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Fascinating! Before I became a lawyer I wondered how lawyers in government can get away with untruths - same distinction. Initially, the simplest way out might be for the employee and/or director to self-refer, asking for a preliminary decision as to whether he was acting in the capacity of a legal professional instructed by the SRA as of the time he allegedly made such remarks. (given nemo iudex in causa sua, the separate question then arises of whether the SRA can delegate the matter: I would hope they can do so. Haven't looked at the law, but it'd be a neat solution if the BSB and SRA can be delegated to exercise regulatory functions in respect of each other's staff?)

As for the SRA itself, it should be off the hook: surely as always it was acting as litigant rather than regulated professional? Any other position would be absurd.