Complaints rule changes: SRA has now missed the deadline
The Solicitors Regulation Authority (SRA) has suddenly withdrawn proposed rule changes to improve how solicitors handle complaints from approval by the Legal Services Board (LSB).
The key change was to require that law firms provide complaints information [1] at the end a client’s matter, on request and if a complaint is made during the matter – in addition to at the start, as is the current rule.
The Law Society had opposed the move [2], saying this could “cause practical difficulties and lead to unwarranted complaints”.
The SRA also intended that firms would have to make complaints information clear, accessible and in a prominent place on their websites.
It submitted an application for approval of the changes on 14 October last year. In November, the LSB extended the initial 28-day decision period to 90 days, expiring on 11 January. However, last Friday, the SRA withdrew the application altogether.
A spokesman told Legal Futures that the LSB had indicated in discussions that it was “not ready to accept the proposals in their current form” and so it decided withdraw the application.
The regulator is continuing to consider the feedback before deciding how and when to move forward with updated proposals.
Neither the SRA nor LSB would explain what the problems were.
The proposals formed part of the SRA’s response to statutory requirements issued by the LSB in May 2024 [3] that all the regulators had to implement within 18 months. The aim is to improve first-tier complaints handling (the Legal Ombudsman being the second tier) across the legal profession.
As a result, the SRA has failed to comply with the requirements in time and the LSB may consider enforcement action as a result. It is already going through the statutory process of issuing the SRA with a public censure in the wake of the report into SSB Group’s collapse.
In recent months, the LSB has approved changes to first-tier complaints rules proposed by the Bar Standards Board, CILEx Regulation, the Intellectual Property Regulation Board, and Institute of Chartered Accountants in England and Wales.
Regulators would not have to change their rules if they believed they were already compliant with the statutory requirements.
A thematic review [4] published by the SRA last year as part of its work on first-tier complaints showed that law firms were divided over what should be regarded as a complaint from clients.