Law Society Responds to the SRA Business Plan

Mandated SRA Reforms and Industry Response

e479f130: Welcome back to Compliance Pods for Legal Professionals, and just a reminder that the content of this podcast is for general information purposes only and does not constitute legal advice. So “Buckle up”. Because. Here. We. Go.

e479f130: Hi André, how are you?

Andre Grayson 2: I'm good thank you. Exhausted from reviewing the Law Society's response to the SRA's business plan, though.

e479f130: I know how you feel-it's quite chunky-there's a lot to look at, isn't there?

Andre Grayson 2: Absolutely, Paul. The Law Society’s response is, well, pretty robust. They’re not pulling any punches about the SRA’s scope and focus. I mean, they’re basically saying, follow Porter's Principle and “Stick to your knitting.” Prioritise core activities, don’t just add new workstreams unless there’s a real regulatory need. And, you know, I think that is important. It’s about making sure regulation is actually helping, not just piling on more for the sake of it.

e479f130: Yeah, and I think what’s interesting is how the Law Society’s really pushing for balance. They want the SRA to protect consumers, obviously, but also to respect solicitors as trusted advisors. It’s not about one side winning out over the other. I was at a SRA conference on AI recently—and chatting over coffee with partners in small firms-and they were anxious. They’re worried about being swamped by regulatory demands that just don’t fit their scale or resources.

Andre Grayson 2: And it’s not just small firms, either. The Law Society’s saying, look, regulation should enable good service at a reasonable cost. If you go too far, you risk making legal services less accessible, which is the opposite of what we want. I think they’re also wary of the SRA getting distracted by shiny new projects when there are still big issues with the basics—like authorisation and enforcement.

e479f130: That was my take-away too. And, you know, I don't think the Law Society’s being negative. They’re welcoming some of the SRA’s focus areas—like the SQE, EDI, and anti-money laundering. But they’re saying, let’s make sure it’s evidence-based, let’s collaborate, and let’s not lose sight of the day job. It’s a call for proportionate, targeted regulation, not a blanket approach that ends up hurting the profession and, by extension, the public.

Andre Grayson 2: Yes, and I think that’s a theme we’ve touched on before, especially when we talked about transparency and complaints in Episode 2. It’s about building trust, but also about not overwhelming firms with red tape. The Law Society’s response is basically, “Let’s work together, and let’s be smart about it.”

e479f130: So, let’s get into the nitty-gritty. The Law Society’s flagged what it sees as some pretty serious shortcomings in the SRA’s core functions—authorisation, supervision, enforcement, and especially client fund protection. And, well, the Axiom Ince collapse is the elephant in the room here. The LSB’s review was pretty scathing, wasn’t it? And we've still got the SSB debacle to come.

Andre Grayson 2: It really was. The LSB basically said the SRA dropped the ball on supervising high-risk firms and protecting client money. As a result, the SRA’s now got a set of directions from the LSB—measurable changes to governance, risk, and supervision, all due within the next year. That’s a big ask, and it’s going to take a lot of focus and resources. The Law Society’s saying, “Don’t underestimate how much work this is.”

e479f130: Yeah, and the Law Society’s also asking for more detail on how the SRA’s training its own staff to handle these complex cases. There’s concern about the quality of investigations, and with complaints on the rise, it’s not enough to just throw more people at the problem. It’s about effectiveness, not just volume.

Andre Grayson 2: And let’s not forget, the SRA’s got an action plan due—soon. The Law Society’s basically saying, “We’ll be watching.” And as you said, there’s another report coming on the SSB Group collapse, so there could be even more for the SRA to fix. It’s a bit of a perfect storm, really. The Law Society thinks the SRA needs to focus, reprioritise, and make sure it’s actually delivering on the LSB’s directions, not just ticking boxes.

e479f130: Right, and I think the message from them is, don’t get distracted by new initiatives until the fundamentals are sorted. The profession—and the public—need to see that the SRA can actually deliver on its core responsibilities. Otherwise, confidence is going to keep eroding.

Andre Grayson 2: Let’s talk about transparency and innovation, because that’s another big theme in the Law Society’s response. They’re pushing for more openness both around SQE data—like provider pass rates—and how the SRA’s spending the increased practising certificate fees. Which I think is a really good point. If you’re an aspiring solicitor, you need to know which providers are actually delivering results.

e479f130: And then there’s the whole area of tech adoption and responsible innovation. The SRA’s talking about safe testing environments, which I think is a smart move. At legal Compliance Support we've just set up a bit of compliance tech integration into a client's case management system. The key was not overwhelming them with too much at once. We started small, tested in a safe environment, and built up from there. It’s about making innovation accessible, especially for smaller practices that don’t have big IT budgets.

Andre Grayson 2: That’s so important. The Law Society’s saying, “Support small firms, don’t just set the bar higher and walk away.” And they’re right—if you want the profession to innovate, you need to provide real support, not just more rules. That means sharing best practice, offering incentives, and making sure guidance is actually practical. Otherwise, you risk leaving small firms behind.

e479f130: And it’s not just tech. The Law Society’s also focused on EDI, ESG, and anti-money laundering. They want the SRA to keep collaborating, use evidence, and avoid duplication. It’s about building a culture of continuous improvement, but also being realistic about what can be achieved with the resources available. I think that’s a fair ask.

Andre Grayson 2: Yeah, and as we’ve said in previous episodes, especially when we talked about AI and transparency, it’s all about balance. Push for progress, but don’t lose sight of the basics. And always, always keep the profession and the public in mind.

e479f130: Well, that’s probably a good place to wrap up for today. There’s a lot for the SRA to get right, and the Law Society’s response is a reminder that the profession’s watching closely. We’ll keep following these developments and bring you updates as things progress

Andre Grayson 2: Andre: next time on Compliance Pods for Legal Professionals. Stay compliant—stay safe.