Solicitors - implementing the revised SRA Handbook

The SRA’s new handbook was approved by the Legal Services Board on 17 June 2011 and will become effective from 6 October 2011. Law firms will be required to nominate the following by 31 March 2012 unless conversion to an ABS is planned before then:

• Compliance Officer for Legal Practice (COLP) who ensures that the firm complies with the SRA’s regulations and other relevant statutory obligations.

• Compliance Officer for Finance and Administration (COFA) whose role is to oversee adherence to the accounts rules but who does not necessarily need to be a solicitor.

If you would like more information about the role of the COFA, we will be running training sessions and would be happy to provide you with further details.

Whilst SRA guidelines make it clear that these are key roles, it is also clear that the liability for failures does not rest solely with these officers. They are ‘not a substitute for the firm’s and managers’ responsibilities’ and ‘the firm and its managers are not absolved from any of their own obligations and remain fully responsible for compliance’.

Whilst smaller firms can nominate the same individual to perform both roles (particularly sole practitioners), in larger firms careful consideration is required to ensure that:

• Governance and reporting structures are in place to ensure timely communication of issues to and from the officers

• They are both sufficiently senior within the firm to be able to discharge their roles

• The officers meet the suitability test set out by the SRA on its website: www.sra.org.uk/solicitors/handbook/authorisation/suitability-test/content.page

• Consideration is given to the firm’s approach to unexpected risks such as the absence of key staff, including the COLP and COFA