Regulator investigates potential fraud at shuttered regional firm PM Law

The SRA has confirmed it is investigating a potential fraud at collapsed regional firm PM Law, including the alleged misappropriation of client money.

The Sheffield-headquartered group, which employed more than 600 people and operated a network of high street brands specialising in conveyancing and personal injury, abruptly shut down earlier this month without notice.

SRA intervenes

The regulator said it was alerted to PM Law’s closure on 2 February, first by the firm and then by concerned clients. It launched an investigation immediately and formally intervened into the firm two days later.

Law firm Gordons has been appointed as intervention agent and has taken possession of all files and funds held by the firm, including client money. The SRA said Gordons is working through “tens of thousands of files” to identify and contact those affected.

Jonathan Peddie, the SRA’s executive director of legal and enforcement, said the watchdog is investigating “a potential fraud, including the misappropriation of client money”. He said information has also been shared with law enforcement agencies.

The regulator said it would not comment further while the investigation remains live.

Compensation questions

The SRA has directed affected clients to apply to its compensation fund, which exists to reimburse those who are owed money by regulated firms. The fund is financed by annual contributions from solicitors and law firms through practising certificate fees.

Any significant claims are likely to revive memories of the Axiom Ince collapse in 2023, which saw more than £40 million paid out to clients and led to sharp increases in compensation fund contributions across the profession.

The Law Society said the SRA’s update “shows the seriousness of the situation facing clients” and urged the regulator to move quickly, applying lessons from Axiom Ince and SSB Group to ensure consumers are not left “in legal limbo and out of pocket”.

SSB, which specialised in high-volume civil litigation including cavity wall insulation claims, collapsed in 2024 with debts exceeding £200 million. An independent review later found the SRA had failed to act on repeated warnings about the Sheffield-based firm, prompting enforcement action by the Legal Services Board.