The Solicitors Regulation Authority (SRA), the legal sector regulator for England and Wales, is facing severe criticism for its regulatory performance, leading to an extraordinary situation where it is under three concurrent statutory enforcement measures. The Legal Services Board (LSB), which oversees the SRA, has expressed deep concern regarding the SRA's handling of specific high-profile firm collapses, including Axiom Ince Limited and PM Law Limited. These failures have resulted in a cumulative loss of client money estimated at approximately £100 million.
According to the LSB, the SRA's performance has been "insufficient" in areas such as authorization, supervision, and enforcement processes, particularly concerning high-risk firms and client fund protection. An independent review commissioned by the LSB highlighted that the SRA failed to act "adequately, effectively and efficiently" in the Axiom Ince case and did not sufficiently monitor or take proactive steps regarding "accumulator firms." The LSB has issued binding directions, performance targets, and a public censure against the SRA, and has mandated an independent audit into its compliance with these directives. The compliance deadline for the Axiom Ince directions is May 28, 2026.
The Law Society has also weighed in, stating that the LSB's previous "light-touch" oversight model of the SRA, which included a glowing performance review for the SRA in February 2024, is no longer fit for purpose. This former approach, based on self-reporting and minimal critical evaluation, allowed major regulatory failures to occur undetected. The LSB is now adopting a more proactive, intelligence-led, and risk-based approach to oversight, focusing on areas with the greatest risk and demanding urgent and immediate action from the SRA to protect consumers.
