SRA releases review into handling of PM Law

The Solicitors Regulation Authority (SRA) has released the findings of an independent review by Jenner & Block LLP, which examined its actions leading to the intervention into PM Law Group in February 2026. Alongside this, the SRA published an independent assurance review by the Berkeley Partnership regarding compliance with Section 32 Directions following the closure of Axiom Ince.

Key findings from the Jenner & Block report indicate that the SRA failed to identify issues at PM Law earlier due to a lack of aggregated information. Moreover, decisions were made with incomplete data, placing the regulator in situations more serious than decision-makers realised. Capacity constraints also hindered the SRA's ability to respond swiftly to emerging risks, though operational staff were noted for their skills and dedication.

In response to the report, which Anna Bradley, Chair of the SRA Board, acknowledged as difficult reading, she expressed regret over the impact on former clients and recognised that the regulator should have acted sooner. Bradley stated, “We are particularly sorry for the impact this has had on former clients of the firm and accept we should have done better by them.” Meanwhile, Sarah Rapson, the SRA's Chief Executive, emphasised the need for a regulatory reset, noting, "This exposes the limitations of a regulatory model that remains too dependant on enforcement after the event rather than prevention before it occurs."

Following these reviews, the SRA has initiated significant reforms to strengthen its regulatory framework. Key areas of focus for further reform include improving oversight of client money, adopting a proactive data-driven approach to risk assessment, and enhancing organisational capacity and efficiency. For instance, the SRA has implemented new rules for compliance roles and accountants' reports while also developing a risk and data programme to gain a comprehensive understanding of firms’ operations.

The assurance report by the Berkeley Partnership highlights that, although the SRA has made substantial progress against the Section 32 Directions from May 2025 regarding Axiom Ince, further work remains crucial. Of the 60 implementation steps in the Action Plan, 80% were fully met, yet there is recognition that additional efforts are required to ensure lasting change.

As the SRA continues its transformation, it aims to release a draft three-year strategy later this year, incorporating insights from both reviews and outlining plans for future change. The organisation remains committed to enhancing consumer protection and regulatory practices whilst addressing previously identified structural gaps.