The Solicitors Regulation Authority (SRA) is set to begin a major review of the regulation of UK law firms' overseas activities as the body moves to establish the scope of its extra-territorial powers.

Speaking at Legal Week's Future of Legal Services Forum last week (14 April), ex-Linklaters partner and SRA City law adviser Nick Eastwell (pictured) said that the review of law firms' international activities would begin later this year.

Eastwell said: "The SRA would be first to admit that the world of law has changed immeasurably in the last 10-15 years and the way that law firms are regulated has not caught up with that.

"There will be a major review later this year from the SRA, which will involve discussion with City firms about how they run their business overseas to work out exactly what the SRA should be regulating."

Eastwell was taking part in a panel debate alongside Clifford Chance executive partner and general counsel Chris Perrin.

News that the SRA is to consult on the international scope of its regulatory brief comes amid the body's recent introduction of a new handbook, the growth of legal process outsourcing and the launch later this year of alternative business structures.

These developments are all expected to potentially increase the amount of regulated work carried overseas given the SRA's intention to monitor core activities that law firms outsource to third parties.

Perrin acknowledged recent ground gained by the SRA in building better links with City firms, saying: "There has been a lot of progress by the SRA. It has taken a long time but they have had a lot to deal with and they are now getting close to what Nick Smedley envisaged in his report [on regulating City law firms]."