The Financial Reporting Council (the ‘FRC’) has published its Annual Enforcement Review 2021 (the ‘review’). We highlight the key trends in relation to the Enforcement Division’s activities during the past year, observations in relation to the FRC’s adoption of constructive engagement as a means of early resolution of matters, trends regarding sanctions imposed by the FRC, and priority areas of concern identified by the FRC, which are likely to impact its enforcement work over the coming year.
There have long been calls for better oversight and regulation of the beauty industry. As an example, ahead of the General Dental Council (‘GDC’) taking appropriate action leading to the Court confirming that teeth whitening amounts to the ‘practice of dentistry’ under section 37 of the Dentists Act 1984, these services were regularly being provided by untrained practitioners on the high street, often leading to injury to the public.
One of the hottest topics in solicitor regulation is how far the SRA’s regulatory powers reach beyond a solicitor’s professional life. This topic has caused heated debate when dealing with allegations of sexual misconduct and inappropriate posts on social media. One would expect that the world of solicitors’ undertakings would not be part of this debate. However, the recent decision of the Supreme Court suggests that a true solicitors’ undertaking arises in relatively narrow circumstances and as such many undertakings given by solicitors fall outside their professional work and should not engage the SRA Codes of Conduct.