Depending on the reasons, the closure of a law firm can be very stressful and there is a lot to think about. There are numerous risks to consider, in particular: failure to meet regulatory requirements leading to disciplinary action; claims for loss of documents, breach of confidentiality or negligence; and complaints of poor service to the Legal Ombudsman. All of these are likely to be costly and time-consuming to deal with and may affect your ability to practice in the future.
Regulatory breaches can lead to fines and/or restrictions on your ability to practice and in very serious cases striking off. The SRA will not authorise a new firm if it has concerns about the individuals involved.
We work with law firms and insurers to address the risks associated with
- the orderly transfer of live files – identifying suitable firms to take the files over, dealing with terms of agreement with the recipient firms and client consent issues
- storage of closed files – essential for defending possible future claims
- storage of wills, deeds and documents
- the risk of continuing to practice after closure
- proper stewardship of client funds
We assist firms and insurers to make sure all of the appropriate steps are taken and that the threats of intervention, complaints, fines or regulatory action are avoided wherever possible.