Closed Consultation

SRA Authorisation Rules for Legal Services Bodies and Licensable Bodies 2011 [extracts]

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8.5 Compliance officers

(c)

The COLP of an authorised body must:

(i)

take all reasonable steps to:

(A)

ensure compliance with the terms and conditions of the authorised body's authorisation except any obligations imposed under the SRA Accounts Rules;

(B)

ensure compliance with any statutory obligations of the body, its managers, employees or interest holders in relation to the body's carrying on of authorised activities; and

(C)

record any failure so to comply and make such records available to the SRA on request; and

(ii)

as soon as reasonably practicable, report to the SRA any failure so to comply, provided that:

(A)

in the case of non-material failures, these shall be taken to have been reported as soon as reasonably practicable if they are reported to the SRA together with such other information as the SRA may require in accordance with Rule 8.7(a); and

(B)

a failure may be material either taken on its own or as part of a pattern of failures so to comply;

(ii)

in the case of a licensed body, as soon as reasonably practicable, report to the SRA any failure so to comply, provided that:

(A)

in the case of non-material failures, these shall be taken to have been reported as soon as reasonably practicable if they are reported to the SRA together with such other information as the SRA may require in accordance with Rule 8.7(a); and

(B)

a failure may be material either taken on its own or as part of a pattern of failure so to comply.

(iii)

in the case of a recognised body, as soon as reasonably practicable, report to the SRA any material failure so to comply (a failure may be material either taken on its own or as part of a pattern of failure so to comply).

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(e)

The COFA of an authorised body must:

(i)

take all reasonable steps to:

(A)

ensure that the body and its employees and managers comply with any obligations imposed upon them under the SRA Accounts Rules;

(B)

record any failure so to comply and make such records available to the SRA on request; and

(ii)

as soon as reasonably practicable, report to the SRA any failure so to comply, provided that:

(A)

in the case of non-material failures, these shall be taken to have been reported as soon as reasonably practicable if they are reported to the SRA together with such other information as the SRA may require in accordance with Rule 8.7(a); and

(B)

a failure may be material either taken on its own or as part of a pattern of failures so to comply.

(ii)

in the case of a licensed body, as soon as reasonably practicable, report to the SRA any failure so to comply, provided that:

(A)

in the case of non-material failures, these shall be taken to have been reported as soon as reasonably practicable if they are reported to the SRA together with such other information as the SRA may require in accordance with Rule 8.7(a); and

(B)

a failure may be material either taken on its own or as part of a pattern of failure so to comply;

(iii)

in the case of a recognised body, as soon as reasonably practicable, report to the SRA any material failure so to comply (a failure may be material either taken on its own or as part of a pattern of failure so to comply).

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Guidance notes

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(viii)

Those designated as COLP</abbr > will need to be in a position to be able to discharge the role. They will need to consider whether they are in a position to, for example:

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(b)

as soon as reasonably practicable, report to the SRA any failure to comply. Where such failure is material, either on its own or because it forms part of a pattern, the immediacy of the report will depend on the circumstances and seriousness of the breach. The report need not be made until the annual information report under Rule 8.7 where such failure is neither material of itself nor because it forms part of a pattern of non-compliance.

(b)

in the case of a licensed body, as soon as reasonably practicable, report to the SRA any failure to comply. Where such failure is material, either on its own or because it forms part of a pattern, the immediacy of the report will depend on the circumstances and seriousness of the breach. The report need not be made until the annual information report under Rule 8.7 where such failure is neither material of itself nor because it forms part of a pattern of non-compliance;

(c)

in the case of a recognised body, as soon as reasonably practicable, report to the SRA any material failure to comply, whether such failure is material on its own or because it forms part of a pattern of non-compliance. The immediacy of the report will depend on the circumstances and seriousness of the breach.

(ix)

Those designated as COFA</abbr > will need to be in a position to be able to discharge the role. They will need to consider whether they are in a position to, for example:

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(g)

as soon as reasonably practicable report to the SRA any failure to comply with the SRA Accounts Rules. Where such failure is material, either on its own or because it forms part of a pattern, the immediacy of the report will depend on the circumstances and seriousness of the breach. The report need not be made until the annual information report under Rule 8.7 where such failure is neither material of itself nor because it forms part of a pattern of non-compliance.

(g)

in the case of a licensed body, as soon as reasonably practicable, report to the SRA any failure to comply with the SRA Accounts Rules. Where such failure is material, either on its own or because it forms part of a pattern, the immediacy of the report will depend on the circumstances and seriousness of the breach. The report need not be made until the annual information report under Rule 8.7 where such failure is neither material of itself nor because it forms part of a pattern of non-compliance;

(h)

in the case of a recognised body, as soon as reasonably practicable, report to the SRA any material failure to comply, whether such failure is material on its own or because it forms part of a pattern of non-compliance. The immediacy of the report will depend on the circumstances and seriousness of the breach.

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SRA Practising Regulations 2011 [extracts]

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4.8       Compliance officers

(c)

The COLP must:

(i)

take all reasonable steps to:

(A)

ensure compliance with the SRA's regulatory arrangements except any obligation imposed under the SRA Accounts Rules;

(B)

ensure compliance with any statutory obligations of the recognised sole practitioner and any employees of the firm; and

(C)

record any failure so to comply and make such records available to the SRA on request; and

(ii)

as soon as reasonably practicable, report to the SRA any failure so to comply, provided that:

(A)

in the case of non-material failures, these shall be taken to have been reported as soon as reasonably practicable if they are reported to the SRA together with such other information as the SRA may require in accordance with regulation 4.13(a); and

(B)

a failure may be material either taken on its own or as part of a pattern of failures so to comply.

(ii)

 as soon as reasonably practicable, report to the SRA any material failure so to comply (a failure may be material either taken on its own or as part of a pattern of failure so to comply).

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(e)

The COFA must:

(i)

take all reasonable steps to:

(A)

ensure compliance with any obligations imposed upon the recognised sole practitioner or any employees of the firm under the SRA Accounts Rules; and

(B)

record any failure so to comply and make such records available to the SRA on request; and

(ii)

as soon as reasonably practicable, report to the SRA any failure so to comply, provided that:

(A)

in the case of non-material failures, these shall be taken to have been reported as soon as reasonably practicable if they are reported to the SRA together with such other information as the SRA may require in accordance with regulation 4.13(a); and

(B)

a failure may be material either taken on its own or as part of a pattern of failures so to comply.

(ii)

as soon as reasonably practicable, report to the SRA any material failure so to comply (a failure may be material either taken on its own or as part of a pattern of failure so to comply).

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Guidance notes

(vi)

Those designated as COLP</abbr > will need to be in a position to be able to discharge the role. They will need to consider whether they are in a position to, for example:

(b)

as soon as reasonably practicable, report to the SRA any failure to comply. Where such failure is material, either on its own or because it forms part of a pattern, the immediacy of the report will depend on the circumstances and seriousness of the breach. The report need not be made until the annual information report under regulation 4.13 where such failure is not material of itself or because it forms part of a pattern of non-compliance.

(b)

as soon as reasonably practicable, report to the SRA any material failure to comply, whether such failure is material either on its own or because it forms part of a pattern of non-compliance. The immediacy of the report will depend on the circumstances and seriousness of the breach.

(vii)

Those designated as COFA</abbr > will need to be in a position to be able to discharge the role. They will need to consider whether they are in a position to, for example:

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(g)

as soon as reasonably practicable report to the SRA any failure to comply with the SRA Accounts Rules. Where such failure is material, either on its own or because it forms part of a pattern, the immediacy of the report will depend on the circumstances and seriousness of the breach. The report need not be made until the annual information report under regulation 4.13 where such failure is neither material of itself nor because it forms part of a pattern of non-compliance.

(g)

as soon as reasonably practicable, report to the SRA any material failure to comply with the SRA Accounts Rules, whether such failure is material either on its own or because it forms part of a pattern of non-compliance. The immediacy of the report will depend on the circumstances and seriousness of the breach.

Proposal 2 – Simplify the practising certificate renewal process in relation to declarable events

SRA Practising Regulations 2011 [extracts]

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Regulation 3: Application following certain events

3.1

Regulation 3 applies (subject to 3.3 below) to an initial application for a practising certificate, an application for replacement of a practising certificate, an initial application for registration in the register of European lawyers and an application for renewal of registration in the register of European lawyers, in any of the following circumstances, subject to the exceptions set out in 3.3 below, relating for example to a previously declared event.

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(k)

The applicant:

(i)

has been adjudged bankrupt and discharged;

(ii)

has entered into an individual voluntary arrangement or a partnership voluntary arrangement under the Insolvency Act 1986;

(iii)

has been a manager of a recognised body, a licensed body or an authorised non-SRA firm which has entered into a voluntary arrangement under the Insolvency Act 1986;

(iv)

has been a director of a company or a member of an LLP which has been the subject of a winding up order, an administration order or administrative receivership; or has entered into a voluntary arrangement under the Insolvency Act 1986; or has been voluntarily wound up in circumstances of insolvency.

(iii)

has at any time during the last 36 months of trading of a recognised body, a licensed body or an authorised non-SRA firm which has entered into a voluntary arrangement under the Insolvency Act 1986, been a manager of that recognised body, licensed body or authorised non-SRA firm;

(iv)

has at any time during the last 36 months of trading of a company or of an LLP which has been the subject of a winding up order, an administration order or administrative receivership; or has entered into a voluntary arrangement under the Insolvency Act 1986; or has been voluntarily wound up in circumstances of insolvency, been a director of that company or a member of that LLP.

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3.2

If regulation 3 applies:

(a)

an application for replacement of a practising certificate or for renewal of registration in the register of European lawyers must be commenced at least six weeks before the replacement or renewal date by submitting a completed application form, together with the prescribed fee and any Compensation Fund contribution required; and

(b)

the SRA:

(ia)

has no discretion under regulation 3 to grant the application if the applicant does not meet the conditions in regulation 2.2(a) to (c) or 2.3(a)(i) to (vi);

(iib)

has discretion to impose a condition or conditions in accordance with regulation 7; and

(iiic)

has discretion to refuse the application.

3.3

The provisions of 3.1 and 3.2 above are subject to the following exceptions.

(a)

Regulation 3 does not apply by virtue of 3.1(a), (b), (c), (d)(i), (e), (j), (k), (m)(i), (n), (o), (p), (q), (r) or (s) if the applicant has previously applied for and obtained a practising certificate or registration, provided that:

(i)

the applicant's practising certificate or registration is not subject to a condition relating to any of those provisions;

(ii)

the SRA (or previously the Society) was aware, when granting that application, of all the relevant facts; and

(iii)

no new circumstances have arisen which would bring the application within any of those provisions.

Guidance notes

(i)

"In writing" includes any form of written electronic communication normally used for business purposes, such as emails.

(ii)

Exceptions to the application of Regulation 3 are set out at 3.3. An applicant is not, for example, subject to Regulation 3 in respect of a previously declared event where the SRA was aware of all the relevant facts and issued a practising certificate or registered the applicant as a European lawyer free from conditions, and where no new circumstances have arisen to bring the application within Regulation 3.