Lawyers Covered – July 2025
RPC's Lawyers Liability & Regulatory Update highlights the last month's key developments affecting lawyers and the professional risks they face:
- suit yourself: firm ordered to pay wasted costs after suing wrong defendant
- a drive towards improving law firms' in-house responses to client complaints
- strengthening, Not Replacing: Judges’ Views on the Role of AI in Legal Decision-Making
- proposals by HMRC to limit the effect of privilege
- Hong Kong – Update from "Sports Correspondent".
Money Covered: The Week That Was – 25 July 2025
RPC's Money Covered, a weekly round-up of key developments in the financial services sector. The latest edition explores a range of updates including:
- latest episode of the Money Covered – The Month That Was podcast, where the team looks at Employment Practices Liability insurance and its relationship to Directors & Officers insurance
- Supreme Court hears appeal in KVB Consultants
- auditors comment on new ICAEW internal controls reporting requirements
- FRC publishes new guidance to support SME audits
- new "transformation roadmap" for HMRC
- draft Financial Bill 2026 tackles tax advisers
- mortgage Rule Review update
- relaunched Pensions Commission to report on 2050 retiree "crisis".
- DB pension transfer values rise for first time in 2025
- FCA publishes consultation on regulation deferred payment credit.
Regulatory Pulse – 26 June 2025
In the latest edition of RPC Pulse, our regular concise look at regulatory developments for solicitors, we cover the following:
- Legal Standard Board published its business plan for 2025-26
- the SRA has published updated guidance on complying with the UK sanctions regime
- the latest revision of the LSAG Guidance on anti-money laundering measures for the legal profession has now been approved by HM Treasury and takes effect from 23 April 2025
- a High Court judge has decided not to start contempt proceedings against a firm which circulated an embargoed draft judgment ahead of hand-down
- the High Court fined a barrister who admitted misleading a lay client £25k, overturning a decision of the Bar Tribunals and Adjudication Service to suspend him
- insight on a Court of Appeal decision last year highlighted an issue with the "adequate consideration" defence under section 329 Proceeds of Crime Act 2002.
Quality at the core – The FRC's shift from inspections to systems
On 13 August 2025, the Financial Reporting Council (FRC) published a discussion paper launching the second phase of engagement on its Future Audit Supervision Strategy (FASS). The FRC's latest discussion paper represents a significant evolution in the FRC's approach to audit oversight, moving towards a framework that places greater emphasis on a firm's systems of quality management (SoQMs) and proportional, risk-based supervision.
FRC publishes five consultation papers in July release
In July 2025, the Financial Reporting Council (FRC) launched five consultations inviting feedback from stakeholders. These cover a proposed Practice Note designed to support the audit of small and medium-sized enterprises (SMEs), initial findings from the FRC’s study of the SME audit market, changes suggested for FRS 102 following recent changes to IFRS Accounting Standards, revisions to the UK’s Public Interest Entity (PIE) Auditor Registration Regulations, and updates to the taxonomies suite.
FRC publishes annual enforcement findings
The Financial Reporting Council’s 2024/25 Annual Enforcement Review outlines its approach to enforcement, emphasising the principle of proportionality in achieving fair and robust outcomes. Over the year, nine investigations were settled, two closed with no further action, and 12 resolved through constructive engagement, resulting in financial sanctions totalling £14.5m. The Review notes significant progress on timeliness, with 90% of investigations completed or resolved within two years. Looking ahead, the FRC plans to refresh its enforcement process through the End-to-End Enforcement Review, aiming to improve timeliness and regulatory effectiveness. Stakeholder engagement has already begun, with further outreach and consultation scheduled for autumn 2025.
Sarah Rapson named as SRA chief executive
The Solicitors Regulation Authority (SRA) has appointed Sarah Rapson as its new Chief Executive Officer, succeeding Paul Philip who will retire after more than a decade in the role. Sarah Rapson brings extensive regulatory and leadership experience from positions at the Financial Reporting Council, Financial Conduct Authority, UK Home Office, and HM Passport Office. She will formally take up the post towards the end of 2025, guiding the SRA through the final year of its current Corporate Strategy amid ongoing change in the legal sector. The appointment is expected to strengthen the SRA’s commitment to high professional standards, public protection, and an agile, risk-based approach to regulation, supporting the legal profession as it adapts to new challenges.
