SRA faces £1m unpaid fines crisis as solicitors dodge penalties under failing enforcement system
The Solicitors Regulation Authority (SRA) is facing a deepening crisis as new figures expose that over £1 million in fines remain unpaid, casting serious doubt over the regulator’s ability to enforce its financial penalties.
The damning numbers, released through a freedom of information request, reveal that as of April, solicitors and firms had failed to settle fines totalling more than £1 million. Most of these penalties had already been outstanding for at least three months. Back in November 2024, the backlog stood at around £800,000—meaning the problem has rapidly worsened.
In recent years, the SRA has dramatically ramped up its fining activity. After its maximum fining powers were raised to £25,000, the regulator aggressively pursued breaches, particularly targeting violations of anti-money laundering rules. In 2024 alone, solicitors and firms faced a collective £600,000 in fines for these breaches, with all funds directed to the Treasury.
But now, many of those fined appear either unwilling or unable to pay up.
The data was obtained by regulatory specialist Susanna Heley, a partner at national law firm Weightmans, who warned that the system may no longer be functioning as intended. “The problem is likely to be that those who have inadvertently slipped up, self-reported and are otherwise generally compliant will pay promptly—assuming they can afford it,” Heley explained. “However, there must be reason to suspect that those who are wilfully not complying will fail to pay and learn the wrong lessons as to how to avoid consequences.”
Embed from Getty ImagesHeley suggested that the SRA may need to rethink its entire approach to ensure fines are actually collected. Among her proposals were incentives such as offering discounts for prompt payment, or introducing contingent fines that only trigger upon further non-compliance. She also floated the idea of removing fines from a solicitor’s regulatory record if payment is made swiftly.
While acknowledging that the SRA’s statutory powers remain limited, Heley warned that the swelling backlog of unpaid fines signals a system in distress. “The £1m in unpaid fines indicates that the system is not working.”
The figures expose a widening gap between the regulator’s authority and its capacity to enforce penalties in practice. Without effective collection mechanisms, the SRA’s escalating fines risk becoming hollow threats—encouraging some solicitors to gamble on avoiding payment altogether.
In response to the growing controversy, an SRA spokesperson admitted that recovering unpaid fines remains a significant priority but stressed that the regulator does attempt to take personal circumstances into account.
“It’s important that we recoup the costs spent on our disciplinary work,” the spokesperson said. “We will look at the situation of individuals, including their ability to pay, and take a fair, pragmatic approach. For instance, in some circumstances a payment plan is appropriate.”
Despite these measures, the soaring unpaid total suggests that many fined solicitors are simply ignoring the penalties. Critics now fear that the regulator’s credibility is at stake if it cannot demonstrate that financial sanctions carry real consequences.
The revelations come as the legal sector grapples with growing regulatory scrutiny, particularly around compliance with money laundering regulations. With the SRA empowered to issue higher fines, many believed the tougher regime would deter misconduct. But the sharp rise in unpaid fines now threatens to undermine that deterrent effect.
As the unpaid penalty mountain continues to grow, calls for urgent reform of the SRA’s enforcement powers are gaining momentum. Without swift intervention, the regulator risks losing control of its most powerful disciplinary tool—and sending the wrong message to the profession.
