ILFM launches iCOFA to strengthen compliance leadership amid increasing regulatory scrutiny
On 15 October 2025, the Institute of Legal Finance & Management (ILFM) officially launched iCOFA, a dedicated professional community designed specifically for Compliance Officers for Finance and Administration (COFAs) and compliance professionals within the legal sector. The launch event, held as a breakfast gathering, brought together COFAs from firms of various sizes to engage in meaningful dialogue about the increasingly complex and demanding regulatory environment that shapes their role. The event underscored the evolving responsibilities of COFAs, highlighting the critical need for professional support, qualifications, and strong governance frameworks.
Tim Kidd, speaking at the event, framed the vision for iCOFA as a supportive and practical resource centre aimed at empowering COFAs with essential tools and knowledge. These include the COFA Handbook—an essential reference guide—and access to specialist webinars, expert-led training, and networking opportunities. The goal is to provide COFAs with a comprehensive support network enabling them to navigate their responsibilities with confidence and clarity amid changing regulatory pressures. Support for the event was provided by KBP Finance, which supplied breakfast to fuel constructive discussions throughout the morning.
Key insights were delivered by Nigel Wilson and David Thorpe, Directors of Financial Eye, who provided a forward-looking session titled "The Shape of Things to Come." They highlighted significant regulatory developments, such as the appointment of a new CEO at the Solicitors Regulation Authority (SRA), the introduction of Principle 8, and fresh guidance from the Legal Services Board. These changes signal a move towards increased formalisation and supervision that may closely mirror the rigorous oversight typical of the Financial Conduct Authority (FCA). Wilson and Thorpe warned that law firms can expect more intrusive monitoring, stronger reporting demands, and a heightened focus on governance, particularly regarding key senior roles including COFAs, Compliance Officers for Legal Practice (COLP), and senior partners.
They urged law firms to adopt a business-like approach, embedding robust internal governance frameworks and fostering a culture of professionalism. Critical recommendations from their talk included reviewing insurance coverage for COFAs and directors and officers (D&O), strengthening risk management through clear procedures, ensuring competent management and supervision, and addressing the sensitive issue of residual balances—what they termed the "big taboo." They also stressed the importance of seeking independent advice and learning from prior compliance failings. The overall message was clear: firms must prepare for more stringent oversight by making good governance and compliance cultural cornerstones.
Adding a unique perspective to the event, guest speaker Jonathan Pratt, FRICS FGA, an experienced auctioneer and valuer, connected themes from his field to legal compliance. He explored the significance of professional qualifications, membership in respected societies, due diligence practices, and the duty of care—drawing thought-provoking parallels from the antiques world that broadened the scope of understanding around risk and valuation.
The iCOFA initiative was developed in response to member feedback requesting a specialist, independent forum tailored to the challenges faced by COFAs. Beyond educational resources like the COFA Masterclass and the Handbook, iCOFA provides a peer network, ongoing regulatory updates, and access to advice tailored specifically for compliance leaders. Membership is positioned as cost-effective, at £146 plus VAT annually, and promises support in building and maintaining effective compliance systems. While maintaining its independence, iCOFA may also act as a voice for COFAs in dialogues with the SRA concerning regulatory issues affecting compliance professionals.
The launch event echoed previous ILFM initiatives aimed at equipping COFAs for the future. Earlier sessions had provided practical insights into compliance risks and valuation challenges, indicating ILFM’s firm commitment to staying ahead of evolving regulatory demands. The institute also has a history of staging events addressing compliance strategies, which have helped legal firms prepare for anticipated changes and complexity in financial oversight.
As law firm governance becomes subject to increased scrutiny, the creation of a dedicated community like iCOFA represents a timely and strategic step towards supporting those in pivotal compliance roles. It offers COFAs a professional home to deepen their expertise, share insights, and gain the necessary tools to manage legal finance compliance confidently in a shifting regulatory landscape.
Interested professionals can join iCOFA to benefit from its growing resources, training, and peer support, reinforcing the essential role COFAs play in safeguarding law firm integrity and facilitating sound financial governance.