- Solicitors Regulation Authority’s fining powers to increase
from £2,000 to £25,000
- Increased deterrents to clamp down on misconduct from law
firms and solicitors
- Updated measures will allow cases to be resolved quicker
The changes mean the SRA can now fine law firms and individual
solicitors for a broader range of offences - from lower-level
cases involving inadequate staff training to those with more
serious consequences including failure to implement the
appropriate checks required to uncover signs of money laundering
by clients.
Previously, disciplinary matters requiring fines over £2,000
would be referred to the independent Solicitors Disciplinary
Tribunal (SDT).
Given nearly 90 per cent of fines currently issued by the
tribunal are under £25,000, these reforms will allow them to
focus on fewer, more significant allegations, like firms working
for sanctioned Russian oligarchs and businesses.
Deputy Prime Minister, Lord Chancellor and Secretary of State for
Justice, said:
The UK can be proud of our world-leading legal services. But it
is essential the sector retains its international reputation for
the highest standards of probity.
That’s why we are allowing swifter and firmer action to be taken
against those who break the codes of conduct. And we’re freeing
up the solicitors’ disciplinary tribunal to focus on the most
serious breaches, such as those involving Russian sanctions.
The increased powers will reduce the number of cases referred to
the SDT, shortening the average time taken for cases to be
resolved.
Anna Bradley, Chair of the Solicitors Regulation Authority, said:
The overwhelming majority of solicitors meet the standards we all
expect, but when they don’t, we step in to protect the public and
maintain confidence in the profession.
There was strong public support for increasing our fining powers
when we consulted last year and this change will mean we can
resolve issues more quickly, saving time and cost for everyone.
It will reduce stress and allow more focus on the most complex
and challenging or serious cases.
The SRA investigates almost 2,000 cases annually and handed out
over 250 fines in the last year, which is only set to increase as
the changes take effect. They will continue to refer firms and
solicitors to the tribunal in the most serious cases.
Notes to editors
- Between 2014-2021, around 90 per cent of fines levied by the
Solicitors Disciplinary Tribunal were under £25,000.
-
Example of a recent case
handled by the tribunal that would now be handled by the
Solicitors Regulation Authority under new measures:
- In January 2022, the Tribunal fined a solicitor £25,000
for failing to follow the appropriate processes to guard
against the risk of money laundering.
- This included failing to carry out appropriate checks on
his client, and improper use of his firm’s client account as
a banking facility allowing payments of around €300,000 to be
made into and out of the firm’s account.
- The solicitor admitted all the allegations in full.
