Legal Services Consumer Panel urges reform now

The Legal Services Consumer Panel has voiced significant alarm following the recent publication of the Legal Services Board’s independent review concerning the downfall of SSB Law and the apparent regulatory failures of the Solicitors Regulation Authority (SRA). The review revealed systemic issues in consumer protection and regulatory responsiveness that must be promptly addressed to restore public confidence in legal services.

Conducted by Carson McDowell, a law firm based in Northern Ireland, the review found that the SRA did not act effectively or efficiently in response to over 100 reports regarding SSB Group Limited between January 2019 and March 2024. Despite numerous complaints from consumers and other professionals, the SRA stalled in taking necessary intervention steps. This delay allowed SSB Law to remain operational, ultimately causing more harm. The firm's collapse in January 2024 left thousands of vulnerable clients facing significant debts from adverse costs, many of whom assumed they were shielded by “no win, no fee” arrangements.

Tom Hayhoe, Chair of the Legal Services Consumer Panel, said “This report lays bare a regulatory failure with devastating consequences for consumers. The SRA’s inaction over five years enabled a pattern of misconduct to escalate unchecked. The legal services sector must now confront the reality that its regulatory framework and oversight does not prevent harm to consumers, especially the most vulnerable.”

In response to the findings, the Panel welcomed the Legal Services Board’s decision to start enforcement actions against the SRA and expressed support for the new performance targets being implemented. However, these actions must evolve into a wider cultural and structural transformation across the sector, which must include improving the Legal Services Board's ability to identify risks and avert harm to consumers.

Some key failings identified by the SRA include a delayed response to consumer complaints despite clear indications of harm, a lack of coordinated regulatory oversight — especially in high-risk areas such as litigation funding, and inadequate transparency in the regulatory framework.

In light of this, the Panel has outlined several actions for improvement:

1. Strengthen regulatory accountability: The SRA must completely overhaul its complaint management and risk assessment processes to ensure timely and effective action.
2. Enhance consumer protection mechanisms: Clear safeguards must be established for clients involved in high-risk legal scenarios, including litigation funding.
3. Improve transparency and communication: Regulators should actively inform consumers about their rights, risks, and options for redress.
4. Embed consumer focus across the sector: All legal service providers and regulators ought to adopt a culture that prioritises consumer outcomes and ensures access to justice.

The SSB case is indicative of wider vulnerabilities present in the legal services market, vulnerabilities that have been highlighted repeatedly by the Competition and Markets Authority (CMA), the Panel, and other stakeholders. Without decisive reform, consumers are likely to encounter ongoing risks and barriers.

The Legal Services Consumer Panel remains dedicated to collaborating with regulators, government stakeholders, and the legal sector to ensure that legal services in England and Wales deliver transparency, accountability, and genuinely serve public interests.

The Legal Services Consumer Panel was established under the Legal Services Act 2007 to provide independent advice to the Legal Services Board about consumer interests within legal services in England and Wales. Comprising eight lay members from diverse backgrounds, the Panel investigates consumer issues to influence legal services regulation.