​When the Legal Services Act 2007 was introduced, it brought about significant changes for the legal sector’s professional bodies, such as the Law Society and the Bar Council. These changes, known as the ‘Clementi reforms’, aimed to separate the regulatory and representation functions of these bodies and promote liberalisation in the legal industry. However, in-house lawyers were not a primary consideration during this process.

As the Solicitors Regulation Authority (SRA) took on full regulatory powers, they began to understand the role of in-house legal departments and the City. This process was compared to driving at dusk and trying to locate the car’s headlights – a relatively straightforward task on a straight road, but more challenging on winding roads with obstacles.

The recent Post Office Horizon inquiry has shed light on the role of commercial and in-house counsel, bringing attention to the need for a review of the 2007 regime. It is crucial to consider the role of in-house lawyers and the commercial and City firms they work with in any future changes to prevent lawyers from being at the center of future scandals.

The Horizon prosecutions and the financial crisis have shown that in-house lawyers and City firms are not immune to wrongdoing. The pressure to succeed in a commercial environment can lead to ethical dilemmas, but it is not as simple as the European Commission’s belief that in-house lawyers are there to help conceal or mitigate wrongdoing.

In reality, in-house lawyers often seek early involvement in deals and products to avoid saying ‘no’ at the last minute. They aim to add value to the business and be seen as a trusted advisor, rather than just the department that says ‘no’. This requires soft skills and the ability to find alternative solutions, rather than simply rejecting ideas.

In conclusion, the role of in-house lawyers and their relationship with commercial and City firms should not be overlooked in any future changes to the legal industry. It is essential to understand the pressures they face and ensure that they are equipped to handle ethical dilemmas and make the right decisions for their clients and the public interest.