Varinder Singh Bhandal fined £10k and restricted for 2 years after accounting breaches.
A solicitor has been fined £10,000 and banned from handling client money for two years after a tribunal found he failed to run a proper accounting system at his law firm.
Varinder Singh Bhandal, admitted to the roll in 2010, was a director at Hawksley Law Ltd, trading as Claas Solicitors, between March 2018 and July 2021. During that time, he neglected to maintain accurate books of account, failed to submit annual accountants’ reports to the Solicitors Regulation Authority (SRA), and did not carry out regular reconciliations.
The Solicitors Disciplinary Tribunal (SDT) ruled that these repeated failures placed client money at risk for over three years.
The case was resolved on the papers as an agreed outcome between Bhandal and the SRA. In its ruling, the Tribunal noted that while Bhandal was not the firm’s senior partner, he bore responsibility for ensuring regulatory compliance.
Embed from Getty ImagesThe panel found that the lapses amounted to breaches of both the SRA Principles 2011 and 2019, as well as the relevant SRA Accounts Rules. His misconduct, they said, demonstrated more than minor failings and required a serious response.
Despite the risks posed, the SDT accepted that Bhandal had made “full and frank admissions” and that he had not been fully aware of the extent of the firm’s breaches. The Tribunal also recognised that there was no suggestion he had acted dishonestly or sought to enrich himself.
Mitigating factors included his cooperation with the regulator and his admission of wrongdoing. However, the Tribunal stressed that the integrity of client accounts is central to public confidence in the profession.
Sanctions imposed included:
- A £10,000 fine, payable to the Crown.
- A £7,500 costs order to cover the SRA’s expenses.
- A 24-month restriction barring him from practising as a sole practitioner, acting as a sole manager or owner of a law firm, holding compliance officer roles, or managing client money.
The Tribunal considered, but rejected, lighter sanctions such as a reprimand, ruling they would not reflect the seriousness of the failings. At the same time, it decided striking Bhandal off the roll would be disproportionate, given that no client had suffered actual financial loss and that he had shown insight into his errors.
Instead, the panel placed the case into its Indicative Fine Band Level 3, covering more serious misconduct, and concluded that a financial penalty combined with restrictions was the fair and proportionate outcome.
The judgment underlines the obligation on solicitors in managerial roles to uphold rigorous accounting standards. Even unintentional lapses can expose client money to risk, the SDT said, and regulators will not hesitate to intervene to protect the public and the reputation of the profession.
The restrictions will remain in place until at least March 2024, after which Bhandal may apply to have them lifted.