SRA’s ‘unfair’ fining powers worry solicitors
The Law Society of England and Wales has said that a plan to link new fining powers to firms鈥 and individuals鈥 income will lead to penalties that are neither fair nor reliable.
The Solicitors Regulation Authority (SRA) unveiled proposals in August to raise the maximum fine it could impose on firms to 5% of turnover.
The SRA also wants to take the means of solicitors into account when setting a fine, and has created a table of bands for punishments that can be issued.
According to the Law Society Gazette of England and Wales, this would mean that the lowest level of offence would incur a basic proposed penalty of 2% of income.
This would rise, however, to 161% for misconduct considered the most serious.
In theory, the Gazette says, this would mean that a solicitor earning 拢500,000 could be fined as much as 拢805,000 in the most serious cases.
鈥楴o new evidence鈥
Consultation on the new policy 鈥 announced shortly after the SRA increased its maximum fining powers from 拢2,000 to 拢25,000 鈥 closed this week.
The society said that the SRA had produced no new evidence to support its proposals, and suggested that fining firms up to 5% of their turnover was both 鈥渆xcessive and unjustified鈥, and would provide no extra deterrent.
The organisation also argued that annual turnover was not a reliable indicator of profitability, and did not always demonstrate ready availability of cash.
Transparency concerns
The solicitors鈥 body criticised the proposal to take account of individuals鈥 income, saying that it took no account of financial responsibilities.
鈥淲e firmly believe that it would be unfair for the SRA not to make any inquiry about an individual鈥檚 means, and thereby the real affordability to pay any fine imposed by the SRA,鈥 it stated.
The society has further concerns about the process for issuing fines, and the transparency and accountability of the SRA enforcement procedure, according to the Gazette.
It was submitted that adjudicators, as SRA employees, would have access to the regulator鈥檚 records, and could see a solicitor鈥檚 past history, which could lead to an unfair decision.