SRA: As compliance officer, solicitor should have been aware of duties
A solicitor who allowed his law firm to flout the accounts rules while a director and compliance officer has been fined by the Solicitors Regulation Authority (SRA).
Aman Mahroof practices at Wakefield-based Tyler Hoffman and between 18 October 2016 and 16 April 2019 was a director at the firm, as well as its compliance officer for legal practice (COLP) and for finance and administration (COFA).
According to Companies House, he resigned as a director on that date.
An SRA notice published this week said he failed both to carry out three-way client account reconciliations and to maintain records of all receipts that were not client money or bills of costs on the client ledgers.
“The firm did not maintain a list of client liabilities with running totals. The firm’s bills and any receipts that were not client money were not posted to client ledgers so the balances showing on the ledgers were not kept up to date.
“Three-way client account reconciliations had not been produced since the firm’s inception in 2016.”
The SRA said a fine was the appropriate sanction and would “send a signal to those we regulate more widely with the aim of preventing similar behaviour by others”, and would also uphold public confidence.
“Aggravating factors included that Mr Mahroof’s conduct had the potential to cause more than minimal harm, he had direct responsibility for ensuring the firm’s compliance with its regulatory obligations, and in his capacity as a director, COLP and COFA Mr Mahroof should have been aware of his regulatory obligations.
“He nevertheless failed to give due regard to these during his two-and-a-half-year tenure in his roles, which formed a pattern of behaviour.”
Applying the SRA’s fining guidance led to a fine of 16% of Mr Mahroof’s gross annual income, subject to a 5% discount to take account of his co-operation and acceptance of the sanction.
This led to a figure of £5,472, plus costs of £600.
