Beyond compliance: Why your law firm needs a General Counsel

The role of the General Counsel (GC) within law firms has grown significantly over the past decade. What was once a rare and somewhat ambiguous position has become a central part of how modern law firms manage legal risks, regulatory compliance, and governance. Although law firms have long been required to appoint a Compliance Officer for Legal Practice (COLP), there is no formal regulatory requirement to hire a General Counsel. Even so, many firms are moving towards this model as the demands on their risk and compliance functions and leadership teams continue to increase.

Today, most large law firms in the UK and internationally recognise the strategic value of having an experienced GC overseeing compliance and risk management, ethical standards and operational governance. Law firms in a rapidly changing market need senior legal leadership that can manage complexity, support decision making and ensure the business meets both regulatory obligations and its commercial objectives. As the legal profession evolves, so too has the expectation of what a GC brings to a firm.

The evolution of the General Counsel role in law firms

The concept of a General Counsel in private practice is still relatively new. Many law firms only began appointing a GC in the last ten to fifteen years, often in response to growing regulatory demands. In the past, responsibilities such as conflicts management, data protection, professional indemnity, claims handling and internal investigations were divided among Partners or embedded within risk teams. This created fragmented processes and placed additional burden on fee earners.

As law firms expanded across jurisdictions, adopted new technology and faced more sophisticated client demands, the need for a coordinated compliance function became clear. The modern GC role has therefore evolved into a full-time senior leadership position, separate from the Managing Partner, with responsibility for legal, risk and compliance matters across the firm. While the specific remit differs by firm, the GC is now widely recognised as the individual who oversees all legal issues affecting the firm, leads the in-house legal team and acts as a central point of accountability for the firm’s legal risks.

This shift reflects a broader development across the legal profession. Law firms increasingly view risk and compliance as a core business function. A dedicated GC ensures that legal teams and compliance teams operate cohesively, that internal advice is consistent and that the firm’s governance frameworks keep pace with regulatory change.

Why do law firms need a General Counsel?

Although firms have historically managed without a GC, several powerful drivers are now making the role essential. First, the regulatory landscape has expanded significantly. Firms must demonstrate robust management of anti-money laundering controls, cybersecurity risks, data protection obligations, client confidentiality rules and complex conflict issues Without a dedicated GC, responsibility for these areas often falls unevenly across partners and operational teams, creating gaps that increase legal risks.

A GC provides central oversight of legal risks and ensures that senior management receives consistent, strategic advice. This continuity is particularly important for firms operating across multiple jurisdictions, where regulatory requirements and expectations vary significantly. By aligning legal work with business needs, the GC supports informed decision making at leadership level.

Another key driver is efficiency. When partners are responsible for internal legal matters, time that could be spent on fee earning legal services is diverted to risk management. A full time GC alleviates this pressure by managing responsibilities and reducing reliance on outside counsel. This saves time, reduces costs and gives fee earners more capacity to focus on client service and business development.

The presence of a GC can also support firm growth. As firms enter new markets, launch new initiatives or expand service lines, the GC plays a critical role in assessing risk, advising on structures, reviewing client engagements and ensuring that decisions align with regulatory frameworks. Having a senior legal leader involved early in decision making helps the firm anticipate challenges rather than reacting to them later.

The General Counsel’s role and remit in a law firm

The role of GC in a law firm is broader and more strategic than many realise. Responsibilities can include regulatory advisory, managing AML, managing claims and complaints, reviewing engagement terms and contracts, advising on risk exposure, guiding conflicts decisions, handling data protection and AI issues, employment matters, internal audit, overseeing external providers and working closely with insurers.

The GC must also engage with stakeholders across the legal teams, operations, HR, finance, IT and the leadership team. They provide legal advice on firm policies, lead internal investigations, develop training programmes and help ensure that processes support the delivery of high-quality legal work.

A key part of the GC role is acting as a bridge between the legal function and senior management. Partners and practice leaders often rely on the GC to provide an objective view on sensitive matters, particularly when there are competing internal opinions or when the issue could affect the firm’s reputation. The GC offers a central point of support that helps partners feel confident in raising concerns and seeking advice.

As firms have become more complex, the GC’s remit has continued to expand. Many now play a leading role in corporate governance, helping to ensure that the firm’s structure, operational processes and governance policies reflect best practice. Whether advising on new initiatives, reviewing cross border matters or shaping cultural expectations, the GC is deeply embedded in the firm’s strategic direction.

The business impact of hiring a General Counsel

The General Counsel’s contribution extends far beyond traditional risk management. At a strategic level, the GC strengthens the firm’s competitive position by reinforcing robust governance and accountability. Their involvement supports clearer communication around internal processes and enables the firm to respond confidently to client expectations.

The GC also contributes directly to profitability. By centralising conflict checks, claims management and internal legal work, the GC frees up valuable fee earner time and ensures faster turnaround of new client engagements. They can also reduce reliance on external counsel, which lowers costs and ensures that legal advice reflects a deep understanding of the firm’s priorities.

Beyond financial metrics, a GC helps improve the firm’s culture. By promoting transparency, supporting ethical decision making and reinforcing the firm’s values, the GC plays a vital role in shaping behaviour and ensuring that the firm maintains high professional standards. This cultural impact is often one of the most significant long-term benefits of having a dedicated legal leader.

Supporting firm strategy and senior decision making

A defining feature of the modern GC role is its strategic influence. The GC is increasingly involved in senior level discussions about firm structure, growth plans, client relationships, overseas expansion and new initiatives. Their perspective helps identify risks and opportunities, assess alternative approaches and ensure that strategic decisions reflect the firm’s legal obligations and business objectives.

In some firms, the GC sits on the management board or acts as a key adviser to the C-suite. Even where they are not formal board members, they typically participate in senior governance forums. This level of access ensures that legal risks are considered early in the decision-making process.

This level of engagement has strengthened the role of the GC and positioned it as a vital contributor to the firm’s long-term direction. As firms adapt to digital transformation, increased competition and evolving client expectations, the GC will continue to play an essential role in guiding decision making and supporting organisational resilience.

A role that is here to stay

The rise of the GC within law firms has been a gradual but decisive development. Every firm is at a different stage in how it defines and deploys the role, but the trend is clear. As regulatory compliance becomes more complex, as clients demand greater transparency and as firms continue to innovate, the need for a centralised legal function led by a dedicated GC will only increase.

The GC role is fundamental to supporting profitability, strengthening governance, guiding senior management and enhancing the firm’s competitive position. With responsibilities that touch every part of the business, the GC brings continuity, clarity and leadership to an increasingly complex profession.

For law firms seeking to succeed in today’s legal market, the General Counsel is no longer optional. It is a vital, strategic role that helps shape how the firm thinks, operates and grows.