The SRA Investigation Process

As the regulatory body for solicitors practising in England and Wales, the Solicitors Regulation Authority (SRA) has wide powers of investigation into allegations of misconduct both by law firms and individual solicitors.

While the SRA can determine some matters itself (and has power to issue sanctions in relation to them) it refers the most serious matters to the Solicitors Disciplinary Tribunal (SDT), at which it acts as prosecutor.

How does an SRA investigation start?

Most SRA investigations start when the authority receives a complaint. This may be from a client, a third party, an opponent or due to a self-report.

However, SRA investigations can also come about through reports from the Legal Ombudsman, from another regulator such as the FCA or the ICO, from the police, and even following media coverage.

Having decided to investigate, the SRA will appoint an Investigator. The Investigator has the power to require attendance at interviews, provision of information and documents, and permission to carry out on-site inspections. 

Legal representation in an SRA investigation

The subject of any SRA investigation is entitled to be represented throughout the investigation process, including during any interview (which is always recorded).

Anyone who is approached to be interviewed or provide documentation is strongly advised to seek legal advice before engaging with the Investigator.

After completing his or her enquiries, the SRA Investigator will prepare a report, in which any alleged breaches of the SRA’s codes, standards, principles or regulations are set out.

Professional Misconduct in SRA Investigation Report

If issues of professional misconduct are raised in the SRA Investigator’s report, the SRA will alert the solicitor or firm by giving notice to them.

The solicitor or firm has the opportunity to respond in writing to this notice.

SRA Disciplinary Decision

The SRA then makes its disciplinary decision.

If it decides the matter is serious enough to merit referral to the SDT, it will prepare an application to the Tribunal detailing the allegations and the factual basis upon which they are made. The SDT reviews this, and if it agrees that there is a case to answer, it will serve the statement and supporting evidence on the solicitor or firm concerned and SDT proceedings will follow.

If the SRA determines that the matter falls below the threshold for referral to the SDT, then its sanction is normally a rebuke, fine or Regulatory Settlement Agreement (RSA), more details on which are below.

SDT proceedings

The Solicitors Disciplinary Tribunal (SDT) is an independent body which adjudicates alleged breaches of the SRA rules and regulations which are applicable to solicitors and their firms. The SRA acts as prosecutor in SDT proceedings.

Proceedings before the SDT are governed by the tribunal’s own rules and procedures. Hearings are adjudicated by a Panel of three members, usually two professional solicitor members and one Lay member. The burden of proof lies on the SRA, which must convince the Panel to the civil ‘balance of probabilities’ standard.

If the SRA’s case is proven, the sanctions available to the SDT panel include the ability to strike the respondent solicitor off the Roll, to suspend them from practice, pay an unlimited fine, and pay the costs of the SRA’s prosecution.

Settling an SRA investigation

In some cases, simply being investigated by the SRA holds the potential to be reputationally and financially ruinous. Some solicitors are therefore keen to come to an agreement with the regulator at an early stage.

Regulatory Settlement Agreements (RSAs) are one means to achieve this. An RSA is an agreement to end disciplinary proceedings sometimes without the need for a hearing before the tribunal in which the terms can be negotiated. They can be a quicker and more cost-effective way of dealing with disciplinary allegations.

Even if a matter has been referred to the SDT, it may still be possible to conclude the case without a full SDT hearing by way of an agreed outcome whereby the solicitor has a say in how the matters are publicly presented.