A former board member of the Solicitors Regulation Authority (SRA) has urged the top leaders of the organisation to resign in light of a critical report concerning the handling of Axiom Ince.
Tony Williams, who served on the SRA board until August 2022, has called for the resignation of the chair and chief executive. He suggested that if they do not step down, other board members should consider resigning as a sign of accountability. The board’s recent decision to extend Ms Bradley’s term as chair has been criticised for seemingly rewarding poor performance.
An independent report commissioned by the Legal Services Board highlighted significant failings by the SRA in the lead-up to their closure of Axiom Ince in October 2023. The report concluded that the SRA had not acted adequately, effectively, or efficiently, failing to take necessary steps that could have mitigated the situation. In response, enforcement actions against the regulator are set to commence.
However, the SRA contests these findings, arguing that the report contains no concrete findings and is largely based on opinion. The organisation admitted that in hindsight, some actions could have been executed differently, but insisted these do not address the core issues.
Williams, writing in The Times, acknowledged that individuals involved in Axiom Ince bear primary responsibility, currently under investigation by the Serious Fraud Office. He noted that hindsight might distort perceptions of the problem’s complexity, but emphasised that the SRA, as a regulatory body, must maintain high standards. He criticised the SRA’s defensive stance as lacking humility and lacking substantial acknowledgment of its potential missteps.
Williams argued that basic failures in the SRA’s inspection processes allowed subsequent mergers of Axiom Ince with other firms, leading to further financial discrepancies. He highlighted a worrying trend and a lack of scrutiny concerning firms that rapidly acquire others, often inheriting financial instability, thus compounding risks.
While acknowledging that no regulatory system is foolproof in preventing or identifying fraud, Williams stressed that leadership should accept responsibility when organisational failures occur. Despite these assertive calls for accountability, Bradley’s term was extended for two more years to address emerging challenges in the legal sector, a move Williams describes as a failure to appropriately address leadership inadequacies.
Williams concluded that should the current leaders not resign, the board’s non-executive directors should step down, asserting that the legal profession deserves decisive action.
The SRA faces mounting pressure to demonstrate accountability and reform, following a damning report on its operations concerning Axiom Ince. Leadership decisions are under intense scrutiny, with calls for resignations to uphold the integrity of the regulatory body.
