PM Law, which operated 24 branches from Yorkshire to Kent, ceased trading abruptly a fortnight ago. The Sheffield-based firm specialised in personal injury, wills and residential conveyancing and employed more than 600 staff under various brand names.
Jonathan Peddie, executive director at the SRA, said the regulator was probing “a potential fraud, including the misappropriation of client money,” adding that the case carried significant public interest due to its impact on clients.
“We are focused on establishing what occurred, how it happened, and who was responsible,” he said, noting that information has been shared with relevant law enforcement agencies.
The SRA has appointed Gordons to oversee the orderly closure of PM Law and secure its files, although the firm will not represent former clients.
Clients have taken to social media to express concern, particularly those involved in property transactions. Some reported completing home purchases without confirmation that stamp duty had been paid or that the Land Registry had been notified.
Financial records show that by the end of October last year, the group owed more than £3 million to creditors. One of its associated firms, Proddow Mackay, reportedly owed £1.4 million in unpaid tax.
Former employees said staff arrived at work to discover the company had ceased trading with immediate effect. According to reports in the Law Society Gazette, workers were instructed to collect their belongings and leave without prior notice.
Sarah Rapson, chief executive of the SRA, described the situation as highly unusual and confirmed that the regulator would examine the circumstances surrounding the closure.
Affected clients can apply to the SRA’s compensation fund to recover missing money. More than 80 claims have already been submitted, with emergency grants reportedly issued to some homebuyers at risk of losing their properties.
The SRA has faced previous scrutiny from the Legal Services Board over its handling of major firm collapses. In 2024, the board criticised regulatory failures linked to the collapse of Ince & Co and its successor Axiom Ince, where the Serious Fraud Office later brought charges over alleged fraud. The regulator was also faulted for its oversight in the administration of SSB Law, which reportedly had debts exceeding £200 million.
