Will compliance officers live up to Solicitors Regulation Authority's expectations?
This is a time of significant change for the profession’s regulatory framework, with economic pressures affecting large and small law firms. Failing firms can sometimes be saved by merger, acquisition or sale, but the regulatory framework is a disincentive. This can lead to messy interventions. Faced with these financial pressures, it remains to be seen whether all compliance officers will live up to the Solicitors Regulation Authority’s expectations.
A mandatory principle of the SRA Handbook requires solicitors’ firms to practice sound financial risk management. Compliance officers for legal practice (COLPs) and finance and administration (COFAs) need to notify the SRA if they believe their firm is in serious financial difficulty. This is an onerous task. Will some officers face internal pressure to keep silent in the hope that their firm can trade its way back to health without SRA supervision? Insurers should encourage firms to properly manage their exposure to risks and to notify the SRA of any concerns. No insurer wants to be left with run-off cover after a firm collapses after burying its head in the sand…
If you are registered and logged in to the site, click on the link below to read the rest of the Mills & Reeve briefing. If not, please register or sign in with your details below.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from The Lawyer
Analysis from The Lawyer
The trend for unbundling legal work is advancing through the law firm ranks but there is still resistance in some quarters - namely in-house. We asked why