SRA offers to help struggling firms
During the SRA’s nine-month pilot study last year they identified that a quarter of firms showed evidence of financial instability.
The SRA is urging these firms to contact them for support and advice.
They are already getting in touch with practices that may need help as part of the regulator’s new approach under outcomes-focused regulation.
The levels of financial instability found varied from a lack of adequate systems to wanting, or needing, to close.
The SRA supervisors will be offering guidance, which may include involving other agencies who can help or working with firms to pursue an orderly wind-down.
Marc Baker, head of supervision, urged firms to contact them when they start to experience problems, rather than leave it until the situation becomes more serious, or when it’s too late.
Mr Baker said: “There are a number of ways we can help provide support and guidance on the options available, particularly if mergers or changes to the regulatory status of an organisation are being proposed as part of a solution.
“We can also signpost to existing agencies such as LawCare, or the Solicitors Assistance Scheme as well as working with firms to ensure that the regulatory issues of any refinancing or restructuring are understood.”