Overview

• The regulator is writing to more than 500 firms requiring a signed declaration of rule compliance and immediate remedial action where gaps are identified.
• As of 31 July, the SRA had 95 open investigations relating to 76 firms, with nine of the 25 firms visited in the thematic review now under active probe.
• The review followed a survey of 129 firms handling over 2.4 million claims and found recurring failures in client care, costs information, onboarding checks, and advice on claim merits.
• Thirty surveyed firms used litigation funding totaling about £200m, yet due diligence on funders was often weak and only seven funders were Association of Litigation Funders members.
• File checks showed frequent lapses in ID, conflict, and sanctions screening, incomplete disclosure about referral arrangements, and inconsistent explanations of funding risks to clients.