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The Bold Group analyses 'Outcomes-Focused' Regulation.

Rob Hailstone of the Bold Group took time to give a 'heads-up' on the SRAs new regulations. Here is his initial response.

“The SRA Handbook is an essential read and it would be advisable for someone in your firm to spend some time digesting the contents.”

SRA 12th September 2011

On Thursday 6th October the SRA will commence risk based regulation, involving a new approach to authorisation, supervision and enforcement. The SRA has said that firms should start considering how they wish to operate their business and how to deal with their clients.

Whilst I do not expect many firms to be contacted by the SRA on the 6th October beginning to implement a straightforward fifteen point plan now (as a bare minimum) will help reduce the risk of attracting unnecessary SRA attention. All firms will be rated, low, medium and high risk but will not be told what their rating is. However; if you are a large firm; carry out residential conveyancing; handle a high amount of client and lender funds; the chances are you will be at least in the medium category but more likely in the high category. Having contacted the SRA, and having discussed the situation with industry experts, my advice is as follows:

• Appoint at least one person in your firm to be in charge of reading the SRA Handbook (or my summaries which are still available) and understanding what Outcomes-focused regulation is.
• Familiarise yourself and your colleagues with the Ten Principles.
• Make sure you have read the new Code of Conduct.
• Make sure your head of accounts has read the SRA Accounts Rules and explained all relevant parts to your fee earners.
• Activate your mySRA account as soon as you receive your activation letter. If you did not receive your letter by the 16th September complete the Activation key lost form:
  www.my-sra.com/mysra/what-is-mysra/getting-started.page
• Start considering the First-tier complaints handling requirements as these will be requested as part of the annual renewals process this year.
• Make sure all of your staff, senior partners to receptionists are, to some degree, aware of the SRA Handbook etc, so that if a call is made to your offices (in person or by phone) and someone asks, “can I please talk to the person in charge of implementing the new SRA Handbook,” they can give a professional and sensible response.
• Make sure your letterheads, website and emails, show the words “authorised and regulated by the Solicitors Regulation Authority” and either the firm’s registered name and number if it is an LLP or a company or, if the firm is a partnership or sole practitioner, the name under which it is licensed/authorised by the SRA and the number allocated to it by the SRA. Chapter 8 of the Code of Conduct.
• Arrange and diarise staff training days for support staff, fee earners and partners.
• Make sure you have clear reporting lines and that your systems, controls and policies are effective.
• Start thinking about who is going to be your Compliance Officer for Legal Practice, your COLP, who must be a lawyer and will need SRA approval.
• Start thinking about who is going to be your Compliance Officer for Finance and Administration, your COFA, who must be an employee or manager with sufficient seniority who will also need SRA approval.
• If you outsource any kind of work, consider Chapter 14, Confidentiality and Disclosure and start putting in place an outsourcing policy.
• Make sure you and your staff comply with the Equality and Diversity guidance, Chapter 2.
• Make sure you have in place a “whistle blower” policy, so that staff feel comfortable and know how to report any breaches or potential breaches of SRA guidance etc to the COLP and or COFA.

Rob Hailstone 07817 630714
The Bold Group
www.theboldgroup.co.uk
rh@boldlegal.co.uk