Rapson: Using all the tools at our disposal
The Solicitors Regulation Authority (SRA) has issued a warning notice [1] on the use of ‘no win, no fee’ agreements in high-volume consumer claims amid multiple concerns about their misuse.
It revealed that, as of 31 December 2025, it has 83 open investigations relating to 72 firms working in the claims market and has closed six others.
Following last year’s thematic review – which found a significant amount of poor practice [2] in the way law firms are managing these claims – this latest step in the regulator’s work highlights a lack of transparency about the fees clients will pay under conditional fee agreements if their claim is successful – including deductions from damages – or costs they may be liable for if their claim fails.
Solicitors were also failing to secure the appropriate after-the-event insurance.
In some instances, client interests were being compromised, the regulator said. “Some firms are structuring ‘no win, no fee’ agreements in ways that serve their own commercial interests rather than acting in their clients’ best interests.
“For example, some firms enter funding or referral arrangements that could benefit the firm or third parties more than the client.”
There were other issues around the use of third parties, with some law firms “not conducting thorough due diligence and validation to ensure that the claims management companies and lead generators they use are complying with their regulatory obligations”.
Last September, an SRA discussion paper [3] on how to make the high-volume consumer claims market work better for consumers asked whether to “restrict, prevent or caveat” use of the term ‘no win, no fee’ or ban it “across the board”.
The warning notice urged firms to be “cautious” when using the term and to ensure their communication are “clear, accurate, and not misleading” – including by third-party referrers.
It went on: “You must avoid using language or testimonials that could create unrealistic expectations about the likelihood of success, the speed and simplicity of the process, or the financial risks or benefits involved.
“Marketing materials must not exaggerate the benefits of ‘no win, no fee’ arrangements or downplay the potential costs and risks.”
This reflects recent rulings [4] by the Advertising Standards Authority.
The SRA said firms must ensure clients have understood the information provided as well as provide opportunities for clarification.
Chief executive Sarah Rapson said: “We, and others, continue to be concerned about what we are seeing in the high-volume consumer claims market. This is a priority area for the SRA and a topic stakeholders consistently raise with us. The expectations set out in this warning notice should therefore not be a surprise.
“Some firms are not fulfilling their obligations to always act in their clients’ best interests and follow our rules and standards.
“We are using all the tools at our disposal to take action against these, highlighting known issues and promoting compliance in order to protect the public and help the sector to comply with the rules.”
In other SRA news, former City solicitor Deborah Jones has been named to the new role of executive director for transformation.
She has been seconded from the Payment Systems Regulator, where she is deputy managing director.
She qualified in 2000 and began her career practising competition law at City firm Slaughter and May, before joining the Office of Fair Trading in 2004 and then the Financial Conduct Authority in 2013. She was latterly its director of transformation before moving to her current role last year.
Ms Jones will lead projects to enhance how the SRA identifies and responds to risk, improve quality and consistency across its work, and deliver change.
She will also “bring together executive accountability for a number of specialist functions”, including quality assurance, adjudication, and corporate complaints.
Ms Rapson said one of her priorities when she became chief executive in November was to improve operational delivery.
“Deborah’s expertise, both in regulatory transformation and competition law, will be a welcome addition to the SRA as we focus on improving the way we operate to better protect the public and drive high standards in the profession.”
David Nix, deputy executive director of investigations will be speaking about its work in volume claims, and specifically housing disrepair, at our Housing Condition Conference [5] on 16 April in Manchester. We will also be discussing the issues around ‘no win, no fee’ at our Claims Futures Conference [6] on 21 October in Manchester.