Services to Distressed Law Firms
Distressed Law firms – Are you risking the SRA closing down your practice?
The SRA’s stated role is “…to set, promote and secure in the public interest, standards of behaviour and professional performance necessary to ensure clients receive a good standard of service and the rule of law is upheld”.
When the public interest is at risk you may find the SRA closing down your practice. The process is called intervention. Your practice will cease to exist and all client and office account monies will vest in the SRA. The SRA will also take possession of all of your business and client documents via an appointed agent.
Partners and other lawyers are likely to face the Solicitors Disciplinary Tribunal. Your practising certificate may also automatically be suspended, if the SRA suspects dishonesty or if the Solicitors' Accounts Rules or Code of Conduct or investment rules have been breached.
The partners are also personally liable for the costs of an intervention, which can be crippling.
Law firms in financial trouble are like any other business, and directors, members and partners have the same fiduciary duties to creditors and others. We work with insolvency and compliance professionals in a collaborative approach with the SRA to find alternative options for law firms in financial trouble.