Question to the Ministry of Justice:

To ask the Secretary of State for Justice, whether her Department has asked the Solicitors Regulation Authority to meet representatives of former clients of McClure Solicitors who have requested direct engagement with the regulator.

The Government recognises the financial loss, distress and uncertainty experienced by former clients affected by the collapse of WW&J McClure Ltd (McClure), particularly in relation to family protection trusts and wider estate planning arrangements.

The legal profession in England and Wales, together with its regulators, operates independently of government. Responsibility for regulating the sector sits with approved regulators, overseen by the Legal Services Board (LSB). The Solicitors Regulation Authority (SRA) is responsible for regulating the professional conduct of solicitors and most law firms in England and Wales. This includes McClure, as well as Jones Whyte which took on the work in progress and certain assets of McClure when it went into administration in April 2021. The SRA regulates the firms’ activities in England and Wales, with matters relating to their Scottish offices falling under the Law Society of Scotland. Details of the SRA’s ongoing work in relation to McClure is available here: https://www.sra.org.uk/news/news/mcclure/.

With regards to asking the SRA to meet representatives of former clients of McClure, given regulatory independence, the Ministry of Justice does not direct the SRA’s stakeholder engagement. However, I have discussed the impact of the firm’s collapse with the SRA and know that the SRA is continuing to meet with various stakeholders, including those representing former clients.

Any warning signs relating to McClure prior to the firm’s collapse, and when these were identified by legal services regulators, are similarly operational matters for the independent SRA. The Ministry of Justice does not hold this information.

In relation to successor firm requirements, SRA guidance for firms is available here: https://www.sra.org.uk/solicitors/guidance/closing-down-your-practice/. Under the SRA’s framework, its assessment is that Jones Whyte is not a successor practice. However, the firm must make sure it complies with a range of obligations, including those which have been set out in a compliance plan which the firm has agreed and on which the SRA is monitoring progress. This includes secure handling and storage of client papers and documents, and appropriate arrangements for file distribution and advice to impacted clients on their options.

With regard to changes to legal services regulation since the collapse of McClure, there has been continued work to strengthen how risks to consumers are identified and addressed. The SRA’s Corporate Strategy 2023-26 includes strengthening risk based and proactive regulation as a strategic priority and it has pursued action in this area. For example, in its recent Business Plan, the SRA sets out the steps it has taken to improve how it uses data and intelligence to spot risks more swiftly and take action to manage them effectively. The SRA has also indicated that it is accelerating this work, including through further investment in people and technology. In addition, the SRA is implementing changes in response to the LSB’s independent reviews of its regulation of Axiom Ince Ltd and SSB Group Ltd.

The Ministry of Justice keeps the statutory framework set by the Legal Services Act 2007 under review to ensure that it is operating effectively and protects consumers. The Government has no current plans to review the regulation of estate planning and trust-selling practices. The Department's focus is on improving the enforcement of existing rules.