What the SRA’s proposed changes could mean for compliance, accountability and future leadership structures

The legal sector has seen increasing focus on governance, risk and compliance over recent years. As regulatory expectations continue to evolve, many firms are finding that compliance responsibilities are becoming more complex, more visible and increasingly central to how legal businesses operate.

Recent proposals from the Solicitors Regulation Authority (SRA) have added another dimension to that conversation as it continues plans to separate certain management and compliance roles within law firms, subject to approval and consultation. While the proposals are not expected to come into effect until 2027, they raise some interesting questions about how firms structure leadership, accountability and compliance expertise in the future.

From a recruitment perspective, the proposals also prompt a broader discussion around talent, succession planning and whether firms have the right capability in place to meet evolving regulatory expectations.

What’s changing?

At present, many firms combine management and compliance responsibilities across a relatively small number of individuals. Depending on the size and structure of the practice, compliance duties may sit alongside wider operational, financial or leadership responsibilities.

The SRA’s proposals seek to create clearer separation between certain management and compliance functions, reflecting the increasingly specialised nature of risk and regulatory oversight within modern legal businesses.

It is important to stress that these proposals remain subject to approval and consultation. There is no immediate action required, and firms should continue to refer to official SRA guidance as the proposals develop.

However, even at this stage, the discussion itself is noteworthy.

Why does this matter beyond compliance?

One of the themes we have explored in several recent blogs is the growing importance of long-term talent planning.

Whether discussing retention, succession planning or the development of future legal talent, a common thread continues to emerge: firms are becoming more strategic about capability and continuity.

Compliance is no exception.

In many firms, compliance knowledge sits with a relatively small number of experienced individuals. These professionals often carry significant responsibility for regulatory oversight, risk management, anti-money laundering procedures, complaints handling and wider governance matters.

As responsibilities become more specialised, firms may find themselves asking some familiar questions:

• Who currently holds key compliance knowledge within the business?
• How easily could those responsibilities be transferred if someone left?
• Are future leaders being developed with compliance capability in mind?
• Does the firm have sufficient expertise to meet future regulatory expectations?

These are not purely compliance questions. They are succession planning questions too.

Compliance is becoming a boardroom conversation

One of the most interesting aspects of the SRA proposals is that they elevate compliance from an operational consideration to a strategic one.

Historically, compliance has often been viewed as something that sits ‘behind the scenes’. Essential, but not always central to wider business discussions.

Increasingly, however, compliance, risk and governance are becoming intertwined with decisions around growth, leadership, reputation and client confidence. Regulatory responsibilities now touch almost every aspect of how law firms operate.

The SRA’s proposals reflect that broader trend. Regardless of whether the changes ultimately proceed in their current form, they highlight the growing expectation that compliance should have clear ownership, accountability and visibility within firms.

That naturally leads to wider conversations around leadership structures, succession planning and future capability.

Build, buy or outsource?

For firms considering their future compliance capability, there is unlikely to be a one-size-fits-all solution.

Some may choose to invest in developing existing team members, building knowledge internally and creating clearer progression pathways for future compliance leaders.

Others may decide that additional expertise is required and look to recruit dedicated compliance professionals with the relevant experience and regulatory understanding.

There is also a growing market for specialist outsourced compliance support, allowing firms to access expertise without creating a permanent in-house position.

The right approach will depend on factors such as:

• Firm size and structure
• Growth ambitions
• Existing compliance capability
• Regulatory exposure
• Succession planning objectives

What is important is that firms understand their options and assess them against their longer-term business needs.

What could this mean for future hiring?

While it remains too early to predict exactly how the market will respond if the SRA’s proposals move forward, it is reasonable to expect that compliance expertise will continue to increase in value.

We have already seen greater demand for professionals with strong risk, governance and compliance backgrounds. If regulatory responsibilities become more clearly defined and separated in future, firms may find themselves reviewing whether they have the right people, skills and structures in place.

That does not necessarily mean creating entirely new positions. In some cases, it may involve investing in existing talent. In others, it may mean bringing in specialist expertise to strengthen capability and support growth.

Much like the conversations we are having around succession planning and retention, the focus is increasingly shifting from immediate requirements to longer-term resilience.

A wider talent and leadership conversation

Whether or not the proposals proceed in their current form, they highlight a broader trend that many firms are already experiencing. Compliance, governance and risk management are becoming increasingly specialised disciplines, requiring dedicated expertise, careful planning and long-term thinking.

For some firms, that may mean developing existing talent. For others, it may mean recruiting specialist compliance professionals or accessing external expertise. Either way, ensuring the right capability is in place is likely to become an increasingly important part of future business planning.

The question is not necessarily whether these changes will create new compliance roles. It is whether your firm has the knowledge, capability and succession plans in place to respond confidently as regulatory expectations continue to evolve.

About Clayton Legal

At Clayton Legal, we work closely with law firms across the UK, supporting recruitment across a wide range of legal and business support functions, including compliance, risk and governance. Through our ongoing conversations with candidates and hiring managers, we develop a detailed understanding of the skills firms need both today and for the future.

Whether you are reviewing your compliance capability, planning for succession or exploring specialist hiring options, our team is always happy to have an honest conversation about what is happening in the market.