We are deeply concerned by the scale of harm caused to former clients of PM Law Ltd. The reported loss of £39.5m of client funds and the significant disruption to tens of thousands of people at what were already stressful and important moments in their lives is extremely serious.
The Legal Services Board is closely scrutinising the SRA’s actions in this matter. The SRA is already subject to statutory enforcement action by the LSB, in respect of failures identified in connection with the Axiom Ince Ltd and SSB Group Ltd cases. We are closely monitoring the SRA’s compliance with that enforcement action and its delivery of the improvements we expect to see at pace.
In February, we wrote to the regulator to establish what it knew about PM Law, at what point and what action it took in response, from the point at which the firm was first identified as posing a potential risk to consumers, through to the point of intervention. We also required the SRA to set out the steps it is taking to assess wider risks to consumers and what further action it will take to reduce those risks. The SRA is cooperating with this process, and we are closely scrutinising its response, including the action it is taking as a result.
We will not hesitate to take further action to ensure that consumers are protected.
We recognise the significant upheaval faced by former clients, and we expect the SRA to continue doing everything in its power to support them.