SSB collapse: independent review finds lack of clear SRA leadership failed to protect consumers

What happened?

Sheffield-based firm SSB Group Limited, trading as SSB Law, acted for thousands of clients in civil litigation claims, mainly relating to cavity wall insulation (CWI).

SSB Group was placed into administration in January 2024, leaving debts of £200 million and former clients facing heavy costs bills for unsuccessful claims.

The LSB appointed an independent law firm outside the jurisdiction of England and Wales, Carson McDowell LLP, to review the SRA’s conduct.

The firm, which also handled the review of Axiom Ince, found the SRA did not take all the steps it should have taken to protect the interests of the public.

Key findings of the review

The report identifies serious shortcomings in the SRA’s regulatory response, including:

• a failure to investigate over 100 reports made between 2019 and 2024, many of which highlighted systemic issues in SSB’s handling of CWI claims
• inadequate assessment procedures that did not account for patterns of misconduct or the vulnerability of affected clients
• ineffective forensic investigations, including one in April 2023 that failed to identify SSB’s financial instability despite clear evidence of unsustainable debt and poor financial management
• a lack of joined-up regulatory oversight, particularly in relation to the transfer of client files from Pure Legal to SSB, and then to JMR Solicitors – both of which later collapsed

The review concludes that the SRA did not take all reasonable steps to protect consumers, uphold professional standards or maintain public confidence in the legal profession.

What this means for consumers and solicitors

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 CWI cases
• the previous failure of Pure Legal from which the SRA transferred clients to SSB
• multiple reports from MPs, other lawyers, industry and the victims themselves

“A key concern must be the treatment of vulnerable victims by the SRA,” said Law Society president Mark Evans.

The collapse of SSB has had a devastating impact on former clients, many of whom were led to believe that their claims carried no financial risk.

The failure of after-the-event (ATE) insurance policies – often due to breaches by SSB – has left vulnerable individuals facing unaffordable costs orders, with some reporting threats of enforcement action and severe mental distress.

The review also highlights the broader damage caused to the legal profession and the administration of justice, with thousands of unmeritorious claims consuming court resources and undermining public trust.

What should happen next

Sanctions imposed by the LSB are appropriate, but strong leadership of the SRA is needed to make sure it acts on the report’s recommendations swiftly and comprehensively.

The SRA’s incoming chief executive must address the failings and restore consumer confidence in the regulator.

“We know that the SRA will imminently have new leadership,” said Mark Evans.

“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 could and should have taken.

“The profession and consumers have been badly let down by the actions of SSB and the failings of the SRA.

“The SRA must get back to basics and ensure its operations are joined up and focused on protecting consumers.

“This cannot just be about improving systems and processes but requires culture change and focused leadership.”

Our next steps

As the professional body for solicitors, we represent and advocate on behalf of the profession and engage with decision makers on the issues that matter most.

We support the LSB’s call for procedural reform and improved consumer protection.

We will continue to engage with the LSB and the SRA to make sure lessons are learned and that future regulatory interventions are timely, proportionate and effective.

We also reiterate our commitment to supporting solicitors in maintaining the highest standards of professional conduct and client care.

Comparing the SSB and Axiom Ince reviews

The SSB review invites comparison with the 2024 review into the collapse of Axiom Ince.

Axiom Ince collapsed in 2023, following the alleged misappropriation of over £60 million in client funds by its managing director, triggering criminal charges and a full regulatory intervention.

The SRA was found to have missed clear warning signs, failed to verify client account balances, and inadequately managed the risks posed by rapid acquisitions and sole ownership.

The independent reviews into the collapse of SSB and Axiom Ince reveal distinct but overlapping regulatory failures by the SRA.

While the circumstances of each firm’s collapse differ, both reports identify serious shortcomings in the SRA’s ability to detect, investigate and respond to emerging risks.