PM Law, which collapsed in February, comprised a group of 11 companies, 25 offices and more than 30 trading names spread across Yorkshire, Cumbria, Berkshire, Derbyshire and London.
In an update this week, the SRA said its intervention was ‘one of the largest and most complex ever undertaken’. It is supporting thousands of former clients and handling hundreds of claims to the SRA Compensation Fund, amounting to an estimated £21.5m—although this figure may increase. As of the end of last week, it had paid out £9.3m from the fund plus £6.8m from money held within the firm.
Paul Hastings, SRA director of client protection, said: ‘Some of those affected were in the process of buying or selling a home, facing the risk of collapsed moves, or losing their deposits.
‘Others were dealing with delayed probate matters, often while managing bereavement and outstanding estate administration. Many of the former clients faced significant upheaval at a stressful time.’
Law Society chief executive officer Ian Jeffery said: ‘The SRA has moved quickly in its investigation and has already paid out 92 claims to former clients.
‘We continue to be encouraged that the SRA has acted with openness and transparency. However, a case this large coming so soon after Axiom Ince and SSB Group, reinforces the need for the SRA to focus on their core regulatory role and deliver the changes needed to reduce the risk of future large-scale collapses and re-build consumer confidence.
‘The Compensation Fund provides crucial protection and reassurance to consumers. It is unfortunate the SRA has had to use the Fund in this case and we hope any increase to the Fund will be kept to a minimum.’
