Jones Whyte: Low risk of repetition
The Solicitors Regulation Authority (SRA) has issued a rebuke to a Scottish law firm for breaches of the accounts rules since taking over the work of collapsed McClure Solicitors.
Jones Whyte Law has been under close scrutiny for the way it has been handling the files of McClure, which went into administration in 2021, with all wills, power of attorneys and trusts, as well as 84 staff, moved across.
The two firms, which started as Scottish firms but opened offices south of the border too, are regulated by both the Law Society of Scotland and the SRA.
Earlier this year, the SRA said it was concerned that Glasgow-based Jones Whyte was taking “too long to deal with all of the issues [1] arising from McClure and that too many former clients are experiencing stress and frustration arising from delay and uncertainty”.
In a notice this month, the SRA said that a substantial number of files – Jones Whyte estimates that, at the time of the administration, McClure had in excess of 100,000 – and several million pounds of client money were transferred over.
A forensic investigation found that Jones Whyte failed to maintain books of account and failed to properly carry out account reconciliations, failed to obtain and submit annual accountant’s reports, and failed to hold client accounts for England and Wales client matters in England and Wales.
The findings related to the firm’s management of client money, with the investigation identifying a cash surplus of over £400,000 in the client bank account due to unallocated interest over a significant period of time.
In deciding that a written rebuke was the appropriate sanction, the SRA acknowledged that Jones Whyte had co-operated and admitted its misconduct, there was no evidence that harm had actually materialised, and the risk of repetition was low as the firm had taken steps to bring itself into compliance.
Jones Whyte was also ordered to pay costs of £1,350.