SRA cracks down on client account breaches
Summary
The Solicitors Regulation Authority has fined two law firms and one solicitor for breaches of client account rules, including improper use of client money, dormant balances and failures in accountants’ reporting. The cases involved repeated compliance failures over extended periods, although the SRA noted there was no evidence of dishonesty or financial gain in the matters reported.
Why it matters
Residential property surveyors often rely on solicitors to handle client money properly during transactions, so weaknesses in client account controls can increase completion risk and delay matters. The article is a reminder to check that legal counterparts are managing funds, reporting and instructions in line with regulatory requirements.
Key points
- The SRA fined one solicitor and two LLPs for separate client account breaches.
- One case involved payments from a client account that were not connected to regulated legal services.
- Another involved dormant client balances and repeated failures to prepare or deliver accountants’ reports.
- A third involved transfers from client to office account without proper billing or authority.
- The SRA treated the client money breaches as serious, even where no dishonesty was alleged.
This is an RPSA summary of a publicly available article. The full content remains with the original publisher.
