Why should I?

Approximately £1.55million. That’s the total value of fines issued by the SRA from July 2022 until August 2024, according to its Professional Standards Annual Report published in December 2024. 96 fines were issued for an amount over £2000. See the full report here.

Against this background, it can be easy to think that compliance should simply be focused on avoiding fines from the SRA and be something to fear. 

In fact, compliance is there to protect firms and clients from unethical and illegal behaviour. It's the backbone of a strong and reputable profession. Law is such a fundamental part of everyday life and everyone must have confidence in the profession responsible for explaining, interpreting and upholding those laws. Compliance is a vital part of enabling that confidence. As the SRA says in its report: “Making sure solicitors are working to high professional standards is fundamental to confidence and trust in legal services. Most solicitors deliver to high standards, but when they fall short, we will step in and take appropriate action to protect the public”. 

A positive culture of compliance is vital to avoid compliance being seen by your teams as a blocker to work, or an unnecessary tick box that needs to be dealt with, without any thought being given to the reason behind it. 

How?

Get in touch for more detail but here are some simple pointers:

• It's a common theme amongst commentators that one of the primary requirements for a positive culture of compliance is management teams leading by example and actively promoting the desire for a positive culture.  If compliance is built into long-term plans, it’s much easier for it to be incorporated as part of a firm’s culture.  Although daunting for smaller Partnerships or Sole Trader law firms, it doesn’t have to be.  On a basic level, it’s about your people being able to see a positive approach towards compliance and a recognition of its importance. 

• Another key requirement is excellent communication. Find the best way of communicating expectations and any changes. Will it be on a departmental basis? Is it via messages from the Managing Partner? Is it as part of general updates amongst other topics? Whatever the format, I would suggest that a ‘drip feed’ approach to updating or reminding everyone of expectations is the best method of keeping compliance in focus, without it becoming overwhelming or time consuming.

• Acknowledging that you want compliance to be seen as an important part of culture also means it doesn't have to only be discussed if there has been a problem; it becomes part and parcel of everyday working life. It can be raised during quarterly or annual performance management reviews. Providing positive feedback to an individual about their approach to compliance is just as important as making sure that poor compliance is addressed.

• It’s important to keep up to date with changes and recommendations for best practice. Keeping up to date provides your people with confidence that you give compliance the respect that it deserves. In a difficult recruitment market, anything that helps maintain your reputation amongst your people is important.

• I’d also suggest that everyone should know what part they play. Training is a huge part of helping with that. Don't just provide law lectures for the whole team on an annual basis:  It’s not the best way of helping your team understand what's expected in your firm and why. Yes, teams need to understand the reason for compliance requirements, which will inevitably include explanations of the regulations, but make sure the training informs them how it is implemented in your firm on a practical basis. Whether the training is covering AML, data protection or conflicts of interest, there needs to be a balance of ‘why’ and ‘how’. If your team understands how they are expected to behave, or deal with a situation, they will inevitably meet the background requirements of the ‘why’. The more that this is built in day-to-day, the more it becomes ingrained as part of a culture of compliance.

What next?

Compliance measures can so often feel overwhelming, particularly for smaller firms who may not have an in-house compliance team. There’s no escaping that the same rules apply to all firms no matter their size. However, there is no one-size-fits-all approach and neither should there be. It's about finding out what works for your firm and providing consistent, reassuring messages to your teams. Let everyone see how you support compliance and the benefits it brings and it's amazing how quickly a positive culture of compliance can build.

I can help firms consider their existing compliance functions and make suggestions for improvements, including communicating with teams and helping to build a positive culture of compliance. For more information please contact me.