A solicitor has been fined after client account discrepancies and reporting failures persisted for years
The Solicitors Regulation Authority has imposed a financial penalty of £14,318 on a solicitor following prolonged failures to comply with client account and reporting obligations.
The sanction was agreed under a regulatory settlement agreement dated 16 January 2026 and published on 20 January 2026 by the Solicitors Regulation Authority. In addition to the fine, the solicitor agreed to the publication of the outcome and to pay investigation costs of £600.
The solicitor is the sole director of Kinas Solicitors Limited, a firm based in London. The SRA confirmed that the outcome was reached by agreement, concluding its investigation into the firm’s compliance with the SRA Accounts Rules.
The matter arose following the submission of a qualified accountant’s report for the year ending 31 December 2022. The report was prepared under the SRA Accounts Rules 2019 after accountants were instructed by the firm. On receipt of the report, the SRA carried out a forensic inspection of the firm’s accounts.
That inspection identified two significant issues. First, in July 2022 the firm identified a discrepancy of £33,456.85 between the balance held in its client account and the total liabilities shown in its accounting records. The discrepancy remained unresolved until 23 April 2024, when a payment was made from the firm’s office account to its client account.
Secondly, the SRA found that for seven consecutive years, between 2014 and 2021, the firm had obtained qualified accountant’s reports but had failed to deliver them to the regulator within the required timeframe.
The solicitor admitted both breaches. The SRA found that the failure to resolve the client account discrepancy breached rule 8.3 of the SRA Accounts Rules, which requires firms to carry out regular reconciliations and promptly investigate and resolve any differences. The failure to submit qualified accountant’s reports breached rule 32 of the SRA Accounts Rules 2011 and rule 12.1 of the SRA Accounts Rules 2019.
In deciding the appropriate sanction, the SRA took account of mitigation, including early and voluntary admissions, cooperation with the investigation, and evidence that the failures arose from a misunderstanding of regulatory obligations rather than intentional misconduct. The regulator also noted that no client suffered loss and that the solicitor had since taken remedial steps, including undertaking training, appointing a new bookkeeper and strengthening internal resources.
However, the SRA concluded that a fine was necessary because the conduct persisted over several years and had the potential to place client money at risk. It stated that the penalty was proportionate, in the public interest, and served as a credible deterrent while maintaining professional standards and public confidence in legal services.