The old rule that prohibited barristers (other than employed barristers) from supplying legal services through or on behalf of another person has now been revoked. In its place, the new rule permits barristers to practice in three different ways: see paragraph 1 above. Currently, the permitted modes of practice are those identified in the new rule: self-employment, employment, and as manager or employee of a recognized body (regulated by an approved regulator other than the Board).
The revocation of the old rule should not, however, be taken as an indication that practice through or on behalf of other persons is now generally permitted. Barristers cannot therefore practice in partnership together or through an entity controlled by them. If such a firm or entity is itself supplying restricted legal services (such as advocacy and the conduct of litigation), it must be regulated under the Act. Any supply of restricted legal services where the supplier is not regulated is a criminal offence under section 14 of the Act, which comes into force on January 1, 2010.
The Bar Council (nominally the approved regulator for the Bar) does not currently have the power to regulate firms or entities, and the SRA will not regulate such firms and entities comprised only of barristers. The Board will be consulting in 2010 on whether or not the Bar Council should acquire the power itself to regulate barrister-only entities, or entities comprising a mix of lawyers and non-lawyers, and if so what kinds of entity and under what regulatory regime. Significant constitutional and rule changes and administrative arrangements will be required before it can do so.
