Form RB1 – application for approval of a new
partnership
Last updated 1 September 2010
Apply for approval of a new partnership
RB1 notes
It is important to refer to these notes to complete form RB1. Click Quick links to content above to navigate to the relevant section. To return to the top of the page, use your browser's Back button; if you have a recent browser, click the arrow icon on the right of the screen.
About form RB1
This is the prescribed form to apply for approval of a new partnership, including a legal disciplinary practice (LDP), to practise as a recognised body under the SRA Recognised Bodies Regulations 2009. As well as UK general partnerships, the form is also applicable to any unincorporated partnership formed overseas that needs to be a recognised body because it will practise in England and Wales, including partnerships with legal personality (see Section 14) and limited liability partnerships.
There are separate forms to apply for approval of a new LLP (RB2) or a new company (RB3).
This form can be used for all sizes of firm, including complex multi-layered structures. If you are applying for approval of a firm with a simple structure, much of the content of these notes will not apply to you.
If your partnership is already a recognised body (for example, the firm was passported into recognised body status in March 2009), you may not need to apply for a fresh approval on this form if, in fact, you are only notifying us of new partners joining the firm. For advice, see How to contact us.
All references (unless otherwise stated) mean the following:
- "the Code" means the Solicitors' Code of Conduct 2007,
- "the Recognised Bodies Regulations" means the SRA Recognised Bodies Regulations 2009,
- "the Practising Regulations" means the SRA Practising Regulations 2009.
Use our change-tracking tool to see the SRA Recognised Bodies Regulations 2009 and recent changes to the Solicitors' Code of Conduct 2007; you can also view other recently amended rules and regulations. You may find our FAQs helpful when completing RB1.
How to use the form
Please answer all questions and complete all the relevant boxes. You may find it helpful to refer to our glossary of terms.
If you make an error during completion of the form, please put a line through any deletions. Do not use liquid paper.
If you are providing any additional information in separate sheets or documents, please provide a list of the enclosures and mark each document clearly with the section of the form to which it relates.
The declaration must be signed before submitting the form.
Please note that we will not be able to process your application until we have a completed application.
This means an application that
- includes the completed form and appropriate fee;
- provides sufficient information to show compliance with the requirements of regulation 2.1 of the Recognised Bodies Regulations i.e. that
- the firm's composition and structure complies with rule 14 of the Code,
- the firm has appropriate indemnity cover,
- at least one of the partners is a person qualified to supervise,
- a firm name has been adopted for recognition; and
- provides any additional information that the SRA requests in connection with the matters in regulations 2.2 and 2.3 of the Recognised Bodies Regulations (this may be requested after you submit your application form to us).
You can contact us on
Please return the form and all supporting documents to
Operations
Solicitors Regulation Authority
Ipsley Court
Berrington Close
Redditch
Worcestershire
B98 0TD
or
DX 19114 Redditch
Frequently asked questions
Who to include on the form
You must include details of all partners in your proposed firm. The following can be partners:
Most of the terms referred to above are defined in the Code and brief descriptions are contained in our glossary of terms.
Please also include all prospective employees who are solicitors, RELs and/or RFLs so that we can ensure that the records are accurate and up to date.
What about salaried partners, associate partners and others held out as partners?
Anyone described as a salaried partner or associate partner, or otherwise held out as a partner, will be a partner of the firm (see rule 24). Such individuals must be included in the relevant section of this form for partners (e.g. Section 10 for a solicitor partner). They will also be managers of the firm for the purpose of rule 14 in relation to the 25 per cent non-lawyer restriction on the number of non-lawyer partners, and the levels of non-lawyer voting rights and ownership.
What if we want to start practising, but a non-lawyer hasn't been approved by the SRA?
You must make sure that, for all individuals needing approval (see Section 13), an application form for approval of a non-lawyer (NL1) has been completed and sent to us or is submitted with your RB1. The non-lawyer will not be authorised to join the partnership until we have approved the firm's NL1 application.
Your RB1 will not be processed to completion until all proposed non-lawyer partners (or others needing approval) have been approved by us. We will normally contact you to discuss any issues, if it appears that there may be a delay.
Proposed non-lawyer partners must not be held out as partners until they have been approved and the firm has been granted recognition as a recognised body.
How do we know who the "qualifying" insurers are?
Please refer to the qualifying insurers list.
Section 1 – Name
Name under which the firm is to be recognised
We must have one name that is the registered name of the firm for the SRA's register of recognised bodies.
Recognised Bodies Regulation 2.1 states that the SRA may grant recognition subject to compliance with certain conditions, including
"2.1(d) if the body is a partnership, it has adopted a name under which it is to be registered, and which complies with rule 7 of the Solicitors' Code of Conduct."
Please provide the full name of the firm. This may not be the only name under which the firm will trade, but is the name that you regard as the principal name of the firm.
This name will appear on the SRA's public register, and you must show it, together with your SRA number, on your website and emails as well as on your letterhead (rule 7.07 of the Code).
Name under which the firm will trade
We ask this so that we can identify any part of the firm about which we are asked. Firms may want to practise under more than one style and clients and the SRA must be able to identify a firm, however it is described.
Please provide details (on a separate sheet if necessary) of all trading names of the firm if different from the name under which the firm is to be recognised.
Please note that if you adopt any new practising style(s) between recognition and renewal, or between renewals of recognition, you must let us know, as all practising styles must be shown in our register of recognised bodies (Recognised Bodies Regulation 12.2).
Please note that, if you practise under a style other than your registered name, you must include the firm's registered name (and SRA number) on your letterhead, website and emails.
Please state in your covering letter if the firm will hold client money under any trading name other than your registered name.
Section 2 – Preferred practice commencement date
Please let us know the date you would like your firm to start providing legal services.
We are unable to grant recognition until a completed application has been received (see How to use the form)—please consider this when giving your proposed practice commencement date. If you do not allow sufficient time for us to process your application, or your application is not fully in order, your actual approval date may be different from the proposed commencement date you specify. Please submit the application at least four weeks prior to your preferred commencement date—within this period we will be able to determine the application or notify you that additional information will be needed for us to do so.
You must not start practising until your firm has been approved by us.
Section 3 – Head or main office details
Please give the main office address, which we will record as the main contact address for the firm. Although we ask for an email address for the firm in this section, later in the application you will be asked to give details of contacts for specific purposes—these are to facilitate communications between us and will generally be our first points of contact.
Section 4 – Other offices
We need to have details of all offices of the firm, including overseas offices, so that we know where the practice is located. Please provide the addresses and contact details of all branch offices and any other places of business from which your firm will practise. This might be, for example, a consulting room of which you will have exclusive use although no members of the firm will be based there.
Although we ask for an email address for each office, the main contacts requested in Section 8 will generally be our first points of contact.
If you do not intend to have any branch offices please leave this section blank.
If you will have more than four branch offices, please photocopy this section before completion and submit any additional pages with your list of enclosures (see the notes to Section 21).
Section 5 – Accountant's reports section
We ask for the information in this section so that we know whether you expect to hold client money. Some firms, for example those dealing only with publicly funded work can sometimes function without holding client money. The section also helps us to know whether, and when, we should expect to receive accountant's reports from you.
The Solicitors' Accounts Rules (SAR) require that if a firm or any partner or employee of the firm holds or receives client money, or operates a client's own account (e.g. as an attorney) during your accounting period, the firm must submit an accountant's report.
Client money is money held or received for a client or as a trustee, and all other money which is not office money (only money which belongs to the firm will be office money).
Your accounting period must normally cover 12 months and will need to begin on the date when client money is first held or received (or a client's own account is first operated). Accountant's reports will need to be submitted annually and within six months of the end of your accounting period (unless instructed otherwise by the SRA)—see rule 36 of the SAR.
The accountant's report will need to be in the name of the firm and all partners in the firm, including all individual, recognised body and other legally qualified body partners. Any employee (or consultant) who holds client money, or operates a client's own account, will also need to be included in the report.
Section 6 – Person qualified to supervise
To comply with rule 5.02 of the Code, the firm must have at least one lawyer qualified to supervise. The lawyer qualified to supervise can be a partner of the firm, or a manager of a corporate partner of the firm (for details of the types of corporate body that can be partners, see Section 14 (legally qualified bodies)).
You may have more than one partner who is qualified to supervise, but for our records purposes we only require one name. Giving the details of one partner who is qualified to supervise does not impose additional responsibilities on that individual.
Non-solicitors and solicitors without 36 months of PCs – if the partner qualified to supervise is not a solicitor (e.g. he or she is a licensed conveyancer) please provide evidence that the partner has been entitled to practise as a lawyer for at least 36 months within the last ten years. This may be, for example, by providing certified copies of their practising certificates (if appropriate) or a letter from their regulator confirming the position. This would also apply to a solicitor who has not held sufficient practising certificates but, for example, has practised as an overseas lawyer in the last ten years.
Waivers – please note that we will not proceed with your application for recognition if the firm cannot comply with rule 5.02. If none of the partners are qualified to supervise (and a waiver has not been granted), we will treat this form as an application for a waiver of rule 5.02. If so, you will be contacted separately about this matter and asked for further information. Please also note that a waiver application takes approximately two months to consider.
Management training – we do not ask you to provide evidence with this application that the partner qualified to supervise has completed the training required under rule 5.02(2)(a) (presently 12 hours of management skills training), but this may be requested separately.
Section 7 – Authorisation to take trainee solicitors
Firms wishing to take on trainee solicitors must be authorised to do so.
Training principal – please say whether you wish to take on trainee solicitors and, if so, provide the name and SRA number of the person who would be the training principal (see regulation 19 of the Training Regulations 1990 for the notification requirement in respect of a training principal).
Application to take trainees – once your firm has been recognised, we will send you an application form TC4 (to apply for authorisation to take trainee solicitors) to the training contact that you name in Section 8 of the RB1 form.
Section 8 – Main contacts
The SRA contacts firms at various times throughout the year. To help us ensure effective communication channels we ask for the details of the most appropriate contacts in a number of areas. Please provide the individuals' names, email addresses and SRA numbers (where appropriate). If you cannot provide these details at the moment, please write "to follow" and let us have the details as soon as possible following recognition of the firm.
Firm contact – please name the most appropriate person for us to contact about issues relating to the firm as a whole, such as any regulatory or compliance issues relating to the firm, renewing the firms recognition, as well as, for example, canvassing information about or views from the firm. If this contact person is not a manager in a firm, he or she would need to be of sufficient seniority and responsibility to be the first point of contact for compliance issues that could arise relating to the firm and all managers.
Designated complaints handler – you must ensure that you tell your clients who to contact if they want to make a complaint (see rule 2.05 of the Code). Please give the name of the individual who will be responsible for complaints handling. If a number of people in the firm will deal with complaints, please give the name of the most convenient contact.
Money laundering nominated officer – please name your money laundering nominated officer (also known as a Money Laundering Reporting Officer) as required by the Money Laundering Regulations 2007. Most firms are required to have a nominated officer but not all (see the Law Society's practice note Anti-money laundering practice note – 22 February 2008).
If you are not required to have a money laundering nominated officer please write N/A.
Please note the nominated person should be of sufficient seniority and in a position of sufficient responsibility to enable him or her to have access to all of the firm's client files and business information. Firms regulated by the Financial Services Authority (FSA) will need to obtain its approval to the appointment of the nominated officer, as this is a controlled function under the FSA's rules.
Accountant's report contact – occasionally the SRA contacts firms about their accountant's reports. Please name the most appropriate person with sufficient responsibility for this purpose.
Practising certificate renewal contact person – if you would like to renew all of your firm's solicitors' practising certificates and your REL/RFLs' registrations in one application form (RF1), please name the most appropriate person in your firm for us to contact if we have any queries relating to your RF1 form.
If you would like to renew on individual application forms please write N/A. If you choose this option, please ensure that all solicitors, RELs and RFLs in the firm are aware of the need to submit individual applications.
Financial Services Authority (FSA) compliance officer – please enter the name of the person nominated as the FSA compliance officer for your firm. The compliance officer is the individual within the management structure of the firm who is responsible for ensuring compliance with the Solicitors' Financial Services (Scope) Rules 2001 and the Solicitors' Financial Services (Conduct of Business) Rules 2001. The compliance officer need not be a partner or a solicitor, but ought to be someone with sufficient seniority within the management structure.
You may deal with a variety of insurance contracts such as life policies, after-the-event legal expenses policies, unoccupied property insurance, restrictive covenant and defective title indemnity policies. As the FSA regulates most contracts of insurance, you will need to consider whether you can carry out insurance mediation activities.
Insurance mediation is the term used to describe the financial services activities which arise in respect of insurance contracts. You will be carrying out an insurance mediation activity if you
- deal as an agent in contracts of insurance;
- arrange, or make arrangements with a view to a person entering into, a contract of insurance;
- assist in the administration and performance of a contract of insurance;
- advise on the merits of buying or selling a contract of insurance; or
- agree to carry out any of the above.
Firms working from within the designated professional body (DPB) regime, which will be the vast majority of firms, will be able to carry out insurance mediation activities provided they can satisfy the basic conditions in the Solicitors' Financial Services (Scope) Rules 2001.
All firms carrying out insurance mediation activities (whether they are regulated by the FSA or not), must be included in the FSA Register and appoint a compliance officer. Firms which are not authorised by the FSA will appear in the part of the register known as the Exempt Professional Firms (EPF) register. We will ensure that firms regulated by us, under the DPB regime, will comply with this requirement if they advise us that they are carrying on insurance mediation, and provide us with details of the firm's compliance officer.
By providing the name of the firm's compliance officer, you are confirming that the firm carries out insurance mediation activities.
Training contact – please provide the name of the individual to whom all correspondence about trainee solicitors should be sent.
Section 9 – Indemnity insurance
The Solicitors' Indemnity Insurance Rules apply to all recognised bodies.
Insurance cover – you are required to submit details of your qualifying insurer's name, the policy number and period of cover. Please ensure the details provided are not those of an insurance broker.
Period of cover – if the policy has not yet commenced, for period of cover please confirm that cover will run from "commencement of practice to [enter expiry date of cover]".
Exemptions – if your firm has insurance under the home professional rules of an REL partner who has been granted exemption/partial exemption under appendix 3.1/3.2 of the Solicitors' Indemnity Insurance Rules, please provide the details requested of the exemption and of the insurance cover.
Assigned Risks Pool – until 1 October 2010 if you have not been able to obtain indemnity insurance with a qualifying insurer you will be required to insure through the Assigned Risks Pool (ARP). If you are insured through the ARP you must show "Assigned Risks Pool" as your insurer, and provide the ARP policy number and the date on which the cover commenced. If your indemnity insurance cover will be through the ARP, please provide details in your covering letter of the reasons you have not been able to obtain cover with a qualifying insurer.
From 1 October 2010 the ARP will not provide cover to new firms (in this context new firms includes any firm arising from a split of an existing firm where that firm does not retain the existing recognition and indemnity insurance cover of the firm that has split).
Visit www.sra.org.uk/ARPform to find out how to apply.
Section 10 – Solicitor, REL and RFL partners
Please photocopy this section of the RB1 if you are providing details of more than four solicitor, REL and RFL partners.
SRA number – every solicitor, REL and RFL has a unique individual SRA number which should be included on the RB1.
Main practising address (where the individual will be based) – please provide the firm's address where the individual will work. If the individual will work from a number of offices please provide the address of the office where the individual would like their correspondence sent.
Name of previous/current firm and date left previous firm (if applicable) – please provide details of each individual's former or current firm and the specific date they left or plan to leave (if applicable) so that we can update our records accurately.
Salaried partners, associate partners and other held out as partners – please refer to Who to include on the form in frequently asked questions above.
Section 11 – Exempt European lawyer (EEL) partners
Please photocopy this section of the RB1 if you are providing details of more than two EEL partners.
General information for Section 11
A member of an Establishment Directive profession will be exempt from registration as an REL or RFL (i.e. can be an EEL) if he or she is registered as the equivalent of an REL with the Bar Standards Board, or is based entirely outside of England and Wales, provided he or she is not also a lawyer of England and Wales.
"Exempt European lawyer" or EEL is the term now used in place of "non-registered European lawyer" (non-REL). Most of the lawyers who have to date been recorded on SRA records as non-RELs will now be recorded as EELs—but the definition of "exempt European lawyer" is different (see glossary of terms), and in particular:
- a European lawyer who is also qualified as a lawyer of England and Wales (e.g. as a notary public) is not an EEL;
- a European lawyer who is registered with the Bar Standards Board is an EEL (provided he or she is not a lawyer of England and Wales).
Notes to questions in Section 11
SRA number – EEL partners will have an SRA number if they have been recorded previously with the SRA (e.g. as a non-REL, an EEL or an REL). If they have not, and do not therefore have a number, please write N/A.
Main practising address (where the individual will be based) – please give the address where the individual will work. If he or she will work from a number of offices please provide the address of the office where the individual would like any correspondence to be sent.
Name of previous/current SRA firm and date left previous firm (if applicable) – please provide details of any SRA regulated firms of which the individual is or has been a partner, member, director or employee, and the date they left or plan to leave (if applicable) so that we can update our records accurately.
Office outside England and Wales? – a European lawyer cannot be an EEL if he or she is based at an office in England and Wales, unless he or she is registered with the Bar Standards Board as the equivalent of an REL.
Registered with the Bar Standards Board? – a European lawyer can be an EEL if he or she is registered with the Bar Standards Board as the equivalent of a REL, unless he or she is also a lawyer of England and Wales.
Lawyer of England and Wales? – a European lawyer cannot be an EEL if he or she is also a lawyer of England and Wales. This is the case, wherever the lawyer is based, and even if the lawyer is not entitled to practise as a lawyer of England and Wales.
Salaried partners, associate partners and other held out as partners – please refer to Who to include on the form in frequently asked questions above.
Please note that, if any of the above change, you must contact the SRA as you may no longer be eligible to be registered as an EEL and may need to register as an REL or an RFL.
Section 12 – Other lawyer partners
Please photocopy this section of the RB1 if you are providing details of more than two "other lawyer" partners.
Other lawyers who can be partners
| Type of lawyer |
Approved regulator |
| Barrister |
Bar Council (through the Bar Standards Board)
www.barstandardsboard.org.uk |
| Legal executive |
Institute of Legal Executives (through ILEX Professional Standards Ltd)
www.ilex.org.uk |
| Licensed conveyancer |
Council for Licensed Conveyancers
www.conveyancer.org.uk |
| Patent agent |
Chartered Institute of Patent Attorneys (through the Intellectual Property Regulation Board)
www.cipa.org.uk |
| Trademark agent |
Institute of Trademark Attorneys (through the Intellectual Property Regulation Board)
www.itma.org.uk |
| Law costs draftsman |
Association of Law Costs Draftsman
www.alcd.org.uk |
| Notary public |
Faculty Office of the Archbishop of Canterbury
www.facultyoffice.org.uk |
Notes to questions in Section 12
Main practising address (where the individual will be based) – please provide the firm's address where the individual will work. If the individual will work from a number of offices please provide the address of the office where the individual would like their correspondence sent.
Name of previous SRA regulated firm and date left previous SRA regulated firm – this is only applicable if the individual has previously been an employee in an SRA regulated firm or was formerly a solicitor-partner, member or director of such a firm. In either case, please provide the individual's SRA number.
If they have previously been in an SRA regulated firm please provide the specific date that they left or expect to leave (if applicable) so that we are able to update our records accurately.
Is the individual entitled to practise and not subject to a condition or restriction? – we are seeking confirmation that the firm has complied with the requirements of rule 14.02(1)(c)(ii) of the Code.
Please note: if an "other lawyer" is authorised by more than one approved regulator, please give details of all legal qualifications and approved regulators. This would include, for example, a legal executive who is also a member of an establishment directive profession and is registered with the Bar Standards Board. In this case, please also provide the European professional title and jurisdiction of qualification.
Salaried partners, associate partners and other held out as partners – please refer to Who to include on the form in frequently asked questions above.
Section 13 – Non-lawyer partners and others needing approval to be partners
Please photocopy this section of the RB1 if you are providing details of more than three non-lawyers or others needing approval to be partners.
General information for Section 13
Individuals needing approval under Regulation 3 of the Recognised Bodies Regulations – these fall into three categories:
- non-lawyers, i.e. individuals who are not members (practising or non-practising) of a legal profession of England and Wales (see Section 12), an Establishment Directive profession, or a foreign legal profession whose members are eligible to become RFLs;
- members of a foreign legal profession whose members are not eligible to become RFLs;
- non-practising barristers and non-practising members of other legal professions, who are prevented by professional rules or training regulations from changing status so as to be able to seek approval as practising lawyers.
Whichever of these categories the individual falls into, form NL1 will be the appropriate form to apply for approval of the individual.
Extent of non-lawyer involvement – rule 14 of the Code and Recognised Bodies Regulation 3.1 set out complex provisions in respect of the extent of the non-lawyer management, ownership and control of firms that is permitted. These provisions reflect the requirements of s.9A of the Administration of Justice Act 1985. In simple terms: no more than 25 per cent of your partnership (by numbers, proportion of ownership or voting rights) can be made up of non-lawyers, and only approved individual (and not corporate) non-lawyers may be partners. A non-lawyer must not have any ownership interest (or control any voting rights) in the firm unless he or she is an approved individual (under Recognised Bodies Regulation 3) and is a partner in the firm.
Example
A non-lawyer must be approved under Recognised Bodies Regulation 3 and must be a partner in the partnership if he or she is:
- a director of any company which is a partner in the partnership
- an owner (however indirectly) of any company which is a partner in the partnership.
If the firm has a complex structure, in particular including any legally qualified bodies that involve non-lawyers as managers, owners or members, you will need to carry out a detailed review of your proposals to ensure compliance with the requirements of rules 14.01(2), 14.01(3)(a)-(d) and 14.02(1)(c)(iii)-(iv), and Recognised Bodies Regulations 3.1 and 3.2, and to ensure that you can sign the declaration in Section 18.
Eligibility of non-lawyer – rule 14.02(1)(c)(iii) of the Code sets the requirements that the firm must comply with to ensure the individual's eligibility.
Notes to questions in Section 13
- a) Please state whether the individual has been approved under Regulation 3 of the Recognised Bodies Regulations. There is a separate process and application form (form NL1) to apply for approval of non-lawyers and others needing approval to be partners.
- b) The individual's SRA number will have been provided when approval was granted.
- c) If the individual has not been approved, the firm must submit application form NL1 with this application, if you have not already done so. A non-lawyer (or other person needing approval) cannot join the partnership until he/she has been approved under Regulation 3.
Salaried partners, associate partners and other held out as partners – please refer to Who to include on the form in frequently asked questions above, but note that a non-lawyer cannot be a partner (whether by appointment or holding out as such) unless approved under Recognised Bodies Regulation 3.
Section 14 – Legally qualified body partners
Please photocopy this section of the RB1 if you are providing details of more than one legally qualified body partner.
General information for Section 14
Structure and composition – the SRA is able to recognise a firm with a relatively complex structure, involving various tiers of ownership, provided that the structure and composition of all bodies in the firm satisfy the requirements of rule 14, and at least 75 per cent of the ultimate beneficial ownership in the recognised body is in the hands of lawyers.
Rule 14.04(1)(f) of the Code permits a body corporate which is a legally qualified body to be a partner. Rule 24 of the Code defines a legally qualified body as:
- "24.01 […] a body which would meet the services requirement in 14.01(1) and is:
- (a) a recognised body;
- (b) an authorised non-SRA firm of which individuals who are, and are entitled to practise as, lawyers of England and Wales, lawyers of Establishment Directive professions or RFLs make up at least 75 per cent of the ultimate beneficial ownership; or
- (c) a European corporate practice."
European corporate practice – is defined in rule 24 but is essentially a body corporate (including in this context a partnership with legal personality) which was formed and functions in an Establishment Directive state but not in England and Wales, and has at least 75 per cent ownership and control by lawyers.
Notes to questions in Section 14
Type of body – only a company, an LLP incorporated in England and Wales or Scotland, or a partnership with legal personality (see below) can be a legally qualified body. Please specify the type of body.
Partnership with legal personality – whether a partnership has its own legal identity will depend on the jurisdiction under whose law it is formed. Examples of partnerships which have separate legal identities are a general partnership formed under the law of Scotland, a limited liability partnership formed under the law of Jersey, and a general partnership or limited liability partnership formed under the law of Texas or California. Examples of partnerships which do not have separate legal identities are a general partnership or a limited partnership formed under the law of England and Wales, and a general partnership or limited liability partnership formed under the law of New York. A general partnership or limited liability partnership formed under Delaware law has legal personality unless the partners exercise their right to opt out of that status.
Authorised non-SRA firm – if the legally qualified body is an authorised non-SRA firm, please specify the approved regulator of the body.
Main office address – please give the main office address of the body, which should be the registered office (including country of incorporation) of a corporate body. If the body does not practise from its registered office, please write "non-practising office" against that address and provide details separately of the main practising address. Please note that the registered office of a recognised body must be a practising address of the firm.
Contact details – we do not ask for a contact name or details about the composition of legally qualified bodies, but ask for the website address so that, if we need to make contact or find out more about the body, we can obtain details from the website. If the body does not have a website, please write N/A—we will contact you for further details of the legally qualified body if we need them.
Section 15 – Solicitor/REL/RFL employees
Please photocopy this section of the RB1 if you are providing details of more than four solicitor, REL and/or RFL employees.
This helps us keep our records up to date and accurate. If you expect to have solicitor, REL and/or RFL employees but cannot provide these details at the moment, please write "to follow" and let us have the details as soon as possible following recognition of the firm.
Status – employees of a partnership can only be recorded as one of the following for the purposes of SRA records: associate, assistant, consultant or professional support lawyer.
Salaried partners, associate partners and other held out as partners – should be included in section 10 above. Please refer to Who to include on the form in frequently asked questions above.
Previous/current firm – please provide details of each individual's former or current SRA regulated firm and the specific dates they left or are expected to leave (if applicable) so that we can update our records accurately.
Section 16 – Capital contribution and profit share
Please provide details and an explanation if non-lawyers will be contributing more than 25 per cent of the firm's capital and/or receiving more than 25 per cent of the profits of the firm. The proposed arrangements must be consistent with the statutory requirements regarding non-lawyer ownership and control of a recognised body.
Section 17 – Other information
In this section we are seeking information to help us understand more fully the ways in which firms actually practise, and therefore develop a profile of the profession and potential regulatory risk factors. Our aim is to develop a system of risk-assessment so we are better able to target our resources and pre-empt regulatory difficulties in the interests of the public and the profession.
We are trying to gather information about professional independence and areas of influence that might affect firms. We need this to help us establish that firms are complying with the law and are not subject to any improper control. Although firms can now have broader ownership and control, the Legal Services Act 2007 and the Code still require majority ownership and control (75 per cent) by lawyers, and control only by the owners and managers of a firm. You may find it helpful to refer to our guidance on independence, ABSs and "jumping the gun"".
We hope that the information will also help us to develop our understanding of professional independence, and how this can best be applied in the new regulatory framework to alternative business structures.
This will be a continuing project to improve our regulatory effectiveness, so we will ask for updates of the information provided at each annual renewal of recognition.
If relevant, this information can be taken into account in assessing applications for recognition. Under Recognised Bodies Regulation 2.2(c), the SRA may refuse recognition if we reasonably consider that it would be against the public interest to grant it. However, we will be unlikely to exercise discretion to refuse an application based only on the information provided in this section, but it may lead us to contact you and make further enquiries to help us with the decision.
Associations – Introductions and referrals
Rule 9 of the Code sets out the requirements concerning referrals of business.
Please tell us if your firm has any arrangements with third parties (other than with lawyers) for introducing clients now or in the future, even if there is no "financial arrangement".
If you have answered "yes", please give us the following details in respect of each introducer, on a separate sheet:
- the name of the organisation or individual with whom your firm has/will have an arrangement for introducing work;
- the date of commencement of the agreement, if known;
- the area(s) of work involved (e.g. conveyancing, personal injury);
- the percentage of your firm's total estimated fee income that you expect to arise in your first year of trading from your arrangements with each introducer;
- the total sum or details of any other consideration (e.g. provision of services or secondment of staff to the introducer, or an agreement to purchase services or products from the introducer where the purchase is a condition of referrals being made to you) which you think you are likely to pay to each introducer under the arrangement(s) in your first year of trading.
Associations – Sharing fees
Rule 8 of the Code sets out the types of fee-sharing arrangements that firms can have.
Please tell us whether your firm has, or expects to have, any arrangements with any individuals or organisations outside of the firm (other than lawyers or their firms) to share its fees with another party, or to receive a share of the fees of another party, now or in future.
If you have answered "yes" to either question, using a separate sheet, please give us the following details in respect of each third party:
- the name of the organisation or individual with whom your firm has an agreement;
- the date of commencement of the agreement, if known;
- brief details of the nature of the arrangement;
- the area(s) of work involved, if an arrangement relates to a particular area (e.g. conveyancing, personal injury);
- the percentage of your firm's total estimated fee income that you expect to pay and receive under such arrangements in your first year of trading;
- the sum or details of any other consideration (e.g. provision of services or secondment of staff to the introducer, or an agreement to purchase services or products from the introducer where the purchase is a condition of referrals being made to you) which you think you are likely to pay to, or receive from, each individual or organisation with whom you have such an arrangement in your first year of trading.
Involvement/influence
Please provide details of any contractual or other type of relationship that the firm or any of the managers has that might affect, or might be perceived to affect, the integrity or independence of the firm. This type of situation is likely to be unusual, but might arise, for example, where
- an individual's role in the firm could include being a representative in any way of a non-lawyer body which he or she is involved in
- the role or involvement of an employee in the running of the firm amounts to some element of control over it
- finance agreements or loans to your firm have particular strings attached
- certain contractual conditions in agreements with referrers of business or funders effectively pass control of your firm to an outside body
- granting options to purchase your interest in your firm is for nominal value
- you form a relationship or enter arrangements that put any outsider in de facto control of any votes in a partnership meeting.
If you have answered "yes", please provide details on a separate sheet of the relevant circumstances.
Other roles
This question is not aimed at trying to identify, for example, where managers work on a part-time basis or are involved in "out of work" activities such as coaching the local football team. What we want to identify is whether there are certain types of situation where firms' effectiveness, or even compliance, might be affected by other activities of the partners. This may be as a result of time spent away from the firm, or the nature of another role might in some way interfere with responsibilities to the firm and clients.
If you have answered "yes", please provide details on a separate sheet of the relevant partner(s) and a brief summary of the relevant role(s) he or she has outside of the firm. Again, this type of situation may well be unusual, but might arise, for example, where
- a partner, particularly if he or she is the only person in the firm who is "qualified to supervise", plays a major role in another firm or is, for some other reason, frequently absent from the firm
- a partner is a member of or owns a non-legal business, the business demands of which might affect the firm
- a significant number of non-executive directorships that are not related to the work of the firm are held by a partner, or where the nature of such positions, may compromise the partner's role or work in the firm.
We do not intend to capture here information, for example, about trusteeships if these roles are undertaken as part of the normal activities of the partners as representatives of the firm and do not clash with the interests or needs of the firm.
Section 18 – Character and suitability of partners
All proposed partners, including legally qualified body partners, must declare whether they have been subject to or affected by any of the matters listed in Regulation 3 of the Practising Regulations.
Period of declaration – the period that this declaration should cover may vary for individuals. Solicitors will have made a declaration at the time of issue of their last practising certificate (or on admission if they have not held a PC); RELs and RFLs at the time they applied to be registered and on renewal of registration; and non-lawyers and others needing approval to be partners will have made declarations regarding character and suitability in the application for approval. Other lawyers may have made declarations of this nature to their own regulatory body but may not have done previously to the SRA, and should therefore declare or update details of any such occurrences.
Legally qualified bodies – some of the matters listed in Practising Regulation 3 only relate to individuals, but to the extent that they may relate to a legally qualified body partner, you must declare any such matters and give details. Again, periods of declaration will vary, for example a recognised body will have made a declaration at the time of its last renewal of recognition, whereas an authorised non-SRA firm may not previously have made such a declaration to the SRA.
Spent convictions– please note that convictions which are"spent" under the Rehabilitation of Offenders Act 1974 must be disclosed by virtue of the Rehabilitation of Offenders Act 1974 (Exceptions) (Amendment) (England and Wales) Order 2008.
Section 19 – Declaration of compliance
Knowingly or recklessly giving the SRA information which is false or misleading in a material particular, or failure to inform the SRA of materially significant information of which the firm is aware, may lead to disciplinary action by the SRA or revocation of the body's recognition.
The SRA reserves the right to carry out or to request you to carry out fresh checks in relation to the firm's compliance with the SRA's rules and relevant legal requirements.
Who may sign? – the form must be signed by a solicitor or an REL who is a partner in the firm and who is authorised by all partners of the firm to make the declarations in Section 18. If there are no individual partners in the firm, the form may be signed by a solicitor or an REL manager of a body corporate partner of the firm, similarly authorised by all partners. If the person signing is not a partner named in Section 10 of the form, please provide details in your covering letter of the capacity in which he or she signs the form.
Signing the form – when you have completed the form on behalf of the firm please clearly and accurately state your full name and SRA number, and sign and date the declaration.
Determination of application – the Recognised Bodies Regulations allow us to grant or refuse recognition (regulations 2.1 and 2.2) or to grant recognition subject to conditions which we consider appropriate in the public interest (regulation 4), for example preventing the firm undertaking certain activities. The regulations also permit us to revoke recognition in appropriate circumstances (regulation 9).
Appeals – under Recognised Bodies Regulation 7, you can appeal against a decision of the SRA to reject the application for recognition of the firm or to impose a condition. Note that there are time limits.
Notes to Section 19 declarations
- 1. All partners must be named on the form.
- 2. Rule 14.01(3)(a) to (c) of the Code sets out the restrictions on the level of non-lawyer ownership and control of a firm. For details of the rule, see the notes to Section 13 (non-lawyers).
- 3. Rule 14.02(1)(c) of the Code sets out the steps that the firm must take to satisfy itself of the eligibility of a prospective partner who is a non-lawyer or other person requiring approval to be a partner, or is a lawyer of England and Wales who is not a solicitor. Different steps are required in each case.
For details of rule 14.02(1)(c)(ii), see the notes to Section 12 (other lawyers) and for details of rule 14.02(1)(c)(iii), see the notes to Section 13 (non-lawyers).
Rule 14.01(2)(a) of the Code requires solicitor or REL participation in the firm.
Rule 14.01(3)(d) of the Code sets out restrictions on the ownership and control of a firm. For details of the rule, see the notes to Section 13.
Section 20 – Fees
The fee for the RB1 application for approval of a new partnership will be dependant on the date of recognition as the fee has been apportioned as shown in the table below. Your firm's recognition must be renewed annually on 1 November.
| Recognition start date between: |
Fee |
| 31 March 2010 and 30 June 2010 |
£120 |
| 1 July 2010 and 31 October 2010 |
£60 |
| 1 November 2010 and 28 February 2011 |
£180 |
| 1 March 2011 and 30 June 2011 |
£120 |
| 1 July 2011 and 31 October 2011 |
£60 |
Example
- If your firm is recognised on 31 March 2010, the fee will be £120. The recognition will be in place until 31 October 2010 when it will be due for renewal on 1 November 2010.
- If your firm is recognised on 1 July 2010, but you requested recognition from 1 June 2010 (and paid £120) the SRA will grant you a refund of £60.
The fee for recognition includes the Compensation Fund contribution for the firm.
How to pay – please refer to the information on ways to pay.
Your application will not be accepted without the correct fee.
Section 21 – Returning the form
Please provide a list of any additional documents that you are sending, including additional pages, other supporting documents and information, and any other forms (e.g. form NL1 for approval of a non-lawyer). Please mark each document clearly with the section of the form to which it relates.
Please send the form, appropriate fee and all documents to the SRA's postal or DX address given in Section 20 of the form.
Section 22 – Application checklist
Please refer to the checklist to ensure that you have completed the form and provided the information we need, so that we can deal with your application as quickly as possible.
Please use www.sra.org.uk/rb1 to link to this page.