The Solicitors Regulation Authority (SRA) can only fine non-ABSs £2000, so this guidance only applies to ABSs.
The Law Society notes that the SRA may in time gain greater fining powers in relation to non-ABSs, however, it seems unlikely this will occur in the near future.
Currently, there are only a few licensed ABSs (approximately 0.1 per cent of the total number of firms regulated by the SRA), and the SRA has only been regulating these firms for a year. Given the SRA's lack of experience in regulating in this area we believe such guidance is premature.
The guidance focuses on imposing fines on entities rather than individuals; however, the SRA's approach to entity regulation is unclear. In many cases, only individuals are pursued - in a smaller number of cases both the individuals and the firm are pursued. This guidance is predicated on the SRA moving towards entity-based regulation, but on the available evidence the SRA is not operating a clear and consistent policy in that respect.
The lack of consultation with the Solicitors Disciplinary Tribunal (SDT), given their role as an appeal body, is also surprising.
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