SRA Update
Issue 146 - December 2025
Welcome to the latest issue of SRA Update. In this month’s issue, have your say on our latest consultation on safeguarding client money, get updated guidance on the Mazur judgment and how it might affect your firm’s processes, and find out about our investigation into SSB Law Ltd. You also have the opportunity to influence our thinking around solicitors qualifications. All that remains to say now is, from all of us at the SRA, have a Merry Christmas and a Happy New Year.
We want your views on proposals to strengthen protections for the money consumers deposit with law firms. The key potential changes to the existing regulatory regime have been informed by feedback received from the profession, public and wider stakeholders, as well as our own work. The consultation outlines potential changes to firms’ obligations around accountants reports and the division of regulatory roles within firms.
Read more about: Consultation now open on client money and compliance safeguards
We have clarified our approach to enforcement when it comes to firms’ supervision arrangements when conducting litigation in light of the Mazur judgment. Our guidance did previously include information about our approach, but we have responded to feedback asking for further details.
Read more about: Updated resources on Mazur and conducting litigation
We have banned two former SSB Group Limited staff from working in the profession as part of our disciplinary work. There is still other disciplinary action in train in relation to SSB, and we will hold to account those individuals who have been involved in serious misconduct.
The Government has issued a call for evidence on housing disrepair claims and tenants’ experience in seeking redress. We encourage those with experience of these types of claims to take part. You have until 12 February 2026 to respond.
Read more about: Call for evidence on housing disrepair claims
The FCA’s consultation on a Motor Finance Consumer Redress Scheme closed last week. In our submission we highlighted our expectations of those we regulate in this space. As part of this, we want to remind you of your obligations for any work you’re undertaking in regard to motor finance claims. We issued guidance on this earlier in the year, you can read our guidance here.
Read more about: FCA consultation on motor finance redress scheme closed
We are holding online focus groups in February and March 2026 to review the Statement of Solicitor Competence and SQE Functioning Legal Knowledge. We are looking for a wide range of practising solicitors, academics and training providers to take part. You can register your interest now.
Read more about: Help shape the future of solicitor qualifications
Are you looking for a new challenge? In December, we will be recruiting for roles in Consumer Policy, Legal, Risk and Market Intelligence, and Risk and Information Governance. Find out more about these roles and sign up to job alerts.
Welcome to the latest issue of Compliance News. This month, find out about changes to the money-laundering regulations and discover what’s new with our updated SARs guidance. You need to get your firm ready for the new General Licence for sanctions, and find out how to catch-up with this year’s compliance offcers’ conference. All that remains to say now is, from all of us at the SRA, have a Merry Christmas and a Happy New Year.
Two changes to the money laundering regulations came into force during November. These changes are to Regulation 28 and Regulation 30A and relate to the Register of Overseas Entities.
The UK Financial Intelligence Unit has published three new Suspicious Activity Report Best Practice guidance documents. This replaces all previous guidance, which has now been withdrawn.
The government updated its high-risk third countries list at the end of October. These are countries deemed to have deficiencies in their anti-money laundering measures. In our latest article, we look at best practice and why it’s important to consider historic designations, alongside current lists.
Read more about: High-risk third countries – what you need to know
The Office of Financial Sanctions Implementation (OFSI) has issued a new General Licence, which took effect on 28 October 2025. This replaces several earlier legal-services licences. Firms should update internal policies, client onboarding procedures and billing processes to align with the new requirements.
Read more about: Update your policies to reflect new sanctions licence
Poor ethical conduct can undermine the rule of law, harm clients and damage trust and confidence in the profession. Conduct falling short of our ethical standards can range from unintentional behaviour with limited consequences through to deliberate acts causing serious consumer detriment. We have brought together a range of resources in one place to help you navigate the ethics maze.
Read more about: One-stop shop for ethics guidance and support
New source of funds and wealth guidance, checklists and information for clients are now available to download from our website. The new materials have published as part of our thematic review into source of funds and source of wealth. The review looked at three years of proactive engagements with firms and includes views on compliance challenges faced by the profession.
Read more about: Essential resources for checking source of funds
Following on from our annual Compliance Officers Conference last month, thousands more of you tuned in last week to our virtual conference. But if you were unable to join us, don’t worry! Content ranging from bite-sized 15-minutes workshops to fuller Q&A webinars is all now available on our website. Topics covered include anti-money laundering, professional ethics, our Accounts Rules, common compliance queries and much more.
Read more about: Virtual compliance conference sessions now available to watch!
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