Client funds probe launched as regulator intervenes in PM Law
The Solicitors Regulation Authority has confirmed it is investigating a potential fraud following the unexpected closure of PM Law Ltd earlier this month.
The regulator was alerted to the firm’s sudden shutdown on Monday, 2 February 2026. PM Law notified the SRA directly, and concerns from clients were raised later the same day. In response, the SRA immediately launched an investigation into the firm and connected individuals. Two days later, on 4 February, it formally intervened.
As part of that intervention, the SRA appointed Gordons LLP as its intervention agent. The firm has taken possession of all client files and money held by PM Law, including client funds. The agent is now working through tens of thousands of files to identify affected clients and make contact where necessary.
Jonathan Peddie, Executive Director of Legal and Enforcement at the SRA, confirmed that the investigation centres on suspected financial wrongdoing.
“We are investigating a potential fraud, including the misappropriation of client money,” he said.
Peddie acknowledged the significant public interest in the case, citing the impact on clients. He stated that the regulator is acting to protect and support those affected while progressing what he described as a complex investigation.
“We are focused on establishing what occurred, how it happened, and who was responsible,” he said. “We will take appropriate action to protect the public, including enforcement action against anyone who has been involved in misconduct.”
The SRA has also shared information with relevant law enforcement agencies. However, due to the live nature of the investigation, it confirmed that no further comment will be provided at this stage.
The regulator has addressed concerns from clients who may be unable to access funds previously held by PM Law. Those affected can apply to the SRA’s compensation fund to recover missing money. The SRA said it is prioritising applications where there is an urgent need.
It has already issued several emergency grants to clients who had exchanged contracts and needed funds to complete property transactions. More than 80 applications have been received so far, and the regulator has begun processing them.
The SRA stated that its immediate priority remains the protection of client interests and the orderly handling of files and funds following the firm’s closure.