Compliance officers working in law firms feel undervalued, under-resourced and overburdened with extra work, a new review has found.
The Solicitors Regulation Authority visited 25 firms and spoke to 36 individuals as part of a thematic review into the roles of COLPs and COFAs, and whether they are helping to maintain and promote compliance.
The roles tended to be allocated to senior staff who in most cases had then continued for an extended period. Around 42% of individuals had held their compliance officer role since its initial introduction in 2012, and a further 28% had held their role for more than five years. Three-quarters of compliance officers were also owners of the firm.
But the feedback to the SRA was that while most COLPs and COFAs believed they were the right person for the role, only 47% felt valued their role was acknowledged or value by their firm. Most compliance officers received no acknowledgment or financial incentive for holding the roles and 39% saw no career benefit in doing it.
One in five compliance officers said they felt they did not have the resources that they needed to carry out their role effectively and found the workload overwhelming. More than half (52%) felt stressed because of the extra responsibility, exacerbated by lack of time, support and internal resourcing.
Almost a quarter told the SRA that they struggle to dedicate enough time to compliance tasks alongside their fee-earning work.
The regulator said it is encouraged that all the firms it visited had compliance controls and processes in place, and external compliance support is often being made available to compliance officers.
But there were also causes for concern: compliance roles were not always prioritised and some individuals were over-relied upon; some compliance officers did not full understand their obligations; and some were not receiving training or updates in their knowledge.
‘The COLP and COFA roles should provide real-time checks and assurances about a law firm’s daily approach to regulatory compliance’, added the SRA. ‘The findings from our review indicate that the roles are not always operating effectively in achieving this, or in meeting the overarching duties that are associated with both roles.’
The regulator said it will undertake a more fundamental review of the effectiveness of the compliance officer regime, as well as developing a support package for those in the roles.
The SRA introduced compliance officer roles 13 years ago for all firms as part of a move to outcome-focused regulation. COLPs must ensure compliance by the firm and its managers and employees, and that a prompt report is made of any serious breach of the rules. The SRA expects compliance officers to keep a record of all breaches that occur, even if they are not serious enough to be reported.
1 Reader's comment