SRA steps in as PM Law network collapses
The body that regulates the solicitors’ profession in England and Wales has stepped in to protect clients’ interests at PM Law, a network of firms that closed unexpectedly earlier this week.
The Solicitors Regulation Authority (SRA) said that it launched an immediate investigation into PM Law on Monday and contacted the firm to make sure that client interests were protected properly.
As a result of its initial investigation, it said, it had decided to intervene – taking possession of all documents and papers held by the firm, taking possession of all money held by the firm and, where a firm was still trading, closing it with immediate effect.
‘Troubling’ news
The England-and-Wales Law Society Gazette said that the intervention was likely to be one of the most extensive and costly ever handled by the SRA, involving offices spread across as many as 20 sites.
SRA chief executive Sarah Rapson said that the regulator had acted “quickly and decisively” to protect the interests of clients.
“The sudden announcement from PM Law on Monday that they had closed is troubling news, and I fully sympathise with the clients of the firm. Many of those involved are buying and selling a house or dealing with personal injury-claims,” she added.
“While we cannot disclose information about an ongoing investigation, we are working quickly to gather all the relevant information and provide answers to those that have raised important questions about their ongoing matters with the firm,” Rapson stated.
Acquisitions
PM Law Group was founded in 1990 and has grown in recent years through a series of acquisitions.
The Gazette said that the collapse would lead to more questions about law firms growing quickly through acquisitions and the SRA’s ability to regulate them.
It added that details had emerged of a trail of intra-group loans between members of the PM Law Group, which collectively run to millions of pounds.