A new approach to
regulating small firms
Small firms – One size doesn’t fit all
• Small firms account for c. 34% of our (nonABS) 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...
A lack of
information
about key
processes and
decisions
Concerns
about the
volume of SRA
updates
Need more advice
about setting up /
closing down (and
financial issues
generally)
Some
Authorisation
processes are
difficult and take
too long
Issues
engaging with
Supervision
and accessing
advice
General
issues with
the SRA
Handbook
Supervision
processes take
too long
Don’t have
time for SRA
visits and see
them as a
threat
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
[email protected]