Wednesday, February 9, 2011

Barrister’s activity

Where an entity is not itself carrying on a reserved legal activity, e.g. some procurement or block contracting vehicles or other intermediaries, there is no need for it to be regulated. Use of limited companies ancillary to self-employed practice appears therefore to be perfectly lawful, provided that they are not themselves carrying on reserved legal activities. In practical terms, this appears to the Board to depend on certain conditions being met. Any barristers considering the use of such a vehicle would be well-advised to obtain specialist legal advice on the structure and operation of the entity in relation to the terms of the Act. Firstly, this must mean that the barristers, who are carrying on the reserved legal activities, must not be the agents of the entity. Secondly, the entity must not be contracting to provide International legal services, only to procure that others provide them, otherwise it is possible that it would be taken to be carrying on reserved legal activities. Thirdly, the arrangements for payment of the vehicle must not amount to referral fees in breach of rules 307(d) or (e) of the Code.