The Government has rebuffed an attempt to force all in-house lawyers to pay for a practising certificate (PC).

In a debate in the House of Lords earlier this month, Conservative shadow Lord Chancellor Lord Kingsland proposed an amendment to the Legal Services Bill, which was backed by the Solicitors Regulation Authority (SRA), in a bid to "put the obligation of in-house solicitors beyond doubt".

However, the Government refused to draft in new blanket regulation that would cover all solicitors employed in commerce, industry, local government and those providing any kind of legal services.

Speaking during the debate, Baroness Ashton, a minister in the Department for Constitutional Affairs, said: "Provided no reserved legal activity is involved, I do not see why we should treat persons who may have once qualified as a lawyer any differently from any other person who may provide general advice to their employer."

Under the present system, in-house lawyers are not required to hold a valid PC provided they do not dip into areas of reserved legal activity, such as conveyancing, probate and litigation.

They are also not required to make any payment to the Solicitors Compensation Fund, in line with the Solicitors Act.

The Law Society's regulatory arm has been pushing to require all in-house lawyers to carry a PC for a number of years.

In a statement, an SRA spokesperson said: "We wish to ensure as far as possible that all solicitors contribute proportionally to the cost of regulation. This remains a long-term aim."


Shell M&A general counsel Richard Wiseman (above) told Legal Week: "My reading of [the Legal Services Bill] is that the terms of reserved work could be expanded so that it might incorporate the work of in-house lawyers. In this way, the changes could still come in, through the back door."

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