All authorised firms will be required to have a compliance officer for legal practice (COLP), who will be responsible for ensuring their firms' compliance with all its regulatory obligations, and a compliance officer for finance and administration (COFA), who will be responsible for ensuring their firms' compliance with the SRA Accounts Rules. The SRA Authorisation Rules for Legal Services Bodies and Licensable Bodies outline the requirements for these roles.
When do I have to advise the SRA of the appointment of my practice's COLP/COFA?
Alternative business structures (ABS) will need to have individuals appointed to these roles when they are licensed by the SRA.
For, all non-ABS the SRA requested that all COLP and COFA nominations be made by 31 July. COLPs and COFAs will be approved by the SRA by 31 December 2012. Further updates can usually be found on mySRA.
What are the responsibilities of the COLP/COFA?
The requirements of Compliance Officers are set out in Rule 8 of the SRA Authorisation Rules. The Law Society practice note on compliance officers also sets out the responsibilities of COLPs and COFAs.
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What breaches does a COLP/COFA need to record?
COLPs and COFAs must record any failures of a practice to comply with authorisation or statutory obligations, and make such records available to the SRA on request.
What breaches does a COLP/COFA need to report?
COLPs and COFAs must report any breaches in compliance to the SRA. Breaches that are 'material' must be reported to the SRA as soon as reasonably practicable. Non-material breaches will be reported to the SRA as part of the information report required under Rule 8.7 of the Authorisation Rules. More information on what is 'material' is included in the Law Society practice note on compliance officers .
COLPs and COFAs will need to remember that the SRA Code of Conduct 2011 covers a wide range of issues including business management and financial stability.
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Must the COLP/COFA be an employee of my practice?
Yes. The COLP and COFA must be an authorised person and either managers or employees of an authorised body.
An authorised person is, 'a person authorised by the SRA or another approved regulator to carry on a legal activity and for the purpose of these rules includes a solicitor, sole practitioner, a Registered European Lawyer (REL), a Exempt European lawyer (EEL), a registered Foreign Lawyer (RFL), an authorised body, an authorised non-SRA firm and a European corporate practice' (Part 1 of the Authorisation Rules).
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Can the same individual fulfil both the roles of COLP and COFA?
Yes, providing they have the necessary skills to fulfil both roles.
Can a number of sole practitioners be supported by the same individual functioning in the COLP/COFA role?
No. Each authorised body must have an individual who is designated as its COLP and an individual who is designated as its COFA.
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Are there any differences in the roles of COLPs/COFAs for smaller practices?
The same responsibilities apply to COLPs and COFAs, whatever the size of practice. However, the SRA has emphasised that what needs to be covered by a firms' compliance plan will depend on factors such as the size and nature of the firm, its work and its areas of risk.
Does an in house practice need to appoint an COLP/COFA?
The compliance officer requirements are in the Authorisation Rules in the Handbook. These Rules only apply to authorised bodies.
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Can a barrister be a COLP?
Yes. A COLP can be an individual who is a lawyer of England and Wales; a Registered European Lawyer (REL) or European lawyer regulated by the Bar Standards Board, and who is authorised by an approved regulator.
As a non-lawyer already responsible for compliance in my practice, can I be the COLP?
No. A COLP must be an individual who is a lawyer of England and Wales; a Registered European Lawyer (REL) or European lawyer regulated by the Bar Standards Board and who is authorised by an approved regulator.
A COLP may be able to delegate some of the day-to-day functions, although the responsibility of the role cannot be delegated, to other members of staff. More information on this can be found in the practice note on Compliance officers.
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What happens when a COLP or COFA stands down from the role?
SRA approval of an individual in the role of COLP or COFA applies only to that individual. If a COLP or COFA stands down, a firm will need to nominate another individual and seek appropriate approval from the SRA.
Is there a process for emergency approval of a COLP or COFA?
If an authorised body ceases to have a COLP or COFA for whatever reason eg incapacity of COLP or COFA, the authorised body must immediately and within seven days notify the SRA and appoint another COLP or COFA.
Where a compliance officer is likely to be absent for a significant length of time they may need to be replaced. Your practice should discuss with the SRA whether replacement is appropriate action for you to take.
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