Accounts rules

The Solicitors Disciplinary Tribunal has voiced “serious doubts” over whether a solicitor, aged 79 and “with almost 50 years of exemplary service”, should have been referred to it for prosecution. Reginald Hemmings told the tribunal he found the experience “extremely distressing”.

Practising solicitors should be allowed to deliver advice to the public from unregulated firms, subject to restrictions, the Solicitors Regulation Authority has suggested as part of a phased review of how it regulates both individuals and organisations.

A solicitor who lied to High Court and was found guilty of contempt – leading the now Lord Chief Justice to refer him to the Solicitors Regulation Authority – has been struck off by the Solicitors Disciplinary Tribunal.

Plans to offer solicitors the option of a “third-party managed accounts” instead of the traditional client account have divided opinions, with some criticising a lack of detail and questioning whether the move would reduce fraud.

The Solicitors Regulation Authority has delayed the introduction of the second phase of its reforms of the rules on submitting accountants’ reports from next month to November this year.

Giving reporting accountants more responsibility in identifying risks to client money will encourage law firms to play the “blame game”, the Solicitors Disciplinary Tribunal has warned.

Consumers of legal services do not all need the same level of protection and some of them, such as big corporations, might not need “any protection at all”, the SRA has said in a policy statement on its approach to regulation.

The Solicitors Regulation Authority has unveiled plans to remove the requirement that firms have their client accounts reviewed by an independent accountant and submit an annual accountant’s report.

An Italian lawyer has warned of a ‘timebomb’ of regulatory risk among foreign lawyers practising in England and Wales, and urged European law firms to ensure they understood what was required to comply with conduct rules.

Your COFA should live, sleep, eat and breathe financial management. This isn’t optional; rule 1 of the Accounts Rules demands compliance with the SRA principles and Code of Conduct in relation to effective financial management of the firm. So what is effective financial management? Outcomes-focused regulation usually means you have to guess what the SRA expects; however, in a rare moment of clarity, the SRA has explained exactly what good and bad financial management looks like.