The Solicitors Regulation Authority has given more details of its implementation strategy for outcomes-focused regulation.

Its Relationship Management approach to risk-based supervision is to be rolled out to larger firms, after a pilot found that small firms did not require interaction with the regulator on a continuous basis.

The approach has been tested since autumn 2010 on 19 volunteer firms of all sizes.

The project involves a team of relationship managers from the SRA undertaking a five-step process that includes identifying, assessing and addressing risks.

For smaller firms involved in the pilot, it was found their regulatory issues were less complex and capable of resolution without an ongoing relationship approach.

Suchitra Hammond, SRA relationship manager, said: ‘Because of the resource-intensive nature of Relationship Management, we had taken the view that it would be the most fitting for large and commercial firms. The evidence we’ve collected since we started the pilot proves this to be the case.’

City firms have already indicated to the SRA their support for the Relationship Management regulation method, with assessments now to be made on staff numbers, offices and turnover to judge which should be included. Alternative business structures will also be assessed in this way.

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