Solicitor’s Regulation Authority (SRA) chief executive Sarah Rapson has published the organisation’s final 2026/27 Business Plan outlining how she intends to undertake a “reset” of the regulator.
The widely consulted-on plan was first launched in May. One of it’s more controversial points was a 29% increase in funding as part of efforts to “invest now as part of a reset to put the organisation on the right footing for the future”.
The final plan focuses on three priority areas: delivering operational excellence, proactively identifying and addressing risk, and focusing on the biggest issues said the SRA as it seeks to “fix the SRA’s foundations, strengthen its operations and build new capacities.”
Commenting on its launch Rapson said the plan marked the next stage of the reset process, setting out a “focused programme of change to strengthen our operations, modernise our capabilities and help us move from a largely reactive regulator to one that is increasingly proactive, intelligence-led and focused on preventing harm.”
The business plan outlines how the organisation will deliver “clearer, faster and more proportionate outcomes” when it comes to enforcement. It will also focus on areas of high risk to the public including high-volume claims, safeguarding client money, governance arrangements and models within firms, the importance of professional ethics, supporting responsible adoption of AI and innovation, and reviewing and enhancing candidates’ experience of the Solicitors Qualifying Examination (SQE).
Elsewhere the plans explains how the regulator will establish a more proactive supervision function to undertake engagement directly with firms to identify, understand, and manage risks; and use data and analytics to support “risk-based prioritisation and escalation.”
‘This was one of the largest consultations the SRA has undertaken on an annual business plan” added Rapson. “I am grateful to everyone who took the time to provide such insightful and constructive feedback. We have listened carefully to what was said and this has helped shape the final plan. Together, these changes will also help lay the foundations for our soon to be published draft 2027-2030 Corporate Strategy, which looks to establish the SRA as a modern, trusted and effective regulator for the future.”
In her foreword to the plan Rapson said the regulator had “dedicated experts” amongst its staff but had “not consistently met the standards expected of it in recent years.” She added it was important for the organisation to move to a proactive and preventative approach to regulation with with £5 million to be invested in developing proactive supervision capability through a combination of redeploying staff and building new capability.
£10.3 million would be spent replenishing reserves which have been used for early investment in these priorities said Rapson, with £23.2 million set to be invested in key IT and change programmes.
One area the regulator hopes to make a mark is in managing misconduct reports, which it said are up 45% between 2022 and 2025, by investing in IT, using data and intelligence more effectively, and a “clearer prioritisation” of issues most directly linked to consumer harm
The SRA had already announced a £50 increase to annual practising fees which would make up 40% of the addition funding needed. The remaining 60% would be met by SRA-regulated firms and will be calculated based on bands according to the firm’s turnover.
While there will be continued efforts to safeguard client money the SRA conceded plans to redelegate CILEX professionals are to be put on the backburner while it focuses on its immediate priorities, alongside progress on transparency rules, quality indicators and digital comparison tools.
