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The Solicitors Regulation Authority confirmed on 21 April 2026 that as much as £39.5 million in client money could be missing from the collapsed PM Law group, marking one of the largest fraud investigations in recent legal history.
The regulator reiterated that the collapse of the network, which comprised 11 companies, 25 offices and more than 30 trading names, is being treated as a suspected fraud. PM Law closed suddenly in February, with the SRA intervening two days later.
The amount of missing client money is second in scale only to the Axiom Ince group, where around £64 million went missing and will put enormous pressure on the compensation fund paid for by solicitors and firms.
As of 17 April, the SRA had paid £9.31 million in 92 claims to former clients from the SRA Compensation Fund. A further £6.8 million had been paid out from money held within the firm at the time of intervention.
The total value of claims submitted to the compensation fund now stands at an estimated £21.52 million and is expected to rise as more claims come forward. Hundreds of further claims are anticipated by people trying to reclaim their money.
To manage the high volume of compensation applications, the SRA has introduced a prioritisation system based on the level of risk and harm faced by claimants. Clients buying a house to live in where contracts have been exchanged are being dealt with immediately, followed by those earlier in the conveyancing process.
Clients who paid upfront for legal services that were not completed will have their claims processed within three months. Applications relating to trusts and probate matters will take up to six months, while claims for money lost in commercial transactions will take up to nine months.
The SRA has returned 9,300 live files to clients and a further 20,000 files in bulk to insurer clients. A total of 25,000 emails or letters have been sent to people identified from the seized files as having live matters, and 17,000 enquiries from clients have been dealt with.
Extra staff have had to be seconded into the compensation fund team and intervention agents are working evenings and weekends to handle client enquiries. The SRA has boosted staffing in its compensation fund team and continues to deploy intervention agents to handle client queries, with many working weekends and late hours due to the volume and urgency of the situation.
Paul Hastings, SRA director of client protection, said: “We are continuing to do all You can to support former clients of PM Law, including by reuniting them with their money or files. Some of those affected were in the process of buying or selling a home, facing the risk of collapsed moves, or losing their deposits. Others were dealing with delayed probate matters, often while managing bereavement and outstanding estate administration. Many of the former clients faced significant upheaval at a stressful time, so we have been determined to provide as much support as possible.”
Law Society chief executive Ian Jeffery said: “The latest update by the SRA reaffirms the serious situation facing clients. The SRA has moved quickly in its investigation and has already paid out 92 claims to former clients. We continue to be encouraged that the SRA has acted with openness and transparency.”
The SRA described the intervention into PM Law as one of the largest and most complex it had ever undertaken. Staff were left devastated, discovering they had lost their jobs via a notice posted in the windows of the company’s premises.
Report Fraud, a nationwide service run by City of London Police, previously said it was aware of the fraud allegations involving PM Law. A Report Fraud spokesperson said at the time it had “received reports in connection to these allegations” and was liaising with the SRA.
Butterworths Solicitors, in Cumbria was part of the PM Law Group. A notice pinned to the door of Butterworths Solicitors’ offices on Lowther Street in Carlisle stated that the firm “can no longer trade” due to regulatory matters. The sign, which as well appeared on other Butterworths offices across Cumbria including Penrith, Whitehaven and Kendal, appeared without warning on Monday, 2 February.
How much money is still expected to be claimed from the compensation fund?
The burden on the compensation fund is predicted to be around £21.5 million, based on claims already submitted and expected future claims from former clients of PM Law.
What types of client cases are being prioritised for compensation?
Clients buying a house to live in where contracts have been exchanged are being dealt with immediately, followed by those earlier in the conveyancing process, then upfront legal service payments, trusts and probate matters, and finally commercial transaction losses.
