SRA Handbook

Conditions on recognition

Back to version 21

Version 1 of the Handbook was published on 16/09/2011. For more information, please click 'History' Above

Regulation 6: Conditions on recognition

6.1

The SRA may impose one or more conditions on a recognised body's recognition:

(a)

when granting initial recognition;

(b)

when granting renewal of recognition;

(c)

when granting approval of an individual under regulation 5;

(d)

when deciding to withdraw approval of an individual under regulation 5; or

(e)

at any other time.

6.2

The purposes for which the SRA may impose a condition are set out in (a) to (g) below.

(a)

The SRA considers that:

(i)

the condition would limit, restrict, halt or prevent an activity or activities on the part of the body, or of a manager or employee of the body, which is putting or is likely to put at risk the interests of clients, third parties or the public, and

(ii)

it is in the public interest to impose the condition.

(b)

The SRA considers that:

(i)

the condition would limit the activities of a manager or employee of the body who is considered unsuitable to undertake a particular activity, either at all or save as specified in the condition, and

(ii)

it is in the public interest to impose the condition.

(c)

The SRA considers that:

(i)

the condition would limit, halt or prevent a risk to clients, third parties or the public arising from a business agreement or association which the body has or is likely to enter into, or a business practice which the body has or is likely to adopt, and

(ii)

it is in the public interest to impose the condition.

(d)

A relevant insolvency event within the meaning of paragraph 32(1A) of Schedule 2 to the AJA has occurred in relation to a recognised body, and:

(i)

the event has not triggered expiry of recognition under regulation 12, and

(ii)

the SRA considers that it is in the public interest to impose the condition.

(e)

The SRA considers that imposing the condition will, in the public interest, facilitate closer monitoring by the SRA of compliance with rules and regulations on the part of the body.

(f)

The SRA considers that imposing the condition will, in the public interest, require the body concerned to take specified steps conducive to the carrying on of efficient practice by that body.

(g)

The SRA considers, in any other case concerning a body which is currently recognised, that it would be in the public interest to impose the condition.

6.3

A condition imposed under this regulation takes effect from the date on which the condition is imposed unless a later date is specified in the condition.