Solicitors’ regulator sanctioned for failures

The panel called for ‘clear safeguards’ for clients involved in ‘high-risk legal arrangements, including litigation funding’ this week, in its response to Legal Services Board (LSB) moves to sanction the SRA for failing to protect thousands of clients affected by the collapse of law firm SSB Group.

An LSB-commissioned independent review by Northern Ireland firm Carson McDowell, published last week, found the SRA did not act effectively or efficiently in the five years leading to the collapse of the Sheffield firm despite receiving more than 100 reports.

It found the SRA did not take all the steps it could have taken, which meant it failed adequately to protect consumers, the public interest and professional standards.

The LSB will impose two sanctions on the SRA—a public censure and performance targets and monitoring.

SSB Group, which acted for thousands of clients in high-volume civil litigation claims, mainly relating to cavity wall insulation, went into administration in January 2024 owing £200m to litigation funders and other creditors. Many of its clients were subsequently pursued for adverse legal costs, despite having been assured their claims were ‘no win no fee’.

Catherine Brown, interim chair of the LSB, said: ‘The former clients of SSB have suffered profound emotional and financial harm.’

Law Society president Mark Evans said: ‘The report lays bare a lack of leadership and oversight of regulatory procedures and processes at the SRA.

‘This is despite knowing the risks posed by bulk cavity wall insulation cases, the previous failure of Pure Legal from which the SRA transferred clients to SSB, and multiple reports from MPs, other lawyers, industry and the victims themselves. A key concern must be the treatment of vulnerable victims by the SRA.

‘This cannot just be about improving systems and processes but requires culture change and focused leadership.’

Anna Bradley, chair of the SRA, said: ‘We are sorry that we did not act more quickly in relation to SSB… We fully accept the recommendations of this review.’