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SRA wants to increase its maximum fine

The body that regulates the solicitors’ profession in England and Wales has proposed a major hike in its fining powers, according to the Law Society Gazette of England and Wales.

The Gazette reports that the Solicitors Regulation Authority is also planning a new fast-track system of fixed penalties for low-level offences.

The regulator last week opened a consultation process on taking the maximum fine it can issue to law firms from £2,000 to £25,000.

Firms’ income considered

For the first time, according to the Gazette, it also seeks to consider the income of firms when setting fines – effectively giving it the power to impose much bigger penalties against the biggest firms, up to a limit of 5% of annual turnover.

This would also mean that senior equity partners who were found to have breached rules could face much stiffer sanctions than junior solicitors who committed similar offences.

Another proposal is to introduce a schedule of fixed penalties of up to £1,500 for lesser issues that can be dealt with more efficiently.

The Gazette says that issue of fining powers has long been contentious with the SRA. The £2,000 limit means any cases deemed more serious must transfer to the Solicitors Disciplinary Tribunal, and this significantly increases costs.

‘Greater transparency’

SRA chair Anna Bradley said: “Changes to our fining powers would also allow the Solicitors Disciplinary Tribunal to focus on the most serious cases, where there is need for greater fines and sanctions – such as suspension and strike-off.”

The SRA says that introducing fixed penalties for certain lower-level misconduct will not only allow more straightforward issues to be dealt with more easily for all concerned, but will also provide greater transparency and consistency in how penalties are applied.

Solicitors and firms fined by the SRA would retain the right to appeal both the outcome of any decision, and the penalty imposed.

A spokesperson for the Law Society of England and Wales told the Gazette that the organisation would review the SRA’s consultation and respond to it in due course, after discussions with members.