Law firms have improved their handling of client money, Solicitors Regulation Authority (SRA) figures reveal.
The number of reports to the SRA from accountants concerned about potential regulatory breaches by law firms handling client money fell last year by 28%, to 1,387 from 1,915 in 2016. Following a relaxing of the rules in 2014, accountants have been required to report failings only where they are likely to have been intentional or where client money was put at risk.
Andy Harris, associate partner at accountancy firm Hazlewoods, which specialises in advising law firms, said: ‘Reports of breaches are falling as finance teams at law firms settle into the new regime, and as law firms take those reports that are submitted more seriously.
“With fewer breaches being reported by accountants, who were previously often reporting on fairly trivial points, law firms are now better able to see where any issues really lie and proactively put them right.’
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