SRA
COMPLIANCE
WHY YOU
NEED IT.

Compliance is vital to law firms.

Firms must be able to show the SRA that all client monies are protected at all times, and have processes in place to ensure this is done correctly.

What you MUST DO

Regardless of size, you must appoint a COFA and a COLP compliance officer.

Have a money laundering officer.

MUST keep bookkeeping up to date.

Reconciliation client accounts every 5 weeks (as a minimum).

MUST have professional indemnity insurance.

Submit annual SRA compliance report depending on volume of client transactions.

WE ALSO RECOMMEND

Ensure you have the right legal software.

Using qualified bookkeepers who understand solicitors’ account rules.

What happens if you aren’t COMPLIANT?

If you aren’t SRA compliant you can be fined by them and they can impose restrictions on your practicing license meaning that you will be barred from running client accounts or you will need to supply a client’s accounts every six months. Worse still, the SRA can ban you from being a manager of a law firm!

To add to which, if you continually fail to be SRA compliant they take your files, suspend your license with the severest consequences being termination of your business! This will endeavour to have a devastating repercussion on your reputation and company’s credibility. This will also affect your indemnity insurance and result in you no longer being able to practice.

TYPICAL ISSUES WE’VE COME ACROSS

Firms failing to submit VAT on time, overpaying or underpaying their VAT

TYPICAL ISSUES WE’VE COME ACROSS

Firms not reconciling their accounts within the five-week deadline

TYPICAL ISSUES WE’VE COME ACROSS

Failing to keep adequate accounting records

FOR MORE INFORMATION ABOUT SRA COMPLIANCE AND WHY YOU NEED IT, PLEASE CONTACT US: 

WE ARE Certified LEAP, Xero, Practice Evolve partners AND Members of ILFM