COLP and COFA Roles and Requirements
Compliance Officer for Legal Practice (COLP) and Compliance Officer for Finance and Administration (COFA) requirements: appointment, eligibility, responsibilities, reporting obligations and record keeping under the SRA Standards and Regulations.
Every SRA-authorised firm must designate a Compliance Officer for Legal Practice (COLP) and a Compliance Officer for Finance and Administration (COFA). These roles derive from the Head of Legal Practice and Head of Finance and Administration requirements in sections 91 and 92 of the Legal Services Act 2007 for licensed bodies (alternative business structures) and were extended by the SRA to all authorised firms through the SRA Authorisation of Individuals Regulations and the SRA Authorisation of Firms Rules. Both officers must be approved by the SRA before they can take up the role.
Who can be a COLP or COFA:
- COLP eligibility
- Must be a manager or employee of the firm, and a lawyer of England and Wales (any authorised person, for example a solicitor, barrister, or CILEX lawyer) or a registered European lawyer. In a licensed body, this role is the Head of Legal Practice (HOLP). The COLP must have sufficient seniority and authority within the firm to fulfil the role effectively.
- COFA eligibility
- Must be a manager or employee of the firm. The COFA does not need to be a lawyer, but must be suitably experienced in financial management and compliance. In a licensed body, this role is the Head of Finance and Administration (HOFA). The COFA must be approved by the SRA.
- COLP core responsibilities
- Ensure the firm and its employees and managers comply with the SRA Standards and Regulations. Take all reasonable steps to ensure the firm's compliance with its regulatory obligations, including the terms and conditions of authorisation. Record all failures to comply and report material breaches to the SRA promptly.
- COFA core responsibilities
- Ensure the firm and its employees and managers comply with the SRA Accounts Rules 2019. Take all reasonable steps to ensure compliance with obligations relating to client money, including proper client account management, reconciliation, and financial reporting. Record all failures to comply and report material breaches to the SRA promptly.
- Record keeping obligations
- Both the COLP and COFA must maintain records of all failures to comply with the SRA Standards and Regulations (COLP) or the SRA Accounts Rules (COFA). These records must be available for inspection by the SRA at any time and must be maintained throughout the period of authorisation.
- Reporting obligations
- Material failures to comply must be reported to the SRA promptly by the COLP or COFA as appropriate. Annual compliance declarations must be submitted via mySRA as part of the firm's annual renewal process. Failure to report material breaches is itself a regulatory breach.
- Change notifications
- The firm must notify the SRA of any change of COLP or COFA, including resignation, replacement, or any event that affects the officer's ability to fulfil the role. The replacement must be approved by the SRA before taking up the role.
Practical implementation: The COLP should establish systems and controls for monitoring compliance across the firm, including regular file reviews, supervision arrangements, complaints handling procedures, and risk registers. The COFA should implement controls over client account operations including signatory arrangements, reconciliation timetables (at least every five weeks per the SRA Accounts Rules), and procedures for handling residual balances.
Sole practitioners: In a recognised sole practice, the sole practitioner is normally both the COLP and the COFA. They must still maintain compliance records and submit annual declarations to the SRA.
Consequences of non-compliance: Failure to maintain adequate compliance systems, to keep proper records, or to report material breaches can result in regulatory action against both the individual officers and the firm. This may include conditions on the firm's authorisation, a rebuke, a fine of up to GBP 25,000 (individuals) or referral to the Solicitors Disciplinary Tribunal; since 4 March 2024 SRA fines for economic-crime-related misconduct are uncapped under the Economic Crime and Corporate Transparency Act 2023. In serious cases, the SRA may intervene in the firm's practice under Schedule 1 of the Solicitors Act 1974.