SRA Update
Issue 153 - August 2026
Welcome to the latest issue of SRA Update. This month, you can catch up on changes we have made to the way compensation fund contributions are collected following your feedback on our plans for the coming year. Also this issue, find out about how to apply for a place in the government’s AI Growth Lab, catch up on new proposals around third-party litigation funding, and make sure your details are in order ahead of renewals for firms and individuals, which starts in October. Finally, if you missed them, catch up on our webinars notifying us of changes to your firm status, and also on the role of money laundering reporting officers.
Having consulted on our Business Plan and proposed funding requirements for 2026/27, we decided to change the way we collect compensation fund contributions based on the feedback we received. This is to lessen the impact upon smaller firms given the additional monies needed to fund the claims made for solicitor’s failing to account for their clients’ money.
Applications for the government's first advisory AI Growth Lab (AIGL) are now open, and run until 27 September. The AIGL will provide selected organisations with the opportunity to develop and adopt AI products responsibly within existing regulatory requirements, supporting innovation while maintaining appropriate safeguards for the public.
The latest issue of Lawtech Insight is out and along with more on the AI growth lab, find out about the risks of artificial intelligence and other funding streams available through LawTech UK.
Read more about: Read Lawtech Insight to get the latest innovative thinking
We know litigation funding can increase access to justice by lending potential clients the resources needed to engage your services. However, some arrangements can create risks, such as unstable finances or poor outcomes for the public. We are consulting on proposals to strengthen requirements when using or arranging third-party litigation funding in consumer claims.
Read more about: New proposals strengthen requirements around litigation funding
We have published three new case studies to help in-house solicitors navigate common ethical and professional challenges in the workplace. These offer practical guidance on independence, confidentiality, disclosure obligations and professional judgement. They cover conflicts of interest in employment tribunal claims, moving roles where confidential information may create conflicts and responding to internal pressure.
Read more about: New in-house case studies help navigate common challenges
We have announced two new appointments to our executive leadership team as part of our ongoing drive to transform the way we operate and become a modern, proportionate regulator. Alan Evans joins as new Executive Director, General Counsel, Risk and Compliance, and Kate O’Neill joins as Executive Director, Communications and External Affairs, building on leadership changes announced earlier in the year.
Read more about: Planned expansion of executive leadership team continues
We are proposing new requirements intended to strengthen client money protections and risks related to mergers and acquisitions (M&A). Under the planned reforms, firms will have to notify us if they are planning to merge with, or purchase, another firm, as well as when they start holding client money. If you have views on our proposals, you have until 17 August to respond.
Read more about: M&A and client money notification requirements – share your views
With renewals for firms and individuals starting shortly, please make sure your authenticator app is set up correctly and working on your mobile device. This will help you avoid delays when accessing your mySRA account. If you don't have an app yet, we have a step-by-step guide to downloading one.
Keeping your knowledge and skills up to date is a key part of maintaining your competence. With the annual declaration less than two months away, it is important to reflect regularly on your practice. You must identify any learning and development needs and keep a clear record of how you are addressing them. Our guidance and templates, which includes five practical steps you can take to stay on track, are there to help you throughout the year.
Read more about: Continuing competence: follow five practical steps to stay on track
Join our webinar on 13 August to learn more about proposed new requirements for solicitors using or arranging third-party litigation funding in consumer claims. Hear from Aileen Armstrong and Harriet Gamper as they discuss the risks, benefits and our proposals designed to strengthen consumer protection, improve transparency and support firm stability.
Read more about: Webinar: Third-party litigation funding: protecting consumers
The Legal Ombudsman (LeO) has launched its Model Complaints Resolution Procedure (MCRP), a voluntary complaints handling framework. Developed using LeO's complaint-handling expertise, the MCRP promotes clear communication, supports early resolution and encourages a more consistent approach to resolving complaints.
Watch our on-demand webinar to learn about our proposed changes designed to help identify and address risks earlier and protect client money. The session explores why we are seeking more timely information from firms, our emerging approach to risk monitoring and how these proposals could help maintain public trust in legal services.
Read more about: On-demand webinar: Notifying the SRA of changes to help identify and act on risks
Hear from the SRA’s own money laundering reporter officer (MLRO) in this insightful interview, now available to watch online. We spoke to Sara Gwilliam about her career path to becoming an MLRO, the challenges and expectations of the role, and how to make sure you have a voice in your organisation.
Thank you for reading SRA Update. We try to include stories about the things we think you need to know, things we want you to get involved in, and the things we think you want to hear about. But there’s always room for improvement, so we are asking for your views on this newsletter. Complete our short survey and let us know.
Read more about: Thank you for reading, how could we improve?
Welcome to the latest issue of Compliance News. In this issue, we have published our sectoral risk assessment that looks at the biggest threats to legal services from money launderers. Also this month, we’ve published guidance for complying with your professional obligations when using or arranging third-party litigation funding. The guidance explains how you should assess if funding arrangements are in your clients' best interests. There are new arrangements around assessing client due diligence, and finally, catch up with our webinar on the role of money laundering reporting officers.
We have published guidance for complying with your professional obligations when using or arranging third-party litigation funding. Some arrangements can create risks, such as unstable finances or poor outcomes for the public. The guidance explains how you should assess if funding arrangements are in your clients' best interests.
Read more about: New guidance on third-party litigation funding
Following on from HM Treasury’s publication of its National Risk Assessment, we have published our solicitor-specific sectoral risk assessment. This distils how the work you do relates to the Government’s biggest areas of concern for money laundering. You should read our assessment as the first step to reviewing our own firm-wide risk assessment.
Read more about: Latest sectoral risk assessment highlights areas of concern
The Government has suggested that it will not proceed with plans to introduce national digital ID. One of the proposed uses for this would had been to provide standardised digital identity during homebuying, so some firms might now need to find an alternative.
HM Treasury wants real-world case studies that demonstrate how the UK's economic crime framework delivers results in practice. This is part of the upcoming Financial Action Task Force (FATF) Mutual Evaluation. If you can help, submit your case study to HMT.
Read more about: Supporting the UK's FATF Mutual Evaluation – call for case studies
Hear from the SRA’s own money laundering reporter officer (MLRO) in this insightful interview, now available to watch online. We spoke to Sara Gwilliam about her career path to becoming an MLRO, the challenges and expectations of the role, and how to make sure you have a voice in your organisation.
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