SRA chief executive Sarah Rapson yesterday conceded that planned levy increases will not be popular but insisted they are the only way to turn around her troubled organisation.
Rapson, who took up the role last November, told the Gazette, ‘I know it is not going to go down well’, as she announced a 29% budget increase and £100 hike in the practising certificate cost for all solicitors. The proposals are set out in a new consultation on the SRA’s business plan. Rapson said there was no choice but to accept higher costs if the profession wants a fully functional regulator.
‘The investment will set us up to be a modern, efficient and proportionate regulator which is what the sector needs, which will benefit the profession,’ she added.
Rapson praised her staff and said there were positive signs in the SRA’s response to the sudden closure of PM Law group in February. But overall, she said the organisation needs a complete reset, changing its culture, use of technology and approach to enforcement and investigations. She also suggested that the issue of whether firms can hold client money will have to be revisited in light of recent events.
Asked if the plight of the organisation had surprised her, she noted the gap in understanding between the regulator and the profession, saying the relationship was weaker than she had experienced in the financial services sector and adding that this needs to be repaired.
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