Question to the Ministry of Justice:
To ask the Secretary of State for Justice, what steps his Department is taking to support clients of solicitors who fall into administration who (a) are being misinformed and (b) cease to be informed.
The legal profession in England and Wales operates independently of government. The responsibility for regulating the sector sits with the approved regulators, overseen by the Legal Services Board (LSB). The Solicitors Regulation Authority (SRA) is responsible for regulating the professional conduct of solicitors, as well as most law firms in England and Wales. The SRA’s role involves protecting clients and the public.
The SRA works closely with firms to ensure that consumers’ interests are protected. Their website provides clear guidance for firms that are falling into administration and warns that they will intervene if consumers’ interests are at risk: https://www.sra.org.uk/solicitors/guidance/closing-down-your-practice/.
The SRA also provides guidance for consumers affected by their law firm’s closure: https://www.sra.org.uk/consumers/problems/solicitor-closed-down/intervention/.
The Legal Ombudsman (LeO) is also able to support consumers with concerns about law firms who are no longer operational. Their website provides information with regards to the different routes available for consumers depending on their personal circumstances https://www.legalombudsman.org.uk/for-consumers/factsheets/complaining-about-closed-service-providers/.
Firms that fall into administration have a duty to make former clients aware. Notably, there are requirements in respect of the advertising and publication of an insolvency so that creditors and other interested parties are made aware. Further detail on this can be found here: https://www.gov.uk/guidance/technical-guidance-for-official-receivers/4-publication-of-insolvency-information.