The Solicitors Regulation Authority (SRA) has announced its regulatory priorities for 2026/27, setting out plans to strengthen its operations, improve consumer protection and modernise the regulation of the legal profession.
The announcement comes amid growing scrutiny of the regulator following criticism of its handling of major law firm failures, including Axiom Ince and PM Law. Its latest business plan also highlights a significant increase in reports of potential professional misconduct, alongside mounting pressure on its compensation fund.
According to the business plan, the number of misconduct reports assessed by the SRA increased by 45% between November 2022 and October 2025, rising from 11,378 to 16,499. The figures reflect the growing demands on the regulator as it responds to concerns about professional standards and the conduct of solicitors.
The regulator has also carried out an increasing number of interventions to close down law firms. Between November 2025 and August 2026, the SRA completed 55 interventions, compared with 42 during the entire 2024/25 business year.
Financial pressures have also intensified following the collapse of Yorkshire-based law firm PM Law. As of 5 August 2026, the SRA had processed 539 compensation fund applications from former PM Law clients and made payments totalling £15.6 million. These developments have highlighted the importance of effective client money protection and appropriate safeguards for consumers when law firms experience financial difficulties.
To support its planned transformation, the SRA has confirmed substantial increases in practising fees and compensation fund contributions for 2026/27. Its annual income from practising fees is expected to rise by 29% to £111.5 million. The individual practising certificate contribution will increase from £190 to £240, while individual contributions to the compensation fund will rise from £70 to £170. Law firm contributions will also increase from £1,950 to £2,170, taking total compensation fund contributions from £26 million to £46.3 million.
Chief executive Sarah Rapson, who joined the regulator approximately a year ago, has outlined her ambition to strengthen the organisation and establish a more effective regulatory framework. Introducing the new business plan, she said the SRA had listened to feedback from the profession and was committed to becoming a modern, trusted and effective regulator.
The regulator intends to move away from an approach that is largely reactive towards a more proactive, intelligence-led model focused on identifying risks and preventing harm. Its priorities for the coming year include protecting consumers involved in high-volume consumer claims, strengthening safeguards around client money, reinforcing professional ethics and addressing alleged misconduct connected with the Post Office Horizon scandal.
The SRA will also continue supporting responsible innovation within the legal sector and improving the Solicitors Qualifying Examination (SQE). However, some existing regulatory projects will be put on hold. Further work on transparency rules, quality indicators and digital comparison tools has been paused, although these areas may be reconsidered as part of the regulator’s longer-term strategy.
The revised business plan represents a significant period of change for the regulation of solicitors in England and Wales. Increased practising fees and compensation fund contributions will place additional financial responsibilities on solicitors and law firms, while the renewed emphasis on professional conduct, consumer protection and compliance is likely to shape regulatory expectations throughout the coming year.
The effectiveness of these changes will ultimately depend on the SRA’s ability to strengthen its operations, respond to regulatory concerns and rebuild confidence among both legal professionals and the public.
