Regulators have begun a major review of reporting requirements for firms dealing with suspected misconduct by their employees.

The Solicitors Regulation Authority (SRA) wants greater clarity to establish when and why firms should raise concerns about potential wrongdoing.

Currently there is said to be confusion among firms about when they should flag up issues. Some opt to report to the SRA the moment an issue arises, whereas others wait until the result of an internal investigation before alerting the regulator.