SRA compliance — 5 common regulatory pitfalls every solicitor must avoid

Legal practice is demanding, fast-paced and often high-pressure. From the rise of artificial intelligence (AI) that can both empower and endanger your work to the ever-present threat of money laundering and mistakes that tempt cover‑ups, the Solicitors Regulation Authority (SRA) is watching closely.

As solicitors, we must remain alert to the regulatory risks that can impact our clients, firms and professional standing. Here, Deepika Raino from our specialist professional services team explores the five most common pitfalls that we see.

1. Overreliance on artificial intelligence 

Many in the legal sector are eagerly adopting AI tools to ease staff workload and deliver a better service to clients. As we adapt to this changing world, we’re already seeing the risks come to fruition: imagined case law cited in litigation, clients left confused by vague and impersonal updates, and even litigants attempting to be represented by AI-generated lawyers. 

As AI continues to advance, the SRA will no doubt take action against solicitors who fail to properly review AI-generated work especially where this failure causes loss to their clients or breaches professional duties. 

As a solicitor, clients come to you for your judgement, skill and experience. Generative AI can support you in delivering a better outcome for them but it’s no replacement for proper, considered legal work. Ensure that you understand how to use it effectively and always check its outputs before relying on them or sharing externally. 

2. Anti-money laundering checks not being carried out

Solicitors are regularly targeted by fraudsters seeking to launder money through legitimate-seeming transactions facilitated by law firms. These schemes are typically related to the transfer of property or business assets but can catch out the ill-prepared in many areas of practice.   

Professional curiosity is the name of the game. Remind yourself of the red flags in your service area. For example, if you don’t know how your client (or prospective client) is able to pay for a transaction, there’s obscure third-party involvement in funding arrangements or your client is connected to a country that is high-risk for anti-money laundering purposes, ask appropriate questions, document the answers and take action accordingly. 

The SRA expects solicitors to act as a bulwark against money laundering and doesn’t look kindly on those who fail to tread with care. 

3. Aggressive and misleading communication

Many litigators will be familiar with clients wanting to adopt a fire and brimstone approach to litigation. Sending overly aggressive correspondence and/or making misleading legal threats — particularly in defamation cases — has caused regulatory headaches for instructed solicitors. The SRA has issued warnings and imposed sanctions against solicitors involved in strategic lawsuits against public participation (SLAPPs) where legal threats are used to inappropriately silence critics or journalists.

While recent changes in the law now allow SLAPPs to be struck out in the civil courts at an earlier stage, there may still be regulatory action by the SRA against an offending solicitor. 

Solicitors must act with integrity and not take unfair advantage of third parties, being particularly mindful where parties are unrepresented.

By all means, be robust in communication with opponents where it’s appropriate to do so but ensure that correspondence is proportionate, legally sound and wouldn’t worry the SRA should a copy of your letter land on the regulator’s desk.

4. Covering up mistakes

All solicitors are trained in the SRA’s key principles which include acting with honesty, integrity and in the best interests of clients. However, solicitors — like all human beings — are fallible and can make mistakes in practice. When they do, there may be a temptation to try to fix the issue before anyone else becomes aware or hide from difficult conversations. 

In our professional conduct team, we’ve seen time and time again that the attempt to cover up an error can be more damaging than the mistake itself. It may lead to practitioners appearing before a tribunal when no regulatory action would otherwise have been taken.

When you make a mistake, it’s important to think of the bigger picture: how will your actions impact on trust in the profession? Do the right thing by telling whoever needs to know (supervisor, client, court, etc.) and never lie or mislead.

5. Misusing accounts

The SRA treats breaches of the Solicitors Accounts Rules with particular seriousness. Even inadvertent errors like failing to transfer funds promptly or mixing client and office money can lead to regulatory action.

Recent cases have shown that even minor or technical breaches can result in fines or rebukes. The rules are strict for a reason: a solicitor who can’t be trusted with client money shouldn’t be responsible for it. 

If you’re a solicitor handling client money, familiarise yourself with the relevant rules and proactively seek advice when you need help. If in doubt, rely on an accountancy professional. Never ‘borrow’ from client funds, even temporarily. The risks are too great.

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Regulatory compliance isn’t just about avoiding sanctions; it’s about maintaining public trust in the profession. By staying alert to these common issues, solicitors can protect their clients, firms and careers.

As the legal landscape evolves, so too do the expectations placed on practitioners. A culture of openness, integrity and continuous learning is the best defence against regulatory missteps and, if you’re in doubt, always seek advice. 

With deep expertise in regulatory compliance, professional conduct, disputes and litigation and more, our specialist advisors draw on a wide range of legal expertise to support you with the challenges you face, whenever you need us.

Talk to us by calling 0333 004 4488, emailing hello@brabners.com or completing our contact form below.