SRA Compliance in 2026: What Every Law Firm Needs to Know

As 2026 approaches, the Solicitors Regulation Authority (SRA) continues to tighten its focus on ethics, transparency, and accountability across the legal profession. Law firms that stay ahead of these evolving compliance requirements don’t just avoid costly investigations, they build stronger reputations, client trust, and long-term resilience.

Whether you’re launching a new practice, managing a small firm, or leading a national partnership, understanding the SRA’s 2026 compliance priorities is essential.

In this guide, MAR Legal breaks down what you need to know about:

• The latest SRA compliance trends and regulatory updates for 2026
• Common compliance risks law firms still face
• Best practices for staying compliant year-round
• How MAR Legal supports firms in managing SRA oversight with confidence

What Is SRA Compliance?

The Solicitors Regulation Authority (SRA) regulates solicitors, law firms, and non-lawyer owners in England and Wales.

SRA compliance means ensuring that your firm meets the SRA Standards and Regulations, which came into force in 2019 and are regularly updated to reflect new risks, such as cybersecurity, anti-money-laundering (AML), and client transparency.

These regulations include:

• Supporting rules – including the Accounts Rules, Transparency Rules, and Authorisation Regulations.
• Principles – core values every lawyer must follow (honesty, integrity, independence).
• Codes of Conduct – one for individuals and one for firms.

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SRA Compliance Priorities for 2026

Each year, the SRA and the Legal Services Board (LSB) outline key areas of focus. For 2026, firms should expect greater scrutiny in the following areas:

1. Anti-Money-Laundering (AML) and Financial Crime Controls

The SRA continues to treat AML failings as a top enforcement priority. Recent fines against firms for weak risk assessments and poor client due diligence show that technical non-compliance is no longer tolerated.

🔗 Further reading: SRA – Anti-Money Laundering Guidance

2. Cybersecurity and Data Protection

Cyber threats remain one of the biggest risks to client confidentiality and trust. The SRA expects firms to take a “prevent, detect, and respond” approach.

🔗 Further reading: Information Commissioner’s Office – Law Firms and Data Protection

3. Client Transparency and Pricing Rules

Transparency remains central to consumer confidence in legal services.

4. Diversity, Inclusion, and Workplace Culture

Following the SRA’s 2025 consultation on workplace culture and wellbeing, 2026 will see increased expectations for firms to promote inclusive practices and to report any internal misconduct or toxic behaviour affecting staff welfare.

5. Ethical Decision-Making and Professional Conduct

With more hybrid and cross-border work models, the SRA expects lawyers to show strong ethical reasoning when dealing with conflicts, confidentiality, and client interests.

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Common SRA Compliance Challenges Firms Still Face

Despite regular updates and training, many firms continue to fall short in certain areas. The most frequent breaches reported in 2024–2025 include:

Compliance Area	Common Problem	Potential Consequence
AML Risk Assessment	Outdated or incomplete documentation	Regulatory fine, investigation
Client Care Letters	Missing or unclear cost information	Breach of Transparency Rules
Accounts Rules	Misallocation of client funds	SRA referral, disciplinary action
Supervision	Insufficient oversight of junior staff	Breach of Code of Conduct
Complaints Handling	No clear procedure for escalation	Client dissatisfaction, ombudsman review

Even unintentional breaches can result in enforcement action if the firm cannot demonstrate proactive management.

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Building a Culture of Compliance

Compliance isn’t about box-ticking, it’s about embedding ethical and regulatory awareness into your firm’s culture.

Here’s how successful firms are approaching it heading into 2026:

1. Tone from the Top

Leadership should set a clear example by prioritising compliance in meetings, budgeting, and firm strategy.

2. Empowered Compliance Officers

Compliance Officers for Legal Practice (COLPs) and Finance and Administration (COFAs) must have genuine authority to make independent decisions and escalate concerns without pressure.

3. Regular Internal Audits

Quarterly or semi-annual internal audits help identify weak points before the SRA does. MAR Legal often assists firms in conducting mock SRA inspections to test readiness.

4. Comprehensive Staff Training

Training should cover AML, client care, data protection, and ethical conduct, updated annually and logged as evidence of compliance.

5. Incident Reporting and Learning

Encourage a culture where staff report near-misses and breaches transparently, using them as learning opportunities rather than assigning blame.

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How to Prepare for an SRA Inspection in 2026

An SRA inspection (or “thematic review”) can happen at any time, often with short notice. Being inspection-ready should be part of your firm’s ongoing compliance strategy.

Here’s what the SRA will typically look for:

1. Firm-wide AML risk assessment
2. Policies and procedures manuals (updated within the last 12 months)
3. Training logs for all staff
4. Records of complaints and how they were resolved
5. Evidence of transparency compliance (website pricing and service info)
6. Client account reconciliations and compliance with Accounts Rules

Firms that can produce this information promptly and confidently tend to see inspections resolved quickly and positively.

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Best Practice Checklist for 2026

Area	Action	Frequency
AML risk assessment	Review and update	Annually
Staff training	AML, data protection, ethics	Annually
Policy review	Firm-wide compliance policies	Every 6–12 months
File audits	Random sample across departments	Quarterly
Transparency review	Website and marketing materials	Annually
Data protection audit	GDPR compliance check	Annually
Complaints register	Monitor and analyse	Ongoing

This proactive approach not only keeps your firm compliant but also strengthens operational efficiency and client satisfaction.

The Role of Technology in Compliance

With digital transformation accelerating, more firms are using technology to streamline compliance tasks — such as:

• AML and ID verification software for onboarding
• Secure client portals for communication and document sharing
• Compliance dashboards to track training, audits, and deadlines

At the same time, reliance on third-party systems introduces new responsibilities for data security and vendor oversight.
 Firms should carry out due diligence and maintain written agreements covering GDPR obligations.

How MAR Legal Can Help

At MAR Legal, we understand that SRA compliance can feel overwhelming, especially when you’re trying to focus on running a successful practice.

Our Regulatory Legal Services team provides tailored support to help your firm:

• Develop or review your firm-wide risk assessment
• Draft or update policies and compliance manuals
• Conduct mock SRA audits and inspection readiness reviews
• Provide ongoing compliance monitoring and reporting support
• Assist with new firm authorisation and licensed body applications
• Advise on SRA investigations, interventions, or closures

We act as your strategic compliance partner, helping you stay compliant, confident, and client-focused.

Related Reading on SRA Compliance

• New Firm Authorisation – How to Set Up a Law Firm in the UK
• SRA Transparency Rules – Staying Compliant and Building Client Trust
• Closing Down a Law Firm – Key Compliance Steps