Two solicitors are fined after a firm sale structure left weak oversight and breached accounts rules
A controversial law firm sale has ended in disciplinary penalties after the Solicitors Disciplinary Tribunal found that two solicitors put an unsafe structure in place that undermined governance and financial controls.
The case centred on Silverman Peake LLP, an SRA authorised firm originally owned by two solicitors who later sold their interests through an Assignment of Goodwill and Business Sale Agreement. The tribunal heard that the purchase was completed on 24 January 2020 for £25,001, but the transaction was paired with a separate Trainee Principal Agreement that reshaped who truly controlled the practice.
Under the arrangement, the buyer became the sole member of the firm and took the formal roles of compliance officer for legal practice and compliance officer for finance and administration. However, the trainee agreement meant the second respondent funded the purchase and was placed in day-to-day charge of the firm’s High Road branch, with the buyer agreeing not to interfere with how the office was run.
The tribunal found that the agreements were not just theoretical documents but were actively implemented. In practice, the trainee assumed responsibility for running the firm’s operations and accounts, while the solicitor who owned the firm on paper did not exercise the control expected of a manager and compliance officer.
The disciplinary findings focused heavily on breaches of the SRA Accounts Rules. Between January and October 2020, the firm failed to maintain key accounting records, including client ledger balance lists, a cash book with running totals, regular bank statement collection and five weekly reconciliations. The tribunal concluded that these were serious regulatory failures that created a significant risk of harm, even though no actual harm was identified.
The tribunal also found misconduct against the trainee solicitor for accepting a Part 36 settlement offer on behalf of a former client without instructions or proper authority, and in circumstances where there was an own interest conflict or a significant risk of one. That conduct was found to breach core duties around acting only on instructions and avoiding conflicts.
The tribunal dismissed all allegations against the former owners. Although they were involved in the sale and were retained briefly as consultants, the tribunal accepted their evidence and found the regulator had not proved they had the required knowledge of the trainee agreement terms or the later control arrangements that became central to the case.
Both the buyer and the trainee solicitor were fined £10,001. The buyer was ordered to pay £14,482.46 in costs. The trainee solicitor was ordered to pay £26,895.99 in costs and was also made subject to restrictions preventing her from practising as a sole practitioner or manager, becoming a partner or LLP member, or working other than in SRA-approved employment for three years, with permission to apply later to lift the restrictions.