If you have discovered a breach of the Standards and Regulations, it is natural to feel uncertain about what, and when, an issue needs to be reported to the Solicitors Regulation Authority (SRA). Additionally, if you do, what will happen next? While the idea of reporting yourself to the SRA can feel daunting, it’s not just the right thing to do (and a requirement for serious breaches); it is a smart thing to do before someone else does, or before the regulator discovers the issue independently.
If you believe you are required to make a self-report, have received a notice of enquiry or investigation, if the SRA has arrived at your premises, or if you have been referred to the Solicitors Disciplinary Tribunal, you should contact us immediately on 0203 985 8550. We will guide you on the initial steps to take. You can also find details of our Regulatory Defence and Disciplinary Support for Law Firms here: Regulatory Defence and Support Services.
The Importance of Self-Reporting
Firms and Individuals have a regulatory duty to record all breaches and report serious breaches of the Standards and Regulations, including breaches of the Accounts Rules, Firms Rules and Individuals Rules. The SRA expects these reports to be made promptly, and while the COLP or COFA would normally take the lead, anyone can report an issue.
However, self-reporting to the SRA is often one of the most misunderstood steps in the regulatory process. The crucial aspect of a self-report is timing. It is much better if this comes directly from the Firm or the Individual. If the regulator discovers the issue, or if someone else reports it, the outcome can be much worse.
Self-reporting isn’t just about compliance; when handled correctly, it’s about gaining control over the process. Making a self-report gives you the opportunity to explain what went wrong, what you have done to fix it, and what you will be doing to prevent it from happening again in the future.
It is this context of the report that can make a real difference and set the tone for any future engagement with the SRA or the Solicitors Disciplinary Tribunal (SDT). Regardless of whether the regulator decides to take no action, issue a warning, or open a formal investigation, your initial self-report can form part of that decision.
Demonstrating Recognition and Protecting Your Reputation
Admitting fault may feel like you are putting your Firm at risk of regulatory scrutiny or reputational damage. However, when managed correctly, a self-report can show the regulator you take your regulatory and compliance obligations seriously, that you have acted swiftly and responsibly, and that you are committed to putting things right.
Consequently, rather than damage a reputation, it can protect it. A well-handled report can demonstrate accountability, integrity, and professionalism, even in the most difficult circumstances.
How the Regulation and Compliance Office Provides Strategic Support
At the Regulation and Compliance Office (RACO), we can help Firms and Individuals, not just file the report, but manage the entire process. Whether you have just discovered a breach, are responding to an enquiry, or are facing an investigation, our specialist compliance team can help.
Through our range of Regulatory Defence and Disciplinary Support for Law Firms, we can support Firms and Individuals from the moment a breach is identified, through to resolution and beyond, including:
- Review – In the event of a breach, our experienced team will guide the COLP or COFA through the issues that have arisen to determine if the breach is serious or not. Whilst all breaches must be recorded, it is only necessary to report a serious breach.
- Self-Report – If a serious breach is identified, after (or during) the review stage, it is necessary to file a report with the SRA (assuming they are not already investigating). This will require a carefully constructed self-report that covers all the necessary information to provide the SRA with the correct information.
- Enquiries and Investigations – Depending on the seriousness of the breach, the SRA can conclude to:
- Not to take any action and issue an immediate outcome with no further action.
- Refer the Firm to an investigator to obtain more information and make a decision on whether the SRA will:
- Take no action.
- Issue a warning.
- Issue a rebuke.
- Impose a fine under a Regulatory Settlement Agreement.
- Refer the matter to the Solicitors Disciplinary Tribunal (SDT) for:
- A fine above the SRA maximum limit for Firms and Individuals.
- Suspension (which will tend to be due to an allegation of lack of integrity).
- Strike Off (which tends to be dishonesty).
- Intervene – this will be the last resort and is rare.
- Mitigation – If a breach has occurred, a critical stage is mitigation, which involves either stopping the breach if it continues and then implementing strategic actions to ensure the Firm can present mitigation in the event the SRA decides to take regulatory action. This is often a tactical strategy that will involve the Firm taking key actions which will demonstrate to the SRA that the breach has been recognised but controlled and will not be repeated.
- Regulatory Settlement Agreements – A Regulatory Settlement Agreement (RSA) is a solution offered by the SRA that brings a swift conclusion to an investigation and without the need for a full disciplinary hearing in front of the Solicitors Disciplinary Tribunal. As a result, the prospect of an RSA is tempting but also needs careful consideration.
- Solicitors Disciplinary Tribunal (SDT) – Dealing with a referral to the SDT is a specialist area, and the consequences of getting the approach wrong can be severe. It is essential that RACO is engaged as early as possible, preferably before the SRA decides to refer to the SDT.
- SDT Agreed Outcomes – Through the course of a Solicitors Disciplinary Tribunal (SDT) proceeding, it may occur that the SDT and the respondent find a solution to resolve the issues without proceeding to a formal hearing. This is known as an ‘Agreed Outcome’ and is possible at any time before a formal hearing.
RACO have worked with Firms of all sizes and with individuals at every level. Whether the breach was down to a technical error, a procedural oversight, or something more serious, our specialist SRA Defence and Support team, headed by Managing Director David Green, has the experience and expertise to know how to respond, and how to protect your position.
Find out more about our specialist defence and support services:
- SRA Enquiries
- Self-Reporting – including for the SRA, ICO, CLC, CILEX
- Solicitor Disciplinary Tribunal Support
- Regulatory Settlement Agreements
- Agreed Outcomes – Statements and Judgments
Prevention is Better Than Cure
While we are there to provide guidance and support when things go wrong, much of our work is focused on helping firms avoid issues in the first place.
At RACO, our compliance experts support hundreds of firms with ongoing compliance. That includes anti-money laundering (AML) processes, audits, risk assessments, staff training and systems reviews.
Our approach helps firms stay ahead of their regulatory obligations, reducing the risk of receiving unwanted attention from the SRA. Learn more about some of our compliance products, outsourced compliance management, and law firm consultancy services, including:
- SRA Compliance Essentials
- Risk & Compliance Management
- Outsourced Client Due Diligence, Source of Funds & Risk Assessment
- Training
If The SRA Has Contacted You, Talk to Us
Whether you are at the beginning of an internal investigation, responding to an investigation initiated by the SRA, or dealing with a matter that has already been referred to the SDT, RACO is available to support any firm or individual.
The appointment of an independent party often results in quicker resolutions. At RACO, our regulatory defence specialists are ready to assist at any stage of the process.
If you have already been notified of an investigation, please contact us today on our emergency line at 0203 947 3690, and we can offer immediate guidance and support on the next steps.
Useful Information
More information can be found on the SRA website about how the regulator approaches enforcement and prosecutions:
