LSB approves SRA’s draft rules to separate COLP and COFA roles from owners
Summary
The Legal Services Board has approved SRA rule changes that separate compliance officer roles from senior managers and owners in higher-risk law firms. The new framework is intended to strengthen accountability, with phased implementation beginning in January 2027 and annual submissions for client money firms due from April 2027.
Why it matters
Although this is a legal-sector change, it is relevant to residential property surveyors because it affects firms involved in conveyancing and client money handling. Surveyors working alongside solicitors may see changes in compliance processes, reporting expectations and risk management in property transactions.
Key points
- COLP and COFA roles must be separated from owners/managers who control significant decisions in higher-risk firms.
- The threshold applies where turnover exceeds £600,000 or client money held/received exceeds £2 million.
- Smaller sole owner-manager firms may still hold COLP personally, but not COFA, if below both thresholds.
- Incidental threshold breaches can be accepted if promptly notified and properly recorded.
- Client money firms will face annual accountants’ reports, declarations and fixed penalties for non-submission.
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