With the impending departure of Paul Philip, the Chief Executive of the Solicitors Regulation Authority (SRA), the legal profession is presented with a moment of reflection and a significant opportunity for reform. The next Chief Executive will inherit an organisation that is both influential and frequently criticised, particularly for its approach to regulation and enforcement. If the SRA is to become more effective, less confrontational towards solicitors, and better focused on public protection, there are several pressing issues the new leadership must confront.
This article explores the key areas where the incoming Chief Executive should direct their attention, spanning anti-money laundering (AML), training and qualifications, Strategic Lawsuits Against Public Participation (SLAPPs), diversity, economic pressures on small firms, fraud among partners, client account reform, public accessibility of legal services, and consumer vulnerability.
1. Recalibrating the SRA’s Approach to Regulation
A recurring criticism of the SRA is that it is over-zealous in its enforcement of rules, especially against solicitors who may have fallen short of standards in historic contexts, sometimes without evidence of current risk or harm. This has led to perceptions that the regulator is overly punitive, creating an atmosphere of fear rather than fostering compliance.
The incoming Chief Executive must shift the SRA towards a more proportionate and collaborative regulatory model. This includes greater emphasis on remedial action, early engagement, and clear differentiation between serious misconduct and administrative failings. A culture of support and guidance—particularly for small and struggling firms—would foster improved compliance and public protection.
2. Strengthening and Streamlining AML Compliance
Anti-money laundering remains one of the SRA’s top priorities, especially given the UK’s obligations under the Money Laundering Regulations. However, solicitors frequently report that the SRA’s expectations in this area are unclear, inconsistent, and disproportionately focused on documentation rather than effectiveness.
The new Chief Executive must work towards clearer, more practical AML guidance and invest in outreach and training to help firms, especially smaller ones, meet their obligations. There must be a shift from ticking boxes to genuinely reducing risk. A greater emphasis on risk-based approaches and sector-specific scenarios would enhance understanding and compliance.
3. SLAPPs: Ensuring a Balanced and Fair Regulatory Stance
In recent months, the SRA has taken a more vocal position on SLAPPs (Strategic Lawsuits Against Public Participation), particularly following statements such as that issued on 24 March 2025. While the protection of journalists and freedom of speech is essential, solicitors must not be placed in the position of fearing regulatory action simply for acting on a client’s instructions.
The incoming Chief Executive must ensure the SRA’s enforcement around SLAPPs is fair, evidence-based and not unduly influenced by political or media pressure. There must be clear guidance to help solicitors understand where the boundaries lie between robust representation and abusive litigation tactics.
4. Promoting Diversity and Tackling Structural Barriers in the Profession
The legal profession continues to face challenges around diversity and inclusion, especially at senior levels. While the SRA has taken steps to promote diversity, more must be done to ensure entry into and progression within the profession is genuinely open to all.
The Solicitors Qualifying Examination (SQE) was introduced in part to widen access, but concerns remain about the high costs of preparation, lack of transparency in outcomes, and the risk of disadvantaging those without financial support. The new Chief Executive must undertake a full review of the SQE’s impact, particularly on candidates from underrepresented backgrounds.
Further, regulatory requirements should be reviewed to identify and remove any barriers that disproportionately affect minority solicitors or those from non-traditional backgrounds. However, this must not be at the expense of the standing in which the legal profession is still held by many. Ethical and professional standards must be maintained and there should be an understanding that falling below those standards will be pursued no matter the education, background or size of the firm in question.
5. Supporting Smaller Firms Under Financial Pressure
Many small and medium-sized firms are experiencing acute financial pressures, exacerbated by inflation, professional indemnity insurance costs, and regulatory burdens. These firms often serve local and vulnerable communities and are a vital part of the legal services landscape.
The SRA must adopt a more supportive posture towards such firms. This includes simplifying compliance procedures, reducing unnecessary red tape, and offering tailored support for financial resilience. The next Chief Executive should also engage with insurers and other stakeholders to address the disproportionate impact of regulatory requirements on smaller practices.
6. Tackling Internal Fraud and the Risks of Misconduct Among Partners
Fraud within law firms, particularly by partners, remains a serious concern. Recent high-profile cases have shown how a single rogue individual can bring down an entire practice and cause widespread client harm.
The incoming Chief Executive must prioritise the development of preventative strategies, such as improved internal governance requirements, firm-wide risk assessments, and mandatory fraud awareness training. Encouraging a culture of transparency, whistleblowing, and early reporting will also help firms detect and address misconduct more effectively.
7. Considering the Abolition of the Client Account
The proposal to abolish the traditional client account is one of the most radical ideas under consideration. Whilst there is some merit in the arguments for finding new ways in which client money can be protected more effectively, the proposals put forward so far do not achieve sufficient benefits when compared with what will be lost as a result.
The SRA has consulted on the potential use of third-party managed accounts (TPMAs) as an alternative. These are not, in their current form at least, a viable alternative and do not in all probability address the issues that exist. Indeed, they may even bring with them new problems that are not currently faced – for example the problems of having so much money effectively placed in the hands of others. They certainly do not, as has been suggested by Paul Philip, make the issues of money laundering any easier to address since all of the client and funds checks that are currently required will continue to be required.
The new Chief Executive will need to carefully weigh the benefits and drawbacks, taking into account the operational impact on firms, especially smaller practices. Any move away from the current system for client accounts must be capable of bringing genuine benefits and not be undertaken simply to appease those in the consumer lobby such as Mr Tom Hayhoe and the other self-appointed busy bodies in the Legal Services Consumer Panel. Any changes must be carefully managed to ensure clients remain protected and access to justice is not adversely affected.
8. Technology and Cost Effective Practice
More effort needs to be put into making all firms aware of both the benefits and the dangers of using new technologies in practices. Whether this can be said to be a Law Society or a SRA task is one that is open to debate. Firms need to be made aware of what is available to them, how they can improve client service with the judicious use of technology and of the dangers that technology can present if not used correctly and with suitable safeguards. Where this possibly affects the SRA is in the need to make risk reviews and explanatory guidance more easily accessible by the profession.
The incoming Chief Executive may feel it appropriate to consider the accessibility of regulatory information on the SRA’s website – which is cited by many with whom we speak as being a barrier to understanding regulations and compliance. Many comment that the move to a shorter rule book is only of benefit if it is not then allied to a proliferation of semi-regulatory explanations of how the shorter rules will be interpreted by the SRA. The difficulty of finding information on the SRA website is also mentioned by many with the onsite search function proving to be particularly unpopular giving, as it does, largely unfiltered search results which do not always direct the user to what is the core information.
9. Improving Public Access to Legal Services
The public’s ability to access affordable and timely legal advice remains a persistent problem, especially for those on lower incomes or in rural areas. The incoming Chief Executive must view this not as a challenge for government alone, but as central to the SRA’s public interest mission.
Whilst we have already been presented with regulatory reforms that were designed to allow more flexible business models, promote innovation in service delivery, and support unbundled legal services, these have not been as successful as had initially been hoped. More needs to be done to allow genuine representation of the interests of the “ordinary person” especially in the face of continuing encroachment upon civil liberties that the push for more housing and more sustainable energy production creates.
The SRA needs to work more closely with legal aid solicitors, charities, and technology providers to expand access, particularly through digital and community-based initiatives, to those who would not otherwise be able to afford legal representation.
10. Understanding and Responding to Consumer Vulnerability
Protecting vulnerable clients is a cornerstone of the SRA’s role. But vulnerability takes many forms, from cognitive impairment and language barriers to lack of legal literacy or digital exclusion.
The next Chief Executive should champion the development of regulatory guidance and best practice resources on identifying and supporting vulnerable clients. This should include mandatory training on vulnerability and ethics as part of ongoing continuing competence obligations. Firms should also be encouraged to adapt their processes and communication methods to better meet clients’ needs.
11. Restoring Confidence Through Transparency and Engagement
Finally, the new Chief Executive must focus on rebuilding trust between the SRA and the profession. This will require more than softening rhetoric. It calls for genuine engagement, responsiveness to feedback, and increased transparency in decision-making processes.
The SRA must demonstrate that it understands the pressures facing solicitors and that its primary goal is not to punish, but to protect the public and uphold standards in a fair, proportionate, and constructive manner.
Conclusion
The role of Chief Executive of the SRA is one of enormous influence. The next person to hold this office has a rare opportunity to reshape the culture, effectiveness, and reputation of the regulator. By addressing the issues outlined above, the new Chief Executive can build a more balanced, inclusive, and forward-thinking SRA—one that truly protects the public while supporting the profession in delivering ethical, high-quality legal services.
To do so will require not just regulatory competence, but empathy, courage, and vision. The future of legal regulation in England and Wales depends on it.