New figures suggest that many solicitors fined by the regulator are unwilling or unable to pay up.

The Solicitors Regulation Authority has cranked up its fining activity in the past two years after the maximum was raised to £25,000. The fines have been most commonly handed out for breaches of anti-money laundering regulations, for which solicitors and firms were ordered to pay a total of £600,000 in 2024. All fines are paid to the Treasury.

Figures released through a freedom of information request show that, as of April, unpaid fines for internal sanctions came to more than £1m. Most were imposed at least three months previously. In November 2024 total unpaid fines amounted to around £800,000.

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Regulatory specialist Susanna Heley, a partner with national firm Weightmans, obtained the information. She said it may be time for the SRA to change its approach if it wants to ensure fines are paid.

She suggested discounts for prompt payment could be introduced, or contingent fines which trigger only on continued non-compliance. There might also be scope for the formal ‘expiry’ of a fine from the regulatory record if prompt payment is made.

Heley conceded that the SRA’s statutory powers are limited in scope, to the effect that it cannot consider other types of sanction. But she suggested the £1m in unpaid fines indicates that the system is not working.

‘The problem is likely to be that those who have inadvertently slipped up, self-reported and are otherwise generally compliant will pay promptly (assuming they can afford it),’ she added. ‘However, there must be reason to suspect that those who are wilfully not complying will fail to pay and learn the wrong lessons as to how to avoid consequences.’

On the issue of costs, an SRA spokesperson told the Gazette: ‘It’s important that we recoup the costs spent on our disciplinary work. We will look at the situation of individuals, including their ability to pay, and take a fair, pragmatic approach. For instance, in some circumstances a payment plan is appropriate.’

 

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