Your monthly round-up of compliance developments, sector insights and HiveRisk updates.
April’s updates are less about rule changes, more about how existing ones will be applied. Below is the practical impact for firms.
Read right to the end for HiveRisk news and events and details on how to get your Jungle Pass for July. You may also want to save this newsletter to keep coming back to.
Mazur – where firms need to act The Law Society has now published their updated and corrected practice note.
Impact: Firms can continue to use non-authorised staff in litigation but only within a clearly supervised structure. The risk now sits in who is really making decisions and whether that is properly evidenced.
If supervision isn’t visible in file records, firms risk challenges to costs, regulatory scrutiny, and potentially enforcement.
Updated Practice Note here: https://ow.ly/lbOa50YI6n4
Warning Notice on Deep Fakes used to bypass ID procedures
The SRA is warning that AI is now being used to bypass client identity checks – including fake documents and deepfakes that can defeat remote verification systems. Firms are reminded to:
- Be aware of the risk posed by AI tools known as deepfakes, which can impersonate a real person’s appearance convincingly.
- Assess the heightened risk of relying on video calls to identify and verify your client.
- If you only meet clients remotely, understand whether your electronic due diligence protects you against this.
- Explore software solutions to assist in detecting deepfakes, many are available on the market.
Read the SRA’s News Release here https://www.sra.org.uk/news/news/sra-update-149-compliance-id-checks/
HMRC – tax adviser registration
HMRC’s mandatory registration regime is effective from May 2026 for anyone who interacts with HMRC on behalf of clients in relation to tax. The definition of “tax adviser” is deliberately broad – it can include solicitors who file returns or correspond with HMRC, even where tax advice is only incidental.
Impact on law firms:
- Many firms will be caught whether or not they consider themselves tax advisers (e.g. conveyancing, private client, corporate).
- Firms must register at entity level, identify key individuals, and meet conditions (AML supervision, tax compliance, fitness standards).
- Unregistered firms may be unable to deal with HMRC, risking delays to transactions and client work.
- The regime effectively introduces another layer of regulatory oversight, alongside existing SRA requirements.
In short: Firms need to identify where they interact with HMRC, confirm whether they fall in scope, and make sure registration and internal responsibility are clear before the deadline.
The Law Society’s ‘Ask the Experts’ Feature here https://www.lawsociety.org.uk/topics/property/q-and-a/hmrc-mandatory-tax-adviser-registration
Dentons – AML case heads back to SDT for fresh hearing
Summary: The Court of Appeal has confirmed that the Dentons money laundering case will return to the Solicitors Disciplinary Tribunal for a fresh hearing, after earlier decisions were overturned.
Crucially, the court clarified that not every regulatory breach automatically amounts to misconduct – there must be a threshold of sufficient seriousness.
Impact on law firms:
- AML failures don’t automatically trigger misconduct findings – but seriousness will be closely tested
- Firms should expect continued scrutiny of source of funds checks and high-risk clients
Gazette article here: https://www.lawgazette.co.uk/practice/court-of-appeal-rules-for-sra-in-dentons-money-laundering-case/5126600.article
SRA – mandatory ethics discussions proposal
Summary: The SRA is proposing a more structured approach to continuing competence. This includes a requirement for solicitors to take part in annual ethics discussions (around three hours) and to record how they identify and address their learning needs.
The move comes from concerns that the current, largely self-directed system isn’t consistently driving meaningful reflection or engagement with ethical obligations.
Impact on law firms:
Given the regulator’s clear focus on this area:
- Firms should consider facilitating or providing structured ethics sessions for their lawyers
- Expect a shift toward documented, auditable training and competence records
- Greater regulatory focus on ethical decision-making, not just technical knowledge
In short: This is signalling a move away from informal CPD toward visible, structured and evidenced competence – with ethics front and centre.
This is just one of 3 proposals in the SRA’s consultation on CPD open for response until 15th July 2026. A link to full consultation paper and how to respond. https://www.sra.org.uk/sra/consultations/consultation-listing/continuing-competence-2026/?s=o
Taylor Rose – a reminderthat scaling brings pressure
Taylor Rose was fined £160,000 by the SRA for failing to properly reconcile its client account and for delays in returning client money. The firm said the issues largely stemmed from legacy problems inherited through acquisitions, combined with capacity pressures in its finance team.
The SRA found that systems and controls were not effective over a prolonged period (2018–2025), and that breaches were not reported promptly. The firm has since implemented a compliance plan and strengthened its financial controls.
Impact on law firms:
- Acquisitions don’t dilute responsibility – firms are accountable for inherited compliance issues
- Client account management remains a core enforcement priority, particularly reconciliations and residual balances
- Weak systems and delayed reporting can escalate issues over time, even where there is no client loss
In short: Growth through acquisition brings hidden risk. Without strong integration and financial controls, legacy issues can quickly become regulatory ones.
Read more in the Gazette article https://www.lawgazette.co.uk/news/firm-blames-acquisitions-after-160000-sra-fine/5126569.article
Law Society – below-inflation PC fee increase
Summary: The Law Society is proposing a 2% increase in its share of the practising certificate (PC) fee for 2026/27, keeping it below inflation. The increase is being moderated by using reserves to limit the impact on solicitors.
Read Gazette article https://www.lawgazette.co.uk/news/law-society-proposes-below-inflation-pc-fee-increase/5126602.article
Clinical negligence – action plan pending
Summary: The government has confirmed it will publish a clinical negligence reform plan by autumn 2026, aimed at tackling rising NHS costs (now over £3bn annually).
No firm proposals yet, but areas under consideration include:
- Reforming how compensation is calculated
- Limiting legal costs in lower-value claims
- Expanding alternative dispute resolution
- Addressing “double recovery” (private care damages vs NHS treatment)
In short: Nothing immediate to act on – but clear momentum toward reform. Firms in this space should expect changes to costs, process and possibly recoverability within the next 12–18 months.
Link to Treasury minutes here: – Government Response to the Committee of Public Accounts on the Sixty-second to the Sixty-seventh reports from Session 2024-26
Client Account Interest apportionment
Summary: Eloise Butterworth‘s cover story article in The Law Society‘s Compliance Section publication looks at the government’s proposed Interest on Lawyers’ Client Accounts (ILCA) scheme, which would require firms to hand over a significant portion of client account interest to the Ministry of Justice (up to 75% on pooled accounts).
She challenges the underlying rationale – particularly the idea that this interest is “unearned” – highlighting that managing client money carries significant regulatory burden, risk and operational cost for firms.
The article also questions the evidence behind the proposal and raises concerns that the funds may not be ringfenced for access to justice, meaning firms could effectively be contributing without clear benefit to the system.
Read the full article here: https://communities.lawsociety.org.uk/april-2026/portion-of-interest/6003701.article
Data privacy changes – June 2026
Summary: From 19 June 2026, a key part of the UK’s Data (Use and Access) Act comes into force: organisations must have a formal, accessible process for handling data protection complaints.
Individuals will have a clearer right to complain directly to organisations, and firms must:
- Provide a proper complaints mechanism (not just a generic inbox)
- Acknowledge and investigate complaints within set timeframes
- Keep records of decisions and actions taken
In short: This is about visibility and accountability – firms must be able to show how they deal with data concerns, not just that they have a policy in place.
HiveRisk News
A busy few weeks ahead and plenty to look forward to.
Great Big Legal Offsite | July 2026 Tickets are now on sale for this year’s GBLO, with the theme “Laws of the Jungle.”
The speaker line-up is currently being announced but already included notable high profile names including:
- I. Stephanie Boyce CBE FKC (former President of the Law Society)
- Dana Denis-Smith OBE Denis-Smith (incoming Law Society President)
- Industry leaders from across the sector — including HiveRisk‘s own Jo Adongo and Eloise Butterworth
It’s set to be a strong mix of insight, challenge and practical thinking for law firm leaders future proofing success. Contact Kate Burt or Robert Hanna for sponsorship opportunities. Delegate tickets are available on Eventbrite now. https://www.eventbrite.co.uk/e/the-great-big-legal-offsite-2026-tickets-1977797266866
The Lawyers Retreat | Ibiza Next week we’ll be in Cala Carbó for Year Two of The Lawyers Retreat — co-founded by our CEO Kate Burt Burt and Kirsty Pappin (Aries Practice Management).
The focus this year: strategy, growth and scaling — with a programme built for firms looking to move forward with intent.
What’s the Buzz – May Sessions
May’s webinars and podcast sessions are coming up next – with new topics and speakers lined up.
- 5-8 May 2026 Live from The Lawyers Retreat – We’ll be broadcasting live from the retreat – keep your eyes on your Linkedin Live notifications 5-8 May 2026
- 14 May at 12noon It Won’t Happen to Us: Fraud in Law Firms Guest: Peter Taylor, ACFS aka The Fraud Guy Register here: https://us06web.zoom.us/webinar/register/WN_tfn-9n4ZTM-cxy9XKSFC5g
- 21 May at 12noon Dirty Money Close to Home: AML Risks in our Communities Guest : Harriet Holmes Holmes of Thirdfort Register here: https://us06web.zoom.us/webinar/register/WN_DmklaonPSbGPbdTW-JtoMA
- You can catch all our previous podcasts here, including our popular session with Ray Blake from The Dark Money Files Ltd here: https://open.spotify.com/show/3hGITmMOMaWp8CBOc294Tj
Mission Critical Compliance: Roundtable Sessions
From June 2026 HiveRisk will be running a series of roundtable session, get in touch with Eloise Butterworth if you would like to participate and help shape the programme.
HiveRisk April Highlights in Photos
HiveRisk was in London for multiple events and client engagements this month including for the Women and Diversity in Law Awards 2026 where we were finalists in the categories of Business Person of the Year and Supplier of the Year. Enjoy some of our photographic highlights below.
Wrap up
If April had a theme, it’s this: less change, more clarity. Supervision, accountability and record-keeping keep coming up, just from different angles.
It’s not about over-engineering things. It’s about making sure the way you work would make sense to someone looking at it cold.
As always, if anything in this edition raises questions for your firm, we’re always happy to have a conversation
The HiveRisk team
Ps See you in the jungle (if not before).
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