SRA Steps In to Safeguard PM Law Group Clients’ Interests
The Solicitors Regulation Authority (SRA) has stepped in to protect the interests of clients linked to PM Law Group amid an unexpected closure of its network of firms. This action comes after the group suddenly ceased operations, prompting concerns from clients and beneficiaries of trusts managed by these firms. The SRA announced its intervention on Wednesday, emphasizing the urgency of safeguarding clients’ interests and the need for an immediate investigation.
SRA Intervention: Key Details
Following complaints about PM Law’s abrupt closure, the SRA acted swiftly. The regulator’s intervention encompasses the following firms within the PM Law Group:
- PM Law Limited
- PM Property Lawyers Limited
- PM Law (Specialist Claims) Limited
- Proddow Mackay Limited
- Proddow Mackay Solicitors LLP
- Proddow Mackay (Conveyancing) Limited
- 3M Law Limited
- Linkfield Claims Service Limited
- Butterworths Solicitors LLP
- Autonet Law LLP
- WB Pennine Solicitors LLP
This intervention is one of the most comprehensive initiatives undertaken by the SRA, affecting operations across up to 20 locations. As part of this process, client accounts and files will be securely managed.
Appointment of Intervening Agent
Gordons, a Bradford-based firm, has been designated as the intervening agent. Clients can direct their inquiries to a dedicated email, [email protected]. SRA Chief Executive Sarah Rapson stated that the authority has prioritized the protection of clients throughout this troubling situation. She expressed empathy for those facing stress due to their legal matters during the firm’s closure.
Financial Distress and Internal Loans
New revelations indicate that the PM Law Group is facing significant financial issues. The intra-group loans among its entities amount to millions of pounds, with Proddow Mackay Solicitors LLP reporting substantial debts to various members of the group. Key figures from their financial statements include:
- £1.9 million owed by Proddow Mackay to PM Law Limited
- £571,000 owed to John M Lewis & Co Limited
- £1.7 million owed to Lexelle Limited, an insurance broker
Despite these debts, the SRA has noted that there is no suggestion of wrongdoing regarding the loans.
Background on PM Law Group
Founded in 1990, PM Law Group has rapidly expanded its operations, primarily through acquisitions of regional firms in Yorkshire, Derbyshire, and Cumbria. Notable among these acquisitions was the purchase of John M Lewis & Co in February 2023.
In keeping with its growth strategy, PM Law Group recently relocated its headquarters to a new office at Meadowhall Business Park, occupying 7,500 square feet of space as of 2024.
Future Implications and Regulatory Oversight
The collapse of PM Law raises questions regarding the sustainability of accumulator firms that expand through aggressive acquisition strategies. The SRA is under scrutiny regarding its regulatory capability in overseeing such firms, especially in light of recent incidents prompting calls for stricter oversight.
As the situation evolves, the SRA has expressed its commitment to ensuring client protection and addressing the regulatory challenges associated with rapid firm expansions in the legal sector.
Trading Names Associated with PM Law Group
PM Law Group operates under various trading names, including:
- Abraxas Law
- All Your Accidents
- Angela Viney Conveyancing Services
- Complete Property Deal
- Barrett and Co Solicitors
- BB Conveyancing
- Bridgeview Law
- DAzur Law
- Deborah J Hoban Law
- GN Law
- Gaddes Noble Law
- Gaines & Wilkinson Ltd
- Litkraft Solicitors
- PM Legal Services
- Wilsons Solicitors
The SRA and Gordons are working diligently to resolve client concerns and stabilize the situation.