Transparency, protecting the public, and reasons for investigations

• 1.

  The SRA recognises that providing reasons for an investigation maximises the transparency and fairness of its processes, may help those subject to investigation to respond constructively and can help to reduce the stress involved. The SRA will therefore henceforth normally disclose a brief statement of the reasons for its investigations and inspections.

• 2.

  Many investigations and inspections are based on non-confidential information or for reasons that are already known to the regulated person. This is, however, not always the case, and some constraints on disclosure must, therefore, remain.

• 3.

  For that reason details will not normally be disclosed where the SRA, at its absolute discretion, considers that there is a risk that disclosure could:

• a.

  breach any duty of confidentiality;

• b.

  disclose or risk disclosure of a confidential source of information;

• c.

  significantly increase the risk that those under investigation may destroy evidence, seek to influence witnesses, default, or abscond; or

• d.

  otherwise prejudice or frustrate an investigation or other regulatory action.

• 4.

  In such cases, the fact of constraint will be explained on request and will be kept under review, at three monthly intervals, as the investigation proceeds.

General

• 5.

  When disclosure is made, a brief statement of the reason for an investigation is likely to be in a form similar to the following examples:

• a.

  "concern about the number and type of regulatory matters recorded against your firm";

• b.

  "concern about irregularities in conveyancing transactions";

• c.

  "concern about irregularities in probate and related representative work";

• d.

  "the criminal charge against Mr X";

• e.

  "your failure to ensure that your accountant's report was filed with the SRA [on time]";

• f.

  "persistent delay in the conduct of client matters".

• 6.

  The SRA is not, however, restricted to investigating only issues related to the reasons provided. Not only is it common for additional issues to be identified during the course of an investigation, but there may be other, undisclosed, reasons for the investigation. The SRA has, however, published a separate statement of good practice about how it keeps its investigations focused.

• 7.

  It is important for effective regulation in the public interest that investigations are not delayed by satellite arguments. SRA investigations will, therefore, not be delayed by discussions or dispute about the reasons for instigation given or the extent of its disclosure of those reasons.

• 8.

  This policy is not retrospective and applies to investigations commenced after 30 April 2009.