Law firms should notify regulator of financial trouble, says KPMG
Solicitors Regulation Authority should know of firms in trouble before they enter insolvency
Solicitors should be duty-bound to notify their regulator of financial
difficulties before they go insolvent, KPMG has recommended.
The Big Four firm is currently working with the Solicitors Regulation
Authority to see how the financial stability of Solicitor firms affect the
public interest, according to lawgazette.co.uk. Currently firms only have to
notify the SRA when they become insolvent.
KPMG’s report also recommended a new core duty on financial management as
part of the solicitors’ rules