My costs work is divided into advocacy, advisory and drafting tasks. The latter includes the drafting of solicitors’ retainers, which can be found in a suite of documentation including a fee agreement, a client care letter and terms of business. When I am drafting these documents, I must have an eye both to making a retainer enforceable, but also one that complies the regulatory constraints solicitors labour under.
A retainer isn’t merely a piece of paper (or indeed, many pages of paper) it’s the foundation of the entire solicitor-client relationship. Get it wrong, and you might as well be building a house on quicksand during an earthquake. The Law Society’s practice note on client information requirements isn’t just guidance; it’s an insurance policy against professional negligence claims, SRA investigations, and the regulatory difficulties that arise from inadequate client care documentation. The document can be found here: https://www.lawsociety.org.uk/topics/client-care/client-information-requirements
A retainer performs three crucial functions: it defines the scope of work, establishes the commercial terms, and manages client expectations. The Law Society practice note makes it abundantly clear that client care extends far beyond sending an attractive letter on firm letterhead. Effective client engagement requires what might be termed the “Holy Trinity” of client documentation: the client care letter, the retainer or fee agreement, and the terms of business. These documents must work together as an integrated system. Too often, we encounter solicitors treating them as separate entities, leading to contradictions, gaps, and the kind of confusion that generates complaints and regulatory difficulties.
In my practice drafting these documents, I’ve observed that solicitors frequently underestimate the importance of getting this foundation right. The practice note emphasizes several key areas, written thankfully in accessible language rather than impenetrable regulatory prose. Money features prominently, and rightly so. The note requires that solicitors give clients “the best possible information about how their matter will be priced” and explain costs “both at the time of engagement and when appropriate as their matter progresses.”
This doesn’t require fortune-telling abilities, but it does demand honesty about what you know and what you don’t. If a fixed fee is possible, provide it. If not, explain why and offer a realistic estimate or range. Where even estimation proves impossible, at least explain what the next stage will cost. “It depends” may be technically accurate, but it’s hardly the best possible information required by the regulations.
The costs conversation remains the primary source of client complaints, and the practice note confronts this uncomfortable reality directly. Solicitors must explain how charges are calculated, whether rates might increase during the retainer, expected disbursements and their timing, potential liability for the other side’s costs, VAT implications, and billing arrangements.
Crucially, this information must be provided even when the client isn’t paying directly through legal aid, insurance, or conditional fee arrangements. The underlying principle is sound—clients need to understand both the value they’re receiving and the risks they’re assuming.
Complaints handling represents another area where careful attention to the practice note pays dividends. Solicitors must inform clients how to complain and explain their right to approach the Legal Ombudsman. While this might feel counterintuitive, it’s preferable to clients discovering these rights later when they’re already dissatisfied. The practice note helpfully reminds us that Legal Services Ombudsman can impose case fees even where no poor service is found, simply for inadequate information about complaints procedures.
Regulatory status presents particular complexities that the practice note addresses comprehensively. Clients must understand whether and how services are regulated, which becomes especially important for those working in alternative business structures or as freelance solicitors. The documentation must not mislead clients about available protections. For those operating in unregulated businesses or as freelance solicitors, the requirements become more detailed and arguably more critical given the reduced client protections available.
Managing expectations extends beyond regulatory compliance into the realm of practical client relationship management. The practice note emphasizes considering clients’ “attributes, needs and circumstances”—recognition that clients may be experiencing significant stress and uncertainty. When explaining processes, include likely complications that commonly arise. Property transactions should mention potential planning permission issues; litigation explanations should cover the various stages at which settlement might occur. Clients appreciate forewarning rather than assuming problems indicate professional incompetence.
Timing estimates present particular challenges. Clients invariably ask “How long will this take?”—the question that causes widespread professional anxiety. The practice note suggests providing “general timeframes within which the client can expect the transaction to be completed or the case to be resolved.” Realistic estimation proves crucial. Under-promising and over-delivering builds confidence; the reverse destroys it and creates the impression of forgotten cases.
Modern practice involves technological considerations that the practice note addresses pragmatically. Electronic information provision, remote initial interviews, and cloud-based document storage are all acceptable, but they bring responsibilities. Cloud storage arrangements require disclosure to clients. Outsourced work needs confidentiality agreements and client notification. Simple measures like email signatures warning against electronic bank detail changes can prevent cybercrime victimisation.
Anti-money laundering requirements deserve particular attention, partly because the practice note dedicates considerable space to them. Clients need explanations for identity verification requests, and they may need to understand that National Crime Agency disclosures might be required without notification. While explaining potential client reporting obligations feels uncomfortable, it’s preferable to facing the regulatory consequences of non-compliance. The note provides helpful example wording for these difficult conversations.
The human element remains central throughout this regulatory framework. Behind every retainer stands an individual who likely has limited experience with legal services and may be experiencing stress, confusion, or fear. The practice note emphasizes providing information “in a way they can understand” and ensuring clients can “make informed decisions.” This requires plain English rather than legal jargon, consideration of individual client needs such as accessibility requirements, clear document structure with appropriate headings and formatting, early highlighting of key information, and opportunities for client questions.
Initial interview procedures, whether conducted face-to-face or remotely, require systematic handling. Conflict checks, identity verification, and clear cost explanations must precede substantive work. Confidentiality obligations apply regardless of whether matters proceed, which proves relevant for speculative enquiries.
File retention, data protection, and various other regulatory requirements receive thorough treatment in the practice note. GDPR compliance alone presents significant complexity, but the note provides a practical framework that avoids overwhelming practitioners. The key lies in systematic consideration of information collection purposes, storage methods, and retention periods.
From my experience drafting these documents, the integrated nature of client care documentation cannot be overstated. The retainer, client care letter, and terms of business form a cohesive package that establishes the entire professional relationship’s foundation. Effective documentation helps clients understand complications when they arise, encourages prompt payment, and reduces complaint likelihood when matters don’t proceed exactly as planned. Inadequate documentation, conversely, provides clients with creative reasons to dispute bills and creates regulatory vulnerability.
The Law Society practice note represents comprehensive, practical guidance that recognises real-world professional challenges. It acknowledges that legal practice involves real people in difficult situations rather than abstract legal concepts. Getting retainer documentation right isn’t merely about regulatory compliance—it’s about building solid foundations for professional relationships that will withstand the inevitable challenges that arise in legal practice.
For me, who spends my time crafting these critical documents, the practice note provides both a roadmap and a reality check. The solicitors I serve depend on getting these fundamentals right, and the practice note ensures that the guidance available meets the complexity of modern legal practice while remaining practically accessible. Your future self, your clients, and your professional indemnity insurers will thank you for taking this guidance seriously.