Law Society rules on corporate pensions

Bob Butler, head of the Law Society's monitoring unit, has confirmed that lawyers will receive no further formal guidance on what constitutes corporate pensions business.

Instead, solicitors are required to use their own common sense in declaring to the Law Society that they are involved in work which may constitute arranging corporate, rather than personal, pension schemes.

The decision follows criticism that legislation concerning the regulation of the corporate pensions area has created a "grey area" of uncertainty between what constitutes personal and corporate pensions business.

Although Butler accepts the legal definition is grey, he says it will be clear to lawyers using their common sense whether they may fall into the corporate pensions field. The Law Society committee overseeing authorisation in financial services will then decide on a case-by-case basis whether a firm's work demands separate corporate pensions authorisation.