The Legal Services Consumer Panel (LSCP) expressed profound concerns about the findings of the independent report, commissioned by the Legal Services Board (LSB), into the Solicitors Regulation Authority’s (SRA) handling of Axiom Ince.
The regulator says the report highlights an “urgent need for significant regulatory improvements within the legal services sector”.
The independent report unveiled what the LSCP has called “serious shortcomings in regulatory oversight, compliance, transparency, and consumer protection” at Axiom Ince, revealing “systemic flaws that require immediate attention” from both the Solicitors Regulation Authority (SRA) and the LSB as the oversight regulator.
“This report serves as a wake-up call for the entire legal services landscape. The SRA’s oversight in the Axiom Ince case has not only left client funds at risk but shaken the very foundation of trust that underpins the legal profession. Consumers deserve regulatory bodies that act with urgency, transparency, and an unwavering commitment to protection. The failures identified here demand immediate and decisive reform to ensure that consumer interests are safeguarded at every level,” stated Tom Hayhoe, Chair of the Legal Services Consumer Panel.
In light of these findings, the LSCP has urged the SRA and LSB to take decisive action to address the following:
Enhanced Oversight and Accountability: Implement targeted oversight measures for firms classified as high risk, ensuring that regulatory bodies can proactively manage potential issues.
Protection of Clients’ Money: It is imperative that firms adhere to guidelines designed to protect clients’ money. The SRA and LSB must ensure that the systems and processes in place are robust, or they must overhaul the current framework governing firms’ ability to hold clients’ money.
Consumer Protection Measures: Existing consumer protection mechanisms must be reviewed and strengthened to ensure they effectively provide recourse for clients who experience loss. As recently stated, while these shortcomings are apparent there is no case for any reduction in consumer protection.
Transparency Requirements: Mandating greater transparency in firm operations and financial practices is essential for assuring consumers of the integrity of the services they receive.
The LSCP say they “remain steadfast in its commitment to advocating for consumers and will closely monitor developments related to the LSB’s report on Axiom Ince, continuing to push for reforms that prioritise consumer interests and enhance the integrity of the legal profession.”
