Does regulation kill innovation?

As part of our regulation for innovation event at the RSA in May, Giles Crown sat down with Ian Jeffery, Chief Executive of the Law Society to discuss the delicate balance lawyers must maintain between regulatory compliance and supporting business growth and innovation.  

Ian outlined the Law Society’s evolving role representing about 200,000 solicitors in England and Wales, noting the significant growth of in-house lawyers—from around 10% in the 1990s to nearly 25% today. A key highlight was the recent launch of the Law Society’s new ethics framework for in-house lawyers. Developed in consultation with the legal community and academics, the framework complements the Solicitors Regulation Authority’s (SRA) guidance by offering broader support on ethical dilemmas. Unlike the SRA’s situational guidance, the Law Society’s framework aims to build ongoing ethical awareness and preparedness within legal teams. 

Ian emphasised the importance of recognising lawyers’ dual duties: to their employer and to wider public interest. When conflicts arise, public duties must prevail. Lawyers are encouraged to seek external advice and foster peer support networks to navigate these challenges, especially since in-house counsel often operate in isolation. 

In its framework The Law Society promotes practical steps such as team discussions, scenario exercises, and engagement with broader business functions to embed ethical thinking. They also provide personal development tools for lawyers working alone and offer events like their upcoming conference on the tension between legal influence and independence. 

Looking ahead, Ian acknowledged the ongoing tension between regulation and rapid innovation, including AI advancements. He stressed that 'smart regulation' combined with ethical judgment allows lawyers to facilitate growth safely rather than stifle it. Preparation and proactive reflection are vital to making sound decisions under pressure.