Legal background Legal services - the removal of the statutory cap on the Law Society’s (as delegated to the SRA) power to issue financial penalties, for disciplinary matters relating to breaches of the economic crime regime
The Solicitors Act 1974 ("the 1974 Act") and the Administration of Justice Act 1985 ("the 1985 Act") confer a range of powers on the Law Society to regulate solicitors and law firms in England and Wales. For oversight of the regulation of legal services, the LSB was established as the oversight legal regulator by the Legal Services Act 2007, which is independent of Government and of frontline regulators.
	Section 44D of the 1974 Act and Paragraph 14B of Schedule 2 to the 1985 Act sets out the Law Society’s powers to direct a person to pay a penalty not exceeding £25,000. A financial penalty can be imposed for cases involving a failure to comply with the requirements imposed under the Acts, a failure to comply with rules made by the Law Society, or professional misconduct by a solicitor. The powers in the 1974 Act can be exercised in relation to solicitors and their employees, whereas the power in the 1985 Act can be exercised in relation to law firms and sole solicitors' practices, their employees, and managers. Should the financial penalty be disputed, both Acts have the safeguard of a right to appeal avenue to the SDT.
	On 20 July 2022, the Lord Chancellor amended secondary legislation to increase the SRA’s maximum financial penalty from £2,000 to £25,000.
	Schedule 2 of the 1985 Act also contains provisions in paragraph 14B requiring the Law Society to make rules and to consult the SDT before doing so.