How firms are faring under the SRA Standards and Regulations (STaRs)
Our recent webinar looking at the new STaRs revealed some very interesting poll data, which showed a rather mixed picture of firms’ progress towards full compliance under the new regime.
We asked the following questions of the audience and their responses are shown below:
1. Do you believe the SRA would find you compliant with the STaRs?
a. Yes – 37.5%
b. No – 18%
c. Unsure – 44.5%
2. Have you provided all solicitors with training on the STaRs?
a. Yes – 66.5%
b. No – 25.5%
c. Unsure – 8%
3. Before today did you know that non-solicitors have a duty to report serious matters direct to the SRA?
a. Yes – 42.5%
b. No – 57.5%
The results from Poll 3 are a cause for concern as they clearly show a high number of firms being unaware of the new rules relating to the reporting of serious matters to the SRA by non-solicitors, who are covered by the SRA Code of Conduct for Firms.
Unlike the SRA Code of Conduct for Solicitors, there is no option for reporting to the firm’s COLP/COFA, but if this is not possible under the strict letter of the rules firms may find themselves in a position where a report is made without their knowledge, and the first they will know about it is when the SRA starts asking questions. Once the picture in relation to this requirement becomes clearer it may be that the SRA decides to change the rules or issue guidance giving more clarity on how it can be complied with, but until such time as this happens - if it happens - non-solicitors will be left in the unenviable position of having to report without the knowledge of their firms, and their firms being left in the difficult position of not knowing when the regulator may come knocking.
It would seem logical for firms to adopt the same type of reporting framework for reporting serious matters to the SRA as they do for reporting money laundering suspicions, namely have a chat with the COLP about the concerns, and subject to agreement the COLP would then make a formal report to the SRA; should an agreement not be made it would remain the duty of the non-solicitor to report the concerns. The same framework could also be adopted for solicitors who have the option to report to their COLP for them to report to the SRA on the understanding they will take the same view as the person making the report. You should contact the SRA to clarify whether such a reporting framework would be acceptable for reporting by solicitors, but especially by non-solicitors.
4. Have you updated your policies and procedures in line with the STaRs?
a. Yes - 38.5%
b. No - 37%
c. Unsure - 24.5%
The results from Poll 4 clearly show that many firms did not move ‘seamlessly’ from the old regulatory regime to the new as expected by the SRA, although many firms may have taken the view that they could not possibly be ready when guidance had not been published by the SRA prior to 25 November.
The SRA has now published guidance on the STaRs but it will take firms some time to read it, implement it into policies and procedures where appropriate, and train staff on the changes, especially when it consists of 30 pieces of guidance on the core STaRs and 12 on other peripheral areas.
Based on the poll results some firms clearly have some work to do if they want to ensure they will not expose themselves to attention from the regulator. The SRA is expected to carry out a thematic review of the new STaRs regime in 2020, so it is important that you ensure you are as far your journey to the STaRs as possible.
We have provided substantial support to firms in relation to requirements under the STaRs.
Download our brochure to discover more about how we can help.
Discover more about the Access LMS and HR software.
