The Solicitors Regulation Authority (SRA) had been planning to abolish the requirement for legal practices to submit an annual independent accountants’ report detailing how they have managed client money during the year.
Following consultation and the receipt of many concerns from within the profession (and their clients!) the SRA have now announced that the requirement is to remain in place for the vast majority of law firms, although only qualified reports will need to be submitted to the SRA in the future.
The accountant’s report is the only independent review of a firm’s client accounts and the abolition of that safeguard could have put clients’ money at risk. This change of heart will therefore be welcomed by many.
The Accountants Report can also be used to highlight areas where improvements could be made in a Firm’s systems and procedures and therefore Principals should understand that the Report can have a positive impact on the running of their business and they should not necessarily view it negatively as just a report on the things they have got wrong.
If you have any queries or you would like further information, please feel free to contact your local Burgis & Bullock office on 0845 177 5500.
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