The Solicitors Regulation Authority (SRA) has unveiled its new Code of Conduct and Handbook, which focuses on principles-based regulation rather than hard rules.

The new rules, published today (6 April) will apply to both traditional law firms and Alternative Business Structures (ABS), with the details emerging six months before the rules will come into effect in October.

The 563-page draft Handbook, which is subject to approval by the Legal Services Board, details 10 key principles that legal professionals must adhere to:

1. upholding the rule of law and the proper administration of justice;
2. acting with integrity;
3. not allowing independence to be compromised;
4. acting in the best interests of each client;
5. providing a proper standard of service to clients;
6. behaving in a way that maintains the trust of the public in both lawyers and the provision of legal services;
7. complying with legal and regulatory obligations and dealing with
regulators and ombudsmen in an open, timely and co-operative manner;
8. running businesses or carrying out roles in the business effectively and
in accordance with proper governance and sound financial and risk
management principles;
9. running businesses or carrying out roles within the business in a way that encourages equality of opportunity and respect for diversity; and
10. protecting client money and assets.

The main differences between the new principles-based regulations and the former rules-based Code of Conduct are in the sixth principle, which refers to the provision of legal services rather than the legal profession, reflecting the introduction of ABSs, which can include non-lawyers. Meanwhile, principles 7-10 are entirely new.

Other new topics in the handbook include a suitability test for being allowed to set up a law firm or ABS.

Publication of the final handbook comes after a number of consultations by the SRA. The regulator has faced criticism ahead of the changes, with some lawyers complaining that the new rules are unclear. In particular, questions have been raised regarding the requirement to appoint a compliance officer for legal practice and a compliance officer for finance and administration, as well as the SRA's plans to regulate outsourcing.

SRA chief executive Antony Townsend (pictured) said: "We are very pleased for several reasons, because we have been able to successfully keep the timetable for the release of the handbook and because we find that the consultations have allowed us to sort out the questions posed and that we now have a handbook that is very clear."

"The main point of the new regulation is that we do not want to get bogged down with too much detail. It is not a move to 'softer' regulation but a more flexible approach which will allow us to focus on the real risks, which will mean a better use of our resources."