Regular Gazette readers will recall that the SRA went all ‘Edith Piaf’ over Axiom Ince and the missing millions. ‘Je ne regrette rien!’ The regulator was adamant that, despite an excoriating independent report into missed opportunities and governance failings, it was ‘by no means clear that a different approach would have uncovered’ the firm’s plight sooner.
‘There is a lot in the [LSB] report that we do not agree with, including the headline conclusions,’ it sniffed.
Obiter wonders, nevertheless, if there is a bit more soul-searching going on behind the scenes.
This week it emerged that the SRA board has discussed new criteria for calling emergency meetings. One such criterion, we noticed, is an intervention into a large firm.
Back in summer 2023, the SRA had decided on a partial intervention, effectively suspending three Axiom Ince directors but allowing the firm to continue trading. There was no communication of this decision to the board, which was not brought fully up to speed for some five weeks until its scheduled September meeting. Another three weeks elapsed – and £36m disappeared into the ether – before the firm was finally shut down.
The LSB report’s findings included that the SRA did not take all the steps it could or should have done – and criticised its approach to interventions.
Perhaps those ‘headline conclusions’ did contain a grain of truth after all.
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