A new approach to regulating small firms

Small firms – One size doesn’t fit all Small firms account for c. 34% of our (non-ABS) regulated community For us sole practitioners and small firms are a key focus; over the last few months we’ve been asking: What are the issues for sole practitioners and small firms and how do we work together to address these? What does proportionate regulation of a small firm look like in practice? How can we most effectively support small firms to comply with regulation?

Your feedback... Need more advice about setting up / closing down (and financial issues generally) Issues engaging with Supervision and accessing advice A lack of information about key processes and decisions General issues with the SRA Handbook Some Authorisation processes are difficult and take too long Don’t have time for SRA visits and see them as a threat Concerns about the volume of SRA updates Supervision processes take too long

Small changes…a big difference? Discussion document Working on ways to better support small firms to comply with regulation Building on our successful Regulatory Management model for the largest firms We’ve developed a range of proposals that aim to begin to tackle some of the issues that have been raised. Now we’d like your thoughts on our initiatives…..

Small changes…a big difference? Progress to date... Changes to Accountants Reports requirements (started 31 October) Residual client account balances (started 31 October) Improved Authorisation processing times Improved ongoing communication on regulatory matters Training for tomorrow work programme (current consultation) Speeding up our investigation processes

Small changes…a big difference? Launching today A section of the SRA website for sole practitioners and small firms ‘Regulatory starter packs’ for new firms Webinars focused on issues affecting sole practitioners and small firms A new option on the Professional Ethics Helpline for small firms and sole practitioners The establishment of virtual small firms reference groups A demand led, opt-in e-newsletter/invitation to feed back

Small changes…a big difference? Further ideas Introduction of a lifetime authorisation for sole practitioners within the Practising Certificate Renewals Exercise A review of the authorisation process for compliance officers in small firms Creation of a dedicated Small Firms Team within Supervision Continued review of professional indemnity insurance arrangements A review of the SRA Handbook - with a view reduce regulatory burdens

Discussion points Are there any further changes to our architecture we should be looking at? Are there any further operational changes we should look at? What sort of issues should we cover in our webinars to support small firms? Can we do more to improve the way in which we communicate to small firms? 15 minute discussion followed by feedback from each table

What next… By April 2015 we will publish a paper summarising the progress on the measures we have described, the feedback to this discussion paper, and details of any further steps that we will take as a result. We will survey small firms in late 2015 to evaluate our progress. Please respond to the discussion paper – closes for responses in February 2015 Any other comments/suggestions – email reform@sra.org.uk