The Regulatory Role of the Solicitors Regulation Authority

Practice flashcards covering the SRA's regulatory role, firm and individual authorization, and professional indemnity insurance requirements for the SQE1 syllabus.

Solicitors Regulation Authority (SRA)

Established in January 2007 as an independent body to take over the regulation of solicitors from the Law Society; it regulates solicitors, firms, non-lawyers they employ, and registered European and foreign lawyers.

Legal Services Act 2007

The legislation that required the separation of the regulatory and representative roles of the Law Society and established the SRA as an approved regulator.

SRA Principles

The fundamental tenets of ethical behaviour comprising seven requirements, including acting with independence, honesty, integrity, and upholding the rule of law and public trust.

Risk-based regulation

An approach where the SRA assesses the potential harm and likelihood of misconduct to target its resources where the risk to achieving regulatory objectives is greatest.

SRA Risk Outlook

An annual publication in which the SRA sets out its view of the most significant risks currently affecting the legal profession.

Recognised sole practice

An organisation owned and run by a single solicitor who is responsible for the firm in its entirety, authorised under the SRA Authorisation of Firms Rules.

Recognised body

A firm eligible for SRA authorisation where all managers and interest holders are legally qualified, taking the form of partnerships, LLPs, or companies.

Licensed body (Alternative Business Structure)

A firm where the ownership, control, or management is not wholly in the hands of legally qualified individuals, authorised under the Legal Services Act 2007.

Compliance Officer for Legal Practice (COLP)

An individual designated by a recognised body and approved by the SRA to ensure compliance with legal obligations and regulatory arrangements.

Compliance Officer for Finance and Administration (COFA)

An individual designated by a recognised body and approved by the SRA to manage compliance with the SRA’s financial rules.

Head of Legal Practice (HOLP)

The compliance officer designation for legal practice specifically used within licensed bodies (ABSs).

Head of Finance and Administration (HOFA)

The compliance officer designation for finance and administration specifically used within licensed bodies (ABSs).

Reserved legal activities

Specific activities defined in s 12 of the Legal Services Act 2007, including conducting court proceedings, probate, and land transfer documents, which must be authorised by a regulator.

Admission

The process by which an individual is accepted into the legal profession and their name is placed on the roll of solicitors kept by the SRA.

Roll of solicitors

The official list of individuals admitted to practice as solicitors, maintained by the SRA.

SRA Assessment of Character and Suitability Rules

The rules used by the SRA to evaluate an applicant's criminal conduct and other behaviors (such as dishonesty or violence) before admission or restoration to the roll.

Practising certificate

An annual document issued by the SRA that authorises an admitted solicitor to practice; all certificates expire and are due for renewal on 31 October each year.

Freelance solicitor

A self-employed solicitor who works alone and may be exempt from firm-based authorisation if they meet specific criteria, such as having practiced for at least three years.

Professional indemnity insurance (PII)

Insurance that covers civil claims made against a solicitor for negligence or breach of professional duty, ensuring clients are compensated for financial loss.

Qualifying insurance

Professional indemnity insurance that meets the specific minimum terms and conditions set out in the SRA Indemnity Insurance Rules and is taken out with a participating insurer.

Participating insurers

Insurers regulated by the Financial Conduct Authority who have an agreement with the SRA to provide professional indemnity insurance on mandatory minimum terms.

Minimum sum insured

The lowest amount of professional indemnity cover allowed: $£3,000,000$ for recognised and licensed bodies, and $£2,000,000$ for all other authorized firms.

Extended policy period

A maximum 90-day period where insurance cover is extended if a firm cannot secure a new policy; after the first 30 days, the firm cannot take on new work.

Adequate and appropriate insurance

The SRA requirement that firms and solicitors must assess their specific risks and potentially secure cover beyond the mandatory minimums based on their client profile and practice type.