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05 February 2014 / Simon Love
Issue: 7593 / Categories: Features , Regulatory
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Mind your step

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Simon Love provides a warning to firms facing financial difficulty

A year ago, the failure of a law firm was virtually unheard of. That sort of thing simply didn’t happen to solicitors. However, a number of high profile failures have made it clear that the solicitors’ profession is not immune to the prevailing harsh economic conditions. Following the intervention by the Solicitors Regulation Authority (SRA) into Follett Stock LLP in November 2013, Helen Herniman, the SRA’s Director of Client Protection, said: “The legal services market is facing a tough economic environment and other firms may find they are in a similar position. We’d urge all those who may be struggling financially to get in touch as soon as possible with either ourselves at the SRA, or other organisations that can offer advice such as their local Law Society.”

Why are more law firms at risk of insolvency?

It is undoubtedly the case that the solicitors market is having to face up to historic challenges on every front. All firms are grappling with the fact

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MOVERS & SHAKERS

Signature Litigation—Catherine Naylor

Signature Litigation—Catherine Naylor

International fraud and asset recovery offering boosted by partner hire

Stevens & Bolton—Alexa Payet

Stevens & Bolton—Alexa Payet

Private wealth disputes team adds contentious probate specialist

Morgan Lewis—Paul Feldberg

Morgan Lewis—Paul Feldberg

Firm strengthens investigations and sanctions capabilities with London partner hire

NEWS
Cheshire West, which established an ‘acid test’ for deprivation of liberty safeguards, has been overturned by the Supreme Court
The Chancery Division and other segments of the High Court are to be replaced by a new Business and Property Division (BPD), in a major civil justice shakeup
Law firms that hold client money will need to file annual accountants’ reports and make a declaration, the Solicitors Regulation Authority (SRA) confirmed this week
Two district judges and a tribunal judge have been sanctioned for delays in delivering judgments and orders
Private equity (PE) investment into UK law firms halved to £250m last year, but deal volume rose, according to research by Acquira Professional Services’ Momentum private equity market tracker
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