Reporting serious matters to the SRA by non-solicitor employees – clarity from the SRA
Many of you will have seen our past blogs relating to the reporting of serious matters to the Solicitors Regulation Authority (SRA) by non-solicitor employees, in particular, whether there was a responsibility for them to report direct to the SRA rather than reporting via their compliance officers.
After some very positive interaction with the SRA we are now able to provide you with the clarity many of you will have been waiting for!
Solicitors, RELs and RFLs.
The SRA Code of Conduct for Solicitors, RELs and RFLs outlines the reporting obligations under paragraph 7.7. Alternatively, a solicitor, REL or RFL can discharge that duty by providing information to the Compliance Officer for Legal Practice (COLP) or Compliance Officer for Finance & Administration (COFA) on the understanding that they will notify the SRA (7.12). This approach is reiterated in the SRA’s enforcement strategy.
Non-solicitor employees
There is no explicit requirement in the SRA Code of Conduct for Firms for non-solicitor employees to report matters directly to the SRA. Paragraph 8.1 states that managers are jointly and severally responsible for the firm’s compliance, which means that managers are responsible for putting in place appropriate policies and procedures for staff (qualified and unauthorised) to follow in order to ensure that the firm complies with its duties in the Code.
The use of the word “you” in paragraph 3.9 of the Firm Code sets out the reporting obligations for the firm as a whole as opposed to individual employees and the ability for the firm to comply with this will depend on the steps taken by the managers mentioned in paragraph 8.1.
Although a non-solicitor employee is not under a duty to report serious misconduct to the SRA directly, if they want to make a direct report, the firm should not take steps to prevent them from doing so or subject them to detrimental treatment (paragraphs 3.11 and 3.12).
Requirements of firms
Firms are required to have effective systems and controls in place to comply with the SRA’s regulatory requirements (paragraph 2.1(a) of the Firm Code. The onus is on the firm’s compliance officers to report (Paragraphs 9.1 and 9.2). This includes at 9.1(b) ensuring compliance by the firm and its managers, employees or interest holders with the SRA’s regulatory arrangements. This means that COLPs should assess the steps that they need to take to ensure that any non-solicitor employees comply with the requirements of the Standards & Regulations.
It is therefore sensible for COLPs to put policies in place to ensure clear reporting lines to allow them to sufficiently fulfil their roles.
If the firm does not have effective internal reporting procedures for non-solicitor employees to escalate concerns about serious breaches, it will be difficult for it to comply with paragraphs 9.1(d) and 9.2(c) of the Firm Code.
Role of non-solicitor employees
Non-solicitor employees have an important role to play in escalating any concerns that they have over serious breaches internally so that firms can comply with their reporting obligations.
This clarity is very welcome, but clearly puts the onus on compliance officers and managers to ensure they are doing the right thing; effective systems, policies and training are key to this.
Giving non-solicitor employees the confidence that any report they make will be handled properly will avoid direct reports being made (probably anonymously!) to the SRA; better to be in control of the process than have it thrust upon you by an unexpected “knock on the door”!
The Access Group can help you comply with your requirements from the SRA. We have effective risk and compliance systems that can safeguard your business and help you with your requirements. Book a demo today.
