In July, the SRA’s fining powers for law firms and solicitors increased from £2,000 to £25,000, with the SRA planning to decide more cases of alleged misconduct in-house instead of referring them to the Solicitors Disciplinary Tribunal. Alongside their increased powers, the SRA proposed additional safeguards to ensure its enforcement processes are sufficiently transparent and accountable. Its consultation, Financial penalties, ended in February 2022, and it has now set out its final position.
Commenting this week on the SRA’s plans, however, the Law Society said it had ‘serious concerns’ SRA adjudicators would be acting as ‘investigators rather than decision-makers’.
It also dubbed SRA proposals to increase fines against firms from a maximum of 2.5% to 5% of turnover ‘excessive and unjustified’.
Law Society president Lubna Shuja said: ‘Adjudicators, as SRA employees, have access to the regulator’s records and can see a solicitor’s past regulatory history.
‘This could prejudice their views and could lead to an unfair decision. We therefore suggest the information adjudicators can access be restricted to ensure a fairer process.
‘The SRA also proposes giving adjudicators sole discretion to invite witnesses to be interviewed to test their evidence and credibility. Adjudicators would then be acting as investigators and not decision-makers. The SRA also proposes that a respondent would not be present at such an inquisition. This cannot be fair.’
The SRA says increasing the fine threshold will reduce the cost, time and stress for those involved, while raising the turnover threshold will ensure fines are proportionate and act as an effective deterrent. It said it received ‘general support’ for its increase in fining powers and ‘mixed views’ on raising the threshold for firms, in consultation feedback.
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