In mid-December, the SRA published two thematic reviews: one into professional obligations and the other into probate and estate administration. Both reviews followed the release of the SRA’s 2023 Annual Assessment of Continuing Competence. The reviews are part of the SRA’s efforts to better understand how solicitors keep their knowledge and skills up to date. Thematic reviews involve in-depth site visits by the SRA to inform their work in key areas of focus. They then share any important findings with the wider profession so firms can benefit from the insights and best practice.
1. Professional Obligations Thematic Review Summary
One of the key findings from this review was that while each firm visited had regulatory controls, processes and systems in place, there was a considerable lack of regulatory knowledge, with some firms not using the resources provided by the SRA. They also found that:
- Most firms and individuals reviewed regulatory resources on a reactive basis – the SRA’s concern is that this approach may undermine the value of the guidance they publish and limit the opportunity to understand, anticipate and avoid risks and problems. As they state, dealing with an issue after the event, incurs more stress, time, money and people resources.
- Firms routinely use ad-hoc and undocumented means of dissemination of SRA regulatory guidance and resources. This may then lead to firms inadvertently creating a culture that permits poor regulatory knowledge to exist.
- In some firms there is an excessive reliance on Compliance Officers for Legal Practice (‘COLPs’) to understand and handle compliance matters. The important point to bear in mind is that each individual is personally accountable for compliance with the SRA’s regulatory requirements; this cannot be completely delegated. This, in turn, can encourage a lack of personal responsibility, while increasing the pressure on others.
While the firms spoken to were positive about the SRA’s regulatory resources, there is a demand for specific guidance based on the size and type of firm. The lack of knowledge of existing regulatory resources also means that there is a need for greater promotion.
Based on the thematic review, some firms may need to:
- Review how they are promoting and maintaining professional knowledge and skills within their organisations.
- Look at how they can make their existing systems and controls more effective and move away from an ad-hoc approach to regulatory matters.
- Ensure that solicitors are aware of their own professional obligations and do not rely solely on COLPs. As the review explains, “Whilst COLPs, commercial/regulatory third parties and compliance teams can support the maintenance of professional obligations, the responsibility is personal to each solicitor and cannot be delegated. Risks to consumers are heightened when firms and solicitors fail to recognise this”.
2. Probate And Estate Administration Thematic Review Summary
Following the 2023 Annual Assessment of Continuing Competence, the SRA also undertook a thematic review into how law firms providing probate and estate administration services maintain their continuing competence, manage the risks around handling estate monies and assets, and meet their obligations to clients and parties to the administration. To achieve this, they engaged with 25 law firms of differing types and sizes. The review looked at:
- Competence training and supervision
- Meeting client needs
- Acting as executor, and
- Protecting estate money and property
Competence, Training And Supervision
The SRA found that:
- 60% of the fee earners spoken to were not aware of their obligation to maintain their level of professional competence.
- Only 15 out of the 25 firms had a written continuing competence policy, but for seven of these, the head of department/fee earner was unaware of its existence.
- While most heads of department and all 15 fee earners completed formal training on probate and estate administration on a regular basis, it was principally focussed on legal and technical matters rather than other areas of the Statement of Solicitor Competence relevant to performing their role competently.
- Fee earners felt they had adequate and effective supervision, but of 30 files reviewed by the SRA, only nine showed evidence of supervision.
- Nearly half of the heads of department / sole practitioners visited by the SRA received no oversight of their work or peer review.
Meeting Client Needs
The thematic review found that all of the firms involved demonstrated a good awareness of client vulnerability and took a variety of steps to meet the needs of clients in vulnerable circumstances. The SRA found, however, that more could be done to meet the needs of clients including:
- Supplying all essential details regarding their case and the approach for handling it.
- Offering the most accurate and transparent cost information.
- Enhancing processes to guarantee efficient service and consistent updates.
- Recognising and resolving any complaints.
- Clearly outlining when and how interest on client funds will be accounted for.
Acting As Executor
The SRA found that the majority of firms spoken to were aware of the risks of a conflict of interest when acting as executor and administering the estate; however, only 12 of the 23 firms that act in the role of executor had additional controls to mitigate this specific risk.
Firms and Solicitors demonstrated that they handle executorship cases in a sensitive manner that reflects the often complex dynamics between many family members and co-executors under the stress of bereavement. It was found, however, that few firms offered residuary beneficiaries important client care, costs, and complaints information.
Protecting Estate Money And Property
The SRA was satisfied that most firms they spoke to maintain accurate and up-to-date client and office ledgers and records of estate assets and liabilities. Two firms, however, were not compliant with their obligations on accountant reports and as a result, the SRA has opened investigations into these. The review also found when it comes to protecting estate money and property:
- Most firms speak to having a written policy and/or procedure on how the firm would account to clients for interest on money held.
- Many firms have taken steps to reduce the risk of clients and beneficiaries being victims of cybercrime and scams.
- The firms spoken to had robust systems in place for the authorisation of payments from client accounts.
- Most firms completed identity checks on beneficiaries, with three completing checks if there was a heightened risk.
The SRA now plans to share the good practices they uncovered across the sector through a series of case studies, templates and checklists to support firms working in probate and estate administration. They also plan to use the information to support their ongoing work programmes in the areas of continuing competence and consumer protection review.
Final Words
It is clear from these thematic reviews that the SRA is keen to highlight good practices within the wider legal sector, including probate and estate administration while highlighting areas for improvement. As Paul Philip, Chief Executive of the SRA, explains:
“We are pleased to see examples of good practice, including how well firms handle the complex dynamics of probate, and an understanding of the link between client outcomes and compliance when understanding professional obligations. There is still room for improvement. Our wider review of continuing competence in 2025 will explore how we can drive better compliance, drive the right learning and development behaviours and better support solicitors to maintain their competence”.
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