SRA to update standards and regulations (STaRs): What you need to know

SRA Standards and Regulations (StaRS)

The SRA (Solicitors Regulation Authority) is the independent regulatory body of solicitors and law firms in England and Wales. In November 2019, SRA introduced new Standards and Regulations, which replaced the previous SRA Handbook. These new regulations aim to simplify and modernise the regulatory framework for solicitors and law firms, while maintaining high professional standards and client protection. The changes included a new Code of Conduct for Solicitors and Firms, simplified account rules, New rules on Continuing Professional Development (CPD), and the introduction of new regulatory tools, including the use of technology to monitor compliance and the ability to take a more flexible and proportionate approach to regulation.

SRA update 2022: First change to its STaRs since 2019

The SRA is set to make the first changes to its standards and regulations (STaRs), which were first introduced in 2019. The Standards and Regulations launched in 2019 replaced the SRA Handbook, which had been long and confusing. The new SRA Standards and Regulations are much more concise and no longer stipulate indicative behaviours. The rules in the new handbook are less prescriptive and include separate codes of conduct for firms and individuals. Additionally, the new standards adopted simplified Accounts Rules and a new enforcement strategy.

Why are changes being proposed to SRA standards?

While the majority of solicitors and law firms have given positive feedback about the new rules and codes of conduct, the SRA has identified, via feedback and evaluation, some areas that are causing some practical difficulties either for firms or operationally for the SRA, and that some rules need further clarification.

The SRA said that the amendments focus on changes that improve on “impractical or unduly time-consuming requirements, while still making sure the public is protected”.

What changes are being proposed to SRA standards and how will they affect you or your firm?

In December 2022, the SRA issued a consultation that proposed a series of minor changes based on feedback from the industry.

Some of the proposed changes include:

Clarifying that in order to transfer funds from the client account into the firm’s business account, any written notification of costs must be for costs already incurred and not in advance of work being done
Clarifying that where a firm has paid for a client’s disbursements using their own money, there is no requirement to deliver a bill or written notification of costs before moving money from the client’s account
Allowing law firms and solicitors who are operating a client’s bank or building society account to take reconciliation every 16 weeks (as opposed to every five weeks)
Allowing solicitors to provide pro bono services outside of their firm or organisation without having to notify the SRA, though solicitors still must meet the SRA requirement to have practised for a minimum of three years since admission or registration and have adequate and appropriate insurance.
Allowing solicitors to administer oaths or statutory declarations outside their normal practice without regarding them as freelance solicitors, as long as the following conditions are met:
- While they are practising this way, these are the only legal services they provide
- They do not charge a fee for these services other than a statutory fee
- They do not provide these services by way of business.

How VinciWorks can help

We will be keeping our eyes on the results of the consultation, which closes on 8 March 2023, and will keep our readers updated on any changes that come as a result.

VinciWorks’ SRA training suite helps legal professionals, including support staff, to develop an understanding of the relevant regulations which apply to their specific role in the law firm. We will make sure to update the courses in our suite to reflect any changes that the SRA makes to its standards and regulations.

In addition, our SRA Compliance Management Suite allows firms to collect data efficiently and securely into one centralised location. COLPs and COFAs can seamlessly review all completions, aggregate data via a centralised dashboard and monitor, track, alert and follow up on progress updates to the standards. These systems will also be amended to reflect any changes to the regulations.

How Compliance Office can help

Founded by Andy Donovan, a former SRA legal policy advisor, Compliance Office’s team of consultants draws on years of experience and a proprietary set of tools and templates to help law firms with their compliance needs. VinciWorks recently partnered with Compliance Office to offer you a full range of compliance training, software, and consultancy services. Compliance Office has many years of expertise in SRA conduct, money laundering and accounts rules, and keeps its pulse on the latest AML and SRA rules and requirements.

If you would like any guidance on anything SRA-related, book a free consultation with Compliance Office now.

How are you managing your GDPR compliance requirements?

GDPR added a significant compliance burden on DPOs and data processors. Data breaches must be reported to the authorities within 72 hours, each new data processing activity needs to be documented and Data Protection Impact Assessments (DPIA) must be carried out for processing that is likely to result in a high risk to individuals. Penalties for breaching GDPR can reach into the tens of millions of Euros.

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