SRA keeps PC fee split

The Solicitors Regulation Authority has confirmed that its structure for setting practising fees for the next financial year will remain unchanged.

This means the existing 60/40 split between the PC fees paid by firms and individuals will remain, along with the existing 50/50 split in Compensation Fund contributions.

The SRA announced last month that the ‘landscaping phase’ of its review of compensation fund payments had already started. This followed victory in a battle with the Law Society at the end of last year over whether ABSs could, if necessary, be excluded from the scheme.

A spokesman for the regulator said work had started on a separate review of PC fees and data gathering was “due to start in the spring”.

The SRA also said that existing 50 per cent maternity leave discount on PC fees will remain. The regulator has previously said that, bearing in mind changes to the law on paternity leave, the issue needed to be looked at again, and the spokesman said that the maternity leave discount would form part of the fees review.

“The principles of the fee-setting structure include being fair to payers, being stable, and taking account of ability to pay,” he said. “They also state that fees should also be based on data that can be verified, and as simple as possible so that the profession can easily calculate contributions.

“The SRA is looking to ensure that all administrative charges and application fees made are aligned with the cost incurred to the business.

“The authority also wants to be more be transparent in how and what it charges, and is looking at the apportionment of its annual charges covering the cost of regulating the profession.”

The SRA’s Board approved the new fee structure when it met at the end of last month. It is the third year in succession that the structure has remained the same.