Closed Consultation
New disciplinary powers – public rebukes and fines
24 February 2009
Legal Services Act: New forms of practice and regulationConsultation paper 14
The deadline for submission of responses to consultation paper 14 on the Legal Services Act was 23 February 2009. Analysis of consultation responses is in progress.
The information that appears below is for reference purposes only.
The SRA will soon have new statutory powers which will help to deliver its key strategic outcome to secure prompt and proportionate action to minimise risk to consumers and the public, and to enable us to publish decisions which would previously have been kept confidential.
Where the SRA has found a breach of regulatory obligations or professional misconduct it will be able to
- issue a written rebuke,
- impose a fine of up to £2,000,
- publish details of the written rebuke or fine.
These penalties can be imposed on firms regulated by the SRA and/or on individuals working in those firms, as appropriate.
We have to make rules which explain when and how we will use these powers.
This consultation invites you to comment on the draft SRA (Disciplinary Procedure) Rules which are annexed to the consultation paper. It is anticipated that the new statutory powers to fine and rebuke will come into force on 1 March 2009, and we hope to be able to introduce rules as soon as possible after that date.
Parliament has decided to give the SRA more modern regulatory powers which will enable the SRA to regulate in the public interest in a more effective way. Section 44D of the Solicitors Act 1974, which was introduced by the Legal Services Act 2007, will give the SRA the statutory power to impose a written rebuke and/or a penalty of up to £2,000 where it is satisfied that there has been a breach of regulatory obligations or professional misconduct. These could be ordered together and may be published in the public interest.
Section 44D requires us to make rules about the way in which these new powers will be exercised, and the purpose of this consultation paper is to consult on the draft rules dealing with these new powers.
The SRA as a regulator needs to have the appropriate powers to be able to regulate in a proportionate and risk-based manner. These new powers provide an effective alternative in circumstances where a formal prosecution to the Solicitors Disciplinary Tribunal (SDT) may not be a proportionate response but where a private reprimand may be insufficient. We believe that they will enable us to take swift, decisive and proportionate action in the public interest and that our ability to do this will benefit the consumer. This proportionate approach should also reduce the overall cost of regulation for the profession and improve public confidence.
The rules have been drafted in accordance with the SRA's strategic principles and objectives—including the Five Principles of Good Regulation. We believe that the draft rules meet these principles and will make the disciplinary process clearer and more transparent. Consultation with the SDT on the draft rules is ongoing. We also intend to publish guidance on our procedures which will provide further details of what normally happens during the disciplinary process in a way that would not be appropriate in the rules.
This public consultation is aimed at all those interested in the provision and regulation of legal services, including consumers.