Managing risk: how to avoid breaches of the SRA Account Rules

By Osprey Approach.

Despite being an integral part of every legal practice, breaches of the SRA Accounts Rules are the single biggest reason why law firms are intervened by the SRA.

Why? Because they are so easy to fall foul of. Whether it’s breaches due to mismanagement, or a lack of control over the financial aspects of the firm, many firms are caught out each year.

In 2019, the SRA asked 400 law firms to demonstrate compliance with the 2017 Money Laundering Regulations – and over a fifth were not compliant.

In most cases, having out of date case management and accounts software is a significant contributing factor.

Manage your risk and stay compliant

Working in collaboration with Alex Simons, legal accounting expert at The Law Factory, we’ve published a guide, which sets out each of the main SRA Accounts Rules and how legal tech can help you manage risk whilst complying with the rules.

Our helpful guide covers all of the key areas:

• Part 2: ensuring you comply with the rules around the management of client money and client account, including your duty to correct breaches and payments of interest;
• Part 3: how to deal with other money belonging to clients or third parties and the necessary procedures to follow; and
• Part 4: Obtaining and delivery of accountants’ reports. This is critical for compliance, since the reports contain all the key information required for SRA audits.

Across all areas of the SRA Accounts Rules, legal software can help keep law firms compliant. Legal tech can also assist with implementing better working habits and practices that increase efficiencies and quality across operations resulting in better compliance and risk management overall.

Download the complete guide for free here.