SRA Handbook

Reporting requirements

Version 21 of the Handbook was published on 06/12/2018. For more information, please click 'History' Above

Part 4: Reporting requirements

Rule 3: Reporting requirements

3.1

The SRA does not expect or require the same level of detailed monitoring, reporting and notification from those practising overseas as it would expect of authorised persons and authorised bodies in England and Wales. The level of reporting the SRA expects is proportionate to the level of regulatory risk posed by an overseas practice.

3.2

You, as a regulated individual practising overseas or as a responsible authorised body, must monitor any material or systemic breaches of the Overseas Principles that apply to you or to those for whom you are responsible and report them to the SRA when they occur, or as soon as reasonably practicable thereafter. In relation to an overseas practice, a material or systemic breach will relate either to the character and suitability of an individual, the financial vulnerability of an overseas practice outside of established business planning, or a pattern of behaviour within an overseas practice that infringes Overseas Principle 6. Notifications by the compliance officer of a responsible authorised body, or by another person on behalf of an overseas practice will satisfy these requirements without separate notifications from each individual or body who has knowledge of the breach. For example, you will be required to:

(a)

notify the SRA, if you, or any of the partners, members, managers, solicitor employees or other professionally qualified employees in your overseas practice, are convicted by any court of a criminal offence or become subject to disciplinary action by another regulator;

(b)

notify the SRA immediately if you believe that your firm or your overseas practice is in serious financial difficulty;

(c)

provide the SRA with documents held by you or your overseas practice, to which it is entitled, and any necessary permissions to access information as soon as possible following a notice from the SRA to do so.

(d)

provide the SRA, if you are a responsible authorised body, with an annual return which:

(i)

identifies the contact details of the office(s) from which you are, or your overseas practice is, practising, and

(ii)

confirms that you have fulfilled your reporting and notification obligations.

3.3

The SRA may require the delivery of an accountant's report by you as a responsible authorised body in respect of your overseas practice.

3.4

This report must:

(a)

be signed by a qualified accountant approved by the SRA;

(b)

contain the information specifically requested by the SRA in relation to the protection and movement of client money (overseas);

(c)

contain a description of the reporting accountant's examination of your records and relevant documentation;

(d)

contain a statement from the reporting accountant which confirms that, save for trivial breaches:

(i)

you have complied with rule 2C; or

(ii)

where you have breached the requirements of rule 2C this is because you have been bound by local law or regulation to do so, giving details of all such breaches.

3.5

You as a regulated individual practising overseas or a responsible authorised body must promptly comply with a written notice from the SRA that you must produce for inspection by the appointee of the SRA all documents held by you or held under your control and all information and explanations requested.