Jurisdiction(s):
United Kingdom

SRA abandons global turnover penalties, keeps domestic turnover fines for England and Wales; interim steps enable unlimited fines for economic crime while broader fining reforms are delayed

Published on: 19 May 2025

Published by a Law360 reporter

Legal News

Article summary

On 13 May 2025, the watchdog gave reassurance to the profession — and to BigLaw in particular — that it will keep domestic turnover as the basis for penalties in the most serious breaches of its rules. Specialists in legal ethics expressed immediate public relief at the reversal. Julie Norris, a partner at Kingsley Napley LLP in London, said the proposal was 'ill-thought through' because it failed to account for the realities of different law firm ownership models and ways of sharing costs and profits. She added: 'Its potential impact was huge. At a macro level, it would have served to undermine England and Wales’ position in the global legal services market'. The solicitors’ watchdog had to overhaul its approach to financial penalties after it obtained new powers in March 2024 to issue unlimited fines for economic crime offences. In June 2024 it opened a three-month consultation covering other proposals, including minimum penalties and the banding of fines. However, Andrew Pavlovic, a partner at CM Murray LLP, said the watchdog had got ahead of itself, given it had already introduced its new domestic turnover – or an individual’s income – based fining regime in May 2023. 'The consultation went a...

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