Regulatory Update October 2025

James Price

Hello everyone, and welcome to your October 2025 SRA Regulatory Compliance Update.As always, we’ll be taking a look at some of the key developments across the regulatory landscape that affect solicitors, law firms, and those working in legal services.

James Price

This month, we’ll be touching on the SRA’s upcoming consultation on client money, a significant Court of Appeal case about the right to conduct litigation, the annual practising certificate renewal process, important updates from the Legal Ombudsman, and a warning from the CLC about vendor-gifted deposits that have resurfaced as part of a conveyancing scam. So, let’s get started.

James Price

The SRA have confirmed that they’ll be releasing further information about their ongoing consultation into the Accounts Rules later this year. These consultations are likely to focus on how the SRA defines and regulates client money — a topic that continues to generate a lot of discussion, particularly around how firms manage mixed funds and third-party payments. If you’d like to get up to speed on where things currently stand, Datalaw’s recent webinar, “Reporting Accountant Update”, explores the story so far and offers practical insight into what might be coming next.

James Price

Next, an important case: Julia Mazur and Ora v Charles Russell Speechlys LLP. This case looks at whether an employed individual working within an authorised law firm has the right to conduct litigation if they themselves are not personally admitted or authorised. The Court made it clear that the authority to conduct litigation rests with authorised individuals, not simply with the firm as an entity.In other words, even if you’re employed by an authorised firm, that doesn’t automatically mean you personally have the right to conduct litigation. The judgment did, however, note that there are some exemptions to this, and that un-authorised staff can assist those who are authorised. This decision has prompted CiLEX and other regulators to review the implications for employed staff, so it’s one to watch closely as further guidance emerges.

James Price

Turning now to practising certificate renewal — the SRA has now opened the annual window for both PC renewal and firm information returns. This year, there’s a small but important change: you’ll need to use a verifier app to access MySRA and submit your details. If you haven’t already renewed, make sure you’re familiar with this process and that your information is up to date. For a refresher on the rules around serious breaches and practising certificate conditions, Datalaw’s 2024 webinar on that topic is still available and provides really useful context for compliance teams.

James Price

Moving on to the next topic, the Legal Ombudsman has recently published a series of complaint decisions where the outcomes are significant — both in the level of redress ordered and the issues identified. In some of these decisions, the Ombudsman has directed firms to pay substantial sums to clients — in one example, as much as thirty four thousand pounds, and in another, around twenty five thousand pounds. These cases act as a reminder of the real financial and reputational impact of poor complaint handling. If you’d like to understand how to respond effectively to client complaints and avoid similar pitfalls, Datalaw’s “Complaint Responses” webinar provides practical guidance and examples.

James Price

And finally, a warning from the CLC about a conveyancing scam that’s re-emerged in some parts of the country. It’s known as the “gifted vendor deposit” scam. In these cases, money enters a transaction as a so-called loan, which is then immediately repaid upon completion — effectively turning the law firm into a temporary banking channel. Solicitors are being urged to stay vigilant, especially before accepting any funds into their client account or using such funds to pay firm bills. Always question whether the payment could involve a transfer to a third party, or whether it could blur the line between who the client actually is and who owns the property involved. For anyone wanting a deeper dive into this issue, Datalaw’s “Banking Facilities” webinar covers how to spot and prevent misuse of your client account.

James Price

That brings us to the end of our October Compliance Update. As always, the key takeaway is to stay proactive — keep your policies under review, make sure your staff are aware of the latest guidance, and continue to engage with updates from the SRA, the Legal Ombudsman, and other regulators. Thank you for joining us, and we’ll see you again next month with the latest compliance developments.