Rule 5 of the Solicitors’ Code of Conduct 2007 Business
Management in England and Wales, under section
5.01 and subsections (1), (k), (l), (32), Supervision and
management responsibilities, says that:

“If you are a principal in a firm, a director of a
recognised body which is a company, or a member
of a recognised body which is an LLP, you must
make arrangements for the effective management
of the firm as a whole, and in particular provide
for the continuation of the practice of the firm in
the event of absences and emergencies, with the
minimum interruption to clients’ business; and the
management of risk”.

The Financial Services Act says, in SYSC 3.2.19G, that:

“A firm should have in place appropriate
arrangements, having regard to the nature, scale
and complexity of its business, to ensure that it
can continue to function and meet its regulatory
obligations in the event of an unforeseen interruption.
These arrangements should be regularly updated and
tested to ensure their effectiveness”.

Furthermore, commercial insurers are becoming
aware that having a Business Continuity Plan is likely
to reduce the severity of a business interruption claim
and may even have a positive effect on professional
indemnity and directors’ & officers’ insurance
premiums. The Law Society’s opening statement
in its Lexcel Practice Guide says, “Practices which
manage risk effectively will enjoy lower indemnity
insurance premiums”.