Outcomes focused regulation (OFR) is now upon us but to a large degree it still remains shrouded in mystery. Information from the Solicitors Regulation Authority (SRA) is patchy.

Many solicitors may have dipped into OFR and the new SRA Handbook, if only to dip straight back out again. Some, particularly potential compliance officers (reluctant or otherwise), may have immersed themselves deeper and may be apprehensive.

Uncertainties and mixed messages are emerging about outcomes and indicative behaviours (IBs). There are concerns surfacing about the SRA’s expectations and how it will actually deal with OFR in practice.

The SRA itself is changing its internal processes. It intends to “risk rate” firms, although there is a lack of clarity on how it might achieve this.

The SRA intends to achieve “constructive engagement and credible deterrence”. However, there is a blurring of the edges between when a supervisory or an enforcement orientated approach might be employed. The SRA does not equate OFR with light touch regulation and it will enforce the Handbook where firms cannot or will not comply with their responsibilities, including the responsibility to have systems in place.

One thing is clear. There has been a major shift in focus towards law firms’ own internal systems to monitor, identify and respond to risk and failures in compliance. If compliance officers are required to report compliance failures to the SRA, are firms’ internal reporting capabilities and lines of communication fit for purpose to enable this to happen?

The following suite of one hour webinars will assist firms and their compliance officers to consider their responsibilities and plan for compliance. They have been carefully devised to include seven modules including an introductory module (Module One).

It is advisable for firms to view this webinar before proceeding to the other modules as this sets the scene for the others which provide greater detail on key compliance topics.

Modules Two to Five cover topics likely to be of relevance to all firms. The suite also contains two follow up modules.

Module Six looks at the challenges for firms which are conveyancing biased. Module Seven are for those firms which have a more entrepreneurial outlook and wish to explore how they might use OFR to develop their businesses whilst taking care of potential pitfalls.

Vanessa Shenton is a solicitor, and has a history of providing services to the legal profession in several guises, spanning about 15 years. Vanessa worked initially as a solicitor in private practice before moving into after the event legal expense insurance where she was responsible for assessing a range of legal disputes for insurance cover and managing a team of legal underwriters.

Subsequently, Vanessa occupied two roles within the Law Society and the Solicitors Regulation Authority. Initially she was the Society’s Costs Manager dealing with policy around litigation costs and conditional fee arrangements. More recently she was Practice Standards Adviser for the London and South East region of the SRA.

In January 2007, she founded The Compliance Partner which offers compliance and regulatory management advice and training to solicitors, including assistance with SRA visits, enquiries and investigations.

 In 2010 Vanessa was commissioned by a mainstream indemnity insurer to assess on the competence and consistency of risk management and governance systems for firms experiencing negative claims histories and to make recommendations. Vanessa has continued to offer this service to assist firms with the challenges that outcomes-focussed regulation presents.

In December 2009 Vanessa authored Preparing for a Practice Standards Unit Visit, an ARK best seller and more recently was invited to contribute to two Law Society publications, Outcomes-Focused Regulation: A Practical Guide, authored by Andrew Hopper QC and Gregory Treverton- Jones QC and The Solicitor’s Handbook 2012 by the same authors.

Vanessa has a number of public appointments and relevant committee seats, in particular with the Law Society, on its Law Management Sections, its Rules and Ethics Committee, and its Regulatory Processes Committee. Vanessa is also on the SRA’s ABS Reference Group.

Module Two: OFR and risk rating your firm 

Planning your compliance arrangements begins with risk assessment. Under OFR this includes the risk of failing to achieve new principles and outcomes. Firms need factor in how the SRA might apply its new Risk Assessment Framework and what its regulatory priorities might be:

 • A change in regulatory focus: a recap

• A new SRA structure

• The SRA Risk Centre

• What might the SRA see as a risk?

• SRA Risk Assessment Framework: firm based, thematic and events based risks

• Risk of breaching outcomes

• Compliance officers’ role