As of July 2024, the Solicitors Regulation Authority (SRA) has introduced a new financial penalties framework under the Economic Crime and Corporate Transparency Act (ECCTA) 2023 which has granted the regulator unlimited fining powers.
The SRA’s consultation document released June 28th outlines the regulator’s advocacy for unlimited fining powers for all rule breaches by firms and individuals. The proposed changes include two new fining bands E and F, expected to cover serious financial misconduct.
Penalties in band E range from 6%-10% of a firm’s annual domestic turnover and 113%-145% of an individual’s annual gross income, while band F penalties start at 11% for firms and 146% for individuals. The SRA also proposes the following minimum fines: £5,000 for firms and £2,500 for individuals for the least serious misconduct, and up to £500,000 for firms and £100,000 for individuals for the most serious misconduct.
The consultation is awaiting feedback on these proposed fines. The Chief Executive of the SRA, Paul Philip, emphasised the need for a robust, fair, and consistent system to handle misconduct, ensuring significant penalties for the most serious cases.
References:
Law Gazette: ‘SRA revises fines regime in anticipation of unlimited powers’ (Fouzder, 2024)
SRA Financial Penalties: Further Developing Our Framework Consultation June 2024