In February, the SRA shut down 24 of PM Law’s offices and stranded tens of thousands of client matters overnight. If you handle completion money, you’ll know exactly why that story makes for uncomfortable reading.
Why this is happening now
You’re also facing new reporting rules for pooled client accounts, already in force, with third-party managed accounts (TPMAs) expected to become standard across legal services within the next two or three years. The SRA has backed TPMAs as a safer alternative to traditional client accounts since December 2017 and updated that guidance again in November 2019.
What changes, and what remains the same
A TPMA is an escrow-style account owned and held by an FCA-regulated third party, not you. You never touch the client’s money directly, which is exactly why a PM Law-style collapse couldn’t play out the same way on this rail. That money falls outside the definition of client money under the SRA Accounts Rules, though you still need to tell clients how their money’s held. In addition, you need to keep statements and records current and notify the SRA once you bring a provider on board.
That doesn’t take the responsibility off your plate. You’re still responsible for making sure the arrangement suits each client, that they know their rights, including the right to dispute a payment or pull out, and for keeping an eye on the account yourself.
How Kord Custody closes the gap
Too often, the system that checks who your client is and the system that holds their money are two separate things, and it’s that seam where problems slip through unnoticed. Kord keeps both on the same rail: each matter gets its own segregated sub-account instead of sitting in your firm’s own, every payment is logged on a tamper-proof audit trail, and problems surface as automated alerts instead of turning up months later in a routine audit.
‘Conveyancers move completion money every single day,’ says David Casey, Payments Account Executive at Kord. ‘The PM Law collapse wasn’t a one-off. It’s what happens when that money isn’t ring-fenced properly.’
Join the webinar
Kord is running a free webinar on exactly this, Client Money on Trial: TPMAs Are Coming for Law Firms, on Tuesday 8 September 2026 at 2:00 pm BST. Over 45 minutes, David Casey and Yazad Bajina, Kord’s Chief Commercial Officer, will cover the regulatory pressure firms are under, what changes once a TPMA is in place, and a look inside Kord itself, with time left for your questions. It’s free to attend, and if you can’t make it live, you’ll still be sent the recording afterwards. Sign up here
