Proposals recommending lawyers be regulated by the Financial Conduct Authority (FCA) have been roundly criticised by the Law Society of England and Wales. The Law Society was responding to a discussion paper by the FCA which is looking to introduce regulations making senior figures personally accountable for misconduct in their area of responsibility. It set out to clarify where the legal department fits under the FCA's reporting and accountability regime. Law Society chief executive Catherine Dixon pointed out that not only would in-house lawyers have to answer to two regulatory regimes, the proposals could also create conflicts of interest between the organisation and the legal team and would also have a negative impact on legal professional privilege if sensitive information had to be provided to third parties such as the FCA.

Legal departments

The proposals are in response to the FCA's efforts to clarify where legal departments fit under the Senior Managers and Certification regime which came into being in March. The consultation period ends on 9 January.