This is only the second such sanction to be handed down by the board
The UK Legal Services Board has sanctioned the Solicitors Regulation Authority over its failure to handle the SSB Law collapse effectively, reported the Law Society Gazette.
This is only the second such sanction to be handed down after the LSB formally censured the Law Society of England and Wales in 2018 for not complying with rules around separation with the SRA. The LSB said it needed to censure the SRA this time to highlight the severity of its failings and the negative impact on consumers.
The SRA’s failings were documented in an independent report commissioned by the LSB last year. Sheffield-based SSB Law was established under a no win-no fee model, but upon entering administration in January 2024, clients were charged unexpected costs with bills amounting to thousands of pounds. Over 100 reports were filed to the SRA from January 2019 to March 2024; however, the body was reportedly sluggish in responding to warning signs. Its staff did not identify risk patterns and were overly reliant on SSB-provided information.
The SRA also failed to utilize its statutory powers to investigate and obtain evidence about the matter. It displayed inadequate internal governance, documentation, and decision-making; moreover, it did not protect vulnerable clients effectively.
The SRA conceded to the findings and provided plans for performance targets to measure improvements to its monitoring process. Chief executive Sarah Rapson said in a statement published by the Gazette that the targets would focus on “proactively identifying and responding to risks to consumers within the legal sector; targeting resources more effectively to better address and prevent harm to consumers; and taking action more quickly to deal with potential causes of consumer harm.”
“This censure is a clear public statement that the standard of regulation we saw was not acceptable. The SRA has accepted the findings of the review and committed to implementing its recommendations. Now it must demonstrate, through its actions, that it has committed to, and capable of, effectively protecting consumers,” said Catherine Brown, the LSB’s interim chair, said in a statement published by the Gazette.
