As the fallout from the #MeToo movement continues to make waves in the City, law firms are grappling with the issue of how to deal with partners accused of inappropriate behaviour.

And last week's news that ex-Quinn Emanuel Urquhart & Sullivan partner Mark Hastings has found a new role at Mayfair boutique Grosvenor Law – while still being investigated by the Solicitors Regulation Authority (SRA) over the actions that led to his dismissal from the US firm – has also raised questions about the wisdom of recruiting partners facing regulatory scrutiny.

Employment and partnership specialists say the reputational issues alone are enough to raise a red flag for most law firms considering such a hire.

Fox Williams strategic consultant Tina Williams says: "Law firms live or die by their reputations for integrity. No firm wants to be perceived as placing profits above all else."

Another UK-based disputes partner comments: "There is a clear reputational risk, and the SRA may want to know what measures have been put in place by the new firm."

Aside from the obvious external concerns, one City disputes partner cites the potential internal upheaval presented by such a hire. "A big issue is how to manage the hire internally," he says. "Staff will want to know what is going on and why the firm has made the move, and this may be difficult to explain."

Another obvious risk associated with such a hire is the possibility that the recruit in question could lose their practising certificate, an issue cited by multiple partners contacted for this article.

And while there is no suggestion that Hastings is facing anything more than SRA scrutiny, partners also cite the potential for tougher punishment for lawyers facing more serious allegations.

Firms are now on clear notice that turning a blind eye or failing to investigate properly is no longer acceptable

Winckworth Sherwood employment head Jo Keddie comments: "An increasing risk in misconduct cases is that the matter is reported to the police. The police are taking a much keener interest in sexual misconduct cases, and in most cases will now investigate these – as they themselves have been subject to public criticism for a failure to follow up in some cases – and criminal proceedings may follow."

While to date there have been relatively few examples of the SRA punishing lawyers for sexual misconduct, partners say the #MeToo movement means the regulator is now taking a much firmer stance on such allegations. Earlier this year, law firms were warned over the use of non-disclosure agreements to gag victims and, since that point, the SRA says there has been "a clear increase" in the number of reports it has received.

Winckworth Sherwood employment partner Bettina Bender says: "The SRA have only more recently taken a more active interest in these cases in the wake of the #MeToo movement, when previously there was little focus on sexual misconduct."

A City disputes partner adds: "The message the SRA will want to send is that this is something that will not be tolerated, and make clear that people who have been subject to this kind of behaviour should feel free to come forward."

After a series of high-profile dismissals in recent months, the issues in question are only likely to be tested further as more victims feel empowered to come forward.

"Attitudes have changed. Ten to 15 years ago, this sort of thing would have been sorted in-house and would not have seen the light of day. People are now feeling empowered to speak out and management realise they have to take these issues very seriously," says one partner. Another comments: "Behaviour that firms may have tolerated in the past because the individual is a big biller will not be tolerated now."

Williams adds: "In the last 12 months, the SRA has made explicit that it expects allegations to be taken seriously and to be investigated thoroughly and fairly, and reports made to the SRA in appropriate cases. Firms are now on clear notice that turning a blind eye or failing to investigate properly is no longer acceptable."