In February 2024 the Solicitor's Regulation Authority launched a review of the overall approach to protecting consumers when they place their trust in a regulated law firm, Protecting the public: our consumer protection review.
The review covers two key areas:
- The SRA's policy and operational arrangements for identifying and managing or mitigating risks in the marketplace to clients and client funds.
- Compensation fund arrangements in light of the risks identified
In our response we stress that there needs to be clear articulation the problem statement that the review is intended to address, as well as the need to consider the wider challenges law firms face; including AML and sanctions compliance, foreign exchange, bank verification, fraud prevention and cybersecurity. We also discuss that while the take-up of third-party managed accounts (TPMAs) has been lower than anticipated, the benefits associated with TPMAs are clear when compared with the relative costs and risks associated with client accounts. To read our response, in full, download the pdf version here.
.png)
