Form RBR – Recognised body renewal
Last updated 24 September 2009
Renew your firm's recognition for 2009/10
This is the prescribed form for recognised bodies to apply for annual renewal of recognition.
This form should be completed by all recognised bodies—partnerships, LLPs and companies including legal disciplinary practices (LDPs)—wanting their recognition renewed on 1 November 2009.
If this form is used, it is the personal responsibility of each manager to ensure that
- a completed application has been made on their behalf,
- that statements made on the form are correct, and
- the fee is paid—if we do not receive the fee, your application form will not be processed.
RBR Notes
It is important to refer to these notes to complete form RB Renewal. Click Quick links to content above to navigate to the relevant section. To return to the top of the page, use your browser's Back button; if you have a recent browser, click the arrow icon on the right of the screen.
About Form RBR
This is the prescribed form for recognised bodies to apply for annual renewal of recognition as part of firm based regulation, which improves our ability to regulate on the basis of risk.
The form should be completed by all recognised bodies (partnerships, LLPs and companies, including legal disciplinary practice (LDPs)) wanting their recognition renewed on 1 November 2009 to practise as a recognised body under the SRA Recognised Bodies Regulations 2009. You can also use this form to update us with any changes to your firm's contact details and management structure.
Along with this form you will have been sent the relevant practising certificate (PC) applications forms for members of the firm—it will help us to process them more quickly if you return the forms together.
All references (unless otherwise stated) mean the following:
You may find the FAQs section helpful when completing Form RB renewal.
How to use the form
Please answer all questions and complete all the relevant boxes. You may find it helpful to refer to the glossary at the end of these notes.
The form will be pre-printed with information we currently record about your firm. If any of this information is incorrect, please put a line through it and write your amendment(s) clearly. If you make an error when completing the form please put a line through any deletions. Do not use liquid paper.
If you are providing any additional information in separate sheets or documents, please provide a list of the enclosures and mark each document clearly with the section of the form to which it relates.
The declaration must be signed before submitting the form.
Please note that we will not be able to process your application until we have a completed application. This means an application that:
- includes the completed form and appropriate fee;
- shows compliance with the requirements of regulation 2.1 of the Recognised Bodies Regulations i.e. that:
- the firm's composition and structure comply with rule 14 of the Code,
- the firm has appropriate indemnity cover (the minimum level of cover is £2 million for partnerships and £3 million for LLPs and companies, for any one claim),
- at least one of the managers is a person qualified to supervise; and
- provides any additional information that the SRA requests in connection with the matters in regulation 2.5 of the Recognised Bodies Regulations or any other aspect of the application (we may be request this after you submit your application form to us).
How to contact us and where to return the form (and any additional information)
You can contact us on
Please return the form, fee and all supporting documents to
Operations
Solicitors Regulation Authority
Ipsley Court
Berrington Close
Redditch
Worcestershire
B98 0TD
Or DX 19114 Redditch
Useful information
Who to include on the form
You must include details of all managers in your firm. If any of the managers (see glossary) have left, please delete as appropriate. There is a section later in the form where you can provide details of any new managers.
The following can be managers:
- solicitors
- registered European lawyers (RELs)
- registered foreign lawyers (RFLs)
- exempt European lawyers
- other lawyers
- approved non-lawyers
- legally qualified bodies (this applies to partnerships and LLPs only)
Most of the terms referred to above are defined in the Code, and brief descriptions are contained in the LSA glossary of terms.
Partnerships – salaried or associate partners and others held out as partners. Anyone described as a salaried or associate partner, or otherwise held out as a partner, will be a partner of the firm (see rule 24 of the Code). Such individuals must be included in the relevant section of this form for managers e.g. section 8a or 8b for a solicitor partner. Note that they will also be managers of the firm for the purpose of rule 14 in relation to the 25% non-lawyer restriction on the number of non-lawyer partners, and the levels of non-lawyer voting rights and ownership.
LLPs – Please note that if your firm is an LLP you must have at least two managers (members).
Employees – If your firm uses Form RF1 for bulk renewal of practising certificates and registrations for RELs and RFLs, you can use Form RF1 to update us about your employees so that we can ensure that our records are accurate. If you do not use RF1, any new employees (including locums) who are solicitors, RELs or RFLs can update the SRA using RF3 (solicitors), RF7 (RELs) or RF4 (RFLs), or our Change of practising details form.
What if a non-lawyer hasn't been approved by the SRA?
In section 10b of the form, you should only show non-lawyers who have been approved by the SRA under regulation 3 of the Recognised Bodies Regulations. If you want to appoint a new manager who has not yet been approved, please complete an application form for approval of a non-lawyer (NL1) and, when approved, submit a Form NM1 (notification of a new manager).
Any proposed non-lawyer managers waiting for approval by us will not delay the RB renewal application. We will continue processing your RB renewal. Once the non-lawyer has been approved by us, they will be permitted to join the firm as a manager from the date of approval, which may be after your recognition has been renewed. Please note the date of approval cannot be back dated.
What should I do if there has been a major change to the firm, for example a merger or amalgamation?
The relevant forms will have been sent to you to renew the practising certificates and REL and RFL registrations in your firm. You can use the bulk renewal form (RF1) to notify us of the changes to your firm. If you do not use RF1, individuals can use the appropriate form for renewing their PC or registration to let us know of any changes.
How can I pay?
You can pay the full amount of your recognised body renewal fee by cheque, postal order, bank transfer or credit card. You may also pay your practising certificate/registration and recognised body renewal fees together in one payment, provided that the applications are sent to us together.
Please note there will be a handling charge of 1.75% for Mastercard/Visa/Maestro/Delta/Electron payments, and that we do not accept Diners or American Express. Please complete the credit/debit authorisation form (enclosed with the application form) if you wish to pay by credit/debit card and return it with your application form. If the credit card authorisation/cheque is not signed or payment is not enclosed, we will return your application to you. You may also pay by cash at your own risk, but the SRA will not accept responsibility for monies that we do not receive.
Who should I make the cheque payable to?
Please make your cheque payable to the Law Society and write your firm's SRA number (see "Firm details" section 1 of the form for your firm's SRA number) on the back of the cheque. All foreign cheques need to be endorsed, i.e. signed and dated on the reverse by the drawer. Please note that it may take up to 8 weeks for a foreign cheque to clear our account and your application will not be processed until cleared funds have been received.
Will I receive a receipt for the cheque and form?
The SRA does not issue receipts for application forms or cheques.
Section 1 – Firm details
Name of recognised body
This is the full name of the firm. This may not be the only name under which the firm will trade, but is the registered name which appears on the SRA 's register for recognised bodies.
SRA number
This is the firm's reference number which identifies the firm and appears on the SRA 's public register. You must show your SRA number, together with the firm's name, on your website and emails as well as on your letterhead (rule 7.07 of the Code).
Head office
Please check the main practice address and contact details of your head office and make any necessary amendments. Please provide the specific date(s) that any change(s) took effect so that we can update our records accurately.
Does the firm trade under any other names?
Please provide details in the "Additional information" box (and on a separate sheet if necessary) of all trading names that you use for your firm so that we can identify any part of the firm about which we are asked. For this renewal, you need to tell us all of your trading names even if you have given us details of some or all of them before (we hope to be able to pre-print these details on future renewal forms).
Please note that if you adopt any new trading name(s) between recognition and renewal, or between renewals of recognition, you must let us know as all trading name(s) must be shown in our register of recognised bodies (see regulation 12.2 of the Recognised Bodies Regulations).
If you practise under a style other than your registered name, you must include the firm's registered name (and SRA number) on your letterhead, website and email (rule 7.07 of the Code).
Please provide details in your covering letter if the firm will hold client money under any trading name other than your registered name.
Section 2 – Other offices
Please check the address and contact details of the other office(s) shown in section 2 and make any necessary amendments. If any of your offices shown in this section has been closed, please give the date of closure so that we can update your record.
Please note if your firm has no offices other than your head office, this section will be left blank in your application form.
Section 3 – New offices
We need to have details of all offices of the firm, including overseas offices, so that we know where the practice is located. Please provide the addresses and contact details of any new other offices and any other places of business from which your firm practises if they are not pre-printed in sections 1 and 2. Other places of business might be, for example, a consulting room of which you have exclusive use although no members of the firm are based there.
If you have more than one new office, please photocopy this section before completion and submit any additional pages with your list of enclosures (see the notes to section 20 – Returning the form).
Section 4 – Client money
Under the current rules (the Solicitors' Accounts Rules 1998 and rule 15.27 of the Code), applicable as from 31 March 2009, the questions in this section relate to:
- all offices of a recognised body in England and Wales
- offices of a "solicitor-controlled recognised body" (see rule 24 of the Code) outside England and Wales, except where the question specifies England and Wales
- offices of an " REL-controlled recognised body" (see rule 24 of the Code) in Scotland or Northern Ireland, except where the question specifies England and Wales
- offices outside the UK of a recognised body which is not a "solicitor-controlled recognised body" in respect of money held or received by a solicitor as a named trustee
- offices in Scotland or Northern Ireland of a recognised body which is neither a "solicitor-controlled recognised body" nor an " REL-controlled recognised body" in respect of money held or received by a solicitor or an REL as a named trustee.
In respect of the period before 31 March 2009 the questions relate to the holding of client money or controlled trust money as set out in the previous versions of the Accounts Rules and rules 15.27 and 23.01 of the Code (see previous versions of these rules in our change tracker).
Definition of client money
For practice in England and Wales, "client money" is defined in rule 13 of the Solicitors' Accounts Rules 1998.
Since 1 November 2008 has the firm held or received client money?
This section of the form will be pre-printed, please amend if necessary and provide the specific date of any changes to ensure we are able to update our records accurately (for further guidance see the notes to the next question).
You must answer the remaining questions in this section as the information will not be pre-printed, even if you have previously given the SRA this information.
Since 1 November 2008 has any individual in the firm:
- held or received client money?
- operated a client's own account as signatory in relation to practice from an office in England and Wales?
For practice in England and Wales—rule 35 of the Accounts Rules—see provides that if the firm or any individual in the firm holds or receives client money (including controlled trust money before 31 March 2009), or operates a client's own account as signatory (e.g. as an attorney) an accountant's report must be delivered.
For practice outside England and Wales, rule 15.27 of the Code requires you to submit an accountant's report if client money has been held or received in any of the situations set out above.
Has the firm ceased to hold client money?
You would answer "yes" to this question if the firm and all individuals within the firm have ceased to hold or receive client money (including controlled trust money, if applicable) and ceased to operate any client's own account as signatory.
The date you give will be the last date on which any such activity took place. We will expect a "cease to hold" accountant's report within six months of that date.
Individuals - Note that the accountant's report form sets out which individuals' names must appear on the report in addition to the name of the recognised sole practitioner, e.g. any employee or consultant who holds money as a trustee or operates a client's own account as signatory.
Section 5 – Person qualified to supervise
If the person pre-printed in this section should no longer be the named "person qualified to supervise" e.g. they may have left, please amend as necessary and provide the specific date the change took effect so that we are able to update our records accurately.
If this section is currently blank, please provide the name of "person qualified to supervise".
To comply with rule 5.02 of the Code, the firm must have at least one lawyer qualified to supervise. The lawyer qualified to supervise can be a manager of the firm, or, if the firm is a partnership or an LLP, a manager of a legally qualified body which is a partner of the partnership or a member of the LLP. (for details of the types of corporate body that can be managers, see rule 24 of the Code and section 12b (new legally qualified body managers) of the notes).
If the person is not a manager of this firm but is a manager of a legally qualified body manager of the firm, please provide details in your covering letter of the basis on which the person is the person qualified to supervise for this firm.
You may have more than one manager who is qualified to supervise, but for our records purposes we only require one name. Giving the details of one manager who is qualified to supervise does not impose additional responsibilities on that individual.
Non-solicitors and solicitors without 36 months of PCs – if the person qualified to supervise is not a solicitor (e.g. he or she is a licensed conveyancer) please provide evidence that the manager has been entitled to practise as a lawyer for at least 36 months within the last ten years. This may be, for example, by providing certified copies of their practising certificates (if appropriate) or a letter from their regulator confirming the position. This would also apply to a solicitor who has not held sufficient practising certificates but, for example, has practised as an overseas lawyer in the last ten years.
No person qualified to supervise – Please note that we will not proceed with your application for renewal of recognition if the firm cannot comply with rule 5.02. In such a case we will contact you. However, please note that your recognition could be revoked and you should take immediate steps to remedy the breach, for example by arranging to take on a new manager who is qualified to supervise. An alternative may be to apply for a waiver of rule 5.02 if one of the current managers is close to being qualified to supervise or has experience that may be regarded as providing exceptional circumstances. Please contact Professional Ethics for guidance on applying for a waiver (telephone 0870 606 2577 or email professional.ethics@sra.org.uk).
Management training – we do not ask you to provide evidence with this application that the manager qualified to supervise has completed the training required under rule 5.02(a) (presently 12 hours of management skills training), but this may be requested separately.
Section 6 – Main contacts
The SRA contacts firms at various times throughout the year. To help us ensure effective communication channels we ask for the details of the most appropriate contacts in a number of areas.
Please check the contact names, make any necessary amendments and provide the date(s) any change(s) took effect.
Firm contact – please name the most appropriate person for us to contact about issues relating to the firm as a whole, such as any regulatory or compliance issues relating to the firm, renewing the firms recognition, as well as, for example, canvassing information about or views from the firm. If this contact person is not a manager in a firm, he or she would need to be of sufficient seniority and responsibility to be the first point of contact for compliance issues that could arise relating to the firm and all managers.
Designated complaints handler – the person who is responsible for complaints handling (see rule 2.05 of the Code). If a number of people in the firm deal with complaints, the person named should be the most convenient contact.
Money laundering nominated officer – the money laundering nominated officer (also known as a Monday Laundering Reporting Office r) as required by the Money Laundering Regulations 2007. Most firms are required to have a nominated officer but not all (see the Law Society's practice note "Anti-money laundering practice note – 22 February 2008 ").
If you are not required to have a money laundering nominated officer please write "N/A".
Please note the nominated person should be of sufficient seniority and in a position of sufficient responsibility to enable him or her to have access to all of the firm's client files and business information. Firms regulated by the Financial Services Authority (FSA) will need to obtain its approval to the appointment of the nominated officer, as this is a controlled function under the FSA's rules.
Accountant's report contact – the most appropriate person for us to contact about the firm's accountant's reports. Please note this person should have sufficient responsibility for this purpose.
Financial Services Authority (FSA) compliance officer – the compliance officer is the individual within the firm who is responsible for ensuring compliance with the Solicitors' Financial Services (Scope) Rules 2001 and the Solicitors' Financial Services (Conduct of Business) Rules 2001 (see www.sra.org.uk/financial-services). The compliance officer need not be a manager or a solicitor, but ought to be someone with sufficient seniority within the management structure.
You may deal with a variety of insurance contracts such as life policies, after-the-event legal expenses policies, unoccupied property insurance, restrictive covenant and defective title indemnity policies. As the FSA regulates most contracts of insurance, you will need to consider whether you can carry out insurance mediation activities.
Insurance mediation is the term used to describe the financial services activities which arise in respect of insurance contracts. You will be carrying out an insurance mediation activity if you
- deal as an agent in contracts of insurance
- arrange, or make arrangements with a view to a person entering into, a contract of insurance;
- assist in the administration and performance of a contract of insurance;
- advise on the merits of buying or selling a contract of insurance; or
- agree to carry out any of the above.
Firms working from within the designated professional body (DPB) regime, which will be the vast majority of firms, will be able to carry out insurance mediation activities provided they can satisfy the basic conditions in the Solicitors' Financial Services (Scope) Rules 2001.
All firms carrying out insurance mediation activities (whether they are regulated by the FSA or not), must be included in the FSA Register and appoint a compliance officer. Firms which are not authorised by the FSA will appear in the part of the register known as the Exempt Professional Firms (EPF) register. We will ensure that firms regulated by us, under the DPB regime, will comply with this requirement if they advise us that they are carrying on insurance mediation, and provide us with details of the firm's compliance officer.
By providing the name of the firm's compliance officer, you are confirming that the firm carries out insurance mediation activities.
Training contact— the individual to whom all correspondence about trainee solicitors should be sent.
Section 7 – Indemnity insurance
The Solicitors' Indemnity Insurance Rules apply to all recognised bodies.
Name of qualifying insurer
You are required to submit details of your qualifying insurer's name, the policy number and period of cover. The list of qualifying insurers can be found at www.sra.org.uk/indemnity. Please ensure the details provided are not those of an insurance broker.
Period of cover
The indemnity year runs from 1 October – 30 September. You must ensure there is not a break in your firm's cover as this would breach the Solicitors' Indemnity Insurance Rules.
More than one insurer
If your indemnity insurance cover is provided by more than one qualifying insurer, please provide details of the additional policy(ies) in the additional information box on the form. In respect of each policy, please give the name of the insurer, the policy number and the period of cover.
Exemptions
If your firm has insurance under the home professional rules of an REL manager who has been granted exemption/partial exemption under appendix 3.1/3.2 of the Solicitors' Indemnity Insurance Rules, please provide the details requested of the exemption and of the insurance cover.
Assigned Risks Pool – if you have not been able to obtain indemnity insurance with a qualifying insurer you will be required to insure through the assigned risks pool (ARP) and you must show "assigned risks pool" as your insurer. Please provide the ARP policy number and the date on which the cover commenced. If your indemnity insurance cover is through the ARP, please provide details in your covering letter of the reasons you have not been able to obtain cover with the qualifying insurers.
You can contact the ARP for a proposal form at
Capita Commercial Insurance Services Ltd
40 Duke Place
London
EC3A 7NH
ARP@capita.co.uk, or
0870 402 7788
Evidence of cover
You do not need to send in evidence of the indemnity cover unless the SRA requests it.
The SRA will not renew your firm's recognition if you do not have indemnity insurance under the Minimum Terms and Conditions appended to the Solicitors' Indemnity Insurance Rules.
Section 8a – Solicitor/REL/RFL managers
All current solicitor, REL and RFL managers whose details have been notified to the SRA will be listed in this section of the form.
Please check the list of names. If a manager has left the firm please provide the specific date they left or plan to leave (if applicable) so that we can update our records accurately.
If any solicitor, REL or RFL manager has been omitted from the form you should enter his/her details in "section 8b – New solicitor/REL/RFL manager".
Section 8b – New solicitor/REL/RFL managers
Please photocopy this section of the form if you are providing details of more than one new solicitor, REL or RFL manager.
Under rule 14.07 of the Code, you must notify the SRA within seven days of any change to the firm's managers.
SRA number
Every solicitor, REL and RFL has a unique individual SRA number which should be included on the form.
Date joined
Please provide the specific date they joined or plan to join (if applicable) so that we can update our records accurately.
Main practising address (where the individual will be based)
Please provide the firm's address where the individual will work. If the individual will work from a number of offices please provide the address of the office where the individual would like their correspondence sent.
Name of previous firm (if applicable) and date left previous firm
Please provide the name of the individual's previous SRA regulated firm and the specific date they left or plan to leave (if applicable) so that we can update our records accurately.
Partnerships If your firm has salaried or associate partners or others held out as partners please refer to "Who to include on the form?" in frequently asked questions above.
Companies If your firm is a company you must also answer the last two questions in this section.
Registered member
Although most members of companies will also be shareowners, there may be instances where this is not the case.
Please state whether the manager will be a registered member of the company. A registered member (or member) is a person who holds a share in the company, whether on his or her own behalf or as nominee on behalf of someone else (or both). Please note that you may hold shares as nominee but only for an individual or body who or which is qualified to be a member or shareowner i.e. a solicitor, REL, RFL, EEL, an "other lawyer" (see the notes to section 9b below), an approved non-lawyer (or other person needing approval), or a legally qualified body.
A director need not be a member or a shareowner. Likewise, a member need not be a director or a shareowner; and a shareowner need not be a director or a member (except that a non-lawyer cannot be a member or a shareowner unless he or she is also a director). If you are not a director but hold and/or beneficially own shares, you should not be included here, but in section 13 (individual members and/or shareowners).
Shareowner
Please state whether or not the manager is a beneficial owner of any share in the company (whether or not the share is held in their name or by a nominee – for more details see "registered member" above).
Section 9a – Other lawyer managers
All current other lawyer managers whose details have been notified to the SRA will be listed in this section of the form.
Please check the list of names. If a manager has left the firm please provide the specific date they left or plan to leave (if applicable) so that we can update our records accurately.
If any other lawyer manager has been omitted from the form you should enter his/her details in "section 9b – New other lawyer managers".
Section 9b – New other lawyer managers
Please photocopy this section of the form if you are providing details of more than one new other lawyer manager.
Under rule 14.07 of the Code, you must notify the SRA within seven days of any change to the firm's managers.
Rule 14.02 places requirements on the steps that you must take before taking on a new other lawyer manager (see below). However, please note that the rules of other regulators may not permit such a lawyer to become a manager of your firm.
Other lawyers who can be managers
| Type of lawyer |
Approved regulator |
| Barrister |
Bar Council (through the Bar Standards Board)
www.barstandardsboard.org.uk
|
| Legal executive |
Institute of Legal Executives (through ILEX Professional Standards Ltd)
www.ilex.org.uk
|
| Licensed conveyancer |
Council for licensed conveyancers
www.conveyancer.org.uk
|
| Patent agent |
Chartered Institute of Patent Attorneys (through the Intellectual Property Regulation Board)
www.cipa.org.uk
|
| Trademark agent |
Institute of Trademark Attorneys (through the Intellectual Property Regulation Board)
www.itma.org.uk
|
| Law costs draftsman |
Association of Law Costs Draftsman
www.alcd.org.uk
|
| Notary public |
The Master of the Faculties
www.facultyoffice.org.uk
|
SRA number
If the other lawyer manager has previously been a manager in an SRA regulated firm, they will have a unique individual SRA number which should be included on the form. If they have not, and do not therefore have a number, please write "N/A".
Date joined
Please provide the specific date they joined or plan to join (if applicable) so that we can update our records accurately.
Main practising address (where the individual will be based)
Please provide the firm's address where the individual will work. If the individual will work from a number of offices please provide the address of the office where the individual would like their correspondence sent.
Name of previous SRA regulated firm (if applicable) and date left previous SRA regulated firm (if applicable)
Please provide the name of the individual's previous SRA regulated firm and the specific date they left or plan to leave (if applicable) so that we can update our records accurately.
Is the individual entitled to practise and not subject to a condition or restriction?
We are seeking confirmation that the firm has complied with the requirements of rule 14.02(1)(c)(ii) of the Code.
Please note that if the lawyer is authorised by more than one approved regulator, please give details in your cover letter of all legal qualifications and approved regulators. This would include, for example, a legal executive who is also a member of an establishment directive profession and is registered with the Bar Standards Board. In this case, please also provide the European professional title and jurisdiction of qualification.
Partnerships – If your firm has salaried or associate partners or others held out as partners please refer to "Who to include on the form?" in frequently asked questions above.
Companies – If your firm is a company you must also answer the last two questions in this section.
Registered member – see section 8b above
Shareowner – see section 8b above
Section 10a – Non-lawyer managers
All current approved non-lawyer managers whose details have been notified to the SRA will be listed in this section of the form.
Please check the list of names. If a manager has left the firm please provide the specific date they left or plan to leave (if applicable) so that we can update our records accurately.
If any approved non-lawyer manager has been omitted from the form you should enter his/her details in "section 10b – New non-lawyer managers".
Section 10b – New non-lawyer managers
Please photocopy this section of the form if you are providing details of more than two new non-lawyer managers.
Under rule 14.07 of the Code, you must notify the SRA within seven days of any change to the firm's managers.
SRA number
Every non-lawyer approved under 3.1 of the Recognised Bodies Regulations has a unique individual SRA number which should be included on the form.
Date joined
Please provide the specific date they joined or plan to join (if applicable) so that we can update our records accurately.
Main practising address (where the individual will be based)
Please provide the firm's address where the individual will work. If the individual will work from a number of offices please provide the address of the office where the individual would like their correspondence sent.
Partnerships – If your firm has salaried or associate partners or others held out as partners please refer to "Who to include on the form?" in frequently asked questions above.
Companies – If your firm is a company you must also answer the last two questions in this section.
Registered member –see section 8b above
Shareowner – see section 8b above
General information for section 10b
Individuals needing approval under regulation 3 of the Recognised Bodies Regulations – these fall into three categories:
- non-lawyers, i.e. individuals who are not members (practising or non-practising) of a legal profession of England and Wales, an Establishment Directive profession, or a foreign legal profession whose members are eligible to become RFLs;
- members of a foreign legal profession whose members are not eligible to become RFLs;
- non-practising barristers and non-practising members of other legal professions, who are prevented by professional rules or training regulations from changing status so as to be able to seek approval as practising lawyers.
Whichever of these categories the individual falls into, form NL1 will be the appropriate form to apply for approval of the individual.
Extent of non-lawyer involvement
Rule 14 of the Code set out complex provisions in respect of the extent of the non-lawyer management, ownership and control of firms that is permitted. The se provisions reflect the requirements of s.9A of the Administration of Justice Act 1985. In simple terms: no more that 25 per cent of your firm (by numbers of managers, proportion of ownership and voting rights) can be made up of non-lawyers, and only approved individual (and not corporate) non-lawyers may be managers. A non-lawyer must not have any ownership interest (or control any voting rights) in the firm unless he or she is an approved individual (under Recognised Bodies regulation 3) and is a manager in the firm.
Example
A non-lawyer must be approved under Recognised Bodies regulation 3 and must be a manager in the firm if he or she is:
a director of any company which is a legally qualified body manager in the firm
an owner (however indirectly) of any company which is a legally qualified body manager in the firm.
If the firm has a complex structure, in particular including any legally qualified bodies that involve non-lawyers as managers, owners or members, you will need to carry out a detailed review of your proposals to ensure compliance with the requirements of rules 14.01(2), 14.01(3)(a)-(e) and 14.02(1)(c)(iii)-(iv), and Recognised Bodies Regulations 3.1 and 3.2, and to ensure that you can sign the declaration in section 16.
Section 11a – Exempt European lawyer (EEL) managers
All current EEL managers whose details have been notified to the SRA will be listed in this section of the form.
Please check the list of names. If a manager has left the firm please provide the specific date they left or plan to leave (if applicable) so that we can update our records accurately.
If any EEL manager has been omitted from the form you should enter his/her details in "section 11b – New exempt European lawyer managers".
Section 11b – New exempt European lawyer (EEL) managers
Please photocopy this section of the form if you are providing details of more than two new EEL managers.
Under rule 14.07 of the Code, you must notify the SRA within seven days of any change to the firm's managers.
SRA number
EEL managers will have an SRA number if they have been recorded previously with the SRA (e.g as a non-REL, an EEL or an REL ). If they have not, and do not therefore have a number, please write "N/A".
Date joined
Please provide the specific date they joined or plan to join (if applicable) so that we can update our records accurately.
Main practising address (where the individual will be based)
Please provide the firm's address where the individual will work. If the individual will work from a number of offices please provide the address of the office where the individual would like their correspondence sent.
Office outside England and Wales?
A European lawyer cannot be an EEL if he or she is based at an office in England and Wales, unless he or she is registered with the Bar Standards Board as the equivalent of an REL.
Registered with the Bar Standards Board?
A European lawyer can be an EEL if he or she is registered with the Bar Standards Board as the equivalent of an REL, unless he or she is also a lawyer of England and Wales.
Lawyer of England and Wales?
A European lawyer cannot be an EEL if he or she is also a lawyer of England and Wales. This is the case, wherever the lawyer is based, and even if the lawyer is not entitled to practise as a lawyer of England and Wales.
Partnerships – If your firm has salaried or associate partners or others held out as partners please refer to " Who to include on the form? " in frequently asked questions above.
Companies – If your firm is a company you must also answer the last two questions in this section.
Registered member –see section 8b above
Shareowner – see section 8b above
Section 12a – Legally qualified body managers
This section is only relevant to applications from LLPs and partnerships. Legally qualified bodies are not permitted to be directors of company recognised bodies.
The current legally qualified body managers whose details have been notified to the SRA will be listed in this section of the form.
Please check the list of legally qualified body managers. If the body is no longer a manager of the firm please provide the specific date it ceased or will cease to be a manager (if applicable) so that we can update our records accurately.
If any legally qualified body manager has been omitted from the form you should enter the details in "section 12b – New legally qualified body managers".
Section 12b – New legally qualified body managers
This section is only relevant to applications from LLPs and partnerships. Legally qualified bodies are not permitted to be directors of company recognised bodies.
Please photocopy this section of the form if you are providing details of more than one new legally qualified body manager.
Under rule 14.07 of the Code, you must notify the SRA within seven days of any change to the firm's managers.
General information for section 12b
Structure and composition
The SRA is able to recognise a firm with a relatively complex structure, involving various tiers of ownership, provided that the structure and composition of all bodies in the firm satisfy the requirements of rule 14, and at least 75 per cent of the ultimate beneficial ownership in the recognised body is in the hands of lawyers.
Rule 14.04(1)(f) of the Code permits a body corporate which is a legally qualified body to be a partner—see rule 24 of the Code for a definition of "legally qualified body".
European corporate practice
Is defined in rule 24 but is essentially a body corporate (including in this context a partnership with legal personality) which was formed and functions in an Establishment Directive state but not in England and Wales, and has at least 75 per cent ownership and control by lawyers.
Questions in section 12b
SRA number
If the legally qualified body is a recognised body or has been a manager/member/shareowner of a recognised body previously it will have a unique SRA number which should be included on the form. If it has not, and does not therefore have a number, please write "N/A".
Type of body
Only a company, an LLP incorporated in England and Wales or Scotland, or a partnership with legal personality (see below) can be a legally qualified body. Please specify the type of body.
Partnership with legal personality
Whether a partnership has its own legal identity will depend on the jurisdiction under whose law it is formed. Examples of partnership which have separate legal identities are a general partnership formed under the law of Scotland, a limited liability partnership formed under the law of Jersey, and a general partnership or limited liability partnership formed under the law of Texas or California. Examples of partnerships which do not have separate legal identities are a general partnership or a limited partnership formed under the law of England and Wales, and a general partnership or limited liability partnership formed under the law of New York. A general partnership or limited liability partnership formed under Delaware law has legal personality unless the partners exercise their right to opt out of that status.
Authorised non- SRA firm
If the legally qualified body is an authorised non-SRA firm, please specify the approved regulator of the body.
Main office address
Please give the main office address of the body, which should be the registered office (including the country of incorporation) of a corporate body. If the body does not practise from its registered office, please write "non-practising office" against that address and provide details separately of the main practising address. Please note that the registered office of a recognised body must be a practising address of the firm.
Contact details
We do not ask for a contact name or details about the composition of legally qualifed bodies at this stage (although you must be satisfied that this complies with rule 14.01(3) of the Code). We ask for the website address so that, if we need to make contact or find out more about the body, we can obtain details from the website. If the body does not have a website, please write "N/A" – we will contact you for further details of the legally body if we need them.
Section 13a – Other individual members and/or shareowners
This section is only relevant to applications from companies.
All current individual members and/or shareowners whose details have been notified to the SRA will be listed in this section of the form even if they are managers of the firm and are mentioned in earlier sections of the form.
Please check the list of names. If an individual is no longer a member and/or shareowner please provide the specific date they ceased or will cease to be a member and/or shareowner (if applicable) so that we can update our records accurately.
If any member and/or shareowner has been omitted from the form you should enter his/her details in "section 13b – New individual members and/or shareowners".
Section 13b – New individual members and/or shareowners
This section is only relevant to applications from companies.
Please photocopy this section of the form if you are providing details of more than five new individual members and/or shareowners. You will need to include them here even if they are managers of the firm and are mentioned in earlier sections of the form.
Under rule 14.07 of the Code, you must notify the SRA within seven days of any change to the firm's members and/or shareowners.
SRA number
Solicitors, RELs and RFLs will have an SRA number, but EELs and other lawyers will only have one if they have been recorded previously with the SRA for example as a manager of firm. If they do not have a number, please write "N/A".
Member and/or shareowner?
Please tick the appropriate box(es) to confirm your whether each individual is a member and/or a shareowner.
Registered member – see section 8b above
Shareowner – see section 8b above
Date became member and/or shareowner
Please provide the specific date they became a member and/or shareowner of the firm, or the specific date they intend to become a member and/or shareowner of the firm (if applicable) so that we can update our records accurately.
Section 14a – Legally qualified body members and/or shareowners
This section is only relevant to applications from companies.
All current legally qualified body members and/or shareowners whose details have been notified to the SRA will be listed in this section of the form.
Please check the list of names. If a legally qualified body is no longer a member and/or shareowner of the firm please provide the specific date they ceased or will cease to be a member and/or shareowner to be (if applicable) so that we can update our records accurately.
If any legally qualified body member and/or shareowner has been omitted from the form you should enter the details in "section 14b – New legally qualified body members and/or shareowners".
Section 14b – New legally qualified body members and/or shareowners
This section is only relevant to applications from companies.
Please photocopy this section of the form if you are providing details of more than two new legally qualified body members and/or shareowners.
Under rule 14.07 of the Code, you must notify the SRA within seven days of any change to the firm's members and/or shareowners.
General information – for general information about legally qualified body members and/or shareowners see "Structure and composition" in the notes to section 12b above.
Notes to questions in section 14b
SRA number
If the legally qualified body is a recognised body or has been a manager/member/shareowner of a recognised body previously it will have a unique SRA number which should be included on the form. If it has not, and does not therefore have a number, please write "N/A".
Type of body
For details of these types of body see "Type of body" in the notes to section 12b above.
Main office address
Please give the main office address of the body, which should be the registered office (including country of incorporation) of a corporate body. If the body does not practise from its registered office, please write "non-practising office" against that address and provide details separately of the main practising address. Please note that the registered office of a recognised body must be a practising address of the firm.
Member and/or shareowner?
Please tick the appropriate box(es) to confirm your whether each body is a member and/or a shareowner.
Registered member – see section 8b above
Shareowner – see section 8b above
Date became member and/or shareowner
If you are providing details of new members/shareowners in this section please provide details in your covering letter of the specific date(s) that each body became a member and/or shareowner of the firm, or the specific date they intend to become a member and/or shareowner of the firm (if applicable) so that we can update our records accurately.
Section 15 – Other information
In this section we are seeking information to help us understand more fully the ways in which firms actually practise, and therefore develop a profile of the profession and potential regulatory risk factors. Our aim is to develop a system of risk-assessment so we are better able to target our resources and pre-empt regulatory difficulties in the interests of the public and the profession.
We are trying to gather information on a number of matters including information about professional independence and areas of influence that might affect firms. We need this to help us establish that firms are complying with the law and are not subject to any improper control. Although firms can now have broader ownership and control, the Legal Services Act 2007 and the Code still require majority ownership and control (75%) by lawyers, and control only by the owners and managers of a firm. You may find it helpful to refer to our guidance on independence, ABSs and "jumping the gun" which can be found on our website.
We hope that the information will also help us to develop our understanding of professional independence, and how this can best be applied in the new regulatory framework to alternative business structures.
This will be a continuing project to improve our regulatory effectiveness, so at each annual renewal of recognition we will ask for updates of the information you provide.
The information may be taken into consideration in your application for renewal of recognition under 2.5 of the Recognised Bodies Regulations. However, we are unlikely to exercise discretion to refuse an application based only on the information provided in this section, although it may lead us to contact you and make further enquiries to help us with the decision.
1. Associations – Introductions and referrals
Rule 9 of the Code sets out the requirements concerning referrals of business.
Please tell us if your firm has any arrangements with third parties (other than with lawyers) for introducing clients now or in the future, even if there is no "financial arrangement".
If you have answered "yes", please give us the following details in respect of each introducer, on a separate sheet:
For detailed guidance on referrals visit www.sra.org.uk/referrals.
Associations – Sharing fees
Rule 8 of the Code sets out the types of fee-sharing arrangements that firms can have.
Please tell us whether your firm has any arrangements with any individuals or organisations outside of the firm (other than lawyers or their firms) to share its fees with another party, or to receive a share of the fees of another party, now or in future.
If you have answered "yes" to either question, using a separate sheet, please give us the following details in respect of each third party:
2. Involvement/influence
Please provide details of any contractual or other type of relationship that the firm or any of the managers has that might affect, or might be perceived to affect, the integrity or independence of the firm. This type of situation is likely to be unusual, but might arise, for example, where
- an individual's role in the firm could include being a representative in any way of a non-lawyer body which he or she is involved in
- the role or involvement of an employee in the running of the firm includes some element of control over it
- finance agreements or loans to your firm have particular strings attached
- certain contractual conditions in agreements with referrers of business or funders effectively pass control of your firm to an outside body
- granting an option to purchase your interest in your firm is for nominal value
- you form a relationship or enter arrangements that put any outsider in de facto control of any votes in a directors' meeting.
If you have answered "yes", please provide details on a separate sheet of the relevant circumstances.
3. Other roles
This question is not aimed at trying to identify, for example, where managers work on a part-time basis or are involved in "out of work" activities such as coaching the local football team. What we want to identify is whether there are certain types of situation where firms' effectiveness, or even compliance, might be affected by other activities of the directors. This may be as a result of time spent away from the firm, or the nature of another role might in some way interfere with responsibilities to the firm and clients.
If you have answered "yes", please provide details on a separate sheet of the relevant manager(s) and a brief summary of the relevant role(s) he or she has outside of the firm. Again, this type of situation may well be unusual, but might arise, for example, where
- a manager, particularly if he or she is the only person in the firm who is "qualified to supervise", plays a major role in another firm or is, for some other reason, frequently absent from the firm
- a manager is a member of or owns a non-legal business, the business demands of which (perhaps a need for capital input) might affect the firm
- a significant number of non-executive directorships that are not related to the work of the firm are held by a manager, or where the nature of such positions, may compromise the manager's role or work in the firm.
We do not intend to capture here information, for example, about trusteeships if these roles are undertaken as part of the normal activities of the managers as representatives of the firm and do not clash with the interests or needs of the firm.
4. Gross fees
The information requested is intended to mirror that sought by the qualifying insurers, but note that we only request details of your fees from work from your offices in England and Wales.
This information will help us to develop our profiles of firms and, importantly, we hope that it will help us to develop a more effective system of collecting fees and contributions. We now regulate on a firm-based approach and our aim is to develop a fee model that reflects this and is transparent and fair.
It is acknowledged that information about firms' fees is commercially sensitive. We will use it for regulatory purposes only and it will not be used in a way that allows the information to be attributed to a particular firm.
For these purposes gross fees means all professional fees of the firm for the latest complete financial year including remuneration, retained commission, and income of any sort whatsoever of the firm and notarial fees where a solicitor notary operates a notarial practice in conjunction with a solicitor's practice, but excluding only:
- interest;
- the reimbursement of disbursements;
- any amount charged in respect of value added tax;
- remuneration derived from any office excluded from the definition of private practice by the Minimum Terms & Conditions appended to the Solicitors' Indemnity Insurance Rules;
- dividends;
- rents received by the firm;
- income and capital profits from reserved funds established, or other investments made, by the firm.
(Definition taken from Appendix 2 Minimum Terms & Conditions appended to the Solicitors' Indemnity Insurance Rules.)
5. Areas of work
This information will give us a better understanding of both the areas and range of work that firms undertake to help develop our risk assessment approach to regulation. The information is not intended to be used in isolation in any individual regulatory matter.
The list of work areas provided on the form is one that is intended to cover all of firms' work types so that we have comparative data – please do not alter the categories. If for some reason your work cannot be fully covered by these categorisations, please provide details in your covering letter as this will help us when we review the categories.
The total percentages of your work types should add up to 100% but if there is a minor discrepancy this will not necessarily cause a difficulty.
This is a step in developing our risk assessment work and we appreciate that the categorisations may not be ideal for all firms. If you have difficulties, you should provide the best information that you can, with full details in a covering letter of specific issues encountered in completing the form and how you have approached this. Your feedback is important. Your choice of category will depend on the particular work you have undertaken but the comments and suggestions below may assist with areas where we think firms might have differing approaches.
Arbitration and dispute resolution—this will include alternative dispute resolution and arbitration work. "Litigation – other" would encompass all those types of dispute work not specifically covered elsewhere in the list.
Commercial/corporate work for public or non-public companies (i.e. listed and unlisted companies) – in circumstances where you act in relation to both listed and unlisted companies you may need to decide between these risk categories. For example, if you act for a group of companies where some are not listed but the parent company is, the work is likely to be best categorised as for public companies. Likewise, if acting for a listed company in acquiring an unlisted company the work may also be best categorised as "public".
When carrying out commercial/corporate work for non-corporate clients, such as a building society, an LLP or a government body, this can be included in the "commercial/corporate for non-public companies" category—please give details of what has been included.
Landlord and tenant – all such work should be included, whether the work is commercial or domestic.
Other work areas – the list of work types is intentionally short and cannot include all categorisations that will be used by firms. However, the following comments may help:
Banking/ international capital markets/competition/anti-trust/solvent re-structuring work – These work types are not separately categorised at this stage. The y are likely to be most appropriately included within "Commercial/corporate" category.
Pensions – Much pension related work, such as establishing and running funds, advising on issues relating to on-going funds, and so on is likely to be classed as "employment", but there could be variations, for example pension dispute resolution would be more appropriately included within "litigation – other". In some instances the commercial/corporate category may also be appropriate.
Regulatory investigations – This is more likely to be more appropriately included in "non-litigation – other "than in "criminal" or "commercial/corporate".
6. Fee earners
We are aiming here to get a picture of the overall number of fee earners in firms, and expect that this is management information that firms will have to hand. We are only aiming to get a "snapshot" of the firm at the time you complete the renewal application. It is not intended to be a highly technical calculation, although if it appears later that details have been misrepresented this will be treated seriously.
The number of fee earners you have means the total number of full time equivalent ( FTE ) individuals (both lawyer and non-lawyer) generating fee income for the firm.
Examples of fee earner roles:
- Solicitor or other lawyer e.g. barrister, legal executive, etc.
- Trainee solicitor
- Paralegal, research assistant, non-lawyer consultant
- Specialist support staff
- Professional support lawyers and lawyer managers (indirectly contributing to fee income)
- Support/administrative staff doing fee earning work
This would exclude support/administrative staff whose work might result in incidental expenses/disbursements such as charges to a client for photocopying but would include, for example, member of staff photocopying a bundle of documents for court if they had reviewed the file and decided the contents of the bundle themselves.
Example – a solicitor whose role is dedicated to client matters and who works 3 days per week, should be counted for these purposes as equivalent to a non-lawyer who spends 60% of their time on activities which generate fee income for the firm and 40% on non-fee earning activities (e.g. administrative support). Each of these individuals would represent 0.6 FTE.
7. Negligence claims
We are seeking information on the number of claims made or intimated to the firm in the last indemnity period, as well as those that have been paid, which is likely to reflect the information that you will have prepared for indemnity insurance renewal. We understand that such information is unlikely on its own to be indicative of risk, but as part of a greater range of information it will help us to identify whether there are combinations of factors that might indicate risk patterns.
Claim – For these purposes a "claim means a demand for, or an assertion of a right to, civil compensation or civil damages or an intimation of an intention to seek such compensation or damages. For these purposes, an obligation on a firm and/or any insured to remedy a breach of the Solicitors' Accounts Rules 1998 (as amended from time to time), or any rules which replace the Solicitors' Accounts Rules 1998 in whole or in part, shall be treated as a claim, and the obligation to remedy such breach shall be treated as a civil liability for the purposes of clause 1 (see below), whether or not any person makes a demand for, or an assertion of a right to, civil compensation or civil damages or an intimation of an intention to seek such compensation or damages as a result of such breach" (Minimum Terms & Conditions appended to the Solicitors' Indemnity Insurance Rules).
Note – Clause 1 of the Minimum Terms & Conditions deals with the scope of cover provided by the indemnity insurance in the case of civil liability.
Section 16 – Character and suitability of managers
In considering an application for renewal of recognition, the SRA can take of account of whether it is satisfied that the managers are suitable to run and manage a business providing regulated legal services (2.5 of the Recognised Bodies Regulations – see the notes to section 17 below).
Regulation 3.1 – All managers must declare whether they have been subject to or affected by any of the matters listed in Regulation 3 of the Practising Regulations since their last declaration to the SRA.
Honesty, integrity and respect for law – All managers must also declare if they have been involved in other conduct which calls these matters into question since their last declaration to the SRA.
You must provide information about matters which are not the subject of another question on the form, but are or may be relevant to the consideration of your character and suitability—for example:
- a caution,
- a warning,
- an Anti-Social Behaviour Order,
- a charge/conviction relating to an offence which is not indictable,
- an investigation or any disciplinary action by a professional/regulatory body since you were last issued with a practising certificate/registration.
- You will need to provide all documentation relating to such matter(s).
Period of declaration – the period that this declaration should cover may vary for individuals. Solicitors will have made a declaration at the time of issue of their last practising certificate; RELs and RFLs at the time they applied to be registered and on renewal of registration; and non-lawyers and others needing approval to be managers will have made declarations regarding character and suitability in the application for approval.
Other lawyers may have made a previous declaration to the SRA, for example on joining as a manager when a new firm was set up, or as a manager on renewal of recognition of a recognised body. If they have made a previous declaration, they should declare or update details of any such occurrences since the last declaration. If they not made a declaration to the SRA before they should provide details of any such occurrences.
Legally qualified bodies – some of the matters listed in regulation 3.1 only relate to individuals, but to the extent that they may relate to a legally qualified body, you must declare any such matters and give details. Again, periods of declaration will vary, for example a recognised body will have made a declaration at the time of its last renewal of recognition, whereas an authorised non-SRA firm may not previously have made such a declaration to the SRA.
Spent convictions – Please note that convictions which are "spent" under the Rehabilitation of Offenders Act 1974 must be disclosed by virtue of the Rehabilitation of Offenders Act 1974 (Exceptions) (Amendment) (England and Wales) Order 2008.
Section 17 – Declaration of compliance
Knowingly or recklessly giving the SRA information which is false or misleading in a material particular, or failure to inform the SRA of materially significant information of which the firm or the managers are aware, may lead to disciplinary action by the SRA or revocation of the body's recognition.
The SRA reserves the right to carry out or to request you to carry out fresh checks in relation to the firm's or managers' compliance with the SRA 's rules and relevant legal requirements.
Who may sign? – the form must be signed by a solicitor or an REL who is a manager of the firm and who is authorised by all managers of the firm to make the declarations in section 17.
If the firm is a partnership or an LLP and there are no individual partners or members in the firm, the form may be signed by a solicitor or an REL manager of a body corporate manager of the firm, who is authorised by all managers. If the person signing is not named in section 8a or 8b of the form, please provide details in your covering letter of the capacity in which he or she signs the form.
Signing the form – when you have completed the form on behalf of the firm please clearly and accurately state your full name and SRA number, and sign and date the declaration.
Determination of application – under regulation 2.5 of the Recognised Bodies Regulations, the SRA may defer renewal of recognition pending a decision on whether the body's recognition should be revoked under regulation 9.
Appeals – under Recognised Bodies Regulation 7, you can appeal against a decision of the SRA to revoke the body's recognition or to impose a condition. Note that there are time limits.
Conditions – The SRA may also decide to renew recognition subject to conditions which we consider appropriate in the public interest (regulation 4.1(b)), for example preventing the firm undertaking certain activities.
Notes to Section 17 declarations
1) All managers must be named on the form.
2) The firm must comply with the fundamental requirements for recognised bodies contained in rule 14.
- Rule 14.01(3)(a) to (c) of the Code sets out the restrictions on the level of non-lawyer ownership and control of a firm. For background and details of the rule, see the notes to section 10(b).
- Rule 14.01(2)(a) of the Code requires solicitor or REL participation in the firm.
- Rule 14.01(3)(d) of the Code sets out the requirement that all owners of a recognised body and anyone who exercises or controls the exercise of any voting rights in the body.
- Rule 14.01(3)(e) provides a limited exception to the requirement in rule 14.01(3)(d) that a non-lawyer owner must also be a manager of the firm.
3) Rule 14.02(1)(c) of the Code sets out the steps that the firm must take to satisfy itself on eligibility before taking on a new manager who is a lawyer of England and Wales who is not a solicitor, or is a non-lawyer or other person requiring approval to be a director. Different steps are required in each case.
For details of rule 14.02(1)(c)(ii), see the notes to section 9b (other lawyers) and for details of rule 14.02(1)(c)(iii), see the notes to section 10b (non-lawyers).
Section 18 – Welsh language certificate
Please indicate if you wish your certificate to be printed in Welsh.
Section 19 – Fees
The fee for the application for renewal of your firm's recognition will be £180.
The fee for recognition includes the Compensation Fund contribution for the firm.
How to pay – please refer to our information on "Ways to pay".
Your application will not be accepted without the correct fee.
Section 20 – Returning the form
Please provide a list of any additional documents that you are sending, including additional pages, other supporting documents and information, and any other forms. Please mark each document clearly with the section of the form to which it relates.
Please send the form, appropriate fee and all documents to the SRA 's postal or DX address given in section 20 of the form.
Section 21 – Application checklist
Please refer to the checklist to ensure that you have completed the form and provided the information we need, so that we can deal with your application as quickly as possible.
Glossary of terms
Refer to our glossary of terms.
Please use www.sra.org.uk/rbr to link to this page.