SRA cuts COLP and COFA investigations from 964 to 139

The SRA has revealed that it has cut the number of disciplinary investigations into firms for COLP and COFA nomination failures from 964 to 139.

In April this year the SRA's board was told that there were 964 matters requiring some form of enforcement action, resulting from delay by firms in nominating compliance officers, failing to disclose suitability issues or provide other information.

The previous month, Antony Townsend, chief executive of the SRA, attacked solicitors for their "non-cooperation and non-disclosure" over COLP and COFA applications, which he described as "concerning and disappointing".

In a paper for today's meeting of the SRA's regulatory risk committee, the regulator said the current figure of 139 'live investigations' might increase as new work was identified.

A small group of 13 firms had nominated compliance officers and been refused, including some who had appealed unsuccessfully.

"Others have simply refused to renominate, have no one else suitable to nominate or are prevaricating in making a renomination. These firms will be referred to the enforcement team which will consider enforcement steps, such as revocation of recognition in appropriate cases."

The regulator said a further 16 firms had still not nominated compliance officers almost a year after the deadline on 31 July 2012, although this figure had been cut from 60.

The SRA said that of the 825 compliance officer enforcement files it had closed, 402 were dealt with by 'dear senior partner' letters, 215 required no further action due to lack of evidence or a satisfactory response having been achieved.

A further 195 files had been closed after formal letters of advice, while 13 had been the subject of adjudicator decisions, with associated costs orders.

"The ongoing investigations are becoming increasingly resource intensive as they each require a significant level of desk and field-based investigation to establish the reasons for the lack of co-operation or persistent failure to comply with the requirement to have compliance officers in place at each firm," the regulator said.

"The aim of the enforcement team is to complete the majority of the enforcement work by the end of September 2013 although for example, interventions as a consequence of any revocations may take longer to conclude."