February 2026 - DG Legal Newsletter
Each month we provide our Retainer clients with a highly rated compliance bulletin covering what they need to know and what action they must take. We provide short summaries of our compliance bulletins as monthly newsletters.
DG legal is a one stop shop for legal consultancy. The team headed by David has such a broad spectrum of experience that they are always able to provide first class advice whatever the situation. Their ongoing compliance toolkit is extremely user friendly and they are always one step ahead of compliance updates. We have used DG since 2006 and in that time their offering has only got stronger.
Robert Borwick
Director | ABV Solicitors
Who should read this item: Compliance Officers
SRA Thematic Review on Compliance Officers roles
Thursday 26 February 2026
On 11 December 2025, the Solicitors Regulation Authority (SRA) published its thematic review of Compliance Officers for Legal Practice (COLPs) and Compliance Officers for Finance and Administration (COFAs) to assess how firms appoint and support them, whether they understand and discharge their regulatory duties, how systems and controls operate, and the key challenges faced. The review covered 25 firms and 36 compliance officers.
Contact us
To discuss how we can support your COLP and COFA with their regulatory duties please get in touch by emailing consultants@dglegal.co.uk or by calling 01509 214 999.
Who should read this item: All firms
Making a report to the SRA
Thursday 26 February 2026
The SRA investigates serious or repeated misconduct and applies an Assessment Threshold Test, along with other factors, to decide whether an issue warrants investigation.
Solicitors and firms may have a duty to report their own conduct, their firm’s conduct or that of other regulated individuals. Some situations create an automatic obligation to notify the SRA, however there are also other wider reporting duties that require judgment.
In February 2026, the SRA introduced a new (optional but recommended) report form to help determine if matters need to be reported and, where relevant, ensure sufficient detail is provided.
Who should read this item: MLROs / MLCOs
SRA AML Intelligence Alerts
Thursday 26 February 2026
HM Treasury’s 2025 National Risk Assessment highlighted that faster and more effective intelligence sharing is essential for detecting and preventing money laundering. To support this, the Legal Intelligence Sharing Expert Working Group (Legal ISEWG) was created to improve intelligence-sharing between legal-sector supervisors, statutory AML supervisors and law enforcement. Through its work with this group, the SRA periodically issues non public alerts based on National Crime Agency intelligence, including one circulated in January 2026.
Contact us
To discuss how we can assist your firm meet the AML regulations, including preparing and updating a Firm Wide Risk Assessment, conducting an Independent AML audit (Regulation 21 audit), drafting compliant policies and procedures and providing AML training to your staff please get in touch by emailing consultants@dglegal.co.uk or by calling 01509 214 999.
Who should read this item: Conveyancers, tax advisers and firms that interact with HMRC
Key Date: 1 May 2026
HMRC Tax Adviser Registration
Thursday 26 February 2026
HM Government is proceeding with its proposals for mandatory registration of tax advisers with HMRC in Spring 2026. Some law firms, especially conveyancers who file SDLT or firms that otherwise interact with HMRC on behalf of clients, will need to register from May 2026 (subject to a transition period of at least three months).
The draft legislation is still being considered by parliament and HMRC is still developing the new system. Therefore, there is very little information available to firms who may be affected, but there are some steps that they take to get prepared.
Who should read this item: Fee Earners / MLROs
Updated SARS guidance
Thursday 26 February 2026
Both the Proceeds of Crime Act 2002 (POCA) and the Terrorism Act 2000 (TACT) require regulated Money Laundering Reporting Officers (MLROs) to submit a suspicious activity report (SAR) as soon as practicable after developing the knowledge or suspicion that another organisation or individual is engaged in money laundering or terrorist financing. Failure to submit a SAR when there is a legal obligation to do so could result in both individuals and organisations being prosecuted for criminal offences and/or facing action from the SRA.
Who should read this item: All firms
High risk third countries updated
Thursday 26 February 2026
Following its triannual Plenary Meeting, on 13 February 2026 the Financial Action Task Force (FATF) updated its Jurisdictions under Increased Monitoring list.
The FATF lists (Jurisdictions under Increased Monitoring and Jurisdictions subject to a Call for Action) collectively form the UK Government’s list of high risk third countries, as set out by Regulation 33(3)(a) of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR 2017).
FATF identifies jurisdictions deemed to have unsatisfactory anti-money laundering, countering terrorist financing and countering proliferation financing controls. There are currently 25 countries included in the UK’s high risk third countries list including some, but not all, jurisdictions subject to financial sanctions measures.
Who should read this item:Firms and individuals working in high-volume consumer claims (HVCC)
SRA warning notice on ‘no win, no fee’ arrangements in high-volume consumer claims
Tuesday 24 February 2026
On 28 January 2026, the SRA issued a warning notice aimed at firms involved in high volume consumer claims after finding “concerning” levels of poor practice, particularly around ‘no win, no fee’ arrangements.
Key concerns include inadequate transparency about fees, deductions and potential liabilities if a claim fails (such as ATE insurance premiums, counsel or expert fees and administrative charges). It also highlighted instances where firms prioritised their own commercial interests over clients’, poorly managed ATE safeguards and failed to adequately carry out proper due diligence on third party claims management companies and lead generators, exposing clients to significant financial risk.
The warning notice provides important guidance on marketing and client care including costs and fee arrangements.
It is common for the SRA to conduct further investigatory work following the publication of a warning notice and, therefore, firms involved in high volume consumer claims must take action to ensure staff are aware of this guidance and ensure compliance. In fact, it is a useful reminder for any firm offering legal services on a ‘no win, no fee’ basis.
Who should read this item: Law firm managers and owners, or anyone with responsibility for risk, compliance, or operational resilience
Contingency and business continuity – how would your firm cope with the sudden incapacity of key personnel?
Monday 23 February 2026
Law firms face significant operational and regulatory risks when key personnel become suddenly incapacitated or pass away. Firms routinely lack adequate succession and continuity planning, leaving them vulnerable to disruption, regulatory breaches, client impact and even forced closure.
Planning for the unexpected absence or loss of a law firm’s key personnel is an essential part of risk and business management. There should also be a risk-focused succession plan in place, especially if a business is reliant on the involvement of one or two members of staff. It is alarming therefore how few firms have actually given this sufficient thought and have left themselves extremely vulnerable.
Contact us
To discuss how we can assist your firm to take regulatory steps to anticipate or respond to incapacity or other business continuity events, please get in touch by emailing consultants@dglegal.co.uk or by calling 01509 214 999.
Who should read this item: Firms that undertake conveyancing work
Key Date: 30 March 2026
Understanding the changes to the UK TA6 Property Information Form
Thursday 19 February 2026
The TA6 Property Information Form plays a central role in residential conveyancing, being completed by a seller to disclose key information about a property to prospective buyers. Recent reforms following industry feedback have reshaped this form significantly.
The most significant development is the introduction of the 6th edition, a newly revised Property Information Form produced by The Law Society. This update replaces both the previous 4th and 5th editions, aiming to streamline and simplify what many conveyancers and property professionals described as a complex and unwieldy process.
Who should read this item: LAA Civil and Crime Contract holders
Key Date: 17 February 2026
Submit a Bulk Claim (SaBC) service
Monday 16 February 2026
On Wednesday 4 February 2026, the Legal Aid Agency (LAA) launched its Submit a Bulk Claim (SaBC) service. This new service replaces CWA (LAA Online), which has been shut down since April 2025. SaBC is a digital billing service that allows and validates monthly submissions online and calculates fees.
All claims for Civil (Legal Help), Crime Lower and Mediation work must now be submitted via SaBC. New matters for civil categories will also be reported via SaBC.
Who should read this item: Firms with a client account
Key Date: Friday 20 February 2026
SRA consultation on protecting client money
Thursday 5 February 2026
The SRA has launched a further consultation on proposed changes to improve the protection of client money. The consultation is seeking views on two key areas:
- improving the accountants’ report regime
- strengthening checks and balances provided by COLPs and COFAs.
The proposals set out within the consultation may have cost, time and resource implications for many firms. Therefore, it is advised that all firms thoroughly read the proposals and submit their responses to inform the SRA of any impact they may have.
Contact Us
To discover more about how we can help your firm with compliance issues, please call 01509 214 999, send us an email or complete our free enquiry form.