Financial management鈥攍aw firms


Produced in partnership with DG Legal
Practice notes

Financial management鈥攍aw firms


Produced in partnership with DG Legal

Practice notes
imgtext

This Practice Note provides guidance on managing financial risk. It reflects the SRA Standards and Regulations 2019 and additional financial management Requirements that apply to Lexcel accredited firms. It also provides guidance on common financial risk tools.

The duty to monitor Financial stability and business viability

You must:

  1. 鈥

    actively monitor your financial stability and business viability鈥攐nce you are aware that you will cease to operate, you effect the orderly wind-down of your activities

  2. 鈥

    identify, monitor and manage all material risks to your business, including those which may arise from your connected practices

The SRA does not provide guidance about how you should achieve this.

In practice, the amount of resource expended on managing financial risk will vary from firm to firm and will depend on many factors such as the size of the firm and the degree to which it is presently financially stable. For instance, a firm that is heavily dependent on bank borrowings may invest significant resources to implement financial risk systems that are monitored at regular intervals. Other firms may be content to spend

Powered by Lexis+庐
Jurisdiction(s):
United Kingdom
Key definition:
Requirements definition
What does Requirements mean?

A DCO should include 鈥淩equirements鈥 to which the development authorised by the DCO is to be subject. Similar to planning conditions, a requirement specifies the matters for which detailed approval needs to be obtained before the development can be lawfully begin.

Read more

Popular documents

Client account procedures and records鈥攍aw firms

Client account procedures and records鈥攍aw firmsThis Practice Note sets out the requirements of the SRA Accounts Rules 2019, in force from 25 November 2019, regarding client accounting procedures and records. It also reflects supporting guidance issued by the SRA: Helping you keep accurate client

SRA Accounts Rules鈥攍aw firms

SRA Accounts Rules鈥攍aw firmsThis Practice Note sets out the requirements of the SRA Accounts rules 2019 (the 2019 Rules), in force from 25 November 2019, together with supporting guidance published by the SRA.The 2019 Rules form part of the SRA Standards and Regulations. They focus on the key

Cheque signatories and withdrawals from client account 2011 [Archived]

Cheque signatories and withdrawals from client account 2011 [Archived]The SRA AR 2011 require specific authority for a withdrawal from client account by an appropriate person. This practice note aims to help you consider who should have authority to authorise withdrawals from client account and what

Micklefield clauses

Micklefield clausesWhat is a Micklefield clause?It is common for employee share plans to provide that, on termination of employment (or when an employee is given or receives notice of termination of employment), subsisting share awards will be forfeited and subsisting share options will lapse.It is