The Solicitors Sole Practitioners Group (SPG) will send this petition to: 
The Solicitors Regulation Authority, Legal Services Board, Legal Ombudsman and Ministry of Justice

We, the undersigned solicitors, sole practitioners and representatives of small legal practices, are calling for a proper review of the proposed regulatory changes concerning:

• the requirements relating to COLPs and COFAs;
• interest on client money;
• proposed changes to the complaints process; and
• the Legal Ombudsman’s proposals concerning solicitors’ bills and complaints.

We are concerned that the cumulative effect of these changes could place a disproportionate financial and administrative burden on sole practitioners and small firms.

COLP and COFA requirements
For many sole practitioners and small firms, the ability of one individual to undertake both the COLP and COFA roles reflects the practical reality of operating a small practice.

Requiring these responsibilities to be separated could create significant additional costs, particularly where a practice has limited staff and resources. For some sole practitioners and smaller firms, the additional regulatory and financial burden may make continued practice considerably more difficult.

We believe that any changes to these arrangements should properly take into account the size, structure and risk profile of different practices, rather than applying a disproportionate burden to smaller firms.

Interest on client money
We are also concerned about proposals relating to interest on client money and the potential financial and administrative consequences for small practices and their clients.

Any changes should be proportionate, workable in practice and carefully considered in terms of their impact on both solicitors and clients.

Complaints and Legal Ombudsman proposals
We are concerned that proposed changes to the complaints process and the Legal Ombudsman’s proposals concerning solicitors’ bills and complaints could result in additional bureaucracy, cost and administrative pressure for already stretched small practices.

We believe that any new system should be fair, proportionate, transparent and accessible, while maintaining appropriate protections for clients.

The changing legal services market
These proposals must also be considered against the wider environment in which sole practitioners and small firms are required to operate.

Regulated solicitors are subject to increasingly extensive regulatory, compliance and administrative requirements, with the associated financial and time costs falling particularly heavily on smaller practices.

At the same time, there is growing concern about the availability of unregulated providers offering services in areas such as family immigration and wills. Such providers may not be subject to the same regulatory framework, compliance obligations or associated costs as regulated solicitors.

This creates an increasingly difficult and potentially unequal operating environment for regulated sole practitioners and small firms.

We are not suggesting that regulation should be reduced where it is necessary to protect the public. However, regulators and policymakers should consider the cumulative effect of increasing regulatory requirements on regulated practices alongside the wider legal services market in which they operate.

The regulatory burden must be proportionate, practical and sustainable. It should not inadvertently make it increasingly difficult for regulated sole practitioners and small firms to remain viable while unregulated providers operate without the same regulatory obligations.

The importance of small firms
Sole practitioners and small firms play an essential role in providing accessible legal services. They provide advice and representation to individuals, families and businesses and, in many communities, offer a more personal and accessible alternative to larger practices.

Regulation is essential to maintaining professional standards and protecting the public. However, regulation must also be proportionate, practical and sustainable.

We therefore call upon the SRA, LSB, Legal Ombudsman and Ministry of Justice to:

1. Review the proposed changes and their cumulative impact on sole practitioners and small firms;
2. Meaningfully engage with practising solicitors, particularly those directly affected by the proposals;
3. Ensure that any COLP/COFA requirements are proportionate to the size and risk profile of the practice;
4. Carefully reconsider the practical and financial implications of the proposals concerning interest on client money;
5. Ensure that changes to the complaints process and Legal Ombudsman arrangements do not create disproportionate costs or bureaucracy;
6. Consider the impact of increasing regulation on the ability of small regulated practices to compete within the wider legal services market; and
7. Consider alternative approaches which protect clients and maintain high professional standards without unnecessarily threatening the viability of smaller practices.

We ask the relevant authorities to listen to the concerns of the profession and work with practising solicitors to develop a regulatory framework that protects clients while allowing sole practitioners and small firms to continue providing valuable and accessible legal services.

Our profession is stronger when the voices of sole practitioners and small firms are heard.