Bigger fines "could save solicitors money"
Bigger fines could save solicitors money if they are involved in wrongdoing, the Solicitors Regulation Authority (SRA) has claimed in a bid to increase its powers.
In a consultation paper launched this week, the SRA argues that allowing it to impose bigger fines could save transgressors in law firms (not alternative business structures (ABSs)) £8,000 on average in legal costs, and would cut eight months off the time to deal with the complaint.
The reason is, according to the SRA, that there is a discrepancy between fines for solicitors in an ABS and those in traditional law firms. Under the Legal Services Act, the SRA can fine ABSs up to £250m, and individuals within ABSs up to £50m, whereas fines for traditional firm and solicitors working in them are limited to £2,000. Where more severe penalties requires, the case must be given to the Solicitors Disciplinary Tribunal, which can levy unlimited fines.
Evening up the playing field, therefore, would save costs and speed up outcomes.
Carol Westrop, SRA head of legal policy, says: “We also have significantly reduced powers to fine than other approved regulators, such as the Council for Licensed Conveyancers which can fine all those it regulates up to £1m.
“We believe these inequalities are absurd and we have carried out a lot of work to try to address the inconsistencies over the years.”
The SRA’s consultation, Internal fining powers, closes on 7 February 2014.
.tmb-mov69x69.png?sfvrsn=9a8f1ea9_1)
