In-House Solicitors

According to Section 7 of the Legal Practitioners Ordinance (“LPO”), no person shall be qualified to act as a solicitor unless :-

1. his name is for the time being on the roll of solicitors;
2. he is not suspended from practice;
3. he has in force a current practising certificate; and
4. he is complying with any indemnity rules made by the Council of the Law Society under Section 73A of the LPO (other than Section 73A(3)(fa) of the LPO) that apply to him or is exempt from them.

According to paragraph 2 of Practice Direction N pdf, an in-house solicitor shall satisfy the following conditions (which apply to him under Section 7 of the LPO) before he can act as a solicitor in accordance with Practice Direction N :-

1. his name is for the time being on the roll of solicitors;
2. he is not suspended from practice;
3. he has in force a current practising certificate.

In the light of the above, an in-house solicitor needs to hold a current practising certificate in order to act in the capacity as a solicitor in his employment.

An in-house solicitor is not covered by the Professional Indemnity Scheme referred to in the Solicitors (Professional Indemnity) Rules (“Indemnity Rules”). He should comply with the relevant requirements as set out in paragraphs 3, 6 and 8 of Practice Direction N pdf to make disclosure to relevant parties that he is not covered by the Indemnity Rules. He may also consult his employer to ensure adequate insurance or indemnity cover in relevant circumstances.

A CPD practice year commences on 1 November in one year and ends on 31 October the following year.

An in-house solicitor holding a current practising certificate is subject to the Continuing Professional Development Rules (“CPD Rules”). Subject to any exemption or suspension under Rule 8 or 9 of the CPD Rules, he should accumulate 15 CPD accreditation points each CPD practice year.

Rule 9 of the CPD Rules and pages 48-53 of the CPD Information Package, March 2022 pdf provide that the Law Society may grant CPD suspension to a solicitor who is not in practice as a solicitor in Hong Kong or who practises outside Hong Kong for any period of not shorter than 70 days. The period of absence from practice in Hong Kong must relate to any one period running continuously for 70 days or more. An aggregate of various periods of absence during the year each lasting for less than 70 days but totalling 70 days or more will not entitle a solicitor to a suspension. If a suspension is granted, an in-house solicitor would not be required to obtain any CPD points during the suspension.

For enquiries on application for CPD suspension, please contact the Assistant Director, Professional Development at adpd@hklawsoc.org.hk.

An RME practice year commences on 1 November in one year and ends on 31 October the following year.

Under the Legal Practitioners (Risk Management Education) Rules (“RME Rules”), a “solicitor” refers to a person who is qualified to practise as a solicitor under Section 7 of the Legal Practitioners Ordinance and is carrying on the business of practising as such in his own name in Hong Kong or practising as such in a Hong Kong law firm. The RME Rules therefore do not apply to in-house solicitors. It is unnecessary for in-house solicitors to complete any RME course.

A solicitor in a Hong Kong law firm who changes job and becomes an in-house solicitor during an RME practice year may be eligible for exemption under the RME Rules for that RME practice year.

Please refer to Rule 8 of the RME Rules and pages 5-6 of the RME Information Package, April 2021 pdf for more information on exemption from RME requirements.

Paragraph 4 of Practice Direction N pdf sets out the specific scenarios in which an in-house solicitor may act as a solicitor in conveyancing transactions. Please also refer to the requirements under paragraphs 2, 3 and 5 of Practice Direction N pdf.

An in-house solicitor may act as a solicitor for his employer in litigation, subject to the requirements under paragraphs 2, 3 and 5 of Practice Direction N pdf.

If your appointment falls within Section 75(1)(a) of the Legal Practitioners Ordinance or you are an employee of a statutory body and are empowered by law to act in a legal capacity in the discharge of your duty with such employer, Practice Direction N is not applicable to you (see paragraph 1 of Practice Direction N pdf).