'Data mismatches' hit COLP and COFA approvals

Around 200 law firms have had their compliance officers approved by the SRA but have not been informed because of ‘data mismatches’ or discrepancies between the information given by the firms and that currently held by the regulator.

The SRA also said today that 152 firms had still not completed the process for nominating COLPs and COFAs, almost six months after the deadline of 31 July 2012, and enforcement action against them had commenced.

In an update in advance of tomorrow’s board meeting in Birmingham, the regulator said it had approved the COLPs and COFAs of 9,165 firms or 94.5 per cent of those which had completed the process for nominating their compliance officers.

A higher proportion of firms, 98.5 per cent of the total, had completed the process.

As far as ‘data mismatches’ were concerned, the SRA said all the firms involved had been contacted and were expected to be notified of approvals by the end of this month.

The regulator said that a further 579 firms had completed nominations, but these had not yet been approved.

“This is for a range of reasons, including declarations that have required further investigation, those who have failed to disclose suitability issues subsequently identified by the SRA and nominations that were made late,” the SRA said.

“Outstanding nominations continue to be progressed by the SRA and firms will be notified as these are concluded. In the vast majority of cases this will be by the end of January.”

SRA executive director Samantha Barass (pictured) said: “In general, our strategy to achieve compliance by engaging with firms to actively seek alternative nominations, encourage completion of nominations and investigate issues that have been identified, has paid dividends.

“Enforcement action will be proportionate and will range from letters of advice, fines, rebukes, through to revocation of authorisation, and referral to the Solicitors Disciplinary Tribunal.

“The importance of having the right people in place in these key compliance roles cannot be underestimated and we are pleased at the high levels of co-operation we have received from the great majority of firms.”