The Solicitors Regulation Authority (SRA) has launched the final consultation in its fundamental overhaul of the way it regulates solicitors and law firms.

The regulator issued a paper yesterday (21 October) setting out a unified regulatory handbook that will apply to both traditional law firms and alternative business structures (ABS) from 2011.

The paper, which includes a draft Code of Conduct, is the latest stage of the regulator's move away from the current system of regulation based on strict prescriptive standards, towards regulation based on broader principles.

The new outcomes-focused regulation will see the SRA's detailed rulebook replaced with a targeted, risk-based approach concentrating on standards of service. It is intended to shift the regulator's resources towards overseeing practices deemed to present the greatest risk to clients.

SRA chief executive Antony Townsend (pictured) said: "The new Code of Conduct and the outcomes-focused approach to regulation have been generally welcomed, with strong agreement with our proposals to have a common standard of consumer protection for all types of law firms, whether traditional or ABSs."

"Our programme to transform regulation remains on track for 2011. The reforms will help us identify and concentrate on the areas of highest risk, help firms focus on the quality of service to consumers, and bring greater flexibility for well-managed firms, enabling them to deliver services in ways suited to their clients and type of business."

According to the SRA timescale, the latest consultation is due to close in January 2011, with the final handbook to be published in April. The first ABSs are due to be licensed in October, with the new handbook to be implemented from the same date.