a. We hosted the Stonewall Lecture on 5 February. The lecture was opened by the
Chair of the Equaty, Diversity & Inclusion Committee, Lucy Scott-Moncrieff. It was
chaired by Lord Cashman CBE, Labour Party LGBT envoy worldwide, and attended by
other Peers and key stakeholders. Around 150 people attended to hear Jonathan
Cooper, CEO of Human Dignity Trust, speak on ‘the long and winding road: how do
we end LGBT persecution across the globe?’. The event provided a networking
opportunity for our LGBT members to support diversity within the profession. We
will continue to support the event and look for similar opportunities.
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b. The Diversity Access Scheme, which funds those from disadvantaged backgrounds
through the LPC, and now offers two training contracts, is open for applications. It is
part of our commitment to social mobility and broadening the profession. The
Scheme has received good media coverage in national and regional press. Changes
to our website to promote the scheme have seen a 250% increase in traffic to the
page. We have also coordinated a Twitter campaign to support the Scheme.
c. On 4 February we supported a meeting of the Equality, Diversity and Inclusion
Committee which agreed a Practice Note on transgender solicitors, supporting
diversity of the legal profession.
d. On the 24th February 2015 the Law Society hosted a speed networking event for
Lesbian, Gay and Bisexual (LGB) solicitors to mark national LGBT History Month
2015. The event brought together over 100 delegates including LGB law students
and LGB solicitors working in city law firms together with senior LGB solicitors and
straight allies working in corporate in-house departments and city law firms to
network.
3.
Developing a policy position on the UK's membership of the European Union
a. We are conducting qualitative research with firms and are in discussion with other
professional and business bodies on the impact on the legal sector of a potential UK
withdrawal from the EU. A report will be published in June. Should a referendum be
confirmed, we will wish to seek our members’ views about the impact of EU
withdrawal on them and their clients more widely through quantitative research.
4.
Support our members in promoting access to legal services by vulnerable clients
a. We are producing guidance for front line health and social care staff, and members
working in this area, on the proper application of deprivation of liberty safeguards.
We intervened in the Court of Appeal in Re X to protect vulnerable clients and
promote our members’ ability to secure work representing them. Judgment is
reserved and is expected mid March.
b. We have published a Practice Note on representation before the Mental Health
Tribunal in response to calls from senior judiciary.
5.
Support our members to deal with new EU fourth anti-money laundering laws
a. We have provided anti-money laundering guidance to support our members.
b. We have raised queries with the SRA and British Bankers Association over the money
laundering implications of BACS payments which have particular relevance to
solicitors.
C. Bronze campaigns and other notable work
1.
Developing member engagement
a. We are developing our approach to support and improve member engagement.
b. Consumer Campaign
Phase 1 of the consumer campaign finished in December and resulted in: Visits to our Find a Solicitor website increasing by 27%, with more than 300,000
extra visits;
 120,000 people visiting the campaign web pages;
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


29,000+ consumers clicked on our online and ITV on Demand adverts to find out
more about using a solicitor our outdoor and online adverts were seen up to
283m times;
13,613 consumers saw our videos and info graphics; and
961 firms ordered the campaign pack to use locally.
Phase 2 of the campaign is now being implemented and will run until October 2015. The
campaign is continuing to work to raise public awareness of the benefits of using a
professional for the six most searched for areas on law from our “find a solicitor”
service. Additional work will be undertaken to reach those who support vulnerable
clients so that these clients are not excluded from the campaign. This is likely to include
the creation of “easy read” materials. Phase 2 will focus on the following:
 online advertising;
 ITV on Demand advertising;
 outdoor advertising;
 social media - members are encouraged to take part in Solicitor Hour every
Thursday 13.00-1400;
 PR promoting private client solicitors across regional, national and broadcast
media, using traditional and online channels; and
 we are creating six new mini videos featuring solicitors answering clients' FAQs.
Item 11 CEO Report to Council 25 March 2015
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Appendix 2
Commercial Affairs: Key Activities
1. CPD Centre

The number of members registered with the CPD Centre continues to grow with
43,713 members compared to 33,220 at the same time in 2014.

To reduce costs all departments are now using the same webinar supplier;
WorkCast. Since the CPD centre moved to Workcast from Brighttalk we have successfully
held five webinars.

Two new courses for WIQS (Estate Administration - 2015 Update and Wills Drafting 2015 Update) are in development by the CPD team. Both courses will be available on the
CPD Centre site in early March.
2. Communities & Content

Recruitment to the Committees for Property Section, Law Management Section and
Civil Justice Section is now in progress. Interviews with applicants are planned to take
place over the next few months.

All the Section websites and Women Lawyers Division and Lawyers with Disabilities
Division have been migrated onto the same web platform as the Gazette. This provides
new functionality with improved access and design.

The inaugural meetings of the Small Firms Committee and In-house committee
were successfully held in January and February respectively. Both committees elected
their Chairs and Vice Chairs as well as clarifying key objectives.
3. Events

From 22 December to 14 February the events team organised 36 face-to-face events
which was slightly up on the same weeks in 2014 when 30 events took place.

The events so far in 2015 have been six Commercial events; 28 Corporate/Low
cost/free of charge CPD events; and two Admission ceremonies. Approximately 2,460
people attended the events which offered 48.75 hours of CPD.

The average overall feedback score was 4.42 (5 - excellent, 1 - very poor).

Preparation is underway for this years annual Presidents & Secretaries Conference,
the programme for which has now been finalised. Marketing for the conference has
begun and to date, 39 delegates have registered for event compared to 26 this time last
year.
4. Library
The Library has recently signed three year deals with Lexis and Prenax to provide the bulk
of the library's print renewal subscriptions. These longer term deals will provide us with a
stronger commercial position and allow us to continue to offer members a richer
collection of up-to-date key printed series, text books, loose leafs and journals.

The Library's Twitter account grew from 278 followers to 824 during 2014. In
January it rose to 940 and is expected to reach 1,000 by the end of February/early March.
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
Legal research requests and LawDocs enquiries from members averaged 895 per
month for 2014, or just over 40 enquiries per day. Comparisons between July-Dec 2013
and July-Dec 2014 shows 7% growth in overall enquiry volumes for 2014, with significant
rises in telephone enquiries following the extension of opening hours, and in email
enquiries following two email marketing campaigns to promote LawDocs.
5. Product Marketing

The Sections renewals campaign is nearing completion. Members have been
contacted via email, direct mail, telephone and at events to remind them to renew and to
highlight membership benefits. Marketing activities for 2015 were informed by feedback
from Section members’ about the 2013 renewal.
6. Publications

The first edition of ‘How to Grow your Firm’ written by Robin Dicks was published in
January. This practical guide is targeted at all firms looking to generate or enhance
growth and will be of particular interest to managing partners.

As at 14 February (latest figures) 84 copies of the book had been sold.

The Solicitors Handbook 2015 and The SRA Handbook (2014 Edition) also continue
to sell well with 702 and 1173 copies sold to date.

Five titles are currently in production, including Law Management Section Guide to
Business Development, The Probate Practitioners Handbook 7th Edition and Law
Management Section Financial Benchmarking Survey 2014.
7. Support Centre

In January 2015 (latest figures) the team answered 4398 calls, a decrease of 23%
compared to the same period in 2014.Of the calls 46 % were from members of the public,
26% from Solicitors and 7% were transferred internally from within the business.
8. Practice Advice Service (PAS)
 The team answered 2009 calls in January 2015, a drop of 9% compared to 2014. A
service level of 91% against the target of 80% was achieved by the team.

Calls regarding Anti Money Laundering account for almost 10% of the total calls
received.

There was also significant increase in the number of calls received relating to
customer due diligence (CDD) queries with almost a 60% increase in CDD queries; up
from 39 in December to 62 in January.
9. Find a Solicitor (FAS)
 The FAS team answered 6815 calls during January 2015, an increase of 17% on the
same time period in 2014. Of these 97% were from members of the public with the
team supporting the profession through referrals to legal professionals.
10. FAS Support service

The support service deals with member queries relating to their personal and firm
details that appear in Find a Solicitor. In January the FAS Support line received 384 calls
from members.
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
Of these calls, 87% related to a query about the Law Society's owned data, with the
most common query being due to a members details not appearing on the FAS website.
The team worked with the CRM team to rectify these issues and reach a satisfactory
conclusion for members.

A further 117 calls were received on the general Support Centre line from callers
seeking assistance with navigational and data queries. Calls from firms encountering
issues with lenders as a result of their FAS entry account were a small proportion of these
queries, and contribute to the 21 lender and panel queries dealt with by the PAS team in
January. No comparisons to 2014 can be made as the changes to the FAS website which
led to the instigation of the helpline did not take place until March 2014.
Item 11 CEO Report to Council 25 March 2015
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Item 20
COUNCIL
25 March 2015
Classification – Public
Purpose – For decision
REMUNERATION COMMITTEE - AMENDMENT TO THE TERMS OF
REFERENCE
The issues
This paper presents an amendment to the Remuneration Committee Terms of Reference to
include interim or consultancy executive level positions.
Decision
That the Council approves the draft amendment to the General Regulations set out in the
paper. (This requires a two-thirds majority of those present and voting.)
Statement of territorial application
This paper applies to England and Wales.
Policy position
That robust arrangements should be in place for making recommendations as to the
remuneration of senior staff in the Law Society Group.
Financial and resourcing implications
None
Financial consultation / review
None.
Communications
None
Equality, diversity and inclusion implications
None
Consultation
An earlier version of this paper was considered by the Management Board under its remit in
relation to the governance of the Society, and the board approved the recommendation.
Director:
Author:
Date of report:
Pamela Harding - HR Director
Pamela Harding / Ross Hutchison
5 March 2015
© The Law Society 2015
Item 20 - Terms of Reference of Remuneration Committee
Remuneration Committee - Amendment to the Terms of Reference
1.
During 2014 there was a business need to hire interim executives to critical roles
within the organisation. The terms and conditions of such roles are not currently captured
within the Remuneration Committee Terms of Reference (TOR), in General Regulation 52
which can be found at Annex A.
2.
The TOR gives the Remuneration Committee authority to apply good practice
principles in relation to remuneration, in order to make recommendations to the appropriate
Boards.
3.
To ensure parity and proper governance for all executive roles, the Remuneration
Committee recommends the amendment of the TOR to include those acting in an interim or
consultancy capacity. The Management Board has approved this recommendation under its
remit in relation to the governance of the Society (General Regulation 21(12)).
Recommendation
That the Council approve the following amendment to the General Regulations –
In Regulation 52 (Remuneration Committee), insert the following new paragraph (8)
(re-numbering subsequent paragraphs consequentially) –
‘(8)
To make recommendations to the relevant board on the per diem
rate (or other basis of remuneration) to be paid to a person acting on an
interim or consultancy basis for a temporary period in any of the following
posts –
(a)
(b)
(c)
(d)
Chief Executive;
SRA Chief Executive;
Chief Operating Officer; or
any of the senior managers reporting to those referred to in (a),
(b) or (c).’
2
© The Law Society 2015
Item 20 - Terms of Reference of Remuneration Committee
Annex A
Current (as at March 2015) Terms of reference of the Remuneration Committee
52
The terms of reference of the Remuneration Committee are –
(1)
Subject to the following provisions of this Regulation, to advise the Council on
general pay policy and terms and conditions of employment for all employees of the
Society.
(2)
To make recommendations to the relevant board on the performance management
frameworks for the Chief Executive and the SRA Chief Executive ("the Chief
Executives"), the Chief Operating Officer and the senior managers reporting directly
to them.
(3)
To make recommendations to the relevant board on the pay policy, terms and
conditions and any incentive arrangements for the Chief Executives and the Chief
Operating Officer.
(4)
To make recommendations to the relevant board on whether proposals by the
President or the chair of the relevant board, as the case may be, as to any proposed
bonuses and incentive payments to be paid to the Chief Executives and the Chief
Operating Officer(a)
Are reasonable in the light of the pay policies and contractual arrangements
applicable to them; and
(b)
Have been arrived at following a reasonable process.
(5)
To make recommendations to the relevant board on any non-contractual severance
payments to be made to the Chief Executives, the Chief Operating Officer and the
senior managers reporting directly to them.
(6)
To make recommendations to the Business and Oversight Board (a)
After consultation with the Society, on the remuneration and terms and
conditions of the Chair of the SRA Board; and
(b)
After consultation with the Chair of the SRA Board, on the remuneration and
terms and conditions of the members of the SRA Board to apply for the
duration of their standard terms of office.
(7)
To make recommendations to the relevant board on the pay policy and conditions of
employment of senior managers reporting directly to the Chief Executives, and the
Chief Operating Officer and the policy and processes by which the Chief Executives
and the Chief Operating Officer determine any bonuses or incentive payments to be
paid to those senior managers.
(8)
To advise on the amount of any compensation payable to Council members, the
Treasurer, members of the Management Board and Law Society board chairs and
members.
(9)
To report annually to the Council, highlighting particularly any instances where its
recommendations under any of the foregoing paragraphs have not been accepted by
the board to which they were made.
3
© The Law Society 2015
Item 20 - Terms of Reference of Remuneration Committee
(10)
In this Regulation, "the relevant board" means (a)
The Business and Oversight Board, for matters relating to the Chief Operating
Officer and senior managers reporting directly to him or her;
(b)
The Management Board, for matters relating to the Chief Executive and
senior managers reporting directly to him or her; and
(c)
The SRA Board, for matters relating to the SRA Chief Executive and senior
managers reporting directly to him or her.
4
© The Law Society 2015
Item 20 - Terms of Reference of Remuneration Committee
COUNCIL
25 March 2014
Item 21
Classification – Public
Purpose – for decision
COUNCIL MEETING DATES IN 2016
The Issues
To set dates for Council meetings in 2016.
Decision
The Council is invited to agree the following meeting dates for 2016:
Wednesday 10 February
Wednesday 30 March
Wednesday 18 May
Wednesday 6 July (full day) and Thursday 7 July (morning only - the Annual General
Meeting will be in the afternoon)
Thursday 15 September
Wednesday 19 October
Wednesday 14 December
Council meetings will continue to be a full day meeting commencing at 09.30.
Remit
The Board’s (or Committee or Council's) terms of reference (4): ‘to set and oversee
implementation of policy on New Law’.
Statement of Territorial Application
N/A
Policy Position
N/A
Financial and Resourcing implications
The budget for 2017 will reflect the Council's decision.
Financial Consultation/Review
Finance have been provided with a copy of the paper for review on 10 March 2015.
Communications implications
The dates will be listed on all agendas for Council meetings 2016, in the Council
diary and on Corporate Business.
Equality and Diversity implications
The dates of major religious festivals have been taken into account.
© 2015 The Law Society
Consultation
This paper has been prepared directly for the Council.
Chief of Corporate Affairs:
Author:
Date of report:
© 2015 The Law Society
Council 25 March 2015 Item 21
Deborah Prince
Rachel Holland
3 March 2014
2