The SRA Handbook is no longer in effect. It was replaced by the SRA Standards and Regulations on 25 November 2019.

SRA Handbook

Eligibility criteria and fundamental requirements for recognised bodies

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Version 1 of the Handbook was published on 16/09/2011. For more information, please click 'History' Above

Rule 13: Eligibility criteria and fundamental requirements for recognised bodies

13.1

To be eligible to be a recognised body, a body must be a legal services body namely a partnership, company or LLP of which:

(a)

at least one manager is:

(i)

a solicitor with a current practising certificate issued under the SRA Practising Regulations, or

(ii)

an REL, or

(iii)

(in the case of a partnership or LLP) a body corporate which is a legally qualified body with at least one manager who is a solicitor with a current practising certificate or an REL; and

(b)

all of the managers and interest holders are legally qualified, save that where another body ("A") is a manager of or has an interest in the body, non-authorised persons are entitled to exercise, or control the exercise of, less than 10% of the voting rights in A.

Services requirement

13.2

The business of a recognised body may consist only of the provision of:

(a)

professional services of the sort provided by individuals practising as solicitors and/or lawyers of other jurisdictions; and

(b)

professional services of the sort provided by notaries public, but only if a notary public is a manager or employee of a recognised body,

but this does not prevent a recognised body providing services within Chapter 12 (Separate businesses) of the SRA Code of Conduct, or holding an interest in a company which is a separate business.

Guidance notes

(i)

Although most organisations which involve non-lawyers as managers or owners must be licensed bodies, the limited exception in Rule 13.1(b) (following the terms of the LSA) permits a small degree of non-lawyer involvement in recognised bodies. Where one or more bodies are involved in a firm as a manager or owner/interest holder, then the firm will remain a legal services body requiring recognition under the AJA, rather than a licensable body requiring a licence under the LSA, where non-authorised persons have only a de minimis (less than 10%) control by way of voting rights over each (manager/owner) body.

(ii)

The services requirement in 13.2 should be read in conjunction with Chapter 12 of the SRA Code of Conduct. Certain services which could be offered through a "permitted separate business" (see Chapter 12) can also be provided in conjunction with a firm or in-house practice whilst still complying with the services requirement in 13.2. These services, which extend or fall outside the scope of the professional services mentioned in 13.2, are:

(a)

education and training activities; and

(b)

authorship, journalism and publishing.