SRA proposed minor changes to the Accounts Rules at 5 December 2023
You may be aware that we were imminently awaiting the outcome of the SRA’s consultation on proposed minor changes to the Accounts Rules; the proposed changes were awaiting approval from the Legal Services Board.
On Monday 5 December, the SRA issued a press release to confirm that the current proposed changes are being placed on hold, in order for the SRA to review its consumer protection arrangements. The statement reads as follows:
“In light of recent events, including Axiom and a general increase in the number and size of interventions, we have decided that it is necessary to review our consumer protection arrangements. This includes reviewing risks to client money and the effectiveness of our current arrangements for protecting against them. We have reflected carefully and do not feel that it is the right time to make minor changes to the Accounts Rules while we are reviewing these wider issues.
If we do not change our policy on our Accounts Rules following this review, we then plan to seek approval for these minor changes."
This statement suggests that further amendments to the Accounts Rules may be coming following this review but, if not, approval for the current proposed changes will go ahead.
Our contacts at the SRA told us that in regards to amendments to the Accounts Rules their response to the Axiom Ince intervention meant that they decided it is necessary to review its consumer protection arrangements, which includes reviewing risks to client money and the effectiveness of its current arrangements for protecting against them. Having reflected carefully, the SRA does not feel that it is the right time to make changes to the Accounts Rules while they are reviewing these wider issues. If their policy remains unchanged following their review, they will go back to the Legal Services Board to seek approval of the rule changes.
As your professional body, we will update you as soon as any further news and announcements are made.
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Karen Edwards FCILEx ILFM(Dip)
Head of Professional Development
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