A summer of change...
Anne Austin
Director
Changes are afoot for the Solicitors Regulation Authority. What could this mean for the SRA and the wider legal profession?
The Solicitors Regulation Authority (SRA) has announced a significant leadership change. Sarah Rapson, currently Executive Director of Supervision at the Financial Reporting Council (FRC), has been appointed as the next Chief Executive, with a mooted start date towards the end of 2025. She will succeed Paul Philip, who has served a transformative if controversial 11+ years at the SRA and will retire later this year.
Paul Philip: a decade of change
Paul Philip’s leadership saw the SRA:
- Reform its governance, achieving full organisational independence from the Law Society
- Establish a new unified route to solicitor qualification with the introduction of the Solicitors Qualifying Examination (SQE)
- Introduce anti-money laundering (AML) regulatory powers and a record fine regime
Mr Philip claims that his retirement has been long planned. However, he leaves the SRA at a turbulent time, with his tenure marred by criticism of the SRA’s failure to act swiftly in response to the Axiom Ince collapse. The SRA’s rejection of the Legal Services Board’s criticism that they “did not act adequately, effectively and efficiently” in the Axiom case merely added fuel to the fire. The collapse SSB Law, leaving debts of over £200 million to litigation funders and hundreds of its cavity wall insulation claim clients facing huge legal bills, has raised further questions about the SRA’s effectiveness in authorising and supervising high risk firms. In the words of Law Society CEO Ian Jeffery: ‘The hard lessons for the SRA from the Axiom and SSB collapses will require a period of deep reflection and significant organisational change’.
So, what could Sarah Rapson bring to the table?
Sarah Rapson brings two decades of high-level regulatory and administrative experience, and her appointment has been broadly welcomed by peers and legal sector media as a “strategic reset”.
Her career spans senior positions at the Home Office, HM Passport Service, UKVI, and the FCA. As deputy CEO of the FRC, she led supervisory reform, and she is noted for her data-driven and risk-based regulatory approach…exactly the model the SRA says it is embracing.
The sector reacts!
Outlets such as Legal Futures, The Law Society Gazette, Global Legal Post, and The Accountant have framed Rapson’s arrival as a timely response to the SRA’s need for renewed regulatory focus and trust-building, with some commentators calling the move an “excellent appointment” with potential to take the SRA “to the next level”. The comments we’ve seen from the profession have been measured and generally cautiously optimistic.
What lies ahead for the redefined SRA agenda?
We see the key priorities for Sarah Rapson as:
- Acknowledge and close the chapter on Axiom Ince, and restore confidence through visible accountability
- Rebalance AML enforcement by shifting from heavy-handed fines to proportionate outcomes-based regulation.
- Clarify client-monetary safeguards. Could we see restructuring of the client account model?
- Improve engagement with legal professionals through transparency, public board meetings, and improved dialogue.
- Prepare for AI and evolving legal structures by ensuring regulation keeps pace with new technologies.
Final thoughts
The succession marks both a milestone and a challenge for the SRA. Paul Philip’s reign transformed the regulatory landscape but simultaneously exposed operational frailties. Sarah Rapson arrives at a pivotal moment: tasked with restoring credibility, addressing enforcement reputational damage, and guiding the legal profession through technological and regulatory transitions.
In our view, this leadership change is not just a staff reshuffle. It potentially signals a reset of strategy, tone, and trust at the heart of legal regulation in England & Wales. Interesting times ahead!