The Solicitors Disciplinary Tribunal (SDT) challenges the Solicitors Regulation Authority (SRA) over proposed fining powers.
- The SRA’s proposals aim to introduce two new tiers of fining bands, potentially allowing fines up to £500,000.
- Critics argue that these changes could allow wealthier firms to see fines as mere transactional costs.
- The SDT insists that it provides a more consistent and transparent disciplinary process.
- Questions arise regarding the necessity and legality of the SRA’s proposed changes.
The Solicitors Disciplinary Tribunal (SDT) has voiced strong opposition to the Solicitors Regulation Authority’s (SRA) plans to implement new fining powers, which could allow the authority to impose fines up to £500,000. This marks a significant increase from the current threshold handled by the SDT for fines exceeding £25,000.
Criticism from various representative groups highlights concerns that wealthier firms might view these fines simply as ‘transactional events’, undermining the justice system’s deterrent effect. The SDT emphasised the potential for this new framework to reduce complex matters to mere arithmetic, without serving as a credible deterrent for serious breaches.
They assert that their tribunal is better positioned to deliver consistent and transparent decisions. The independence of the SDT, being separate from the investigatory process, assures a level of impartiality and thoroughness that critics fear might be lost under the SRA’s new proposal.
The SDT further questioned the necessity of the SRA’s proposed changes, asking why such significant alterations are warranted. Concerns were also raised about the complexity these changes might introduce. There is apprehension that the new bands may not adequately handle serious breaches if they are retained in-house by the SRA.
The proposed shift in fining powers comes as the SRA prepares for the possibility of being granted unlimited fining authority by the government, a power it currently holds over financial misconduct but seeks to broaden.
The SDT contends that an effective disciplinary system should entail a variety of sanctions, with fines being merely one component. They caution against summarily disposing of serious breaches through fines alone, as proposed, advocating instead for a more nuanced approach.
The ongoing debate underscores the tension between maintaining rigorous oversight and ensuring fair disciplinary practices in the legal profession.
