Regulatory Update August 2025

James Price

Thank you for joining me for this month’s regulatory update. In today’s briefing, I’ll be covering four key developments. First, the introduction of new security requirements for accessing the MySRA portal. Then, I’ll move on to the Financial Conduct Authority’s new scheme around motor finance claims and the SRA’s position on solicitors involved in that work. After that, we’ll look ahead to the SRA’s consultation on continuing competence and what that could mean for CPD obligations. Finally, I’ll update you on recent changes to anti-money laundering rules, specifically new thresholds for submitting a defence against money laundering.

James Price

To begin, the Solicitors Regulation Authority has announced changes to how we access the MySRA portal. From the 18th of August, all users will be required to verify their identity through either the Google Authenticator or Microsoft Authenticator app. This additional layer of security will be mandatory and will be in place for this year’s annual renewal. If you have not already set up one of these apps, it is important to do so now to ensure continued access to the system without disruption.

James Price

Moving on, the issue of motor finance claims has attracted the attention of the Financial Conduct Authority, which has introduced a new scheme to consider the position of consumers who may have been impacted by motor finance commissions. The SRA has taken the opportunity to remind solicitors to take particular care when engaging with this type of work, especially given the potential risks associated with compensation claims in this area. Full details and guidance have been published by the SRA, and I would encourage anyone advising clients in this field to review that material carefully.

James Price

Looking ahead, the SRA has also announced its intention to launch a consultation into continuing competence. This consultation is expected to focus on strengthening ongoing competence requirements in the SRA Handbook, which could include new rules around both the quantity and subject matter of CPD activity. Concerns have been raised that solicitors may currently be taking too narrow an approach to professional development. As a result, we may see future regulations requiring a broader spread of topics, potentially including both legal and management training. Updated guidance will also be provided to help firms comply, and the SRA has made clear that it will be working directly with solicitors who have been identified as falling short of current standards.

James Price

Another important area of change concerns anti-money laundering rules. In our spring update and May monthly briefing, we discussed the amendments made to the Proceeds of Crime Act 2002 earlier this year under the Economic Crime and Corporate Transparency Act. Those amendments clarified that in certain circumstances, where transactions take place in the regulated sector and meet specific conditions, offences would not be committed. For example, when the property involved is of low value, belongs to the client, or when the transaction is made to exit the client relationship, provided customer due diligence obligations are fully met.

James Price

Building on that, a further change came into effect on the 31st of July. The threshold amount for submitting a defence against money laundering has now increased from one thousand pounds to three thousand pounds. This change, introduced by the Proceeds of Crime Amendment Order 2025, means that the handling of funds or property below three thousand pounds, in the circumstances I’ve just described, will no longer amount to a criminal offence. This is a significant adjustment that firms should take into account in their compliance processes.

James Price

Taken together, these developments highlight the importance of keeping up to date with the SRA’s regulatory agenda and ensuring that compliance procedures are reviewed regularly. Whether it’s adapting to new security requirements for the MySRA portal, being alert to the risks around motor finance claims, preparing for tighter expectations on continuing competence, or adjusting anti-money laundering practices to reflect higher thresholds, each of these changes will have a direct impact on how firms operate.

James Price

That concludes this month’s regulatory update. Thank you for listening, and as always, we’ll continue to keep you informed of any further changes in the months ahead.