SDT granted powers to hand out unlimited fines

The Solicitors Disciplinary Tribunal (SDT) is to be granted new powers to hand out unlimited financial penalties for misconduct.

Under the new plans - drawn up by Chancery Lane's regulatory arm, the Solicitors Regulation Authority (SRA) - the SDT will handle only the most serious incidents of misconduct by lawyers in England and Wales but will be able to impose unlimited fines on a case-by-case basis.

Previously the SDT fines were limited to £5,000 per offence. The new system, which takes effect from January 2008, will see the SRA handle the bulk of disciplinary hearings but it will be limited to administering fines up to a maximum of £2,000.

The SRA was previously only able to issue formal reprimands.

Last month the SRA unveiled plans that will enable it to agree punishments with errant lawyers, such as removing them from the solicitors' roll for a set period of time.

SRA chief executive Antony Townsend said: "The most serious cases will continue to be heard by the SDT, which has the power to suspend solicitors from practice and strike them off.

"However, in many less serious cases where the solicitor admits wrongdoing and is prepared to put things right, we will make an agreement, which in most cases will be made public. The result should be lower costs for both the SRA and the solicitor, and a shorter and more transparent process."