More than three-quarters of firms think the regulatory burden imposed on them by the Solicitors Regulatory Authority is excessive, research commissioned by the Law Society has shown.
However, the study showed a high level of satisfaction with the SRA’s ethics helpline, and an understanding of the benefits of regulation.
The poll of 1,000 firms revealed that 78% thought there was too much regulation. Compliance obligations had led to more paperwork for 74% of firms, while 27% said they had turned clients away because of the associated administration, and 4% said compliance obligations had caused them to plan to close down.
While firms were broadly positive about the benefit to the profession of an effective regulator and the proportionality of the SRA’s visits in protecting the profession’s reputation, only half of solicitors surveyed agreed the SRA operated fairly in its contact with firms.
Less than a third (31%) said the SRA gave value for money, falling to 18% for legal aid firms. Just over a quarter said the cost of regulation was reasonable, while 37% said it was excessive, and 41% said the costs were harmful.
Around 40% of respondents felt the SRA understood the risks posed by their businesses, and just under half thought the regulatory remedies were appropriate to the risks posed. However, less than a third thought their regulator listened to industry when deciding policies or procedures, or showed an understanding of the diversity among firms in the development of its regulatory policy.
The ethics helpline proved popular with solicitors, with 74% of those questioned having contacted it. Of these, 89% said advice was given promptly and 80% said it was helpful.
SRA chief executive Antony Townsend said: ‘The report’s findings are extremely useful to us in improving our communications with the profession. We are particularly concerned to reduce the regulatory burden upon solicitors and their firms, wherever we can do that without harming the public interest.’
He said the SRA’s current processes for gathering information are ‘outdated and cumbersome’ and it was working to introduce web-based services for firms and solicitors to help reduce the burden.
‘The generally positive experience of the services we offer through the ethics helpline and Practice Standards Unit is encouraging, and we will build on these to strengthen constructive relationships with the profession at a time of major reform,’ said Townsend.
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