Events leading to law firm’s collapse will be subjected to independent review

The Legal Services Board (LSB) says it will conduct an independent review of regulatory events leading up to the Solicitors Regulation Authority’s (SRA) intervention into Axiom Ince.

The SRA shut down Axiom Ince in October of this year, when £66m in client money was found to be missing from its accounts and spent.

The collapse came just months after two major acquisitions which increased Axiom Ince’s workforce to more than 1,400 people.

It bailed out shipping law specialists Ince in a pre-pack deal in late May, and rebranded as Axiom Ince. Six weeks later it rescued Leeds-headquartered Plexus in another pre-pack deal that saved 540 jobs.

The firm was previously known as Axiom DWFM following the merger in 2021 between Axiom Stone and DWFM Beckman, with bases in Birmingham, Bristol, Swindon and Edgware.

Last month, the Serious Fraud Office confirmed it had arrested seven people and carried out searches across nine sites, as part of an ongoing criminal investigation into Axiom Ince and the missing client money.

The LSB is an independent body responsible for overseeing the regulation of lawyers in England and Wales.

Commenting on Axiom Ince’s collapse, an LSB spokesman said: This was a significant case with considerable consumer detriment.

“In the Board’s view, it will be important for public and professional confidence that any learning can be identified with independence, and that any conclusions that may be drawn are based on an objective assessment of the facts.

“The LSB is grateful to the SRA for making clear its intention to co-operate fully with this review.”

The full terms of reference of the independent review will be published in January 2024, with the aim of reporting in spring 2024.

The LSB says it will partner with Northern Ireland-based law firm Carson McDowell to carry out the review.