1. Looking to the Future: completing SRA reforms of regulation
Crispin Passmore – Executive Director, Policy

2. Modernising regulation

3. SRA Innovate Competitive legal services market SRA Innovate Educate
Supporting new business models
Innovation Space
Streamlining the waiver process

4. Handbook reforms: phase 1
In June 2013 our Board committed to the above phase one decisions, including allowing solicitors to provide non-reserved legal services from unregulated firms

5. What are the aims of phase 2?
Review our rules and make them clearer
Reduce unnecessary bureaucracy
Implement phase one decisions
As in phase one, we have sought to:
reduce unnecessary regulation - we have removed prescriptive drafting to produce requirements that:
are clearer and more accessible, with duplication removed
are easier to understand in terms of purpose and effect
are targeted at the issues that really matter
operate at a higher level so are less detailed and prescriptive, providing flexibility to apply to changing circumstances.
moved guidance and detailed internal processes to sit outside our rules (where possible) and have simplified
reduced the length of the glossary
reorganising how we present our rules to give a more logical and coherent structure eg rationalising our appeals provisions, so that there is only one centralised set
'future proof' the new rules
This approach means our Handbook should be well placed to adapt to any changes in the market.

6. What areas are covered by phase 2?
Authorisation – firms and individuals
Discipline and enforcement
How we keep rolls and registers
Overseas practice
Ongoing practice
Financial services
Existing rules that have been reviewed as part of phase two:
Practice Framework Rules & Practising Regulations
Regs on Admission, HRA and QASA
Authorisation Rules
Keeping of the Roll Regulations
Regs on Training, Qualification and Providers, and QLTS regs
Suitability Test 2011
Indemnity Rules
Compensation Fund Rules
Rules on Disciplinary procedures, interventions and cost of investigations
Overseas and Cross-border Practice Rules
Property Selling Rules
Financial Services Rules

7. Our approach to enforcement
Looking to the Future
Policy Statement
2015
Question of Trust
What the public, profession and we think is serious
Review of enforcement
Revised Enforcement Strategy
Updated sanctions & controls table
moving away from enforcing compliance with prescriptive rules, towards a model which seeks to enforce standards through a transparent framework that those we regulate can clearly understand
we set standards that establish clear expectations but also build in appropriate flexibility as to how solicitors meet those standards
public will be better able to understand our rationale for taking or not taking enforcement action in any case or circumstances
clarity about how seriously we view different behaviours will help solicitors and firms to understand what constitutes a serious, reportable, breach of our requirements
Enforcement Strategy:
provides clarity about how, and when, we will enforce (or not)
aims to help staff and the profession better understand the risks posed by different behaviours
facilitates proportionate action by outlining the aim behind different outcomes

8. CMA report
Specific recommendation to the SRA to remove regulatory restrictions to allow solicitors to practise in non-SRA regulated firms
Recommendations for regulators to:
- improve transparency and help consumers compare the quality and price of different providers
- reduce regulatory burdens in areas where they are not justified by risks to the consumer or public interest
Recommendation for Ministry of Justice to review the independence of the front line regulators

9. Better information, more choice
Legal services seen as expensive, hard to access and confusing
Lack of competition and innovation in market
Information we could publish: regulatory data, enforcement action, complaints data Information firms could publish: price, services, regulatory protections, insurance details, complaints details
Consultations closes on 20 December

10. Positive impacts of our reforms
Reduced information asymmetry Increased consumer participation in the market A more competitive market Opportunities for innovation and growth

11. Next steps Consultations close December 2017 Board decisions May 2018
Implementation
no earlier than
autumn 2018