Understanding Financial Penalties and Consultation Proposals
Explore sensitivity to financial penalties in the legal sector, including current approaches and proposed changes following extensive consultation. Learn about new fining bands, income-linked fines, and clarifications on penalty determination.
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Presentation Transcript
Sensitivity: General Financial penalties: Updated proposals consultation
Sensitivity: General Our current approach Introduced in May 2023 following extensive consultation. Reflected increase in the SRA s fining powers to 25,000 Key features: - Introduced new schedule of fining bands - Fines linked to income for both firms and individuals - Fixed penalties for lower-level breaches - Clarified approach re harassment & sexual misconduct
Sensitivity: General Existing framework Most severe cases: decision makers can go to statutory maximum Illustrative framework: four penalty bands: A to D fines calculated as a percentage of a firm's annual domestic turnover or an individual's annual income from their legal work penalty scales: firms: 0.2% to 5%, individuals: 2% to >97%
Sensitivity: General Consultation proposals Five key proposed changes: new fining bands (E & F) for most serious misconduct minimum fines across all bands updated approach to considering the impact of misconduct, and aggravating and mitigating factors clarifying how we determine income approach to fine levels where misconduct led to financial gain
