SRA Update
Moving toward a fairer fee policy
SRA Update Issue 11 – December 2009
We have now published detailed proposals for a new structure for paying for the regulation of solicitors and their firms. The new system would be based on a combination of individual and firm-based fees, linked to turnover. Please give us your views.
Our new consultation paper sets out the preferred model for sharing the costs of regulation and includes examples of how the new structure might work for firms of various sizes. We are also seeking your views on options for the allocation of Compensation Fund costs.
Our aim is to create a new, fairer fee structure. Everyone working the solicitors' profession—from local authority solicitors, to sole practitioners and those in the commercial sector—is encouraged to give their views.
Key proposals
- Firm-based fees should be based on banded turnover. This takes into account how much business a firm does, and links to ability to pay.
- Cost should be allocated so that around 40 per cent of the total funding of regulation is raised through individual fees, and 60 per cent through the firm-based fees.
- The range of exceptions and discounts currently allowed for individuals should be simplified and minimised, as the fee for individuals will be reduced significantly.
Please visit www.sra.org.uk/consultations.