SRA Confirms Pause on COLP and COFA Separation Rules
On 30 September, the Solicitors Regulation Authority (SRA) confirmed it is pausing implementation of the COLP and COFA separation rules, which were due to take effect from January 2027. The plans were attracting growing criticism for the regulator’s proposal to prevent firm owners from also acting as compliance officers.
Aileen Armstrong, the SRA’s executive director for policy and strategy, said:
“We appreciate and understand the concerns that have been raised about this rule change, particularly by smaller firms.
We are pausing to take stock. Over the coming weeks, we will actively consult with stakeholders on potential options we are developing with a view to making necessary changes to our approach and achieving the objective in a proportionate way.”
When we previously wrote about the growing pushback from smaller practices, we said the split may face scrutiny but that firms should continue preparing. That advice was right at the time, and the pause itself confirms the pressure being mounted was substantial enough to force a rethink.
What Has Not Changed
The Legal Services Board has already approved the rules, and they have not yet been withdrawn or revoked. The SRA is pausing implementation, not abandoning the policy. The statement is clear that the regulator intends to consult on revised options and achieve the original objective more proportionately.
That means the underlying direction of travel, separating compliance oversight from unilateral management control in firms above the thresholds, remains the SRA’s stated position. What is open for discussion is how it gets there, and in particular how smaller firms are affected.
The Law Society has welcomed the pause. Its president, Mark Evans, described the decision as demonstrating “the SRA’s willingness to listen and act when they have got it wrong”, and called for
“significant changes that reflect the concerns raised by members.” The SME & Boutique Law Firm Alliance, which led much of the organised opposition, also welcomed the pause but said its wider concerns about regulatory governance extend beyond this single issue.
Source: The Law Society Gazette – SRA presses pause on compliance officer separation plans
What Firms Should Do Now
If your firm was in the process of preparing for the January 2027 deadline, that urgency has now lifted. You do not need to rush an FA2 application or appoint a new COLP or COFA against a deadline that is no longer confirmed.
However, the governance review we recommended in our earlier articles remains worthwhile. Assessing whether anyone in your firm genuinely holds unilateral decision-making power, documenting how decisions are made, and considering whether your compliance structure would withstand regulatory scrutiny are all good governance regardless of this particular rule change. A firm that has done that work is better positioned whatever the regulator decides next.
Our compliance teams will be monitoring the SRA’s further consultation closely and will provide updated guidance once the revised proposals are published. If you have already started an FA2 application and are unsure whether to continue, speak to your compliance manager or contact us directly.
Speak to Our Compliance Team
To discuss how the COLP and COFA changes affect your firm, review your governance arrangements, or start an application, call us on 0203 985 8550, complete the online enquiry form, or email us at info@regulationandcomplianceoffice.co.uk
