Outcomes-focused regulation

Last updated: 20 February 2012

Outcomes-focused regulation (OFR) is the Solicitors Regulation Authority's (SRA) new approach to regulation. OFR is a move away from a rules-based approach and instead focuses on high-level outcomes governing practice and the quality of outcomes for clients. The SRA implemented OFR from 6 October 2011.

How is OFR different?

OFR is outcomes-focused and risk-based, and aims to provide clients with services that are tailored to their particular needs. OFR is intended to enable firms and practitioners to have greater flexibility in establishing how they can achieve the best outcomes for their clients. Read our practice note on Outcomes-focused regulation.

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Reference guides: acting for buyer and seller and lender and borrower

These flowcharts are an easy reference guide to the outcomes and IBs on acting for buyer and seller and lender and borrower, which are outlined in chapter 3 of the SRA Code of Conduct 2011.
View reference guide on:
Acting for buyer and seller [PDF, 64kb]
Acting for lender and borrower [PDF, 66kb]

Frequently asked questions about compliance officers

Read the FAQs on compliance officers

Status of the 2007 Code

The SRA Handbook and Code of Conduct 2011 will be in force from 6 October 2011. The Solicitors' Code of Conduct 2007, and all of its rules and guidance, will only apply to conduct taken before 6 October 2011.
Read the OFR practice note

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The SRA Handbook

In order for the SRA to be able to start regulating in an outcomes-focused way from 6 October 2011, they published a Handbook in April 2011.
Read the Handbook on the SRA website

The SRA's Handbook:

• underpins the regulation of solicitors, law firms and alternative business structures (ABS)
• brings together all of the SRA's regulatory requirements into a single structure
• sets out ethical standards the SRA expects of law firms and practitioners
• sets out the outcomes that the SRA expect practitioners to achieve for their clients

Most of the Handbook, including the new Code of Conduct, will come into force on 6 October 2011. However, some provisions will come into force in stages.

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What the Handbook contains

Principles

The Handbook sets out ten mandatory principles which define the ethical and professional standards and apply to all those the SRA regulate, and to all aspects of practice. All those regulated by the SRA must adhere to these principles.
More about the principles

Code of Conduct

The Code of Conduct outlines the outcomes-focused conduct requirements. The Code enables firms and individuals to focus on what the best outcomes are for their clients. This replaces the Solicitors' Code of Conduct 2007, and looks very different.
More about the Code of Conduct

Overseas practice

The overseas practice provisions are included throughout the Handbook. They are now found at the end of each chapter of the Code of Conduct instead of being outlined in one rule of the Code. The SRA are intending to review the overseas practice provisions in 2011. Read our practice note on Overseas practice.

Accounts rules

The accounts rules replace the Solicitors' Accounts Rules 1988. They set out requirements aimed at protecting client money.

Authorisation and practising requirements

Authorisation and practising requirements outline key requirements for:

• the training and admission for individuals intending to become solicitors
• exercising higher rights of audience
• individuals and firms setting up in practice
• individuals and firms holding certain roles in practice.

This section in the Handbook includes the practice framework rules, authorisation rules, practising regulations, training regulations, admission regulations and the suitability test.
More about these requirements

Client protection

Client protection sets out the key elements for the financial protection of clients. This section of the Handbook includes the indemnity insurance rules, indemnity rules, intervention powers rules and compensation fund rules.
Read more about PII

Discipline and costs recovery

Discipline and costs recovery are the provisions upon which the SRA's disciplinary and cost recovery powers are based. This section of the Handbook includes the disciplinary procedure rules and cost of investigations regulations.

Specialist services

These provisions are only applicable when certain services are being provided to clients. Included in this section of the Handbook are the property selling rules, financial services (Scope) rules, financial services (conduct of business) rules and European cross-border practice rules.

Read more about the Handbook on the SRA website

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