SRA Handbook

Duties in relation to compliance

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Regulation 4: Duties in relation to compliance

4.1

A recognised body must not take on a new manager without first being satisfied of that manager's eligibility, by:

(a)

checking that any solicitor has a practising certificate, that any REL or RFL is registered with the SRA, and that the practising certificate or registration is not subject to a condition which would preclude that person becoming a manager;

(b)

obtaining (and retaining, for production to the SRA if required), in respect of any lawyer authorised by an approved regulator but not by the SRA, written confirmation from the approved regulator to the effect that the lawyer is authorised by that approved regulator, entitled to practise and not subject to a condition or other restriction which would preclude that person becoming a manager;

(c)

obtaining (and retaining, for production to the SRA if required), in respect of any individual who is entitled to be a manager only by virtue of approval under regulation 5, written confirmation:

(i)

from the SRA that the individual concerned is approved under regulation 5; and

(ii)

from the individual concerned, details of any event which the body will have to declare when next renewing its recognition, which has occurred in relation to that individual since he or she was last a manager of a recognised body renewing its recognition; and

(d)

in relation to any body corporate, making checks and obtaining (and retaining, for production to the SRA if required) confirmations under (a) to (c) above in respect of every individual who is a manager of or who has an interest in that body corporate.

4.2

The following persons in a recognised body must not create any charge or other third party interest over their interest in the recognised body:

(a)

a partner in a partnership;

(b)

a member of an LLP;

(c)

a member or shareowner in a company except by holding a share as nominee for a non-member shareowner who is eligible to be a member or shareowner under rule 16.1 of the SRA Practice Framework Rules.