LSB takes enforcement action against SRA after Axiom Ince collapse and client money loss

Article summary

The Legal Services Board (LSB) has taken enforcement action against the Solicitors Regulation Authority (SRA) following an independent review of issues connected to Axiom Ince Limited. The firm, which expanded rapidly through mergers and acquisitions, collapsed in October 2023, resulting in the loss of approximately £60m in client money and 1,400 job losses. Under its statutory powers provided by the Legal Services Act, the LSB has issued binding directions requiring the SRA to enhance its risk identification and response measures, improve the safeguarding of client money, and strengthen controls to address risks from the concentration of key compliance roles within law firms. The SRA has already initiated a plan to address these issues and is required to comply with the new directions within 12 months, providing progress reports every three months. The process included consultations with the Lord Chancellor, the Competition and Markets Authority (CMA), the Legal Services...