SRA to increase fining powers after pushing forwards with plans for £25,000 penalties
The UK’s solicitor’s watchdog is set to increase its fining powers 12 and half times over, by upping its maximum fining threshold to £25,000.
The Solicitor’s Regulation Authority (SRA) said it is pushing forwards with plans to increase its maximum fines from £2,000 to £25,000, after the plans came under fire from law firms.
The regulator said the plan to bolster its own fining powers will ensure it is able to deal with a larger number of disciplinary matters itself, meaning fewer cases will be passed on to the Solicitors Disciplinary Tribunal (SDT).
The SRA said that allowing cases to circumvent the SDT will increase the speed at which matters are dealt with, whilst also freeing up the SDT to deal with more complex issues.
SRA chair Anna Bradley said law firms were broadly in support of the plans, as she argued the higher penalties will ensure the law firm watchdog is able to carry out its work in maintaining public “confidence” in the profession.
“These changes mean we can resolve issues more quickly, saving time and cost for everyone and, importantly, reducing the inevitable stress for those in our enforcement processes,” Bradley said.
The regulator noted that its fines will be means tested to account for law firms’ turnovers and individuals’ incomes, to ensure low earning junior solicitors are not hit with disproportionate fines.
The watchdog said it will largely stay away from fining law firms and individuals in cases concerning discrimination, harassment, or sexual misconduct, as it said other restrictions will be used instead. However, the SRA said it will issue fines for such breaches in “exceptional circumstances.”
The increase comes after the SRA faced major pushback from law firms and industry bodies, including the Law Society of England and Wales, over concerns the watchdog will have the power to impose huge without sufficient scrutiny.
In February, Law Society president I. Stephanie Boyce said: “Our members have concerns about the SRA acting as investigator, prosecutor and judge without independent scrutiny.”