New SRA Standards & Regulations - An opportunity; not a threat

The new SRA Standards & Regulations came into effect on 25th November. Were you ready for the big switch? There’s an impact on your business, on client expectations and on how you conduct yourself professionally, so preparation is essential.

Rather than seeing these changes as a threat, though, these new rules represent a massive opportunity. The guidelines are more outcomes-focused, less prescriptive, shorter in length and use straightforward language; all of which empowers you to make independent decisions about running your business.

In a bid to help you prepare, we're going to explore the changes, challenges and outcomes.

Why new regs?

The new regulations are designed to create:

1. More straightforward rules focused on high professional standards.

2. More trust in your professional judgement.

3. Greater flexibility, allowing you to develop new ways of working.

4. Greater support with guidelines available for consistency of good practices.

The simplification of existing regulations should be welcomed because law firms come in all shapes and sizes. The previous rules were often at odds with what’s commercially viable and - for smaller firms particularly - forced costly and complicated practices.

The new SRA Accounts Rules form part of these regulations and concentrate on what really matters: safeguarding client finances and reinforcing the trustworthiness of law firms. The accounting rules are also shorter (with a more explicit definition of "client money"), less prescriptive (with the removal of arbitrary timescales) and more flexible (affording greater trust to act in clients' best interests).

So, with these changes, you can create bespoke ways of working that fits both client need and company resources. Let's face it, the sheer size of the old "rule book" made it difficult to understand and implement the finer details, often resulting in an unconscious lack of compliance.

The driving force

The drive for new regulations was born of seven underlying principles; these being:

1. Aids the proper administration of justice.

2. Upholds public trust and confidence in the solicitor profession, and in legal services provided by authorised persons.

3. Helps firms act with independence.

4. Encourages individuals to maintain a high level of honesty.

5. Reinforces individual integrity.

6. Promotes diversity, equality and inclusion.

7. Facilitates the best interests of each client.

These all sound very positive, don't they? But some trepidation exists. As with all change, there's a fear of the unknown and concerns that the regulator intends to trip firms up. However, there are many excellent compliance specialists who decode the rules into simple, addressable action points.

But if your firm isn't engaging with a compliance specialist, it's crucial you:

1. Read the new code and principles.

2. Understand the revised enforcement strategy.

3. Recognise your duty to report concerns.

Getting ready

Reading the revised rules is much easier now the number of regulations has diminished from fifty-three to just thirteen!

Use this as an opportunity to refine how you do things. After all, who doesn't want greater efficiency, automation and control? The SRA recommends preparation by:

• Reviewing your systems and processes.

• Setting transactional timescales.

• Ensuring staff understand what they need to do.

Of course, "transactional timescales" will vary depending on your firm’s size, scale and location. Set your internal timescales in order to affect the new regulations.

Consistency is vital. You can't have a three-day turnaround for cheque receipts one week, for example, then advise another customer that six days is standard a couple of weeks down the line.

Consistency, transparency and accuracy are critical as they reinforce your standing in the industry and get your internal practices shipshape for you and your clients.

Overcoming the conflicts

One frustration that often occurs is the conflicting needs between fee earners and accounting staff. Both have obligations to internal and external stakeholders, but this conflict results in a silo mentality as both groups pursue their personal objectives and fail to align.

This is where addressing the new regulations brings excellent cost benefits. Aligning the wheels of the fee earners and the administrators is one such task that benefits significantly from a review during this transition period.

Analysing your business from a "cradle to grave" perspective, following the client journey from enquiry to archive, can be enlightening. You’ll identify and eliminate vast amounts of waste while automating, sharing and streamlining activities through staff and software that are already at your disposal.

The 25th November deadline gives our sector a unique focus; a chance to examine what we do daily and implement a new perspective of continuous improvement.

At InQuo, we determine the best fit for your business while ensuring compliance with regulatory bodies through better use of your existing resources. Remember that our mission statement is to bring together people, processes and technology to add real value to those we serve. We understand that staff training is challenging, but our expertise in the logistic roll-out of dedicated coaching programmes instils positive procedural change. Our approach promotes improved workload management, greater efficiency and assured compliance.