Conveyancing Task Force joins calls to rethink COLP and COFA changes
Summary
The Conveyancing Task Force has joined criticism of the SRA’s planned changes to who can hold COLP and COFA roles, arguing the regulator should publish the evidence behind the rule change. The group says the proposals may be too blunt for different firm structures and calls for a wider review of whether the current role-based model is the best safeguard for client money.
Why it matters
Residential conveyancers and firms handling client money may be affected by the proposed restrictions, particularly owner-managed and SME practices. Surveyors should note the potential for knock-on effects in transaction workflows, compliance expectations and the wider conveyancing market.
Key points
- CTF has asked the SRA to publish the evidence used to justify the COLP/COFA rule changes.
- The proposed rules would stop certain owners and individuals with significant control from holding COLP or COFA roles in higher-turnover or higher client-money firms.
- Critics argue the changes could disproportionately affect small and medium-sized firms and increase costs.
- CTF questions whether the current COLP/COFA model is effective or whether a more risk-based approach would be better.
- The changes are due to be phased in from January 2027 if they proceed.
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