While the in-house sector is currently facing significant scrutiny, we saw evidence that it adds considerable value to organisations and the wider legal community. It has a unique understanding of its client’s needs, which helps it to connect the dots between legal advice and ethical leadership. However, it also faces a number of challenges.

Many in-house solicitors described experiencing commercial and political pressures and professional isolation. We were also concerned, that in most teams, there were some weaknesses in policies and controls, which would help them to oversee and identify risks.

In particular, we noted that balancing regulatory responsibilities and independence, while safeguarding effective working relationships could be challenging. These challenges may be exacerbated if in-house teams have limited resources and a lack of focus on ethics in day-to-day learning and work activities.

In-house solicitors should take steps to reflect on their approach to identify and manage ethical risks and assess whether they are meeting their regulatory responsibilities.

If there are areas for improvement, in-house solicitors should discuss this with employers and explore how they can support the organisation as well as the legal function. Dedicated policies and tailored shared controls will help legal teams and employers to manage these risks together.