SRA reforms suitability test ahead of Tesco law rollout
The Solicitors Regulation Authority (SRA) has unveiled a new suitability test to protect standards for individuals and businesses working in regulated legal fields. The SRA is set to replace its existing ''Character and Suitability Test' with a new 'Suitability Test' from 6 October, coinciding with the launch of the watchdog's much-touted new model of 'outcomes-focused regulation' (OFR).
September 02, 2011 at 09:45 AM
3 minute read
The Solicitors Regulation Authority (SRA) has unveiled a new suitability test to protect standards for individuals and businesses working in regulated legal fields.
The SRA is set to replace its existing 'Character and Suitability Test' with a new 'Suitability Test' from 6 October, coinciding with the launch of the watchdog's much-touted new model of 'outcomes-focused regulation' (OFR).
The main differences from the old test include the SRA widening the type of offences that could bar an individual from working in the legal industry, while also providing more detail on requirements for establishing rehabilitation.
Previously, only convictions for "offences involving dishonesty" were covered under the suitability rules, with the new rules including more detail on factors which would be likely to bar applicants. Such areas include being convicted for a criminal offences involving dishonesty, fraud, perjury, bribery or racially aggravated crimes.
The test spans a wider range of entrants due to the impending deregulation of the legal market, which will see non-lawyers able to enter the legal industry through alternative business structures (ABSs). A specific new section applies to non-solicitor applicants that want to own ABSs, as well as corporate entities running services regulated by the SRA. The regime, which comes into force under the Legal Services Act, is currently expected to take effect from early 2012.
The test will also cover new compliance officers that each law firm has to appoint under the OFR regime – a major shake-up of the SRA's work that it says will target regulatory efforts towards high impact risks.
SRA chief executive Antony Townsend (pictured) commented: "The changes we've introduced are designed to make the process more transparent. However, the basic standard remains the same; we expect those we regulate to have the highest moral and ethical standards, because they have important responsibilities and trust placed upon them."
The changes were consulted on with the profession amid the consultation on the new handbook for OFR. The SRA said a majority were supportive of the changes, but that it had made a number of amendments as a result of the consultation including, for example, clarification on disclosure of driving offences.
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