Law Society and advisers challenge SRA regulatory proposals

The Law Society of England and Wales and various legal advisers have raised concerns regarding proposed regulatory changes by the Solicitors Regulation Authority (SRA). A central point of contention is the SRA’s plan to require law firms to notify the regulator of ‘prescribed events,’ such as mergers and acquisitions (M&A) and the commencement of holding client money.

The Law Society has cautioned against ‘regulatory drift,’ arguing that the SRA should utilize existing data more effectively before imposing new administrative burdens. Legal advisers, including the firm CM Murray, have argued that requiring notification at the ‘heads of terms’ stage for M&A activity is impractical and could jeopardize transaction confidentiality. They suggest notification should instead occur after a formal agreement is signed.

Additionally, the UCL Centre for Ethics and Law has warned that the SRA’s proposal for compulsory three-hour ethics discussions could result in a ‘box-ticking’ exercise rather than meaningful professional development. Critics noted that the requirements for facilitators and the prescriptive nature of the discussions may not adequately address the complexities of ethical behavior in legal practice.