SRA fines Kennedy’s Law LLP after client account was used as a banking facility during a property deal
The Solicitors Regulation Authority (SRA) has fined Kennedys Law LLP £18,000 after finding that the firm failed to prevent its client account from being used as a banking facility during a commercial property transaction.
The disciplinary decision relates to Kennedys Law LLP, a recognised body with its head office at 20 Fenchurch Street, London. The outcome date was 8 January 2026, and the decision was published on 6 March 2026.
The regulator found that the firm acted in a commercial property transaction between November 2016 and February 2018. During that matter, the firm failed to prevent staff from making payments from the client account that did not relate to an underlying legal transaction.
As a result, the client account was used as a banking facility, which is prohibited under the SRA’s regulatory rules.
The SRA determined that this conduct breached Principle 8 of the SRA Principles 2011, which requires firms to run their businesses effectively and in accordance with proper governance and sound financial and risk management principles.
The firm also failed to achieve Outcome 7.4 of the SRA Code of Conduct 2011. This provision requires firms to maintain systems and controls for monitoring financial stability and risks to money or assets entrusted to them by clients and others, and to address any issues identified.
In addition, the regulator found breaches of rules 6.1 and 14.5 of the SRA Accounts Rules 2011. Rule 6.1 places responsibility on principals, directors, members and compliance officers for finance and administration (COFAs) to ensure compliance with the accounts rules across the firm. Rule 14.5 prohibits the use of client accounts as banking facilities and requires payments or transfers to relate to an underlying legal transaction or regulated service.
The SRA said the misconduct was serious because it involved the potential misuse of client money. The regulator noted that the failures created a risk of substantial harm, including the possible loss of money entrusted to the firm by third parties.
However, the regulator considered that a higher financial penalty would not be proportionate. The SRA concluded that the firm’s conduct was not deliberate or reckless in relation to its regulatory obligations.
Kennedys Law LLP accepted that its client account had been used as a banking facility and expressed remorse and regret regarding the issue.
In addition to the financial penalty of £18,000, the firm was ordered to pay investigation costs of £1,350.