Can a solicitor act as their own COFA?

The SRA requires every authorised law firm to have two key compliance officers:

1. A Compliance Officer for Legal Practice (COLP)

2. A Compliance Officer for Finance and Administration (COFA)

The COFA is responsible for ensuring that the firm’s financial systems comply with the SRA Accounts Rules and that any breaches are identified, reported, and managed appropriately. The question of whether a solicitor can also act as the COFA often arises in smaller practices where resources are limited.

What the SRA rules say

Yes, a solicitor can act as their own COFA. The SRA allows this provided the individual meets the suitability criteria and the firm has obtained approval from the regulator. This arrangement is most common in sole practices, small partnerships, and incorporated firms where the principal or managing partner takes responsibility for compliance.

The SRA Handbook and Accounts Rules do not prohibit dual roles. In fact, it is quite typical for a sole practitioner to act as both the Compliance Officer for Legal Practice (COLP) and the COFA, as long as they can demonstrate proper oversight and independence within their compliance systems.

Eligibility to act as COFA

To act as a COFA, a person must:

• Be a manager or employee of the authorised firm.

• Be of suitable character and integrity.

• Understand and be able to oversee the firm’s financial systems and controls.

• Receive SRA approval before taking on the role.

The SRA assesses suitability based on the individual’s professional record, disciplinary history, and ability to carry out compliance responsibilities effectively.

If a solicitor wishes to act as their own COFA, they must apply through the SRA’s authorisation process, providing evidence of their competence and understanding of the Accounts Rules.

Responsibilities of a COFA

The COFA’s duties are set out in the SRA Accounts Rules and the Code of Conduct for Firms. The main responsibilities include:

• Ensuring the firm maintains proper systems for managing client money.

• Overseeing reconciliations of client accounts and ensuring funds are held correctly.

• Identifying, recording, and reporting any breaches of the Accounts Rules to the SRA.

• Working with external accountants during annual reporting.

• Ensuring all staff understand and follow financial compliance procedures.

These responsibilities continue even when the solicitor is acting as their own COFA. They must separate their role as practitioner from their compliance duties to ensure objectivity and accountability.

How it works in sole practices

In a sole practice, the solicitor often acts as the owner, fee earner, and compliance officer. Acting as your own COFA is acceptable and common in this structure. However, the SRA expects you to have systems in place to ensure financial compliance despite the lack of internal oversight.

Examples of good practice include:

• Maintaining detailed client account reconciliations every five weeks.

• Using reliable accounting software that tracks client money separately.

• Appointing an external accountant for independent file reviews.

• Keeping clear written records of all compliance decisions and breach logs.

Even though the same person holds both practitioner and compliance roles, the SRA will still expect you to demonstrate control, awareness, and proactive monitoring of client funds.

Acting as both COLP and COFA

It is permissible for the same individual to act as both the COLP and COFA, provided the SRA approves both appointments. This arrangement is often necessary in small firms but increases the individual’s workload and risk exposure.

The dual role requires strong time management, record keeping, and an understanding of both conduct and financial compliance. It is important to ensure that neither area of compliance is neglected, as both functions carry personal accountability under SRA rules.

Benefits of acting as your own COFA

For many small firms, taking on the COFA role personally offers several advantages:

• Cost efficiency: Avoids the need to employ or train a separate compliance officer.

• Direct control: You retain full oversight of your firm’s financial processes.

• Streamlined decision making: You can address issues immediately without going through another officer.

However, the convenience also comes with increased responsibility and potential stress, particularly if the firm handles high volumes of client money.

Risks and considerations

While permitted, acting as your own COFA requires careful planning. The main risks include:

• Conflicts of interest: You may find it harder to review your own work objectively.

• Workload pressure: Balancing client work with compliance oversight can be demanding.

• Regulatory exposure: Any failure to report or correct a breach promptly could lead to personal disciplinary action.

The SRA expects COFAs to act independently and report serious breaches even if it means self-reporting. This can be challenging when you hold both operational and compliance responsibilities.

For this reason, some solicitors appoint an external compliance consultant or accountant to periodically review their systems. Independent audits can provide reassurance and help demonstrate to the SRA that your firm takes compliance seriously.

Practical steps for solicitors acting as their own COFA

If you intend to act as your own COFA, you should:

1. Apply for approval through the SRA’s online system.

2. Ensure your accounting and client money procedures comply with the Accounts Rules.

3. Keep clear written policies on how breaches are identified and reported.

4. Conduct regular reconciliations and maintain an up-to-date breach register.

5. Schedule periodic independent file reviews to maintain transparency.

Good record keeping is critical. The SRA expects a COFA to be able to demonstrate compliance through evidence, not just verbal assurance.

Example

A sole practitioner specialising in conveyancing decides to act as both COLP and COFA. They use legal accounting software to manage client transactions and appoint an external accountant to review their books quarterly. By maintaining a clear separation between operational tasks and compliance reviews, they meet SRA expectations and reduce regulatory risk.

When to consider appointing someone else

If your firm grows or manages large volumes of client money, it may be wise to appoint a separate COFA. Larger firms often find that dividing responsibilities improves oversight and reduces personal risk.

A dedicated COFA can focus on financial compliance while you concentrate on legal practice and client service. This structure also demonstrates strong governance to regulators and clients alike.

Conclusion

Yes, a solicitor can act as their own COFA, provided they meet the SRA’s suitability requirements and obtain approval. This arrangement is common in sole practices and small firms, but it carries significant responsibility.

To succeed in the role, you must maintain strong financial systems, document all compliance activity, and act independently when identifying and reporting breaches. By doing so, you can effectively fulfil the COFA role while continuing to manage your firm with confidence and integrity.