If you manage or own an SRA-regulated law firm in England and Wales, you must comply with the SRA Standards and Regulations. These set out the professional and ethical standards that apply to individual solicitors and to firms as entities. They have been in force since 25 November 2019 and replace the earlier SRA Handbook.

This guide explains how to implement compliance in practice. It does not restate the rules themselves (the snippets below contain that detail) but focuses on the systems, controls, and day-to-day processes your firm needs to have in place.

Who this applies to

The SRA Standards and Regulations apply to:

All SRA-authorised firms including recognised sole practices, recognised bodies, and licensed bodies (alternative business structures)
Individual solicitors, whether practising in a firm, in-house, or freelance
Managers (partners, members, directors) and employees of authorised firms
Registered European lawyers (RELs) and registered foreign lawyers (RFLs)

If you are not sure whether your firm is SRA-regulated, check the SRA Standards and Regulations website.

SRA Principles (2019)

The seven overarching SRA Principles that all solicitors, RELs, RFLs, and SRA-regulated firms must uphold. These principles underpin all SRA Standards and Regulations and apply to all aspects of practice.

The SRA Principles form the fundamental tenets of ethical behaviour that all those regulated by the SRA are expected to uphold. They came into effect on 25 November 2019 as part of the SRA Standards and Regulations. The Principles are not simply aspirational: breach of a Principle is a regulatory matter and may lead to disciplinary action. Where two or more Principles conflict, the ones that safeguard the wider public interest (particularly Principles 1, 2, and 3) take precedence over those concerning duties to clients.

You must act:

Principle 1: Rule of law and proper administration of justice: You act in a way that upholds the constitutional principle of the rule of law, and the proper administration of justice.
Principle 2: Public confidence: You act in a way that upholds public trust and confidence in the solicitors'' profession and in legal services provided by authorised persons.
Principle 3: Independence: You act with independence.
Principle 4: Honesty: You act with honesty.
Principle 5: Integrity: You act with integrity.
Principle 6: Equality, diversity and inclusion: You act in a way that encourages equality, diversity and inclusion.
Principle 7: Best interests of each client: You act in the best interests of each client.

Hierarchy of Principles: Where two or more Principles come into conflict, those that safeguard the wider public interest (Principles 1, 2, and 3) take precedence. For example, your duty to act in the best interests of a client (Principle 7) is subject to your duty to uphold the rule of law (Principle 1) and not to mislead the court.

Who must comply: The Principles apply to all individuals regulated by the SRA (solicitors, registered European lawyers, and registered foreign lawyers) and to all SRA-authorised firms, their managers, and employees. They apply to all areas of practice, including when acting in a non-professional capacity where conduct could undermine public trust in the profession.

Regulatory context: The SRA Principles are made under section 31 of the Solicitors Act 1974 and section 83(5)(a) of the Legal Services Act 2007. They form part of the SRA Standards and Regulations, overseen by the Legal Services Board (LSB). The current version took effect on 25 November 2019 and replaced the previous ten Principles from the 2011 Handbook.

Implementing the Principles in your firm

The seven SRA Principles are not abstract ideals. They should be embedded into your firm's policies, training, and decision-making. In practice this means:

Induction and training: Ensure every fee earner and member of staff understands the Principles from day one. Include them in your staff handbook and revisit them during supervision sessions.
Ethical decision-making: When the Principles conflict (which they will), remember the hierarchy: the wider public interest (Principles 1, 2, and 3) takes precedence over duties to individual clients (Principle 7).
Culture and leadership: Managers must model the Principles. If a fee earner raises an ethical concern, the firm's response should demonstrate that integrity matters more than commercial pressure.

SRA Code of Conduct for Solicitors, RELs and RFLs

Key obligations under the SRA Code of Conduct for individual solicitors, registered European lawyers and registered foreign lawyers. Covers maintaining trust, service and competence, client money, confidentiality, referrals, conflicts of interest and cooperation with regulators.

The SRA Code of Conduct for Solicitors, RELs and RFLs sets out the standards of professionalism expected of individual practitioners regulated by the SRA. It came into effect on 25 November 2019, replacing the previous SRA Code of Conduct 2011. The Code applies to all solicitors, whether practising in an SRA-authorised firm, an in-house role, or in any other capacity. It is supplemented by the overarching SRA Principles.

The Code is organised around key themes:

Maintaining trust and acting fairly (paragraphs 1.1-1.5): You must not unfairly discriminate, abuse your position, take unfair advantage of clients or others, or allow your independence to be compromised. You must not act where your own interests conflict with your obligations.
Dispute resolution and proceedings (paragraphs 2.1-2.7): You must not misuse or tamper with evidence, mislead the court, or abuse court processes. You must comply with court orders, draw adverse authorities to the court's attention, and inform clients of all relevant information, including adverse outcomes.
Service and competence (paragraphs 3.1-3.6): You must only act where you have the competence, skills, and authority to do so. You must maintain competence and keep professional knowledge and skills up to date, supervise those you manage, and consider referring matters to other qualified professionals where appropriate.
Client money and assets (paragraphs 4.1-4.3): You must safeguard money and assets entrusted to you by clients and others. You must not hold client money unless you work in an authorised firm that complies with the SRA Accounts Rules.
Referrals, introductions and separate businesses (paragraphs 5.1-5.3): You must not receive payments for referrals or introductions in connection with regulated services unless the client has been informed and has given informed consent. Separate businesses must not be used to provide services that could be provided by the regulated firm.
Conflicts of interest (paragraphs 6.1-6.5): You must not act where there is an own interest conflict or a conflict between two or more current clients, unless certain limited exceptions apply (substantially common interest or competing for the same objective) and effective safeguards can be put in place.
Confidentiality and disclosure (paragraphs 7.1-7.5): You must keep the affairs of current and former clients confidential unless disclosure is required or permitted by law, the client consents, or there is a duty to disclose. Where you cannot maintain client confidentiality in a conflict situation, you must decline to act.
Cooperation and accountability (paragraphs 7.6-7.11): You must cooperate with the SRA, other regulators, and ombudsman services. You must not attempt to prevent anyone from reporting matters to the SRA or any other body. You must report promptly any serious breach of the Code or the SRA Principles.

Continuing competence: Since 1 November 2016 the SRA has operated a statement of competence model rather than mandatory CPD hours. Solicitors must reflect on and address their learning and development needs throughout the year, maintaining a personal development record. The competence statement sets out the skills and knowledge expected at different levels of practice.

Scope of application: The Code applies to you when practising as a solicitor or in connection with any legal practice. Certain provisions (those relating to trust and integrity) also apply outside professional practice where your conduct could undermine public confidence in the profession.

Enforcement: Breach of the Code may result in regulatory action by the SRA, including a written rebuke, a fine of up to GBP 25,000 (for individuals), conditions on a practising certificate, suspension, or referral to the Solicitors Disciplinary Tribunal (SDT), which can impose unlimited fines and strike a solicitor off the Roll.

SRA Code of Conduct for Firms

Key obligations under the SRA Code of Conduct for Firms. Covers compliance and business systems, COLP and COFA roles, governance and management, cooperation with regulators, information and reporting requirements.

The SRA Code of Conduct for Firms sets out the standards and business controls expected of all SRA-authorised firms, including recognised sole practices, recognised bodies, and licensed bodies (alternative business structures). It came into effect on 25 November 2019. The Code places obligations on the firm itself as an entity, as well as on its managers and compliance officers.

The Code is organised into the following areas:

Compliance and business systems (paragraphs 2.1-2.5): Firms must have effective governance structures, systems and controls to ensure compliance with SRA regulatory requirements. Firms must identify, monitor and manage all material risks, including those to clients and the business.
COLP and COFA appointment (paragraph 9.1): All authorised firms must appoint a Compliance Officer for Legal Practice (COLP) and a Compliance Officer for Finance and Administration (COFA). These roles must be held by a manager or employee of the firm who is approved by the SRA.
Managers' responsibilities (paragraphs 2.1-2.3): Managers of the firm (partners, members, directors) are responsible for ensuring the firm complies with the Code. They must actively engage with compliance and ensure adequate supervision and training of all staff.
Service to clients (paragraphs 3.1-3.6): Firms must ensure that their clients receive a proper standard of service, including competent handling of matters, keeping clients informed of progress, timely responses, and a written complaints procedure.
Client money and assets (paragraphs 4.1-4.3): Firms must comply with the SRA Accounts Rules 2019 when holding client money. They must ensure client money is kept separate in client accounts, proper accounting records are maintained, and accountant's reports are delivered when required.
Conflicts of interest (paragraphs 6.1-6.5): Firms must have effective systems for identifying and managing conflicts of interest, including own interest conflicts and conflicts between current clients. Where a conflict cannot be managed, the firm must decline to act for one or more of the affected clients.
Cooperation and information (paragraphs 7.1-7.9): Firms must cooperate with the SRA and other regulators, respond promptly to requests for information, and report material changes (such as changes to management, financial difficulties, or potential claims on PII). The firm must not attempt to prevent any person from reporting matters to the SRA.
Financial stability and insurance (paragraph 5.1): Firms must maintain appropriate professional indemnity insurance in accordance with the SRA Indemnity Insurance Rules and ensure they can meet financial commitments as they fall due.

Price transparency: Since December 2018 (expanded subsequently), firms must publish pricing information for specified legal services on their website. These include residential conveyancing, probate, motoring offences, immigration (certain applications), employment tribunal claims, licensing applications for business premises, and debt recovery up to GBP 100,000. Pricing must include total costs, the basis of charges, any disbursements, VAT, and whether any conditional or damages-based fee arrangements are available.

Diversity data reporting: Firms with 10 or more partners or equivalent are expected to collect and report workforce diversity data to the SRA every two years. This covers characteristics including age, disability, ethnicity, religion, sex, sexual orientation, gender identity, socio-economic background, and caring responsibilities.

Enforcement: Breach of the firm Code may result in regulatory action including conditions on the firm's authorisation, a written rebuke, a financial penalty of up to GBP 25,000 imposed by the SRA, or referral to the Solicitors Disciplinary Tribunal. For licensed bodies (ABS), the SRA may impose financial penalties of up to GBP 250 million under section 95 of the Legal Services Act 2007.

Systems and controls your firm needs

The Code of Conduct for Firms requires effective governance structures, systems, and controls. At a minimum, your firm should have documented procedures for the following areas.

Conflict checking

You must check for conflicts of interest before taking on any new matter and at regular intervals during a matter. Your system should:

Record all clients, related parties, and adverse parties in a central database or case management system
Run conflict searches at the point of new client intake, new matter opening, and whenever a new party is added
Record the outcome of every conflict check and keep it on the matter file
Escalate potential conflicts to a designated partner or the COLP for a decision
Document any decision to act under a limited exception (substantially common interest or competing for the same objective) with a clear note of the safeguards in place

Confidentiality and information barriers

Client confidentiality is an ongoing obligation that continues after the retainer ends. Your firm should have:

Clear desk and clear screen policies
Restricted access to electronic files by matter, with audit trails
Documented information barrier ("Chinese wall") procedures for when the firm acts for clients with competing interests under the permitted exceptions
Secure disposal of client files and data in accordance with your retention policy and the UK GDPR

Supervision and file management

The SRA expects firms to supervise work effectively, regardless of the fee earner's level of experience. Your supervision arrangements should include:

A documented supervision policy that specifies who supervises whom, how often, and what is reviewed
Regular file reviews (at least quarterly for less experienced fee earners, and at key milestones for all matters)
A system for recording supervisory reviews and any actions arising
Training records linked to the SRA's competence statement, covering both technical competence and professional conduct

Complaints handling

Your firm must have a written complaints procedure that is communicated to clients at the outset of every matter. The procedure must:

Name the person responsible for handling complaints (this is often, but need not be, the COLP)
Explain how clients can escalate to the Legal Ombudsman if they are not satisfied
Set a clear timetable for acknowledging and responding to complaints
Record all complaints and their outcomes in a central log for the COLP to review

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 were introduced by section 90 of the Legal Services Act 2007 for licensed bodies (alternative business structures) and 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. In most cases the COLP must be a lawyer (solicitor, REL, or barrister) or, in a licensed body, 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. In serious cases, the SRA may intervene in the firm's practice under Schedule 1 of the Solicitors Act 1974.

Appointing and supporting your COLP and COFA

Once you have appointed and obtained SRA approval for your COLP and COFA, support them by giving them:

Authority: The COLP and COFA must be able to access all files, systems, and financial records without obstruction.
Time: Compliance work takes dedicated time. In larger firms, consider ring-fencing a proportion of the officer's billable target for compliance duties.
A compliance framework: Provide templates for breach recording, a risk register, and a timetable for periodic reviews (file audits, account reconciliations, annual declarations).
Board-level reporting: The COLP and COFA should report regularly to the management board on compliance risks, breach trends, and any remedial actions taken.

Ongoing compliance tasks

Throughout the year, your firm needs to carry out the following on an ongoing basis:

1. Maintain the COLP breach register

Record every failure to comply with the SRA Standards and Regulations, however minor. Categorise each breach as material or non-material. Report material breaches to the SRA promptly. Review the register at least quarterly to identify patterns or systemic issues.
2. Maintain the COFA breach register

Record every failure to comply with the SRA Accounts Rules 2019. Ensure client account reconciliations are completed at least every five weeks. Report material failures to the SRA promptly.
3. Conduct periodic file reviews

Review a sample of open and closed files at regular intervals to check compliance with the Codes of Conduct, client care obligations, conflict checks, and file management standards. Document findings and follow up on any remedial actions.
4. Review and update risk register

Maintain a risk register covering regulatory, financial, operational, and reputational risks. Update it at least annually or whenever a significant event occurs (new practice area, merger, key person departure, SRA investigation).
5. Submit annual compliance declarations

Complete the annual COLP and COFA declarations via mySRA as part of your firm's renewal process. These declarations confirm whether there have been any material compliance failures during the year.
6. Review staff training and competence records

Check that all solicitors are maintaining their competence in line with the SRA competence statement. Review training records and ensure supervision arrangements remain appropriate for each fee earner's experience level.

What next

Once your compliance systems are in place:

Review your client account procedures against the SRA Accounts Rules 2019, particularly reconciliation requirements and residual balance handling
Check your professional indemnity insurance meets the SRA Indemnity Insurance Rules and renew before the annual deadline
Ensure your price transparency information is published on your website for all services that fall within the SRA's transparency rules
If your firm has 10 or more partners, prepare for diversity data reporting to the SRA
Set a calendar reminder for your annual renewal and compliance declarations via mySRA

Penalty:

Breach of the SRA Standards and Regulations can result in a written rebuke, a fine, conditions on your practising certificate or firm authorisation, suspension, or referral to the Solicitors Disciplinary Tribunal (SDT). The SDT can impose unlimited fines and strike a solicitor off the Roll. For licensed bodies (ABS), the SRA can impose financial penalties of up to GBP 250 million under section 95 of the Legal Services Act 2007. In serious cases, the SRA may intervene in a firm's practice under Schedule 1 of the Solicitors Act 1974.

Official guidance and legislation

SRA Standards and Regulations
The full SRA regulatory framework including Principles, Codes of Conduct, Accounts Rules, and Authorisation Rules
sra.org.uk
SRA Code of Conduct for Solicitors, RELs and RFLs
Individual practitioner obligations
sra.org.uk
SRA Code of Conduct for Firms
Firm-level compliance and governance obligations
sra.org.uk
SRA Accounts Rules 2019
Rules for handling client money
sra.org.uk
Legal Services Act 2007
Primary legislation establishing the regulatory framework for legal services
legislation.gov.uk
SRA Guidance for Solicitors
Practical guidance on applying the Standards and Regulations
sra.org.uk

UNDER CONSTRUCTION

Guvnor

Comply with SRA Standards and Regulations

Who this applies to

Implementing the Principles in your firm

Systems and controls your firm needs

Conflict checking

Confidentiality and information barriers

Supervision and file management

Complaints handling

Appointing and supporting your COLP and COFA

Ongoing compliance tasks

1. Maintain the COLP breach register

2. Maintain the COFA breach register

3. Conduct periodic file reviews

4. Review and update risk register

5. Submit annual compliance declarations

6. Review staff training and competence records

What next

Compliance Assistant

🚧 UNDER CONSTRUCTION

Who this applies to

Implementing the Principles in your firm

Systems and controls your firm needs

Conflict checking

Confidentiality and information barriers

Supervision and file management

Complaints handling

Appointing and supporting your COLP and COFA

Ongoing compliance tasks

1. Maintain the COLP breach register

2. Maintain the COFA breach register

3. Conduct periodic file reviews

4. Review and update risk register

5. Submit annual compliance declarations

6. Review staff training and competence records

What next

Related guides in this sector

UNDER CONSTRUCTION