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Decision-making criteria

This set of criteria was archived on 5 October 2012 as part of our Transformation Programme.

Recognition, decision to revoke

Principles of regulatory decision-making, approved by the SRA Board, provide a set of standards applicable to decisions. The principles are supported by guidelines.

The reasons given by a decision-maker will normally include specific criteria applicable to the decision. SRA Policies relevant to decision-making are reflected in the criteria.

Scope of this document

This document applies to decisions to revoke recognition.

The relevant provision is SRA Recognised Bodies Regulations 2009, in particular Regulation 9.

Criteria

The SRA may revoke a recognised body's recognition if one or more of the conditions specified in Regulation 9.1 apply and if the SRA is satisfied that revocation would not present a risk to clients, to the protection of client money or to any investigative process.

Examples of occasions when the SRA may revoke recognition include:

  • the body informs the SRA that it has ceased to practise and all practice documents and monies have passed to another body; a Ceased to Hold accountant's report has been filed, or 
  • the body informs the SRA that it has become authorised by another regulator; a Ceased to Hold accountant's report has been filed.

Example

The example below is illustrative and does not set any type of precedent. Each matter is considered on its own facts and merits.

ABC Solicitors LLP is a recognised body comprising two members, Ms A and Mr C. In early 2010 Ms A contacted the SRA to say that the firm had ceased practise, that they had notified all clients and were finalising their accounts and dealing with distribution or storage of all client documents.

Evidence is produced that the firm is closed down; clients have been appropriately informed and client interests appropriately dealt with. A final "cease to hold" accountants' report has been delivered.

ABC Solicitors LLP remains registered at Companies House and continues to exist as an entity. Neither Ms A nor Mr C remain in contact with us and do not renew their practising certificates nor apply to renew recognition of ADC Solicitors LLP.

We may decide to revoke the recognition of ABC Solicitors LLP on the ground that it has ceased to practise (regulation 9.1(e) SRA Recognised Bodies Regulations 2009). If we do this we will need to give 28 days written notice to ABC Solicitors LLP before formally revoking the recognition (regulation 6.2(a)).