SRA returns client money and processes urgent compensation claims after the collapse of the Sheffield-based firm
More than £9 million has been returned to clients affected by the collapse of PM Law, the Solicitors Regulation Authority has confirmed in its latest update on the intervention into the firm.
The regulator said the payments have been made within a month of its intervention into PM Law, which abruptly ceased trading earlier this year and left thousands of clients with unresolved legal matters.
Of the £9 million returned so far, around £5.6m came directly from client money held by PM Law at the time of the intervention, while a further £3.69m has been paid through the SRA Compensation Fund.
The compensation fund, financed through contributions from solicitors and law firms, is used to reimburse clients who have suffered financial loss because client money cannot be recovered.
The SRA said it has received more than 250 applications to the compensation fund, reflecting the scale of disruption caused by the firm’s collapse. Of these, 38 of the most urgent claims have already been paid, mainly involving property transactions that were at risk of falling through if funds were not returned quickly.
The regulator intervened into the Sheffield-headquartered group shortly after it closed its offices with little warning. The business operated through 11 companies and more than 30 trading names, with offices across several parts of England.
The intervention has involved securing client accounts, taking control of files and identifying the funds belonging to individual clients.
According to the SRA, more than 17,000 clients have been contacted by email with information about the intervention and guidance on how to recover their files or apply for compensation.
The regulator and its intervention agent have also been working through a large volume of files taken from the firm’s offices. More than 3,600 files have already been released or transferred, enabling clients to continue their legal matters with new representatives.
The SRA said the process of reviewing compensation claims and identifying client funds remains complex, given the scale of the practice and the number of affected clients.
Many of the claims relate to residential conveyancing transactions, where clients had transferred money to the firm to complete property purchases or sales.
Alongside the recovery of client money, the regulator is continuing its investigation into the circumstances surrounding the collapse of PM Law, including concerns about the possible misappropriation of client funds.
The SRA said it will continue assessing claims and returning money where possible while the wider investigation remains ongoing.