Exclusive: SRA could face vote of no confidence over COLP/COFA proposals
Summary
The article reports strong opposition from the SME & Boutique Law Firm Alliance to SRA proposals that would separate COLP and COFA roles from individuals with unilateral decision-making powers in certain law firms. Critics argue the thresholds are arbitrary and would disproportionately affect smaller firms, while the SRA maintains the changes are intended to strengthen safeguards around client money.
Why it matters
Residential property surveyors may encounter these issues indirectly through conveyancing firms and client money controls, especially where smaller firms handle property transactions. The debate also highlights wider regulatory pressure on firms involved in residential conveyancing and related client-account activity.
Key points
- The SRA proposals would affect firms above £600,000 turnover or holding more than £2 million in client account.
- The SME & Boutique Law Firm Alliance says the measures would hit small and boutique firms disproportionately.
- Concerns were raised about impacts on conveyancing firms, Court of Protection work and personal injury firms.
- The Alliance argues the SRA has not provided enough evidence that the changes would prevent failures like PM Law and Axiom Ince.
- Alternative controls proposed include more frequent reconciliations, dual authorisation and enhanced monitoring.
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