New collective mobilises SME and boutique firms to challenge COLP and COFA proposals
Summary
An alliance of SME and boutique law firms is urging the Solicitors Regulation Authority to reconsider proposals that would separate COLP and COFA roles from individuals with unilateral management control in certain firms. The group argues the threshold and implementation approach are not sufficiently evidence-based and could create practical and cost pressures for smaller practices ahead of phased introduction from January 2027.
Why it matters
While the article concerns legal-sector regulation rather than surveying directly, it is relevant to residential property surveyors who rely on conveyancing firms and legal compliance in transactions. Changes that affect smaller law firms’ governance and resourcing could influence transaction capacity, turnaround times and client-money controls in the property market.
Key points
- SME and boutique firms want the SRA to pause and rethink the COLP/COFA separation proposals.
- The new rules would apply to firms over £600,000 turnover or holding more than £2 million of client money.
- The alliance says turnover is not a reliable proxy for risk, complexity or governance.
- Concerns include recruitment pressure, outsourcing costs and the risk of appointing less experienced compliance staff.
- The changes are due to be phased in from January 2027 after Legal Services Board approval.
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