Back to basics: The quiet power of legal ethics
In this article, the point is made that legal ethics extend beyond mere rule-following; they are foundational to the profession’s integrity and public trust.
Ethical principles, such as acting with integrity and maintaining public confidence, apply to all members of a regulated firm, not just solicitors.
Junior team members are often banned from the profession for unethical conduct. Actions like backdating documents or inappropriate conduct outside of work can have serious professional repercussions.
Have they been told that they are held to the same high standards as solicitors?
Beyond AML: Rediscovering the full picture of legal compliance
Ed Marshall cautions law firms against an overemphasis on AML compliance at the expense of other critical areas.
While AML remains vital, neglecting aspects like client confidentiality, conflict management, supervision, and client care can lead to significant risks.
Ed advocates for a balanced compliance approach that encompasses all facets of regulatory obligations.
Internal audit: Another string to your bow
Sophie Cisler explores the evolving role of internal audit in law firms with Mark Penlington of Irwin Mitchell. Traditionally associated with financial services, internal audit is gaining traction in the legal sector as a means to enhance governance, risk management, and operational resilience.
Implementing an internal audit function can offer law firms a proactive mechanism to identify vulnerabilities, ensure compliance, and foster a culture of continuous improvement.
Prioritising wellbeing strategies
Many law firms now have wellbeing policies—but do they live and breathe them?
In this post, Sam Bray interviews Leigh McKay of Workwise Wellness. It is argued that wellbeing should be a strategic leadership priority, not just an HR initiative. Embedding core values, involving staff in shaping culture, and modelling behaviour from the top down are all part of the shift from box-ticking to genuine cultural change.
Done properly, a strong wellbeing culture can support compliance, reduce risk, and help attract and retain talent.
News and Guidance
1. SRA ramps up AML enforcement rhetoric…again
Legal Futures reports that the SRA briefed the media on its increasing frustration with the profession’s AML compliance. The SRA has issued £575,000 in AML fines in just six months and warns that it is about to “ratchet up” enforcement activity even further.
Speaking to the media, Paul Phillip said:
“We are concerned that we’re still finding fairly basic deficiencies in AML arrangements within firms…It’s probably not deliberate – it’s probably lots of smaller firms that are just not au fait [with the rules] or don’t have capacity or just not paid attention, but the fact is that not having things like a risk assessment in place increases the probability of money laundering.
We’ve been saying this for years so we will continue to ratchet up the consequences for people who don’t comply.”
Firms are urged to revisit their AML frameworks, with particular focus on risk assessments, policies, and training.
2. Climate change: (welcome?) new guidance for property lawyers
The Law Society has issued a detailed practice note on climate change and property transactions, setting out how solicitors should identify and advise on physical, regulatory, and legal risks associated with climate change.
At the heart of the guidance is a seven-step checklist for property transactions:
Explain the risks – Let clients know that climate risks could affect the value, use, financing, insurability, or marketability of the property.
Advise on legal liability – Highlight any potential legal consequences from known physical or regulatory risks, based on search results or known issues.
Consider lender requirements – If acting for a lender, determine whether a climate risk search is required under their instructions.
Document the client’s decision – Record whether the client requested a climate risk search (or chose not to), and if other checks were made.
Report responsibly – If a search has been done, clarify that you can’t interpret the technical results and refer the client to appropriate experts.
Put advice in writing – Include climate risk advice in the report on title or terms of engagement.
Seek lender instructions if needed – If a search raises concerns, consult the lender before proceeding.
The guidance stresses that solicitors should not attempt to advise on physical risks, but must advise on legal implications of risks that are identified.
Not everyone is convinced. Online responses from conveyancers have ranged from sceptical to scathing – some calling the guidance “utter nonsense” and warning that it adds to an already impossible workload for property lawyers.
One commenter asked “why is it assumed…that we as lawyers are in a better position than a client to understand the effects of climate change?”
3. SRA changes tack on drink-driving sanctions
The SRA will officially no longer routinely fine solicitors for drink-driving offences. This shift reflects updated thinking about regulatory priorities and the need to focus resources on conduct that more directly undermines public trust in the profession.
4. Supporting in-house solicitors with ethical decision-making
The Law Society has published a new guide: Working effectively and ethically as an in-house solicitor. It recognises the unique pressures faced by in-house teams and offers practical tools for managing workload, maintaining independence, and resisting undue influence.
The guide includes:
Common barriers to ethical action
Strategies for balancing commercial demands and professional duties
The “ladder of resistance” for pushing back when necessary
Highly recommended reading for legal teams embedded in businesses, charities, or the public sector.
5. SRA consults on 2025–26 business plan and budget
The SRA is proposing a 23% increase in its budget, with practising certificate fees set to rise from £164 to £190.
The draft business plan includes a renewed focus on:
High professional standards
Risk-based and proactive regulation
Innovation and technology
Equality, diversity and inclusion
The SRA reports a 40% rise in misconduct reports, meaning an increased workload. 18% more cases investigated are concluded year-on-year, which the SRA puts down to improved operational efficiency.
The consultation closes on 19 June 2025.
Read the full consultation and respond
Compliance corner – real life Q&As
Q: We have a small residual balance on a client account. The client has given permission to donate it to charity, but their chosen charity only accepts PayPal or debit card. We do not have those payment facilities on our client account. Can we move the money to our office account to make the donation?
A: Tempting as it might be, the answer is no. Even with client consent, making this transfer for the purpose of facilitating a donation blurs the line between client and office money, and could draw unwanted regulatory attention.
Best practice is to always keep client money separate, and only make withdrawals from the client account as permitted by the Accounts Rules.
Instead, try:
- Asking the charity if they can accept a bank transfer
- Or suggesting a different charity – such as The Law Society Charity, which does accept direct transfers
It’s a small amount, but keeping the accounts squeaky clean matters.
This is not legal advice. If you have a question you would like us to answer in this section, feel free to send it to info@jonathonbray.com
Free CPD
Next free webinar: Getting AI right – a practical guide
We keep hearing that AI is reshaping the legal landscape – from how we draft documents to how we respond to complaints and supervise staff. But what do you need to think about when bringing AI into your firm? And how can you ensure that you’re setting yourself up for success?
Join us for an essential webinar addressing how to get AI right – ethically and practically.
Date: Wednesday 4th June 2025
Time: 12pm
Location: Online (Zoom)
Topics we’ll cover:
- Regulatory responsibilities: Ensuring your AI use aligns with your professional and regulatory duties
- The difference between LawTech and Tech: clarity on what your firm may actually be looking for
- Choosing and implementing AI tools: Procurement, training and support
- Practical use cases: How AI may help with your day-to-day tasks, whether it’s document drafting, complaints handling, legal research or case progression, or business development and automation of key tasks
- What happens when it goes wrong: Real-world examples, and how to protect your practice
- What the future holds: With the first “AI” law firm just authorised by the SRA, where are we going to next ….. and will you be left behind?
This is more than a tech talk – it’s a deep dive into the (imminent) future of legal practice. Equip yourself with the tools and insights to lead responsibly in an AI-driven profession.
Register Now – Places are limited. Priority access to existing clients.
Recording: Wellbeing in the law
“I’ve had people in tears on the phone – not because they’ve done anything wrong, but because they might have.”
That’s what our team hears regularly from risk and compliance professionals in law firms.
In our latest webinar, we brought together wellbeing experts from LawCare, The Solicitors’ Charity, and the Law Society to talk about the invisible pressure on those who keep law firms compliant.
Included in the panel discussion:
COLPs, COFAs and law firm managers are carrying heavy emotional burdens
There are free, confidential support services available (but many don’t know about them)
Law firm leadership must actively support wellbeing – it’s not just an HR issue
Regulators are now linking firm culture to regulatory outcomes
This was one of the most powerful sessions we’ve hosted.
Read our full write-up here.
Recording available here (passcode Ggum$W2Y)
Disciplinary Watch
The latest disciplinary decisions relate to the ongoing fallout from a collapsed consolidator firm, more AML fines, and findings of unethical behaviour by non-qualified staff.
Personal consequences of the Kingly Solicitors collapse
The SRA continues to unpick the £10m client account shortfall at now-defunct Kingly Solicitors, with enforcement action taken against several individuals:
- Nurul Miah – Handed a record-breaking £3.98m fine under the SRA’s ABS fining powers for his role in dishonestly causing the £10m deficit in the client account. Profile
- Colin Buckingham – COFA disqualified from holding future compliance roles after failing to prevent the improper withdrawal of client funds. Profile
- Lalou Tifrit – A key employee, banned entirely from working in the solicitors’ profession due to involvement in the improper use of client money. Profile
AML enforcement continues
No let-up in AML fines, with historic failings and weak client/matter risk assessments at the fore:
- Underwood Solicitors LLP – £25,000 fine for a deficient AML policy and weak risk assessments across five files. Profile
- Hunter’s Solicitors LLP – Fined £24,820 for similar failings. Profile
- Moerans Solicitors – £22,338 fine for failings dating back to 2011, including absent risk assessments. Profile
- Legal Clarity Limited – £18,802 fine. Profile
- Hammond Bale LLP – £6,547 fine. Profile
- Lovatt & Co – £1,003 fine. Profile
- M Pender – fine of £1,104. Profile
Dishonesty in the profession
Several individuals have been removed from the profession for ethical breaches:
- Rebecca Dao – Banned for falsely claiming to have passed the LPC in a training contract application. Profile
- Shanaz Haider – Barred from the profession for falsely holding out as a solicitor. Profile
- May Noor – Paralegal banned for lying about leaving client voicemails. Profile
- Thomas Elliott – Removed from the profession for raising invoices for reimbursement in a pro bono matter. Profile
Improper communication
- Joseph Rahim – Rebuked for contacting a represented party directly and making unfounded perjury allegations. Profile
Friendly reminder: Staying on the roll
If you’re a non-practising solicitor and want to remain on the roll, you must actively apply via mySRA – it’s not automatic. The SRA’s annual process requires you to confirm your status and pay a £20 fee. Failure to apply means removal from the roll, so if you wish to keep your status, make sure to complete the process before the deadline. The application window is 3 April to 28 May 2025. For full details and to apply, visit the SRA website.
Training your team: Anti-money laundering
The SRA expects that all ‘relevant employees’ practicing within the scope of the Money Laundering Regulations (MLRs) must receive robust anti-money laundering (AML) training. Now is the time to ensure your firm is compliant. Failure to meet these obligations can result in significant fines and regulatory action.
Our comprehensive AML training is designed to equip your team with the knowledge and practical skills needed to identify, prevent, and report suspicious activities, safeguarding your firm from risk. Ensure your firm stays ahead of regulatory requirements and avoids potential pitfalls by enrolling your team today.
Formats available: Online | In person | On-demand
Don’t miss out—request a free quote today!
Safeguard your practice: Independent AML Audit
What we do – contact us for further information about our services
- Outsourced COLP and COFA support
- Compliance audits
- New firm and ABS applications
- Independent AML audits (Regulation 21)
- Training (online, remote, on demand)
- AML and GDPR workshops
- PII cost reduction
- Remote file reviews
- TPMAs
- Escrow accounts
- AML and sanctions searches
ICYMI: Behind the briefcase: The human cost of legal compliance
By Sam Bray
If you’re interested in understanding the personal impact of compliance on legal professionals, read this write up of this week’s powerful webinar (“Wellbeing in the law“).
This panel discussion with LawCare, The Solicitors’ Charity and the Law Society looked at the emotional toll that regulatory demands place on solicitors. Issues like burnout, anxiety, and the fear of making mistakes are common.
It also provided information about the support these organisations can offer.
The recording link is above.
ICYMI: The April 2025 Legal Sector Affinity Group (LSAG) guidance updates – what you need to know
The latest LSAG guidance update might look minor on the surface, but there are still important reminders for law firms.
These tweaks and subtle shifts don’t radically alter AML expectations, but they do reinforce existing obligations around UBO identification, supply chain awareness, and understanding FATF high-risk countries.
If you’re looking for a clear-headed take on what’s changed (and what hasn’t), including what your firm actually needs to do, read this five-minute explainer.
ICYMI: Handy tips for surviving an SRA investigation
In this post, Ed Marshall shares practical tips for navigating an SRA investigation – straight from a former SRA Investigation Officer turned compliance consultant. Whether you’re dealing with a self-report, responding to that dreaded two-week email, or wondering how best to mitigate the risk of escalation, this post is important reading.
Covered in the post:
Self-reporting: Be proactive, not perfect. A thoughtful report sets the tone.
Extensions: You can ask for more time—do it early and sensibly.
Enforcement Strategy: Frame your response with the SRA’s own priorities in mind.
Legal advice: If things might escalate, early advice is money well spent.
