Solicitors Regulation Authority faces enforcement after PM Law Group failure

An independent review by Jenner & Block has revealed that the Solicitors Regulation Authority (SRA) missed multiple opportunities to intervene in the PM Law Group before its collapse. The failure resulted in the loss of approximately £40 million in client money and over 600 jobs.

The report found that while the SRA held a substantial body of information regarding the group through various investigations and inspections, the knowledge remained “fractured” across different teams and systems. This lack of coordination meant the SRA board and executive team were not fully informed of the potential risks. Specific failings included investigations that were deemed “insufficiently rigorous” and a failure to connect red flags raised by staff and clients.

In response, the Legal Services Board (LSB) has initiated further enforcement action against the SRA, expressing disappointment in the regulator’s leadership and accountability. The LSB noted that the SRA is already under three statutory enforcement measures following previous failures involving Axiom Ince and SSB Group Limited. The oversight body is seeking “urgent improvements” in the SRA’s regulatory pace, specialist capability, and governance to protect consumers and public confidence.