Tim Kidd, Chief Executive, Institute of Legal Finance & Management (ILFM)
By Tim Kidd, Chief Executive of ILFM, on behalf of Legal Futures Associate iCOFA
The SRA has recently completed a thematic review of the role of compliance officers within law firms. The review, which saw them visit 25 law firms and speak with 36 individuals working within compliance, has reinforced what many of our members are telling us – that COFAs are struggling with a lack of support, inadequate resources and increasing pressure.
Key challenges faced by COFAs
The SRA review highlights several areas that COFAs flagged as challenging:
Lack of support and acknowledgement
Only 44% of the compliance officers the SRA spoke to felt that their role was acknowledged and/or valued by their firm. Many COFAs reported receiving no formal recognition or financial incentive for their work and attempts to backfill roles had proven difficult.
This lack of recognition is compounded by the widespread belief that compliance is seen as the sole responsibility of the COFA, rather than a shared responsibility across the firm. Around 20% of COFAs reported feeling under-resourced and overwhelmed by their workload. Some also expressed a desire for internal compliance teams, more time, or additional external expertise to help them manage the demands of the role.
Time pressures
Nearly half of the compliance officers identified a lack of time as their primary challenge. This was especially true for those holding multiple roles within their firms. On average, COFAs spent just 26% of their time on compliance-related tasks, while almost a quarter of them struggled to dedicate enough time to these tasks alongside their fee-earning work. Additionally, 27% reported difficulties in keeping up with regulatory updates, further complicating their ability to meet their obligations.
Isolation and stress
Around 52% of COFAs reported feeling stressed due to the significant personal responsibility they bear for ensuring compliance within their firms. The stress is exacerbated by the lack of time, support and internal resources dedicated to compliance. The demands of the role, coupled with feelings of isolation and limited acknowledgment, create an environment where stress levels are high, and job satisfaction is low.
How iCOFA can help
Building a community of like-minded professionals:
iCOFA – The COFA Institute, provides a vital support network for COFAs and those directly supporting COFAs, offering a space where professionals in the role can connect, share experiences and collaborate on solutions. Through our community, you gain access to the knowledge, resources, and peer support you need to thrive in your role.
We recently met with the SRA at the highest level to ensure that the experiences and challenges faced by our iCOFA community and wider ILFM Membership are clearly communicated, we will continue this dialogue to help shape future developments in the role.
Expert training and development:
Compliance officers need to stay ahead of regulatory changes to ensure their firms are always compliant but the review found only a minority were able to show training that related to their role in the past year. iCOFA offers exclusive training, resources, and professional development programs designed specifically for the challenges of the COFA role and for support teams reporting to COFAs. This includes practical insights on SRA regulations, financial acumen for legal finance, and much more.
Recognised qualifications for career advancement:
iCOFA membership also offers COFAs and support teams reporting to COFAs the opportunity to gain industry-recognised qualifications that enhance professional credibility and development.. These qualifications allow COFAs to stand out within their firms demonstrating expertise and adding value to their professional growth.
Become part of the solution:
iCOFA is committed to helping COFAs operate efficiently, stay informed and alleviate the pressures of their roles. Through access to best practices, peer learning, and expert-led guidance, iCOFA provides the support COFAs need to ensure their firms remain compliant while reducing the stress and isolation often associated with the role.
Find out more about iCOFA – The COFA Institute and join here today: https://www.ilfm.org.uk/site/cofa/
