Legal Partnerships

In the coming months the LSRA intends to introduce legal partnerships, a new business model for the delivery of legal services in which barristers, or barristers and solicitors, can form partnerships.

The regulatory framework for legal partnerships consists of a suite of new and revised regulations and a code of practice for practising barristers.

A legal partnership is a partnership formed under the law of the State by written agreement by two or more legal practitioners (solicitors or barristers) for the purpose of providing legal services.  At least one partner in a legal partnership must be a practising barrister.

Legal partnerships may be:

• Solicitor-barrister legal partnerships, where at least one practising solicitor and one practising barrister are partners.
• Barrister-only legal partnerships, where only practising barristers are partners.

Section 100 of the Legal Services Regulation Act 2015 (Act) allows for the introduction of legal partnerships, as it provides that a legal practitioner may provide legal services as a partner in, or an employee of, a legal partnership.

A legislative amendment was required to section 1 of the Act and this amendment was introduced by the Courts and Civil Law (Miscellaneous Provisions) Act 2023.

Section 100 of the Act is due to be commenced in autumn 2024.

This has paved the way for the LSRA to establish the enabling regulatory framework for legal partnerships.

The regulatory framework for legal partnerships consists of a suite of new and revised regulations and a code of practice for practising barristers.

New Legal Partnership Regulations

These regulations, under section 116 of the Act, will set out rules in relation to the operation and management of legal partnerships. These regulations will provide for a legal partnership’s:

• general obligations
• standards, procedures and policies
• rules on the name of a legal partnership
• the process for notifying the LSRA of the intention to provide legal services, membership alteration and cessation of the provision of legal services
• money of clients, and
• the Register of Legal Partnerships.

Revised Limited Liability Partnership Regulations

The existing Legal Services Regulation Act 2015 (Limited Liability Partnerships) Regulations 2019 (S.I. No. 519/2019) are being revised to take account of the fact that legal partnerships may also seek LLP status.

Currently, only partnerships of solicitors can apply to the LSRA for authorisation to operate as LLPs. The revised regulations will include provisions relating to legal partnerships who apply for authorisation to operate as an LLP.

Revised Professional Indemnity Insurance Regulations for Barristers

The existing Legal Services Regulation Act 2015 (Professional Indemnity Insurance) Regulations 2019 (S.I. No. 572/2019) are being revised to take account of the introduction of legal partnerships.

The purpose of these revised regulations will be to set out rules in relation to the professional indemnity insurance required to be maintained by certain practising barristers and by legal partnerships and limited liability partnerships in respect of their partners and employees who are practising barristers.

A new Code of Practice for Practising Barristers

The LSRA published a draft Code of Practice for Practising Barristers (Code) on its website in 2019. As that draft Code contained a part which related to barristers in legal partnerships, which required a legislative amendment to section 1 of the Act, that Code was not issued under section 22 of the Act.  The Code has now been updated and revised.

The purpose of the Code is to set out the requirements, rules and standards that apply to every person who is a practising barrister in Ireland as defined in the Act. This Code will not replace the Code of Conduct of the Bar of Ireland or the Professional Code of the Honorable Society of King’s Inns save that where a provision of a professional code conflicts with a provision of this new LSRA Code, this new LSRA Code will prevail.

The LSRA intends to make these three new/revised regulations and to issue the Code of Practice for Practising Barristers in the coming months. The LSRA is liaising with the Department of Justice in relation to any necessary commencements of the Act.

A legal partnership will be able to apply for authorisation to operate as a limited liability partnership or LLP (currently only partnerships of solicitors can apply).

If a legal partnership is authorised by the LSRA to become a LLP, subject to exceptions, the partners will not be personally liable for the debts, obligations or liabilities of the LLP itself or any partner or employee of the LLP.

LLPs were introduced by the LSRA in October 2019.

For more information on the existing LLP Regulations please see: Limited Liability Partnerships.

The Authority has the power to issue codes of practice for legal professionals where this is necessary to set and improve standards for the provision of legal services. After reviewing a professional code, the Authority may also issue a notice directing the relevant professional body to amend the code.

• In the coming months, the LSRA will issue a Code of Practice for Practising Barristers under section 22 of the Act.
• The Law Society of Ireland professional codes can be found on their website along with other useful information.
• The Bar of Ireland Code of Conduct can be found on the Bar of Ireland/Law Library website.
• The Honorable Society of King’s Inns’ Professional Code of Conduct can be found on its website.

In the coming weeks and months, the LSRA will provide further updates and details of information events for legal practitioners on the introduction of legal partnerships and what this new business model could mean for you.

Please check our website and social media channels for further information.