SRA targets risk in streamlined law firm and ABS authorisation process

Print This Post

15 July 2013


SRA: dealing with lower-risk applications much more quickly

Alternative business structures (ABSs), law firms and sole practitioners looking for authorisation by the Solicitors Regulation Authority (SRA) will for the first time fill in the same form as the regulator steps up its risk-based approach.

Applicants now have to self-assess the likelihood of a wide variety of risks occurring and explain what controls they have in place to prevent them.

The risks identified range from expansion plans for the next year and business process outsourcing, to ‘group contagion’ from being part of a wider organisation and a lack of competence.

It follows criticism of the speed with which the SRA has been dealing with ABS applications, and the merger of the SRA’s authorisation and ABS teams in March. It means that firms, entities and sole practitioners seeking authorisation now follow the same process as ABSs, an alignment that continues with the publication of the single form.

Annette Lovell, SRA director of authorisation, said: “We are making significant improvements to the way in which we approach firm-based authorisation, underpinned by a much stronger focus on assessing risk. We’re already starting to see the impact of these changes which mean that, for example, we are able to deal with lower-risk applications much more quickly.

“This new, single form is another big change for us… [It] is considerably shorter than earlier versions and we hope that this new format will mean that applicants can more easily provide the information we need – which should mean we will ask fewer follow-up questions.”

Those in the process of submitting applications under the old forms have until 12 August to do so.

The form and guidance are available here.

 



Leave a comment

* Denotes required field

All comments will be moderated before posting. Please see our Terms and Conditions

Legal Futures Blog

Rethinking ‘quality versus quantity’

Andrew Lloyd 2017

The ‘quality versus quantity’ discussion has been prevalent in conveyancing firms for as long as I can remember. Sacrifice one to achieve the other is the common perception – but should we really see these elements as mutually exclusive? According to the Chancellor’s Autumn Statement, the UK lags behind the US and Germany by some 30 percentage points when it comes to productivity, meaning a German worker takes four days to produce what a British worker does in five.

February 15th, 2017