Gani: Part of Alliance delegation
The SME & Boutique Law Firm Alliance has described a meeting yesterday with the Solicitors Regulation Authority (SRA) as “a positive step forward” – but with still a long way to go.
It follows the regulator’s decision to “pause” implementation [1] of the new compliance officer rules, which were due to start coming into force in January.
The Alliance, formed last month in response to concerns about the changes, will next be meeting the Legal Services Board later this week, along with the Law Society.
“The Alliance felt there were encouraging signs that the SRA is beginning to move in a new direction, with greater recognition of the importance of meaningful engagement with the profession and listening to the perspectives of those it regulates,” it said in a statement.
“That is a welcome development to the Alliance. However, rebuilding confidence will take more than words or individual policy decisions.
“The Alliance believes there remains a considerable way to go before the profession can have confidence that this represents a sustained change in regulatory culture, transparency and accountability.”
It was represented by co-founders Jade Gani, who runs Circe Law in Maidenhead, Peter Redmond, managing partner of Midlands firm Clutton Cox, and Kate Burt, chief executive of HiveRisk. They met with Aileen Armstrong, the SRA’s executive director of strategy and policy, and Kate O’Neill, executive director of communications and external affairs.
The Alliance said there was “no confirmed timeframe” for when any changes to the compliance officer reforms would happen, “but the SRA have stressed they want to move quickly with addressing risk broadly, but especially risk linked to client monies”.
Changes to the plans would most likely require approval from the LSB, making January implementation unlikely.
The statement went on to say that the SRA has promised to include the Alliance in the process of reviewing and implementing any proposed changes, and more broadly would consider changing how consultations affecting particular cohorts are conducted, “so that the SRA proactively contacts representatives from those its data identifies will be affected”.
The SRA has estimated that around 1,660 firms (18% of all firms) and 431 sole owner-manager firms may need to take action to comply with the new rules, although those figures were based on “limited information”.
The Alliance seemed to soften its tone on whether it would call for a vote of no confidence in the SRA board at this month’s Law Society annual general meeting, having last week indicated it would go ahead notwithstanding the pause.
The statement said: “The Alliance continues to consider its proposed request for a vote of no confidence in the SRA board at the Law Society AGM. The concerns underlying that proposal extend beyond the COLP/COFA changes and arise from wider questions of regulatory governance, accountability and confidence.
“However, the proposal is not intended to undermine or disregard the progress made during the meeting. We will continue to assess developments carefully, including the SRA’s response to the concerns which have been raised, before determining our position ahead of the AGM.”
The Alliance noted how quickly events had moved since it was formed less than a month ago [2]. They represent “meaningful progress and demonstrate what can be achieved when SME and boutique firms speak collectively.
“Our objective has never been opposition to regulation for its own sake. We support strong and effective regulation which protects clients and maintains confidence in the profession.
“What we have consistently asked for is regulation which is evidence-led, proportionate and developed with a proper understanding of the firms expected to implement it.
“We will therefore continue to engage constructively with the SRA while also holding it to account where necessary. Constructive engagement and robust scrutiny are not mutually exclusive.”