Law Society Unlikely To Unveil Wholesale Liberalisation Of Conflict Of Interest Rules

by Robin Pilgrim, LawAndTax-News.com, London

19 January 2004

Although the UK's Law Society is in the process of liberalising its rules with regard to conflicts of interest, observers have suggested that a major liberalisation is unlikely.

City law firms have, for some time now, been pushing for the use of so-called "Chinese walls" to be accepted in situations where there is a conflict of interest within firms.

However, speaking to the Legal Week news service, an unnamed Law Society council member revealed that:

"It is not envisaged that a Chinese wall would save [firms] in a conflict problem. We ought to spell it out that [firms] will only be able to use a wall when all they are [protecting] is confidentiality - not a conflict."

According to Legal Week, under the new rules, solicitors will be permitted to act for multiple parties (although not in City deals) if they have mostly the same interests. However, no agreement has yet been reached on whether law firms will be permitted to act for multiple bidders in auction processes.

A final decision on the new rules is not expected until the Law Society Council meets in February, at the very earliest.

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