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Written question asked by Julie Minns (Labour) on Tuesday, 24 March 2026, in the House of Commons. It was due for an answer on Thursday, 26 March 2026. It was answered by Sarah Sackman (Labour) on Monday, 30 March 2026 on behalf of the Ministry of Justice.

Solicitors Regulation Authority

Question

To ask the Secretary of State for Justice, how many interventions have there been by the Solicitors Regulation Authority into law firms involving (a) the sudden or disorderly closure of a firm, (b) the loss or misappropriation of client funds and (c) the interruption of active client casework in each of the last five years; and whether his Department has made an assessment of (a) the trends in the number of in such cases and (b) the potential merits of strengthened regulation and legislative reform.

Answer

The Government recognises the disruption and difficulty that the collapse of a law firm has both for employees and its clients. The legal profession in England and Wales, together with its regulators, operates independently of government. The Solicitor Regulation Authority (SRA) is responsible for regulating the professional conduct of solicitors and law firms in England and Wales, including the management of law firm closures.

With regards to the number of interventions the SRA has made into law firms in the last five years, the Ministry of Justice does not hold this information as this is an operational matter for the independent regulator. The SRA has advised that it publishes intervention statistics primarily through its Client Protection Annual Reports and Corporate Reports. These set out year- end figures for interventions, including numbers for the last five years. Details of firm closures (interventions) can be found by searching on the SRA’s Solicitors Register, which records regulatory actions taken against firms and individuals.

In relation to the assessment of trends of law firm collapses, this is a matter for the SRA, and work has been underway to improve how risks to consumers are handled. The SRA has been strengthening its use of data and intelligence to detect emerging risks so that it can intervene more quickly to protect consumers. Its consultation on holding client money, which closed in February 2026, will look at how to safeguard client money more effectively. The SRA is also taking forward actions in response to the LSB’s independent reviews of its regulation of Axiom Ince LTD and SSB Group LTD, and will apply any relevant lessons learned in relation to the closure of PM Law.

The Ministry of Justice continues to keep the statutory regulatory framework under review to ensure that it is working effectively. While there are no current plans to review the legislation, my officials and I will continue to engage with the regulators to ensure that actions are implemented, any other learnings are identified, and consumers are protected.

Secondary information

Type
Written question
Reference
123397
Session
2024-26
Subjects
Solicitors Regulation Authority
Contains statistics
Yes
Link
View this Written question on www.parliament.uk