Your COFA should live, sleep, eat and breathe financial management. This isn’t optional; rule 1 of the Accounts Rules demands compliance with the SRA principles and Code of Conduct in relation to effective financial management of the firm. So what is effective financial management? Outcomes-focused regulation usually means you have to guess what the SRA expects; however, in a rare moment of clarity, the SRA has explained exactly what good and bad financial management looks like.
The Solicitors Regulation Authority (SRA) is working its way through the hundreds of firms and individuals facing enforcement action over compliance officer failures – but has now found another 205 firms that require investigation.
Requiring all 10,000 law firms to report non-material breaches to the Solicitors Regulation Authority is “unsustainable and cannot be justified”, the regulator’s board will be told today. Meanwhile, the number of firms and individuals facing action over COLP/COFA nomination failures has risen to 928.
Law firms will be held responsible for breaching the personal injury referral fee ban if they sign up to ventures that appear to be genuine joint marketing schemes but prove illegal, the Solicitors Regulation Authority has warned. It will also target senior individuals within firms that “recklessly trade into insolvency”.
The total number of firms and individuals in trouble with the Solicitors Regulation Authority over nominations for compliance officers has risen by a third in the past month to nearly 800, it has emerged.
More than 600 solicitors and law firms are facing action over their failures in nominating compliance officers, the Solicitors Regulation Authority (SRA) has revealed. It said the level of non-compliance was disappointing.
More than two months since law firms were meant to have their compliance officers in place, around 300 firms still do not have them, the Solicitors Regulation Authority has revealed. This is a mix of firms that have not had their nominations approved and those that have still not nominated at all.
Nearly half of solicitors’ firms are not clear what regulatory outcomes they are expected to deliver, a survey on outcomes-focused regulation (OFR) has found – despite more than four out five people questioned being those responsible for ensuring compliance.
The scale of non-compliance with the SRA over COLPs and COFAs became clear yesterday, with 152 firms now facing enforcement action for failing to complete their nominations, and the revelation that 1,200 nominees did not declare “potentially relevant issues” – including undisclosed criminal convictions, serious disciplinary sanctions and undeclared bankruptcy.
Not all alternative business structure applicants have understood what is required of them, which in part explains delays in approving some licences, the chief executive of the Solicitors Regulation Authority has said in a robust defence of the regulator’s performance that also dealt with compliance officer approvals.