The Solicitors Regulation Authority (SRA) has updated its effective supervision guidance following the Court of Appeal’s decision in Mazur.
This blog follows our earlier article, ‘Mazur Appeal Ruling: A Return to Normality with Important Clarifications’, which explained that the appeal decision gave firms greater confidence in continuing to use existing supervision models. Nevertheless, firms must still ensure those arrangements are clear, effective, and properly documented.
The latest SRA guidance does not change the basic position, and firms are not being asked to redesign their structures simply because of Mazur. It does, however, act as a useful reminder that supervision must work in practice, not just appear in a policy.
Below, our compliance team examines the latest supervision guidance and what this means for firms supervised by the SRA.
The Practical Point for Effective Supervision
The SRA has confirmed that firms should take a risk-based approach to effective supervision. There is no prescribed model that every firm must follow. What is appropriate will depend on the work being carried out, the risks involved, the experience of the person doing the work, and the level of oversight needed.
For most law firms, the issue will not be whether supervision exists. It will be whether the firm can show how it works in practice and can demonstrate that it is effective.
That means being able to evidence who supervises whom, how work is checked, when matters are escalated, and how decisions are recorded. Crucially, this is especially important where work is carried out by paralegals, trainees, junior staff, consultants or non-authorised individuals involved in litigation-related tasks.
The SRA also makes clear that responsibility remains with the authorised person supervising the work. Delegation does not remove accountability.
Supervision Practices – What Should Firms Review?
Given the recent guidance and the regulator’s intention to strengthen continuing competence requirements, firms should now take the opportunity to check whether their arrangements reflect how work is actually being managed day to day.
In particular, firms should consider whether:
- supervision responsibilities are clearly allocated;
- supervisors have enough time and experience to carry out the role properly;
- file reviews and matter checks are recorded;
- escalation routes are understood by staff;
- supervision arrangements reflect the risk level of the work;
- policies match what is happening in practice.
This does not need a knee-jerk reaction with over-engineered policies and procedures. In many cases, law firms may only need to update policy wording, clarify internal responsibilities, or improve how supervision is recorded. The important point is that if the SRA asked tomorrow, how supervision works in the firm, there should be a clear and evidence-based answer.
There have been several recent cases in which firms have been referred to the regulator for inadequate supervision. Read our earlier article, ‘More Firms Referred to the SRA Over AI-Generated Authorities’, for related information.
Support for RACO Compliance Clients
For those firms that utilise our services for regulation and compliance, we will engage directly with your team. We can also assist with suggested wording updates for your supervision policy to reflect the clarified position on the following areas:
- Supervision in litigation matters
- Oversight of reserved legal activities
- Internal governance arrangements
- Recording of Supervision and ownership of output (tasks)
We will be in touch directly with guidance and, where appropriate, proposed policy updates for your approval, ensuring your documentation remains aligned with the latest position.
For those who are not, you can contact us, and we will assist where possible.
Regulatory Guidance and Support from Industry Experts
For firms not already on one of our compliance services, if you believe your firm may be at risk, or wish to confirm your firm is achieving the required standard, RACO provides a range of solutions, including:
- Detailed Risk Management and Compliance Review – which provides firms with a structured, firm-wide gap analysis of your approach to risk, supervision, and regulatory compliance. Designed for law firms and professional indemnity insurers, the review delivers a comprehensive evaluation of your current framework, identifies areas of exposure and sets out clear, pragmatic recommendations for improvement.
- Auditing and File Reviews – procedural staff, systems, and files to ensure the procedures are up to the required standard and being implemented at case level with a report of the outcome.
- Training – whether you seek training on a 1-2-1 or group basis, online or in person at your chosen location, RACO has a range of training courses and mentoring programs to suit any legal practice. We can also design bespoke courses tailored to your firm’s needs. We have provided training to firms of all sizes, and our clients range from sole practitioners and CLC practices to multi-service firms with overseas offices.
- Client Due Diligence & Risk Assessment Service – our Due Diligence and Risk Assessment Service is designed to provide an outsourcing option for the completion of Client Due Diligence and completion of the Client and Matter Risk Assessment, including, where necessary, perform source of funds and source of wealth and enhanced due diligence.
- Packaged Solutions – Implementation of robust solutions to ensure the firm achieves compliance and then maintains compliance through the provision of ongoing support and assistance: –
- SRA Compliance Essentials – SRA Compliance Essentials gives you ongoing, specialist support to meet SRA Standards and Regulations and, where relevant, Anti-Money Laundering Regulations. It’s designed to give you peace of mind and free up time, while helping you demonstrate a robust compliance environment to the SRA and insurers.
- Fully Outsourced Risk and Compliance Management – Dedicated, day-to-day risk and compliance management for law firms. The Risk & Compliance Management service provides your firm with an outsourced compliance team, delivering structured register administration, regulatory guidance and monthly reporting to support your COLP, COFA and MLRO. Designed to ensure ongoing oversight, documented monitoring and clear evidence of effective compliance management.
Our approach is practical and proportionate. We help firms identify whether their current supervision arrangements are suitable, whether they are properly documented, and whether they would stand up to regulatory scrutiny.
Speak to Our Compliance Specialists
If you have any questions about how this impacts your firm, or would like to review your current supervision arrangements, please get in touch with the team. Please call us on 0203 985 8550, complete the online enquiry form, or email us at info@regulationandcomplianceoffice.co.uk
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