International firm Kennedys has been fined £18,000 after staff allowed its client account to be used as a banking facility.
Announcing the decision, the Solicitors Regulation Authority also revealed the firm will pay £1,350 costs.
According to the SRA’s decision notice, Kennedys acted in a commercial property transaction between late 2016 and early 2018, where payments were made from the client account that did not relate to an underlying legal transaction.
This amounted to allowing the account to be used as a banking facility and was a breach of SRA principles and the code of conduct.
The SRA said the misconduct involved the potential misuse of client money and there was a risk of substantial harm, including the loss of money entrusted to it by third parties. No further details were released by the SRA about the parties involved or the amounts paid out of the client account.
Kennedys reported record revenue of £428m for the 2024/25 year, but the regulator said it was not considered proportionate to impose a financial penalty at a higher rate.
The SRA added: ‘This was because the firm’s conduct was not deliberate or reckless in respect of its regulatory obligations. The firm accepted that it had allowed its client account to be used as a banking facility and had expressed its remorse and regret.’
A spokesperson for Kennedys said: 'We acknowledge the decision of the Solicitors Regulation Authority and have co-operated fully with them throughout their investigation.'
