Fines for solicitors who break the rules would rise, under Solicitors Regulation Authority (SRA) proposals unveiled last week
The SRA proposes introducing an extra two fining bands, E and F, as well as minimum fine levels for each band, from £5,000 for Band A, £50,000 for Band D, £200,000 for Band E and £500,000 for Band F.
The penalty for a Band E breach would range from 6% to 10% of a firm’s annual domestic turnover and 113% to 145% of an individual’s income. Band F would be a higher percentage and only apply to the most serious misconduct. For example, a firm with a £1m turnover could be fined £500,000 where a partner embezzled £25,000 client funds.
The SRA consultation, ‘Financial penalties: further developing our framework’, closes on 20 September.
Paul Philip, chief executive of the SRA, said: ‘It is important that we have a robust approach in place.’
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