In a recent development, the Solicitors Regulation Authority (SRA) has dismissed an independent report criticising its role in the collapse of Axiom Ince as mere opinion.
Solicitors Regulation Authority (SRA) leaders have steadfastly refused to issue an apology for their conduct surrounding the collapse of Axiom Ince. Anna Bradley, the head of the SRA, maintained this stance during a recent query by Legal Futures on the implications of an independent report commissioned by the Legal Services Board. Bradley reiterated the organisation’s position, conveyed in a statement last week, that the report’s conclusions were not entirely agreed upon by the authority.
In particular, the SRA challenged the notion that an alternative regulatory approach might have preemptively exposed the issues at Axiom Ince. Bradley stated, “While the report highlights areas where different actions could have been taken, it is unrealistic to expect regulation to forestall all potential harms.” The report in question criticised the SRA for allegedly failing to act efficiently, suggesting a need for procedural changes to prevent similar incidents in the future.
During a compliance officer conference in Birmingham, the SRA’s chief executive, Paul Philip, challenged the report’s findings further. When questioned about a missed opportunity to detect wrongdoing at Axiom Ince during a 2022 inspection, Philip dismissed the claim due to a lack of evidence. He highlighted that Carson McDowell, the Northern Irish law firm that authored the report, did not adhere to a standard of proof that would establish concrete facts, rendering the critique somewhat speculative.
Philip pointed out that the core issue in the Axiom Ince affair was a sophisticated and concealed fraud perpetrated by a solicitor, with multiple individuals currently under investigation by the Serious Fraud Office. He suggested that blame should lie with those involved in the alleged criminal activities rather than the regulatory body. “If you want someone to blame, I think you’ve got to blame the people who are subject to criminal investigations,” Philip asserted.
The Legal Services Board has announced plans to use its enforcement powers to direct the SRA to implement specific measures aimed at preventing similar collapses in the future. Draft directions are anticipated to be publicised within the coming weeks, highlighting the ongoing efforts to shore up regulatory practices and ensure accountability.
The SRA remains unmoved by criticisms in the report, focusing instead on addressing procedural improvements. Despite the controversy, the regulator continues to distance itself from blame, pointing to alleged fraudulent activities within Axiom Ince as the primary issue.
