On 23 August 2023 the Solicitors Regulation Authority Limited (“SRA”), a relevant licensing authority, notified the Legal Services Board (“LSB”) that it has objected to Aaron Playle’s continued holding of a restricted interest in FMCL Law limited, an SRA licensed body (“the notification”) as follows:
Mr Playle no longer holds a restricted interest in FMCL, we [SRA] have not had to take any action under paragraph 43 of Schedule 13 to the LSA.
What is this notification for?
Paragraph 47(1) of Schedule 13 to the LSA requires that, where we have objected under paragraph 36 to an existing holding of a restricted interest in a licensed body, we must notify the Legal Services Board (LSB). The notification must state the reasons for the objection, and the kind of restricted interest to which the objection related.
This notification contains the required information.
Reasons for the objection
Paragraph 47(2) of Schedule 13 to the LSA requires that we provide reasons for the objection and the kind of restricted interest to which the objection related.
The full reasons are detailed at section 5 of the decision of 29 April 2022.
In summary:
On 8 February 2022, an SRA adjudicator found that Mr Playle breached Principles 2 and 6 of the SRA Principles 2011 (under the SRA Handbook 2011) by making unauthorised withdrawals from FMCL totalling £120,000, by arranging for two contractors to overcharge FMCL, and in receiving secret commissions totalling £203,387.24. As a result of that finding, Mr Playle was disqualified under section 99 of the LSA from being a manager, employee, HOLP or HOFA of a licensed body.
This disqualification is already included on the LSB’s public registers and the SRA published decision can be found here: https://www.sra.org.uk/consumers/solicitor- check/632990/.
The findings made against Mr Playle stemmed from a judgment made by the County Court that Mr Playle made unauthorised withdrawals from FMCL’s bank account, had made secret profits, and had overcharged FMCL.
As a director and one of the shareholders, Mr Playle was in a position of seniority and trust at the time these events occurred. As a director, Mr Playle was trusted to look after the company’s best interests and not to place his own financial interests over that of FMCL. Mr Playle failed to discharge these obligations and engaged in conduct which was to the financial detriment of FMCL.
As a result of the disqualification, consideration had to be given as to whether Mr Playle remained fit and proper to continue to hold a restricted interest in FMCL.
In deciding to object to Mr Playle’s continued holding of a restricted interest on 29 April 2022, the SRA adjudicator considered that the actions and findings made against Mr Playle showed that he was not of the necessary character and suitability to continue to be approved to hold a restricted interest. His actions:
- involved an abuse of trust
- were intentional, pre-mediated and repeated
- breached his fiduciary duties to FMCL and caused it substantial financial loss
- placed his own financial interests over that of FMCL and engaged in a prolonged and orchestrated scheme which allowed Mr Playle to receive secret commissions totalling £203,387.24, and
- allowed Mr Playle to withdraw the sum of £120,000 without proper consent when Mr Playle knew he did not have consent to do so.
The adjudicator considered that Mr Playle presented a risk to the public trust and confidence in the profession. Mr Playle lacked integrity and had shown no insight or remorse for his actions.
The SRA adjudicator found that Mr Playle no longer met the approval requirements at paragraph 6 of Schedule 13 to the LSA and therefore no longer satisfied the requirements in Schedule 13 to hold a restricted interest.