Independent review reveals lack of clear leadership at the SRA failed to protect consumers

News

The Legal Services Board (LSB) has today (16 October) published its independent review of the regulatory events leading up to the Solicitors Regulation Authority’s (SRA) intervention into the collapsed law firm SSB Group Limited, finding that wholesale change is needed to respond to early warning signs to prevent future consumer harm.

“The independent review reveals that the SRA received more than 100 reports about patterns of conduct in SSB’s handling of claims and it once again shows the SRA as lacking grip on managing key risks and responding adequately to protect consumers,” said Law Society of England and Wales president Mark Evans.

“The report lays bare a lack of leadership and oversight of regulatory procedures and processes at the SRA. This is despite knowing the risks posed by bulk cavity wall insulation cases, the previous failure of Pure Legal from which the SRA transferred clients to SSB, and multiple reports from MPs, other lawyers, industry and the victims themselves. A key concern must be the treatment of vulnerable victims by the SRA.

“We know that the SRA will imminently have new leadership and that change comes at a crucial time for the organisation, which has been severely dented by the outcome of both the Axiom Ince and SSB reviews. In the space of 12 months both independent reviews separately concluded that the SRA failed to act adequately, effectively and efficiently and failed to take all the steps it should and could have taken. This cannot just be about improving systems and processes but requires culture change and focused leadership.

“The sanctions by the LSB are a necessary step but strong and continuing oversight of the SRA is needed to ensure it acts on the report’s recommendations swiftly and comprehensively. The SRA must get back to basics and ensure its operations are joined up and focused on protecting consumers. The profession and consumers have been badly let down by the actions of SSB and the failings of the SRA.”

Notes to editors

Read the LSB’s independent review in full.

Read the Law Society’s response to the LSB’s independent review of the regulatory events leading up to the SRA’s intervention into Axiom Ince.

Read the Law Society’s response following the LSB’s binding directions to the SRA following the independent review.