Client Rights in Crisis: What Happens When the SRA Closes Your Solicitor’s Firm?
A practical guide to protecting an ongoing legal matter and recovering money or documents following an SRA intervention in England and Wales.
Discovering that your solicitor’s firm has been closed by the Solicitors Regulation Authority (SRA) can be alarming, particularly when your matter is unfinished or the firm is holding your money or important documents. Although an intervention is intended to protect clients, it does not mean that your matter will automatically continue. Understanding what happens next and acting quickly where necessary can help protect your position.
What Is an SRA Intervention?
An SRA intervention occurs when the SRA closes a solicitor’s practice with immediate effect to protect clients, client money or the wider public. Once the firm has closed, it can no longer act for its clients.
The SRA will usually appoint another firm of solicitors, known as an intervention agent, following the closure. If you are unsure whether an intervention has taken place, check the SRA’s “Solicitor closed down” pages or contact the SRA; they can confirm the closure and provide the intervention agent’s details.
What Should You Do Next?
The steps you should take will depend on whether your legal matter was ongoing or had already concluded, and whether the closed firm was still holding money or documents for you. You may find yourself in more than one of the following situations.
If Your Legal Matter Is Ongoing
If your matter was ongoing when the firm closed, the intervention agent will try to identify your file and contact you. You will usually be asked whether you want it sent to you or to a new solicitor. As the intervention agent does not take over ongoing legal work, you will normally need to instruct a new solicitor to continue your matter.
Existing deadlines are not automatically paused. If you have an approaching court hearing, property completion, limitation or immigration deadline, or an urgent family law matter, contact the intervention agent and seek replacement representation without delay.
A new solicitor can review the work already completed, identify any urgent steps and liaise with the intervention agent to obtain your file. Providing your file reference, any available correspondence and details of upcoming deadlines will help them assess your matter promptly.
If Your Matter Has Concluded but the Firm Still Holds Your Documents
If your matter had already concluded, you may not be contacted automatically about the file. The SRA’s Intervention Archives may hold correspondence, contracts, property deeds, wills, powers of attorney or other documents recovered from the closed firm.
You can submit the SRA’s Intervention Archives document request form with the required identification and signed authorities. There is no fee for making a request, although locating and returning documents may take time. The SRA can only return files and documents recovered during the intervention.
If you want the documents sent to another solicitor, you can provide that firm’s details and authorise the transfer.
If Your Matter Has Concluded but the Firm Still Holds Client Money
A matter may have concluded while the firm is still holding money for the client. This could include a balance remaining from a property transaction, settlement funds or money paid on account that was not used.
When the SRA intervenes, it freezes the firm’s bank accounts and takes control of money held by the practice. The SRA or intervention agent then examines the accounting records to establish how much is held and who is entitled to it.
You will normally need to apply for the money to be returned. You should keep evidence showing the amount paid or held for you, including bank transfer records, receipts, invoices, completion statements and correspondence from the former firm. The process may take time if the accounts are incomplete, money is missing or ownership is unclear.
If the SRA cannot return all the money owed to you, or you urgently require money held by the closed firm, you may be able to apply to the SRA Compensation Fund. The fund is discretionary, so payment is not automatic or guaranteed. Claims should normally be made within 12 months of when you knew or could reasonably have known about the money not being returned. The appropriate route may also depend on whether the money remained in a client account or had already been treated as payment of the firm’s fees.
How Chan Neill Solicitors LLP Can Help
If your solicitor’s firm has been closed by the SRA and you are unsure what to do next, you do not have to navigate the process alone. We regularly assist affected clients across London and England by liaising with the SRA and appointed intervention agents, helping to recover files and important documents, advising on the recovery of client money, and arranging the efficient transfer of ongoing matters to new legal representatives.
If you find yourself in this situation, please contact us on 020 7253 7781 or visit www.cnsolicitors.com to arrange a confidential discussion about your options.
This article is provided for general information only and does not constitute legal advice. Each matter will depend on its particular circumstances.
Frequently Asked Questions
How long does an SRA intervention take?
Interventions happen immediately, but tracing files and returning money can take weeks or months depending on the firm’s records.
Can I get my file if my case is finished?
Yes. If your matter concluded, you can request documents from the SRA’s Intervention Archives using their form and ID.
How do I claim money from the SRA Compensation Fund?
You must apply to the SRA with evidence (e.g. receipts, bank records) that the firm held your money. Claims should normally be made within 12 months of when you knew or could reasonably have known about the loss.