Recent figures reveal that many solicitors fined by the Solicitors Regulation Authority (SRA) are either unwilling or unable to settle their penalties.

The SRA has significantly increased its fining activity over the last two years, leveraging the raised maximum fine limit of £25,000. In 2024 alone, solicitors and firms were fined a total of £600,000—primarily for breaches of anti-money laundering regulations. All fines collected are remitted to the Treasury. However, data obtained through a freedom of information request paints a worrying picture. As of April, unpaid fines related to internal sanctions exceeded £1 million. Most of these penalties were issued over three months prior. Back in November 2024, the total outstanding amount was around £800,000.

The data was secured by Susanna Heley, a regulatory expert and partner at national law firm Weightmans. She remarked that the current approach might need revision to ensure compliance and prompt payment.

“The problem is likely to be that those who have inadvertently slipped up, self-reported and are otherwise generally compliant will pay promptly (assuming they can afford it),” she noted. “However, there must be reason to suspect that those who are wilfully not complying will fail to pay and learn the wrong lessons as to how to avoid consequences.”

Heley proposed a few possible reforms: offering discounts for early payment, imposing contingent fines that activate upon continued non-compliance, or even allowing fines to expire from a solicitor’s record upon prompt settlement. While acknowledging that the SRA’s statutory powers are limited—preventing it from imposing alternative sanctions—Heley emphasized that “the £1m in unpaid fines indicates that the system is not working.” 

An SRA spokesperson responded, saying: “It’s important that we recoup the costs spent on our disciplinary work. We will look at the situation of individuals, including their ability to pay, and take a fair, pragmatic approach. For instance, in some circumstances a payment plan is appropriate.” 

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Source: John Hyde, The Law Society Gazette