A junior member of staff made a complaint of sexual harassment against one of the partners in a firm. The firm offered the complainant a financial settlement and asked her to sign a non-disclosure agreement. The agreement stated that the complainant would not discuss the matter outside the firm and would not report it to the SRA or the police. Neither the firm nor the complainant took any further actions regarding the matter.
Did the firm's actions comply with the SRA Standards and Regulations?
A junior member of staff made a complaint of sexual harassment against one of the partners in a firm. The firm offered the complainant a financial settlement and asked her to sign a non-disclosure agreement. The agreement stated that the complainant would not discuss the matter outside the firm and would not report it to the SRA or the police. Neither the firm nor the complainant took any further actions regarding the matter.
Did the firm's actions comply with the SRA Standards and Regulations?
No, because the firm has a regulatory duty to report serious misconduct to the SRA.
(B)Sexual harassment is a serious breach of regulatory and professional duties, indicating that a firm has not satisfied their obligation to act in a way that encourages equality, diversity, and inclusion. If such conduct occurs, the firm must notify the SRA, and any attempt to prevent reporting of the matter will aggravate the regulatory consequences. Additionally, a firm must not impede anyone from providing information to the SRA or any other regulatory, supervisory, investigatory, or prosecution body. A provision in a non-disclosure agreement that prohibits the complainant from reporting the incident is a breach of this obligation as well.
Option (A) is incorrect because the SRA's interest extends to both the individual and the firm's behaviour, not just its service provision.
Options (C) and (E) are also incorrect because the complainant's position and whether the matter has become public knowledge are irrelevant.
Finally, option (D) is incorrect because the duty in question is regulatory, not legal.