Without guidance the SRA's compliance regime is a heavy burden on small firms
Before 2011 even well-managed firms sometimes got into hot water with the Solicitors Regulation Authority (SRA), perhaps by straying over the line on conflicts. Governance and complaints handling was often poor. Many firms had latent financial problems as a result of things such as dilapidations, under-funded pension schemes, retired partner annuities and guaranteed profit shares for underperforming partners. Financial instability, with the risks that a collapse entails for clients, was a disaster waiting to happen. The legal profession was far from perfect. Outcomes-focused regulation (OFR) has done much to address the problems because the SRA investigates perceived risk areas and compliance officers have personal responsibility for implementing appropriate systems and reporting obligations. Firms now know that they cannot get away with anything.
Regulator’s focus on stability is helpful but it must work on relationship building and fixing problems
This premium content is reserved for
Legal Week Subscribers.
Subscribe today and get 10% off.
A PREMIUM SUBSCRIPTION PROVIDES:
- Trusted insight, news and analysis from the UK and across the globe
- Connections to senior business lawyers within the leading law firms and legal departments
- Optimized access on all of your devices: desktop, tablet and mobile
- Complete access to the site's full archive of more than 56,000 articles
Already have an account? Sign In Now