SRA Handbook

Fee determinations for acquisitions, mergers and splits

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Version 11 of the Handbook was published on 01/10/2014. For more information, please click 'History' Above

Regulation 5: Fee determinations for acquisitions, mergers and splits

The turnover of a recognised sole practitioner for the purpose of determining the fee for renewal of authorisation as a recognised sole practitioner is based on a historic turnover figure submitted to the SRA. Where in the 12 months following the submission of that figure a recognised sole practitioner merges or splits, a notice of succession identifying all recognised bodies, licensed bodies and recognised sole practitioners affected by the merger or split and any resulting apportionment of historic turnover figures for those firms will enable the SRA to ensure that the turnover figure on which the fee is based reflects the impact of the merger or split.

5.1

A recognised sole practitioner who has succeeded to the whole or a part of one or more recognised bodies, licensed bodies or recognised sole practitioners must within 28 days of the change taking place deliver to the SRA a notice of succession in the prescribed form.

5.2

For the purposes of regulation 5.1, "succeeded" includes any taking over of the whole or any part of a recognised body, licensed body or recognised sole practitioner, for value or otherwise.

5.3

A recognised sole practitioner who:

(a)

has split or ceded part of the practice to a recognised body, licensed body or recognised sole practitioner; and

(b)

wishes this change to be considered by the SRA when determining the recognised sole practitioner's next fee for renewal of authorisation as a recognised sole practitioner

must within 28 days of the change taking place deliver to the SRA a notice of succession in the prescribed form.

5.4

A notice of succession delivered under these regulations must:

(a)

identify all recognised bodies, licensed bodies and recognised sole practitioners affected by the succession; and

(b)

provide details of any resulting apportionment of the turnover figures for those recognised bodies, licensed bodies and recognised sole practitioners.

5.5

A recognised sole practitioner delivering a notice of succession under these regulations must seek the agreement of all affected recognised bodies, licensed bodies or recognised sole practitioners to the contents of the notice of succession.

5.6

Where a notice of succession is delivered to the SRA which has not been agreed by all affected recognised bodies, licensed bodies or recognised sole practitioners, the recognised sole practitioner delivering the notice of succession shall be treated as having made an application for the SRA to apportion the turnover figures of the affected recognised bodies, licensed bodies or recognised sole practitioners for the purposes of determining the fee for renewal of recognition.

5.7

Before apportioning the turnover figures under regulation 5.6, the SRA will contact any affected recognised body, licensed body or recognised sole practitioner identified in the notice of succession who has not agreed with the notice of succession and may require the production of additional information.

5.8

A turnover figure submitted to the SRA under this regulation shall be calculated in accordance with the SRA's prescribed method of calculation.

Guidance note

(i)

Regulation 5 will be repealed when Rule 8.3 of the SRA Authorisation Rules (which contains equivalent provisions) comes into force for sole practitioners.