Diversity: Make approach outcomes-focused, says SRA
A proposed rule requiring law firms to take “remedial action” to address disparities in equality, diversity and inclusion (EDI) goes too far, the Solicitors Regulation Authority (SRA) has warned.
The “regulatory burden and potential cost” of meeting this requirement could have “a significant impact on law firms”, it told the Legal Services Board (LSB).
The SRA was responding to an LSB consultation on a proposed statement of policy on encouraging a diverse legal profession to replace the LSB’s existing guidance.
Within this is an expectation that regulators would “set a requirement for authorised firms to have a clear understanding of the diversity profile of their workforce (at all career stages), to have a thorough understanding of wellbeing and conduct challenges, and to take remedial action to address any evidenced disparities, reporting data and plans on these to the regulator on request”.
The SRA said it would have to introduce new rules to give this effect.
It went on: “The regulatory burden and potential cost of meeting this requirement could have a significant impact on law firms, in particular small and mid-size firms. And a potential equality impact on sole practitioners and small firms which are more likely to be run by Black, Asian or minority ethnic (BAME) solicitors.
“It will be important to engage with law firms about this proposal and carry out a regulatory impact assessment before a final decision is made. This will help determine if the proposed approach is proportionate and likely to have the intended effect.”
The SRA said there was a risk that it would lead to a “’tick-box’ approach” to EDI, rather than an approach “founded on evidence and commitment to lasting change”.
It preferred that the LSB take “an outcomes-focused approach”, supporting regulators “to consider all the options available to driving EDI in the most effective way”.
The regulator explained: “We have seen some success with our collaborative approach, encouraging positive engagement, buy-in and trust within the profession.
“We think it is important that the most appropriate approach is identified for the solicitors’ profession, and we think we are well placed to determine this.
“There needs to be flexibility to allow us to do that, and we are concerned that requiring us to impose a specific regulatory requirement… may not lead to the most impactful approach to drive good EDI outcomes.”
The response more broadly welcomed the direction of the proposed statement of policy but urged that it be less prescriptive.
SRA data published last week showed that, between 2015 and 2025, there has been an increase in the number of women solicitors, including at senior levels, an increase in the overall proportion of solicitors from BAME groups, and a steady increase in the proportion of disabled solicitors.
The response said: “Despite these positive trends, we recognise there is more to do to deliver a diverse and inclusive profession.
“This includes addressing the seniority gap which remains for women and minority ethnic groups in the largest firms, the continued underrepresentation of disabled solicitors (compared to the national population) and encouraging socio-economic diversity in the profession.”
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