Legal watchdog censures SRA for failing to act on years of red flags before SSB Law collapse
A devastating independent review has condemned the Solicitors Regulation Authority (SRA) for repeatedly failing to act on warnings before the £200 million collapse of SSB Law, leaving thousands of vulnerable clients facing severe financial losses.
The inquiry by Northern Ireland firm Carson McDowell, commissioned by the Legal Services Board (LSB), found that the SRA ignored more than 100 complaints about the Sheffield-based claimant firm’s handling of cavity wall claims over five years. The report concluded that the regulator failed to protect consumers and missed numerous opportunities to intervene.
According to the report, the SRA wrongly treated the mounting reports about SSB Law as service complaints rather than indicators of systemic misconduct. The regulator also disregarded its own 2020 warning notice to firms handling similar claims, despite evidence of widespread harm to clients.
The SRA’s inaction meant that many clients who believed they were pursuing “no win, no fee” claims were later pursued for defence costs amounting to thousands of pounds.
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The report also criticised the regulator’s decision to allow SSB’s thousands of unfinished cavity wall cases to be transferred to JMR Solicitors, a two-partner conveyancing practice, even as SSB approached insolvency. JMR subsequently went out of business in November 2024.
Carson McDowell concluded that the regulator had “failed in its obligation to protect consumers,” calling the SSB case a “serious dereliction of oversight.”
The SRA has issued an apology to former clients of SSB Law. Chair Anna Bradley said: “We are sorry that we did not act more quickly in relation to SSB, and that issues in our handling contributed to the harm and distress suffered by many vulnerable consumers.”
Bradley confirmed that no resignations would follow, stating: “We fully accept the recommendations of this review and are committed to doing all we can to learn from this event. It is not our view that a resignation is going to help.”
Chief executive Paul Philip, who is due to retire shortly, said no SRA staff involved in the SSB oversight had been disciplined but had instead undergone additional training.
The LSB’s interim chair, Catherine Brown, said the findings exposed “serious failings” that undermined public confidence in the legal regulator. “Former clients of SSB have suffered profound emotional and financial harm,” she said. “There were several early warning signs about the firm, but the SRA failed to act on these.”
Brown confirmed that the LSB had chosen to issue a formal censure and impose performance targets on the SRA, rather than levy a fine, which could ultimately impact law firms and consumers.
Law Society president Mark Evans called for “wholesale change” at the regulator, saying: “Once again, the SRA is shown as lacking grip in managing key risks and responding adequately to protect consumers. The report lays bare a lack of leadership and oversight despite repeated warnings.”
He added: “In just 12 months, two independent reviews have separately found that the SRA failed to act adequately and efficiently. This cannot just be about improving systems but demands cultural change and focused leadership.”
SSB Law entered administration in January 2024, with debts exceeding £200 million. Creditors included a barrister owed £260,000 and multiple contractors forced into closure as insurance premiums soared.
The LSB’s review recommends overhauling how the SRA assesses complaints, investigates firms, and handles closures. It urges the regulator to take proactive responsibility for identifying patterns of risk rather than placing the burden on complainants to prove misconduct.
The scandal follows last year’s Axiom Ince collapse, which triggered similar criticism of the SRA’s oversight failures. With two damning reviews in a year, the LSB said the latest findings demonstrate an “urgent need for accountability and reform” at the profession’s chief regulator.