The introduction of third-party managed accounts as an alternative to traditional client accounts will be postponed by at least a year to the end of 2016, the Solicitors Regulation Authority (SRA) board decided yesterday.
The SRA launched a consultation on the move in April, arguing that third-party accounts could provide a “lower-cost alternative”, and with the aim of implementing the change in November.
However, the SRA said it now believed that the features of permitted third-party accounts should be set out in its rules and guidance, and this should be incorporated into its consultation on the Solicitors Accounts Rules in spring 2016.
Crispin Passmore, executive director of policy, told the board meeting that the issue could not be separated from the accounts rules reforms.
“It will only work for certain firms in certain circumstances,” he said. “There is no suggestion that this is about getting rid of client account.”
He later told a press briefing: “The surprise for me and the disappointing thing was the number of responses which said that because it wouldn't work in some circumstances, like conveyancing, it shouldn't be allowed at all.”
Read the full Legal Futures article here
The SRA launched a consultation on the move in April, arguing that third-party accounts could provide a “lower-cost alternative”, and with the aim of implementing the change in November.
However, the SRA said it now believed that the features of permitted third-party accounts should be set out in its rules and guidance, and this should be incorporated into its consultation on the Solicitors Accounts Rules in spring 2016.
Crispin Passmore, executive director of policy, told the board meeting that the issue could not be separated from the accounts rules reforms.
“It will only work for certain firms in certain circumstances,” he said. “There is no suggestion that this is about getting rid of client account.”
He later told a press briefing: “The surprise for me and the disappointing thing was the number of responses which said that because it wouldn't work in some circumstances, like conveyancing, it shouldn't be allowed at all.”
Read the full Legal Futures article here
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