Solicitors Community news

This year’s annual conference was another informative and enjoyable day, and so I wanted to share a very brief summary of some of the key take aways for those who couldn’t make it.

The Solicitors Regulation Authority (SRA) used its recent COLP/COFA Conference in October to clarify its position following the consumer protection review earlier this year. While the SRA had previously signalled a potential overhaul of the client account model, the message is now clear: significant changes to the model of firms holding client money in favour of TPMAs are not imminent. Instead, the regulator’s immediate focus is on strengthening safeguards within the current system. A new consultation is expected soon to discuss what the SRA is proposing to change.

Back in October 2024, the Legal Services Board (LSB) published the results of the independent review, conducted by Carson McDowell LLP as commissioned by LSB, into the regulatory events leading up to the Solicitors Regulation Authority's (SRA) intervention into Axiom Ince Ltd. Fast forward twelve months and the LSB has now published the results of the independent review into the SRA’s regulation of the now collapsed SSB Group.

On 27 May 2025, the Legal Services Board (LSB) issued a number of ‘Directions’ to the SRA to improve various systems and controls shortcomings in the wake of the Axiom Ince review report.

In ICAEW’s recent webinar, Janet Taylor of Taylor Mowbray LLP and Andrew Baker of RSM UK discussed recent regulatory insights and took a deep dive into some of the practical issues of SRA Accounts governing residual balances and managing client money.

The results of the Law Society’s Leadership and Management Section (LMS) benchmarking survey have been released. For over twenty years, the survey has been providing detailed accounting and other financial data from law firms and, for the past fifteen years or so, it has been prepared by Hazlewoods: specialist accountants working with law firms in the legal sector.

In ICAEW’s recent webinar, Jason Mitchell of PKF UK and Andrew Baker of RSM UK discussed three topical issues currently impacting the legal sector: the SRA’s Consumer Protection Review, basis period reform and partial exemption considerations in relation to interest received on client balances.

Cases over the past two or three years (Solicitors Disciplinary Tribunal and SRA’s Regulatory Outcomes) make it is abundantly clear that not attending to these balances is leading to some hefty fines and penalties. The issue is not going away.

Practical steps law firms can take to protect their operations.