The Solicitors Regulation Authority (SRA) has confirmed it will pause plans to separate the role of COLP and COFA from individuals with “unilateral decision making” responsibilities, after pushback from across the legal profession.
In a statement released today said Aileen Armstrong, SRA executive director – policy and strategy, said: “We appreciate and understand the concerns that have been raised about this rule change, particularly by smaller firms.
“We know that the profession supports our ambition to prevent consumer harm. Our aim, in line with the direction set by the LSB, is to tackle the harms that could arise where there are no checks and balances on individuals taking decisions in firms. Strong firm governance is an important protection in preventing consumer harm. However, we are aware of the risk of unintended consequences, particularly for smaller firms.
“We are pausing to take stock. Over the coming weeks, we will actively consult with stakeholders on potential options we are developing with a view to making necessary changes to our approach and achieving the objective in a proportionate way.’
Welcoming the news, Law Society of England and Wales president, Mark Evans, said: “Plans to pause the compliance officer measures and consult solicitors with a view to making changes following serious concerns raised by the Law Society and the wider profession demonstrate the SRA’s willingness to listen and act when they have got it wrong. We are encouraged by this fresh level of maturity at the SRA under its new leadership.
“To ensure these measures benefit the profession, the SRA must make significant changes that reflect the concerns raised by members and by the Law Society in February.”
More to follow….
