Deborah Anderson provides updates from the Solicitors Regulation Authority.
Partner moves
The Solicitors Regulation Authority (SRA) recently published new guidance on the notification requirements for partner appointments. These requirements were more onerous than was previously the case and all law firms would need to have been aware of the changes when appointing new partners. However, less than a month after issuing the guidance, the requirements changed.
Prior to the changes, the SRA must have pre-approved every partner appointment made after 1 April 2012. The approval process for a solicitor partner was anticipated to take around 30 days, but could be substantially longer (between 12 to 16 weeks) for a Registered Foreign Lawyer partner. However, it appears that common sense has prevailed as firms are now allowed to notify SRA of partner appointments after they have occurred, although the requirements still apply for a Registered Foreign Lawyer.
Appointing COLPs and COFAs
In April 2012, the SRA announced that the nomination process for compliance officers for legal practice (COLP) and finance and administration (COFA) will open on 31 May 2012. Firms will have until 31 July 2012 to make their nominations, and initially most were expected to be approved between 1 August and 31 October 2012. This has now been revised to 1 August to 31 December 2012. COLPs and COFAs must start fulfilling their duties no later than 1 January 2013.
The launch of the form has been delayed due to the late start of the practising certificate renewals and recognition exercise. But the SRA has stated that this should allow more time to consider the nomination and approval process and, hopefully, ensure that firms do not experience difficulties.
Firms will be asked to complete a web-based nomination form in which they and the nominee compliance officer will need to confirm that:
- they understand their obligations
- they have suitable arrangements in place
- the nominee is qualified, suitable and consents to undertake the role.
In a recent speech, Samantha Barrass, SRA executive director, stated: "...signatures in actual blood aren't obligatory, but I think our intention to focus minds is clear and we will take it very seriously if subsequently it becomes clear that declarations were signed unthinkingly."
She went on to stress that while the COLP and COFA will act as the formal focus points for compliance, they are not the sacrificial lambs enabling others within the firm, particularly senior managers, to absolve themselves from their responsibilities. If this were the case then the regime would fail its most important test: creation of a firmwide culture of compliance.
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