If we are investigating you
If we are investigating you
We are responsible for regulating you and your firm in the public interest.
We can investigate you for a number of reasons. For example,
- you have failed to communicate with us in an open, timely and cooperative way, or
- the risk posed by any alleged failure to comply with the SRA Principles is such that an investigation is necessary.
What we do if we investigate
Compliance with a firm's regulatory obligations is the primary responsibility of a firm, however we may decide to investigate you as an individual where, for example, there is evidence of personal culpability.
It is likely we will write to you, setting out allegations or potential breaches of the SRA Principles. We will write to your firm's SRA contact or, if we are raising issues for you to consider, we will write to you directly. We will ask you or your firm for a written explanation.
If you are an employee, we may
- write to the firm that employed you at the time of the alleged failure to comply, or
- write to your current employer, if you have moved firm.
Your reply will help us, and you have an obligation to deal with us in an open, timely and cooperative way.
What happens next
Once we have received your explanation, we may decide that no further action is necessary. If that is the case, we will inform you in writing.
We will decide that further action is necessary if, in our view,
Your obligations
You have a duty to comply with Principle 7 to deal with us in an open, timely and cooperative way. If you do not do so, we may take formal enforcement action.
Where to find help
You can seek independent advice at any time during an investigation. If you are a solicitor, the Solicitors Assistance Scheme has a list of members who offer advice and representation to solicitors who are being investigated.
On-site investigation of a practice
We may decide to conduct a formal on-site investigation of your firm. This differs from any visits we make where we are working with you as part of our Supervision functions. If so, we will normally give you reasons for our visit. We recognise this helps you respond constructively and assists with any difficulties you may experience as a result of our visit. We understand that by visiting your practice this can cause disruption and we aim to reduce this as much as we can.
It is possible we may not provide you with reasons if, by doing so, it would
- breach any duty of confidentiality
- disclose or risk disclosure of a confidential source of information
- significantly increase the risk that those under investigation may destroy evidence, seek to influence witnesses, default, or abscond; or
- otherwise prejudice or frustrate an investigation or other regulatory action.
Where we give reasons, our investigation is not limited to or constrained by the reason given for the investigation. By giving reasons, we aim to maximise transparency; however, to ensure investigations are effective, we will not delay our work through discussions about the reasons given or the extent of the reasons given. We seek to ensure our investigations are focused.
For more information, please read our Transparency, protecting the public and reasons for investigations policy.
The on-site investigation
We will probably visit your main practice address. We may also visit branch addresses with the least interruption possible.
We will hold an initial meeting with senior or other available partners, directors, members or managers of your firm.
We will normally request information, documents and explanations from you. Our investigation will continue until we are satisfied that we have gathered all the information we need. You have certain obligations with which you must comply.
Following this, we will probably hold a final meeting with senior or other available partners or managers of your firm. We may make an audio recording of the meeting.
The outcome of our on-site investigation depends on the judgement we reach in relation to the facts we gather.
Your obligations and our powers
Following notice from us, you must provide us with any
- records
- papers
- client and controlled trust matter files
- financial accounts and other documents, and
- any other information necessary to enable us to prepare a report on your practice's compliance with rules 6, 7 and 31of the SRA Accounts Rules 2011.
We may also serve you with a notice to provide us with all relevant documents in your possession or your firm's possession pursuant to section 44B of the Solicitors Act 1974. In addition, we may require you to attend, at a time and place specified by us, to provide an explanation in respect of the information or documents we require from you.
Except for documentation sought pursuant to section 44B, we will not take original documents, but you need to provide us with copies if we request them. You must be able to produce material kept electronically—in the form we require. If necessary, you must provide written permission for us to seek verification from clients, staff, banks, building societies and any other financial institutions you use.
For detailed information, our policy statement (PDF, 4 pages, 43K) sets out the practice and processes governing these investigatory powers.
Outcome
All on-site investigations will now result in a factual report being made and passed to our Supervision function. The report details whether no breaches were found or, if there were breaches, we will outline these breaches.
Supervision will then address any minor breaches to facilitate compliance on an engagement basis, or decide that we need to take further action for more serious breaches, such as
- a referral to the Crown Prosecution Service, Serious Fraud Office or other agency
- disqualification of a Reporting Accountant and, possibly, reporting them to their regulator; or
- a more detailed desk-based investigation, requiring your written explanation before a final decision is made.
We may use our factual report and your explanations in any future proceedings issued in the Solicitors Disciplinary Tribunal.
Outcomes – if you are a solicitor, registered European lawyer (REL), recognised foreign lawyer (RFL), recognised body or recognised sole practitioner
We may decide not to continue investigating if we conclude that there is no supporting evidence. Where we decide there has been a failure to comply with your obligations we may
In some cases, you have a right of appeal.
Outcomes – if you are a manager or employee
Where we decide there has been a failure to comply with your obligations we may
- withdraw approval if you are a non-lawyer manager
- impose conditions on or revoke recognition of the recognised body for which you are a manager or employee
- refuse to renew recognition of the recognised body for which you are a manager or employee
- refer your conduct to the Solicitors Disciplinary Tribunal
- intervene into the recognised body for which you are a manager or employee, or
- enter into an agreement with you (agreements are regulatory decisions made by us, the terms of which are accepted by you. They are not the equivalent of settlement of part of a commercial dispute).
In some cases, you have a right of appeal.
Appeal to Tribunal
If we have imposed a disciplinary sanction against you, you may appeal to the Tribunal within 28 days of notification in writing of the decision.
You must send us a copy of your notice of appeal and documents in support at the same time as you send the notice of appeal to the Tribunal.
Orders where a non-solicitor is "involved in a legal practice"
We can require a solicitor, registered European lawyer or firm wishing to employ or remunerate you to obtain prior written permission from us. We can also make or seek an order requiring our permission be obtained before you become a manager or acquire an interest in a firm. We can do this if you have either
- been convicted of a criminal offence, or
- been involved in misconduct relating to your involvement in a legal practice.
We will take action if we think the offence or misconduct are serious and supported by evidence.
Recovering costs from you
If we make a finding of misconduct against you, we have the power to recover the costs of an investigation from you.
Any person who reported you has no part in the decision to recover costs from you.
Amounts
For first-instance decisions, costs are fixed at two levels:
In exceptional cases, we may decide to charge more or less than the fixed amount.
If you appeal a finding of misconduct, and the appeal is unsuccessful, a fixed amount of £250 may be awarded against you.
You should be aware that there is no right of appeal against the amount of costs only.
Enforcing action
You have a duty to deal with us in an open, timely and cooperative way. If you do not, we may take the following action.
We may require you to deliver relevant documents to us or provide specified information. If you do not deliver the documents as directed, we may appoint an agent to collect them. If this is necessary, we will recover the costs incurred from you or your firm. These costs are recoverable from you as a debt.
In addition, we may require you to attend, at a time and place specified by us, to provide an explanation in respect of the information or documents we require from you. This is known as an investigation meeting. If we consider it appropriate, we can apply to the High Court for an order requiring another person to provide the information of documents we require.
For detailed information, our policy statement (PDF, 4 pages, 43K) sets out the practice and processes governing these investigatory powers.
You should be aware that it is an offence for a person who knows or suspects an investigation is taking place, or likely to take place, and who either
- falsifies, conceals, destroys or disposes of a document they know or suspect is relevant; or
- causes or permits falsification, concealment, destruction or disposal of such a document.
Delivery of documents
If the only way we can conclude our investigation is by examining documents you hold, we will require you to deliver them to us. We may require you to do this even if you are cooperating as well as you can.
Invoking the SRA's appeal procedure
Generally, you have an internal right of appeal against a decision to
- make a finding and warn you about your conduct
- formally discipline you
- impose conditions on your practising certificate or registration
- refuse to grant or renew a practising certificate or registration
- impose a condition on recognition if you are a recognised body
- withdraw approval of you as a manager of a recognised body
- revoke recognition of you as a recognised body
- refuse to grant you permission to employ, remunerate, engage as a manager a person, or
- refuse to grant you permission to allow a person to acquire an interest in you if you are a recognised body.
Generally, you have no internal right of appeal against a decision to
- issue you with a letter of advice
- refer your conduct to the SDT (such a decision is a decision to prosecute, not an adjudication)
- intervene in your practice (a challenge to an intervention can only be brought in the High Court)
- issue directions rather than factual findings
- make you subject to regulation 3 of the SRA Practising Regulations 2011, if you are a solicitor or REL; or
- order you to pay the costs of an investigation.
How to appeal
If you are making an internal appeal under the Recognised Body Regulations or SRA Practising Regulations 2011, you must appeal within 21 days of receiving notification of our decision. Appeals to the High Court are covered by regulation 9 of the Recognised Bodies Regulations and regulation 8 of the SRA Practising Regulations 2011.
In other cases, you must lodge an appeal with us in writing within 14 days of the date of the decision letter.
Your appeal must clearly state the reasons for your disagreement with our decision.