TOGETHER WITH

Table of Contents

• EDITOR’S RAMBLE 🗣

• FEATURED REPORT 📰

• TOGETHER WITH BARBRI SQE* 🤝

• IN OTHER NEWS 🗞

• AROUND THE WEB 🌐

• STUFF THAT MIGHT HELP YOU 👌

EDITOR’S RAMBLE 🗣

In last week’s newsletter, I asked why you thought SQE results are lower than LPC results — 269 of you voted (which is amazing).

Here are the results 👇️

What's the main reason SQE pass rates are lower than LPC? 

🟩🟩🟩🟩🟩🟩 The SQE format is just harder (102)
🟨🟨🟨🟨⬜️⬜️ There's not enough prep materials (76)
🟨🟨🟨🟨⬜️⬜️ The exams are broader and cover more material (70)
🟨⬜️⬜️⬜️⬜️⬜️ Something else (write in) (21)

And here are some of the things you had to say (we got LOADS of written answers, so I’ve cut down):

💪 The SQE format is just harder:

• “Having done both the LPC and SQE2, I found that the SQE format of doing a number of closed book exams across a broad range of topics is significantly harder than coursework and more spaced out exams on specific topics. This applies both to the preparation for the exams and the exams themselves.”

• “I’ve sat it and, thankfully, passed first time. It was a rather tough and stressful period of my life that I’m glad to be done with. The cost and timings of failing one paper can really set you back, particularly if job offers and/or existing employment could be affected. That stress can be enough to impact someone’s performance, despite how difficult it is anyway.”

📚 There's not enough prep materials:

• “I took the last sitting of the SQE. The areas we were tested on weren’t covered well by the available preparation materials. It felt like we were expected to just know a lot more than what was given.”

• “The volume of content students are expected to memorise is unsustainably large and made up of elements a qualified solicitor would normally look up. An MCQ-based assessment also leaves no room for any nuance in thinking, which is normally part and parcel of a solicitor’s job – this is not an assessment style that prepares you for real life.”

📝 The exams are broader and cover more material:

• “50% of SQE is the academic side of law (effectively the GDL), which the LPC did not include.”

• “I’m currently a student — the mix of an extremely high volume of information and the requirement to memorise, plus the short time frame between September to January makes it difficult, especially for those who didn’t come in with a TC and don’t have high stakes.”

💡 Something else (write in):

• “The SRA wants to increase their revenue streams by targeting the huge pool of law grads who cannot get a training contract. There seems to be an endless drive to sell English law degrees to both UK and foreign students. Stronger students will continue to pass and qualify (with or without prep courses), however, weaker and less motivated students will continue to fail and pay SQE fees.”

- Idin 

P.S. I shared your thoughts on LinkedIn where people have added their views too (in the comments, Chrissie explains why SQE shouldn’t even be compared to LPC).

FEATURED REPORT 📰

📉 Why lower interest rates mean happier law firms

What's going on here?

This week, the European Central Bank (ECB) lowered its base rate by 0.25%, from 3.5% to 3.25%. The ECB is the central bank for eurozone countries (like what the Bank of England is to the UK).

This follows a rate cut in September, when it dropped from 3.75% to 3.5% — it’s the first time since 2011 that the ECB has made two cuts in a row.

The UK is also expected to announce an interest rate cut after the next meeting (in November).

What’s a base rate?

A base rate is the interest rate set by a central bank, which influences how much it costs for regular banks to borrow money. This then affects all other interest rates in the economy, like those on loans, mortgages, and savings.

When the base rate is higher, borrowing becomes more expensive, and when it’s lower, borrowing becomes cheaper.

Why do central banks adjust their base rates?

It’s all to do with inflation — they’re trying to control rising prices.

When inflation is high, central banks raise base rates to make borrowing more expensive, which reduces spending and slows down price increases.

But inflation in Europe is now coming under control. The ECB met its target of keeping inflation close to 2% (it’s currently 1.7%), so central banks are more comfortable reducing base rates.

The decision to reduce interest rates makes borrowing cheaper, encouraging spending and investment, which helps support economic growth.

Christine Lagarde, President of the ECB, noted that recent data points to slower growth, so monetary policy is now focused on boosting the economy.

It’s a fine balance to try and control inflation without discouraging people from spending.

(We’ve got a more detailed breakdown of the relationship between interest rates and inflation in this post)

So, will borrowing become cheaper?

Yes, it’s pretty likely. When the ECB cuts its rate, banks usually lower their interest rates on loans which are given to customers. So, borrowing should become cheaper soon.

But on the other hand, interest on savings will probably drop too (bad news if you’ve got money sat in the bank).

Why do businesses care about interest rates?

The cost of big projects: Interest rates directly affect the cost of borrowing money. When interest rates rise, borrowing becomes more expensive, which means the cost of big projects (like a major acquisition of another company) are higher.

The impact on valuations: At the same time, higher interest rates can lower company valuations, which impacts both buyers and sellers.

Buyers may get better deals, but sellers might hold off until market conditions improve.

Why should law firms care?

In both examples above, you see how higher rates result in businesses being less active — and when businesses are less active, commercial law firms generally make less money.

That’s because business activity (particularly mergers and acquisitions) generates work for law firms, as they’re heavily involved in advising on these projects and transactions.

So, a trend towards reduced interest rates is good news for law firms. UK rates are also expected to fall (plus, Labour’s recent strong majority win has given businesses more confidence). So, law firms are anticipating a surge in M&A activity as companies become more optimistic about the future.

TOGETHER WITH BARBRI SQE* 🤝

The event to take your legal career to the next level (not just in London!)

BARBRI are running the Future Lawyers Convention in London, Manchester and Birmingham.

It’s a free event giving you:

• Practical advice on different career paths for lawyers

• Sessions led by experts (covering SQE, personal branding and more)

• Networking with law firms, recruiters, and your peers from across the UK

Register now and be the first to know when tickets go live – don’t miss your chance to secure a spot!

* This is sponsored content

IN OTHER NEWS 🗞

• 🛍️ The UK government is planning to regulate ‘buy now, pay later’ lenders like Klarna and Clearpay. This would bring them under the FCA’s watch, forcing these companies to check if customers can afford repayments before lending. It would also let consumers raise complaints with the Financial Ombudsman and claim refunds.

• ⚖️ A&O Shearman is launching a three-tier partner pay model. This change will put its 800 partners into levels called: ‘entry’, ‘core’, and ‘super’, with the top performers at the ‘super’ level. The shift is part of the firm’s post-merger integration, which has also included cutting 10% of its equity partners and closing its Johannesburg office. This move contrasts with other firms which have introduced non-equity partner tiers to attract more talent.

• 👗 Ashurst and Linklaters are advising Boohoo on a £222 million debt refinancing package. Boohoo, facing revenue and profit challenges, secured a deal that includes a £125 million revolving credit facility and a £97 million term loan. The refinancing will last until October 2026. Ashurst is advising Boohoo, while Linklaters’ teams in London and New York are advising the lenders.

AROUND THE WEB 🌐

• 🍾 Luxury: Sip a £75 glass of champagne at Greggs' bar in Newcastle

• 📹️ Fun: Discover what’s been voted the best videos on the internet

• 🔍 Controversy: The world conker champion was cleared of cheating after it was claimed he was using a steel conker

Credit: r/internetisbeautiful

STUFF THAT MIGHT HELP YOU 👌

• 📹️ Free application help: If you're applying to commercial law firms, check out my YouTube channel for actionable tips and an insight into the lifestyle of a commercial lawyer in London.