The Legal Services Board (LSB) Takes on Solicitors Regulation Authority (SRA) for Utter Failures, We'll Resume Our SRA Series to Illuminate How Bad the SRA Really Is
Towards the end of the week the SRA was blasted a lot in the media, so the time seems right (maybe this weekend) to cover our own experiences with the SRA (see Part I and Part II).
To give a quick overview of the latest news, watch how much the SRA's failures have cost the public:
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Solicitor regulator criticised over firm's collapse
An independent review has criticised the Solicitors Regulation Authority (SRA) for missed opportunities to better identify issues at a law firm before its collapse.
Sheffield-based PM Law closed suddenly on 2 February, leaving hundreds of employees out of work and many clients stranded mid-transaction.
Jenner & Block LLP, which conducted the review, said the SRA had "held more information about the PM Law Group than was drawn together into a single, coherent picture".
Anna Bradley, chair of the SRA Board, said the report "makes for difficult reading", adding: " We are particularly sorry for the impact this has had on former clients of the firm and accept we should have done better by them."
Bradley added: "The Board is disappointed we missed opportunities to act on PM Law sooner, given the work we have already done to change the way we regulate."
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Independent review sets out extent of opportunities missed by SRA to address PM Law failings
The Solicitors Regulation Authority missed multiple opportunities to address serious failings at PM Law Group from as far back as 2023, with investigations conducted without access to management accounts and explanations provided by PM Law leadership accepted on face value without independent verification.
The central finding of an independent serious event review (SER) conducted by Jenner & Block London LLP is one of an organisation that lacked “the infrastructure – technological, procedural and in terms of trained expertise” to translate a large body of information gathered about the failed group over a number of years into “timely and effective regulatory action”.
The SRA held “a substantial body” of information about the PM Law Group after conducting two forensic investigations into group firms in 2023 and 2025, along with an anti-money laundering (AML) inspection, a thematic review visit and “numerous” reports about group entities, a number of which were investigated.
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Oversight regulator steps up pressure on SRA in wake of PM Law
The Legal Services Board (LSB) is to step up its demands of reform at the Solicitors Regulation Authority (SRA) in the wake of the review that exposed major failures in its supervision of PM Law.
The oversight regulator also expressed disappointment at the “standard of leadership and accountability demonstrated” by the SRA board.
Serving the litigation "industry":
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In depth: SRA beats partial retreat on compliance officer split
The Solicitors Regulation Authority has this week acted to ease the concerns of small firm owners about new rules governing the separation of compliance roles.
Dissent has been mounting across the profession since oversight regulator the Legal Services Board confirmed that it had approved changes requiring that different individuals within firms take on compliance officer roles.
The SRA acknowledges that it was unclear what the rules would mean in practice. The original rule, published last December, seemed to suggest that, for firms within scope, no senior manager could be a compliance officer.
Facing investigation for failing to investigate:
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Enforcement action against SRA intensifies after latest failure
The Legal Services Board is to take further enforcement action to secure urgent improvements at the Solicitors Regulation Authority, the oversight regulator revealed today.
Last year, the LSB used its powers under the Legal Services Act to issue directions requiring the SRA to strengthen its approach to identifying and responding to risk, protecting client money and preventing consumer harm. The SRA said today it had made ‘meaningful progress’ towards meeting those requirements while acknowledging that further work is required.
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SRA placed into special measures due to 'disappointing standard of leadership'
The Legal Services Board has said it is enforcing even more special measures against the Solicitors Regulation Authority due to the staggering scale of the law firm failures it has overseen and the poor standard of its leadership.
The LSB, which is the independent oversight regulator for legal services in England and Wales, said “urgent improvements” were needed.
Following the antics of Axiom Ince and the loss of £60m of client money, in 2025 the LSB ordered the SRA to strengthen its approach to identifying risky firms.
When SSB Law imploded the LSB has another go, imposing performance targets and censuring the regulator over its myopia around accumulator firms.
The collapse of PM Law Group in February 2026 showed the SRA was resolved to carry on as normal (this July it belatedly banned the manager), reigniting concerns that it was crocked.
Stay tuned, we have a very large pile of material about how the SRA failed Brits attacked by Americans, even ones who were arrested in America and charged. What can that tell us about the SLAPP industry's grip on the SRA? Might that teach us about wolves guarding sheep?
This will interest our ministers, who are aware of the problem. █