Consultations
SRA further consultation on client money in legal services
You will recall that earlier this year, we submitted our response to the SRA’s ‘Further consultation on client money in legal services: Protecting the client money that solicitors hold’
This consultation followed on from the SRA’s November 2024 consultation 'Client money in legal services – safeguarding consumers and providing redress'. It sought views on two key areas:
- Improvements to the accountants' reports regime
- Strengthening the checks and balances provided by compliance officers
The consultation closed on 20 February 2026, and the SRA has now published its final post-consultation position paper, summary of consultation responses and associated documents: Downloads - post consultation
Key measures being introduced include:
- Enhanced accountants’ reports requirements: All firms holding client money will be required to provide additional information via declarations and those required to get accountant’s reports will be required to submit them to the SRA.
- Separation of key roles in higher-risk firms: The SRA is requiring that individuals in firms above specified thresholds cannot also hold certain compliance roles, to help assure internal checks and challenge around decision making within firms. There are some partial exemptions for sole owner manager firms.
The SRA has submitted the proposed rule changes to the Legal Services Board for approval, with implementation expected to start early next year, subject to that approval.
Further information will be shared when available.
(Author: Kirsty Limacher, Lifetime Lawyers legal consultant)