SRA outlines further tightening of complaints-handling rules

The Solicitors Regulation Authority (SRA) has proposed significant new rules aimed at tightening complaints handling within law firms in England and Wales. These proposals, currently under consultation, mandate that firms provide clients with a clear timeline for resolving their complaints and offer regular updates on their progress. This initiative is a direct response to statutory requirements from the Legal Services Board (LSB) and follows a record number of complaints made against law firms, with the Legal Ombudsman (LeO) frequently identifying poor first-tier handling. The SRA's objective is to enhance consumer protection, improve client satisfaction, and reduce the escalation of complaints to the Legal Ombudsman by fostering more effective internal resolution processes.

The Solicitors Regulation Authority (SRA) has initiated a public consultation on new rules designed to significantly enhance the transparency and efficiency of complaints handling by regulated law firms. These proposed changes, which require firms to provide clients with a definitive timeline for complaint resolution and regular progress updates, represent a further tightening of regulatory expectations in this critical area. The move comes amidst a backdrop of escalating client dissatisfaction, evidenced by a record number of complaints – over 41,000 last year, an 11% increase on 2024 figures – and persistent findings by the Legal Ombudsman (LeO) that nearly half of the cases it investigates reveal inadequate first-tier complaints handling by firms.

This article will delve into the specifics of the SRA's latest proposals, examining their rationale, the broader regulatory context, and the practical implications for legal practitioners. It will highlight how these changes build upon existing frameworks and address long-standing issues within the legal complaints system, ultimately aiming to foster greater client confidence and reduce the burden on second-tier resolution bodies like the Legal Ombudsman. For practising attorneys, understanding and proactively adapting to these forthcoming requirements will be crucial for maintaining compliance and upholding professional standards.

The regulatory framework for legal services complaints in England and Wales is multi-layered, primarily established by the Legal Services Act 2007. This Act created the Legal Services Board (LSB) as the overarching regulator and the Office for Legal Complaints (OLC), which operates the Legal Ombudsman (LeO), to handle consumer complaints about legal service providers. The Legal Services Act 2007 mandates that approved regulators, such as the SRA, ensure their authorised persons establish and maintain effective procedures for resolving legal complaints.

The SRA's existing requirements are primarily set out in the SRA Standards and Regulations, specifically paragraphs 8.2 to 8.5 of the SRA Code of Conduct for Solicitors, RELs and RFLs, and paragraph 7.1 of the SRA Code of Conduct for Firms. These provisions stipulate that firms must have a written complaints procedure, deal with complaints "promptly, fairly, and free of charge," and inform clients at the outset of their right to complain to the firm and, if unresolved, to the Legal Ombudsman. Firms are also required to inform clients in writing if a complaint remains unresolved to their satisfaction after eight weeks, providing details of their right to escalate the matter to LeO.

Despite these existing rules, the SRA has identified persistent shortcomings in how firms handle initial, or "first-tier," complaints. The Legal Ombudsman acts as the "second-tier" complaints handler, stepping in when firms fail to resolve issues internally within the stipulated eight-week period. The SRA's current consultation follows earlier, withdrawn proposals from 2025 that aimed to make complaints information clearer and more accessible. The withdrawal was due to the SRA's belief that stronger requirements were needed regarding communication with clients once a complaint is made, leading directly to the present, more prescriptive proposals.

The core of the SRA's latest proposals revolves around two key mandatory requirements for law firms: providing clients with a timeline for resolving their complaint and offering regular updates on its progress. These changes are not arbitrary but are a direct response to statutory requirements issued by the LSB in May 2024, which mandated all legal regulators to implement improvements in first-tier complaints handling within 18 months. Research conducted for the LSB indicated that consumers place significant importance on knowing the timeframe for complaint resolution and receiving consistent updates.

The SRA's rationale is clear: to improve client satisfaction, reduce the number of complaints escalating to the Legal Ombudsman, and ultimately enhance public trust in legal services. The regulator acknowledges that while many firms handle complaints effectively, the high volume of complaints and the Legal Ombudsman's findings of poor handling in nearly half of its investigations underscore a systemic issue. To support firms in complying with these new rules, the SRA also plans to introduce a new 'Complaints Handling Requirements Statement' and accompanying guidance, which will provide examples of best practice beyond the minimum standards.

For practitioners, these proposals necessitate a proactive review and potential overhaul of existing complaints procedures. Firms will need to develop robust internal systems capable of generating realistic resolution timelines, tracking complaint progress, and ensuring consistent, timely communication with clients. This will likely require increased resource allocation, potentially including dedicated complaints handlers or enhanced training for client-facing staff. Failure to adhere to these tightened rules could lead to SRA enforcement action, which typically focuses on serious breaches or persistent failures to comply with regulatory arrangements.

While the intent to improve client experience is laudable, the implementation presents challenges. The definition of a 'timeline for resolution' and what constitutes 'regular updates' will be crucial, and firms will need to interpret the forthcoming guidance carefully to avoid ambiguity. The Law Society has previously expressed concerns about potential 'overregulation' and the need for changes to be proportionate and evidence-backed, a sentiment that may resurface during this consultation. Nevertheless, these changes align with the Legal Ombudsman's own efforts to encourage better first-tier complaints handling, suggesting a concerted regulatory push towards greater accountability and transparency in client service.

The SRA's proposed tightening of complaints-handling rules marks a significant step towards enhancing consumer protection and improving the overall client experience within the legal sector. By mandating clear timelines for resolution and regular updates, the SRA aims to address the root causes of client dissatisfaction and reduce the reliance on the Legal Ombudsman for resolving disputes. This initiative underscores the regulator's commitment to upholding public trust and confidence in the solicitors' profession.

For practising attorneys and law firms, these proposals are a clear signal to proactively review and strengthen their internal complaints-handling mechanisms. Firms should consider investing in comprehensive staff training, developing robust tracking systems, and refining their communication protocols to meet these elevated standards. Beyond mere compliance, effective and transparent complaints handling is a strategic imperative that can safeguard a firm's reputation, foster client loyalty, and ultimately contribute to a more trusted and efficient legal services market. Practitioners are advised to engage with the ongoing consultation and prepare for the implementation of these new requirements to ensure seamless adaptation and continued adherence to professional obligations.