Consultation
The Professional Regulation Committee’s consultation process to obtain feedback on a recommendation from the Trustee Services Working Group to implement a mandatory succession planning requirement for licensees in private practice has concluded. Feedback was received via email, the completion of a consultation form and a series of virtual focus groups.
The Committee is now considering all of the input collected in order to determine whether recommendations should be made to Convocation. If you have questions, please contact PolicyConsultation@LSO.ca.
Why is succession planning important?
When a licensee is suddenly or unexpectedly unable to practise law or provide legal services, clients with active matters may have their legal interests jeopardized. Court appearances may be missed, real estate deals may fail to close, immigration documents may not be filed and trust funds may be inaccessible, which may hold up pending matters.
In instances where a licensee ceases to practise law or provide legal services without appropriate arrangements to wind-up their business, the Law Society’s Trustee Services department steps in to protect, preserve and appropriately distribute client trust monies and property, such as client files, testamentary documents, or corporate minute books – this occurs most often among lawyers who practise as sole practitioners.
Having a succession plan demonstrates good business management and serves the public interest as well as the licensee’s interest as it preserves the value of the practice and the reputation of the practice or licensee. A succession plan may also reduce stress on licensees and ensure that their family members are not burdened with having to wind-up their professional business at a very difficult time.
What has been recommended?
As detailed in the consultation report, the recommended succession plan requirement specifies information and adequate arrangements to allow for the handling of client property and management of the licensee’s professional business and would include obtaining a successor licensee who could step in if the licensee is unable to work suddenly or unexpectedly.
A mandatory succession plan requirement would be supported by a full suite of resources to assist licensees with the creation of a succession plan, including a plan template, which if used and completed correctly, will ensure that the licensee’s plan is in compliance with the requirement.