SRA Principle 8 – Are you compliant?

SRA Principle 8  – Are you compliant ?

Financial management of law firms has for the first time become compliance requirement. Principle 8 of the SRA Handbook requires law firms to;

“Run your business or carry out your role in the business effectively and in accordance with proper governance and sound financial and risk management principles.”

 Although many firms continue to run on a sound commercial basis, it is important to consider if your firm would comply with Principle 8.

As a result, the SRA code of conduct requires law firms to “maintain systems and controls for monitoring the financial stability of the firm…………and take steps to address issues identified”.

Do you have effective systems and controls in place to identify financial risk, control budgets and cash-flow and actively monitor your financial stability? Can you comply with the SRA handbook and provide the required audit trails?

Guidance from the SRA suggests that “If you cannot document your compliance, we may take regulatory action”.

HSJ can help:-

  • Identify, understand and record relevant key performance indicators
  • Implement systems and controls for SRA compliance
  • Assist in improving knowledge and understanding of financial reports
  • Take control of cash management and working capital

 

If you would like further information or advice please contact us on 0845 365 1000