Post-closure of a Law Firm – SRA Reporting after Law Firm Closure

Managing Post-Closure Obligations of a Law Firm

SRA reporting after law firm closure is one of the most important steps solicitors must take when winding down their practice. Closing a law firm does not mean the end of regulatory responsibilities. The Solicitors Regulation Authority (SRA) requires firms to report on financial matters, client file storage, professional indemnity insurance, and any unresolved complaints. Managing these post-closure duties properly helps minimise future risk and protects both clients and former partners of the firm.

At MAR Legal, we provide expert guidance on compliance and risk management after closure, ensuring that your law firm meets all post-closure obligations in line with SRA rules.

Contact us for a consultation and expert advice on SRA Compliance or SRA reporting after law firm closure.

Key Post-Closure Considerations

  • Client File Storage & Retrieval – Law firms remain responsible for client records after closure. The SRA requires that client files are stored securely, whether in digital or physical form, for the required statutory period. Proper archiving ensures that former clients can access their files when needed and helps firms avoid regulatory penalties. Failing to comply with storage requirements can lead to disciplinary action.
  • Run-Off Professional Indemnity Insurance – Professional Indemnity Insurance (PII) does not end when the practice closes. Instead, firms must secure run-off cover, typically lasting for six years or more, to protect against future claims arising from past work. Without adequate run-off insurance, former partners can face significant personal liability if a claim is made. Ensuring compliance with SRA reporting after law firm closure includes confirming that run-off PII is in place and maintained for the required duration.
  • Regulatory Compliance Reports – Even after closure, solicitors must continue to report to the SRA. SRA reporting after law firm closure includes submitting final accounts, confirming the proper distribution of client funds, and outlining how files and records will be stored. Firms must also declare that professional indemnity insurance and complaints handling processes remain in place. For further official guidance, see the SRA’s guidance on firm closures.reporting after law firm closure, is essential. These reports cover residual client funds, professional indemnity run-off cover, and confirmation of regulatory compliance.
  • Financial & Tax Responsibilities – The closure of a law firm also triggers significant financial and tax duties. Firms must finalise corporation tax, VAT returns, and payroll obligations, as well as settle any residual client balances. Clear records should be provided to HMRC and the SRA. Mishandling financial obligations during closure can lead to penalties, reputational harm, and in some cases, legal action.
  • Handling Post-Closure Complaints – Former clients may raise questions or complaints long after a law firm has ceased trading. The SRA requires firms to have a process in place for addressing these complaints. This can include publishing details of how ex-clients may contact the firm or its representatives, or appointing a designated complaints manager to deal with unresolved matters. Effective complaint handling helps mitigate reputational damage and ensures compliance with SRA obligations.


SRA reporting after law firm closure to ensure compliance and meet regulatory obligations

MAR Legal offer expert Guidance on SRA reporting after law firm closure,
including compliance with financial and regulatory duties.

Further Information on Post-Closure a Law Firm & SRA Compliance

Closing a Law Firm Notifying SRA of Financial Difficulties SRA Strike Off or Suspension Selling your Law Firm

MAR Legal provides expert support to help law firms manage their Post-closure obligations efficiently

MAR Legal provides trusted advice on post-closure law firm obligations in the UK and Dubai. Whether you need support with SRA reporting after law firm closure, handling financial matters, or managing risk, our team can help.

Contact Us info@marlegal.co.uk

Frequently Asked Questions (FAQ)

Yes. Solicitors must inform the SRA of their firm’s closure and provide details about client files, professional indemnity insurance, and financial responsibilities.

Typically, client files must be retained for at least six years, though some matters (such as property or probate) may require longer retention.

Run-off cover protects against claims made after a firm closes. It is mandatory and usually required for at least six years to protect clients and former partners from liability.

Yes. Final compliance and financial reports must be submitted to the SRA, including confirmation of residual balances and settlement of accounts.

Absolutely. We support law firms in navigating SRA reporting, financial obligations, and risk management after closure to ensure full compliance.