Legal Profession Reform: Implementation of Law 137/2026

1. The fact

   The legislative process concluded with final approval in the Senate on July 22, 2026, and the subsequent publication in the Official Gazette of Law No. 137/2026, which entered into force in mid-August of the same year. According to «Il Sole 24 Ore», the text represents an organic enabling act that the Government must implement by February 2027. The genesis of the measure was marked by key institutional steps: the Constitutional Court, in a ruling filed in July 2026, had already affirmed the legitimacy of capital partners in Law Firms (STAs), provided that safeguards against external direction were established.

   In parallel, as highlighted by «ItaliaOggi», debate arose regarding the compatibility between practicing law and holding top executive roles in commercial companies. The current stage involves delegated implementation, awaiting legislative decrees to define independence criteria. In the disciplinary domain, specialized journals such as «CF News» highlighted recent decisions by the National Bar Council which, while sanctioning aggressive marketing models, called for a modernization of professional dignity rules aligned with the new reform.

2. 

   The laws at play

   The core of the reform lies in Articles 1 and 2 of Law No. 137/2026, which directly amend Law No. 247/2012.

   1. Professional secrecy is elevated to an essential principle of the legal system and an inalienable right, aiming to limit invasive investigative measures within law offices.
   2. Article 18 of the professional law is amended to introduce conditional compatibility: lawyers may hold management roles in capital companies, provided that intellectual autonomy is ensured and no conflicts of interest arise.
   3. The framework for Law Firms (STAs) is enhanced by requiring statutory clauses that safeguard the lawyer's independence from non-professional partners, under penalty of nullity of corporate acts and disciplinary sanctions.

   The anticipated outcomes include greater organizational flexibility for firms alongside stricter oversight of internal compliance. Violations of fair compensation provisions or corporate transparency rules may lead to suspension from practice, transforming ethical duties into mandatory requirements for the validity of legal business models.

3. What case law says

   Prior to the reform, case law from the court of last resort maintained a strict stance on management incompatibility, holding that signing authority and direct commercial management were incompatible with an attorney's independence. As highlighted by Ius Societario, the Supreme Court had clarified that the actual exercise of business activity, even if performed on behalf of a corporation, constituted grounds for removal from the bar. However, constitutional jurisprudence recently emphasized that freedom of economic initiative cannot be restricted beyond what is strictly necessary to protect the public interest in a proper legal defense.

   Regarding capital participation in professional firms, the Constitutional Court confirmed that investor partners are legitimate, but require a robust legislative framework preventing the capital partner from interfering with counsel's technical strategy. Furthermore, according to the analysis by Studio Legale MP, the integrity of professional secrecy represents an indispensable prerequisite for the legitimacy of new organizational structures. Disciplinary case law has also reiterated that professional dignity must evolve to embrace modern communication methods, while maintaining the prohibition on client solicitation via digital platforms that fail to respect the dignity of the legal profession.

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8. What it teaches professionals

   From the analysis of the reform, key operational recommendations emerge for legal practitioners.

   1. Review and update the bylaws of Law Firms (STAs) by incorporating provisions that shield professional decision-making autonomy from investor influence.
   2. Exercise extreme caution when accepting management positions in corporations, documenting compatibility requirements and eliminating conflicts of interest.
   3. Monitor the issuance of implementing decrees to adapt law firm governance models to new standards governing professional secrecy and client file protection.

References: Legge 28 luglio 2026, n. 137Legge 31 dicembre 2012, n. 247Costituzione Italiana, Art. 24Costituzione Italiana, Art. 41

Editorial oversight: Avv. Federico Papa·ICAMUpdated 7 September 2026Content drafted with AI support and subject to editorial source checks. Despite these controls, inaccuracies may remain: reports and rectification requests are welcome. Report a correction