SRA pauses rules on separating compliance and firm leadership roles
The regulator says it will not roll out planned rules requiring separation of compliance and unilateral roles in firms as scheduled in January, after feedback on potential unintended consequences for smaller firms.
Automated report. This article was drafted with AI assistance from the sources listed below, without a human writing step. Law Week labels every article produced this way. A person is answerable for it: if something here is wrong, write to editor@lawweek.co.uk and we will correct it on the page and say what changed.
The Solicitors Regulation Authority has said it is pausing to take stock on the introduction of new rules that would require the separation of compliance and unilateral roles within firms, meaning the rules will not be rolled out in January as originally planned.
In a statement published on 22 October 2026, the SRA said the pause followed feedback that its original approach could have had unintended consequences within smaller firms and sole practices. It said the pause would allow it to work with stakeholders, including through working groups, to explore issues relating to the proposed separation rules, test alternatives and consider wider approaches to governance arrangements in firms it regulates. Once a decision on future approaches and requirements has been made, the SRA said it would ensure there is an appropriate lead-in time for firms to implement any changes needed.
Key points
- The SRA said it brought forward new rules earlier this year designed to strengthen the checks and balances provided by compliance officers where single individuals have significant power within, and control over, a law firm.
- The pause on the separation rules was announced in September, according to the statement.
- The SRA said it is introducing new approaches for understanding and managing risks in firms as part of a supervision pilot, and is also looking at adopting proactive approaches to supervising firms where it identifies potential higher risks.
- Through enhanced engagement, the SRA said it will develop strategies for ongoing monitoring of higher-risk firms and take corrective action where required.
- The SRA said it is seeking assurances that firms have appropriate governance arrangements in place and that their compliance function is able to operate with the necessary independence.
Why the SRA paused the rules
The SRA said the pause on the proposed separation rules follows feedback that its original approach could have had unintended consequences within smaller firms and sole practices. It said the pause will give it the opportunity to work with stakeholders, including through working groups, to further explore issues relating to the proposed rules, test alternatives, and consider wider approaches to making sure appropriate governance arrangements are in place in firms it regulates.
What the SRA is doing in the meantime
The SRA said that, as part of its supervision pilot, it is introducing new approaches for how it understands and manages risks in firms, and is also looking at adopting proactive approaches to supervising firms where it identifies potential higher risks. It said this approach will increasingly be adopted more widely to ensure it identifies and responds to risks of consumer harm.
Aileen Armstrong, Executive Director, Strategy and Policy, said: ‘As the regulator, we are committed to acting decisively where consumers are being placed at potential risk of harm. This includes both targeted activity with individual firms and working toward the introduction of wider regulations and requirements which will safeguard consumers of legal services. Already we have had productive conversations with stakeholders and will have even more moving forward. The insights we gain from these discussions are proving very useful in helping refine and develop our next steps.’