Solicitors' regulator censured over failures to protect SSB Law consumers
The Legal Services Board has issued a formal public censure against the Solicitors Regulation Authority following its failure to protect consumers affected by the collapse of Sheffield-based law firm SSB Group Limited.
SSB specialised in so-called 'no win, no fee' cases; a type of legal arrangement where clients are promised they will pay nothing if their case is unsuccessful. When the firm went into administration in January 2024, many clients faced unexpected costs and uncertainty.
The LSB said: “The censure marks the conclusion of the statutory process initiated by the LSB following an independent review that found a series of serious and repeated failures by the SRA in handling concerns about the SSB. The SRA received over 100 reports raising concerns about SSB between January 2019 and March 2024, but repeatedly failed to act effectively on the warning signs.”
A number of Yorkshire MPs recently warned that some of their constituents are still facing anguish years after being told they could pursue no-win, no-fee cases against companies which had installed faulty cavity wall insulation in their homes, which the installers claimed was backed by Government funding. Hundreds of clients had instructed SSB Law to run cavity wall insulation claims on their behalf. Many clients say they have been pursued by lawyers representing the insulation firms’ insurance companies for thousands of pounds in incurred costs.
Catherine Brown, interim chair of the Legal Services Board, said: "SSB's former clients have paid a heavy price - many threatened with losing life-changing sums of money and facing serious personal distress. The SRA had repeated opportunities to act, and it did not. That failure allowed harm to grow, and it undermined public confidence in legal regulation. This censure is a clear public statement that the standard of regulation we saw was not acceptable. The SRA has accepted the findings of the review and committed to implementing its recommendations. Now it must demonstrate, through its actions, that it has fundamentally changed its approach and that it is committed to, and capable of, effectively protecting consumers."
The SRA said it has published performance targets to help track improvements it is making, following the LSB’s formal censure and directions regarding the SRA’s handling of SSB Law.
Sarah Rapson, Chief Executive of the SRA, said: “As the new chief executive, it is incumbent upon me to recognise and address the failings brought to light by the collapse of SSB. Since I arrived, I have been listening to views from a variety of stakeholders about where the SRA can improve. I have also had the opportunity to stand back and consider what needs to change. There is much to do to make sure we are a trusted, proportionate and effective regulator. We must get the basics right and be less reactive.”
She said the plan sets out the work that needs to be done and the targets the SRA will use to measure its progress.
"In particular, these will focus on proactively identifying and responding to risks to consumers within the legal sector; targeting resources more effectively to better address and prevent harm to consumers; and taking action more quickly to deal with potential causes of consumer harm.”