SRA research finds widespread gaps in compliance officers knowledge and high levels of stress
Law firm compliance officers have “poor” knowledge of their reporting and record-keeping obligations, according to new research published by the Solicitors Regulation Authority (SRA), which has also highlighted high stress levels and a lack of recognition for those holding the roles.
The findings come from the SRA’s thematic review of compliance officers for legal practice (COLPs) and compliance officers for finance and administration (COFAs). The regulator visited 25 law firms and interviewed 36 individuals, examining compliance policies, internal breach logs, and training and development records.
The SRA said the results of its knowledge testing were concerning. A fifth of compliance officers were unable to explain their record-keeping obligations at all, while a further 59% could only provide a partial explanation. Only one individual was able to correctly describe the distinction between a “notification”, which must be made to the SRA, and a “report”, where there is discretion.
The regulator said the lack of understanding was compounded by limited engagement with its guidance. Only half of compliance officers had read the SRA’s reporting and notification guidance, and just 19% had read its enforcement strategy.
Embed from Getty Images
“Fundamentally, a compliance officer cannot successfully discharge their reporting and recording duties if they do not understand them or the relevant basic concepts,” the SRA said.
The review also highlighted the pressures faced by those in compliance roles. More than half of respondents (52%) said they felt stressed by the role, while fewer than half (44%) felt that it was acknowledged or valued by their firm. Most compliance officers reported receiving no financial incentive for undertaking the role, and 40% said it offered no career benefit.
Nearly three-quarters of those interviewed were firm owners, reflecting the SRA’s concern about sole owners holding compliance roles – an issue it is currently consulting on. The review found that 84% of COLPs were solicitors, with the remainder including barristers and chartered legal executives. Seven in 10 had been qualified lawyers for more than 15 years.
Although compliance officers are required to record all breaches and escalate them to the SRA where necessary, only a quarter could describe a defined internal process for doing so. Almost half said they relied on their own professional judgement to decide whether to report, and none of this group had read the regulator’s guidance.
Time pressure was identified as the primary challenge by almost half of the respondents, particularly for those combining compliance with fee-earning or management roles. On average, compliance officers spent 26% of their working time on compliance tasks.
The SRA warned that competing responsibilities increased stress and the risk of errors or oversight. It also identified wider risks, including a lack of succession planning, over-reliance on single individuals, limited awareness of SRA resources and insufficient focus on ongoing competence.
The regulator said strengthening the role of compliance officers formed part of its wider review of consumer protection and its response to directions issued by the Legal Services Board in May 2025 following the collapse of Axiom Ince.
The SRA said it was committed to developing a support package for compliance officers through its current consultation and to carrying out a more fundamental review of the regime in the longer term.