The SRA must pause Rule 8.4 and address concerns over cost and scope
Summary
The article examines concerns raised by law firms and compliance advisers about the SRA’s new Rule 8.4, which is intended to separate significant management control from key compliance roles such as COLP and COFA. Critics argue the rule may be unclear, disproportionate and costly for smaller and mid-sized firms, particularly where it applies even to firms that do not hold client money.
Why it matters
Residential property surveyors working within law firms or alongside conveyancing practices may be affected by changes to compliance structures, governance and staffing costs. The article also highlights how regulatory change can influence operational risk, succession planning and the affordability of compliance in smaller professional practices.
Key points
- Rule 8.4 is due to be introduced in phases from 2027 and is designed to strengthen oversight of compliance roles.
- Concerns focus on whether the rule is proportionate and workable for smaller and mid-sized firms.
- The scope may capture firms based on turnover or client-money thresholds, even where no client money is held.
- Firms warn that replacing or restructuring COLP/COFA arrangements could be expensive and operationally disruptive.
- The SRA has said further guidance and case studies will follow, but firms want a pause and clearer practical examples.
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