The authorisation rules describe the application process for those firms wishing to be authorised by the Solicitors Regulation Authority (SRA).
Initially this will only apply to ABSs but from February 2012 non-ABSs will also need to go through the same application process.
Firms will need to apply via the SRA's application form and pay a fee. The SRA has up to six months to make a decision on an application.
If the application is refused or a conditional authorisation is granted then there is a right of appeal.
Authorisation
The authorisation granted will not be time limited so there will be no requirement to renew it.
All authorisations will be granted with some general conditions applied. Many of these conditions relate to compliance with regulatory requirements and the need to put in place systems and processes to ensure this.
The SRA may also apply specific conditions on a licence, either at the time of issue or within the licence term.
Failure to comply with conditions could lead to regulatory action by the SRA.
Reporting requirements
There are numerous reporting obligations throughout the Handbook. We have summarized the main reporting requirements.
COLP/COFA
All firms will be required to have a Compliance Officer for Legal Practice (COLP) and a Compliance Officer for Finance and Administration (COFA). The COLP must take all reasonable steps to ensure firms’ compliance with all its regulatory obligations, except the SRA's accounts rules. Compliance with accounts rules is the responsibility of a CoFA.
Although COLPs and COFAs can be employees, as well as managers, they will need to be individuals with sufficient seniority within a firm to ensure that they have the authority to properly carry out the role.
It is clear however, that the SRA does not intend the existence of the COLP and COFA to remove ultimate responsibility for regulatory obligations from the principals in a firm.