With the SRA’s rules tightening and enforcement actions on the rise, law firms face real challenges in balancing regulatory obligations with commercial needs.
In this second video in our series focusing on client confidentiality in legal practice, Partners Nick Leale and Corinne Staves discuss the complex realities of client confidentiality during law firm transactions – whether it’s a merger, acquisition or private equity investment.
In this video, recorded in late 2025, Nick and Corinne focus on the following:
- Law firm transactions now include more than just traditional mergers, with private equity investment adding new layers of complexity.
- The SRA Code of Conduct strictly limits what can be disclosed about clients, making it difficult for firms to discuss potential conflicts or growth opportunities at the outset.
- Due diligence is a minefield, and file audits and conflict checks are a challenge as client consent isn’t practical early on.
- The SRA is taking a tougher stance, issuing fines and Section 43 orders for breaches of confidentiality.
- The 2024 SRA Warning Notice has put mergers and acquisitions under closer scrutiny, with further regulatory changes on the horizon.
- Private equity and non-lawyer investors may not be familiar with the profession’s strict confidentiality standards.
- Transferring client files without proper consent is prohibited, and can result in significant penalties for both the transferring and receiving firms – client choice and informed consent are essential.
- With the SRA expected to be more involved in transactions going forward, law firms must plan carefully and put client interests front and centre to stay compliant.
If you have any questions on client confidentiality in relation to your firm, or if you would like to discuss further, please contact Partners Nick Leale, or Corinne Staves.
Related Content:
Client Confidentiality: Risks in Partner and Team Moves
More information on SRA topics can be found on the Regulatory Unit section of our website.
Nick Leale is recognised by Legal 500 UK 2026: ”Partner Nick Leale is a great addition to the team. He is knowledgeable, approachable, and puts all his efforts into getting results for his clients.”
Corinne Staves is ranked as a “Star Individual” by Chambers and Partners UK 2026 for Partnership: Non-contentious: “One of the absolute leaders in the field on both contentious and non-contentious matters, regulatory and litigation.”
CM Murray LLP has been recommended by Legal 500 UK 2026 and Chambers and Partners UK 2026 for Professional Discipline: “The firm is a leader in the field of professional discipline.” “‘The team is very good on all matters of regulatory law.”
CM Murray LLP is ranked Tier 1 for Partnership by Legal 500 2026: “This practice is unique due to its very specific focus on partnership matters and related transactions.”
