At last week’s Law Society Risk & Compliance Conference 2026, senior regulators, insurers and risk leaders offered some clear – and in places surprising – signals about the future of law firm regulation.
In this short video, Partners Nick Leale and Corinne Staves discuss what law firms need to know now, from a notable shift in the SRA’s enforcement stance to rising expectations around AI governance and the future of AML supervision.
In particular, Nick and Corinne focus on the following:
- The SRA acknowledges pressure on the current system: With misconduct reports at record levels, the SRA has said the current enforcement‑led model is unsustainable.
- A clear shift in regulatory tone: The regulator has signalled a move towards supporting compliance, rather than defaulting to investigation and sanction, with enforcement reserved for the most serious cases.
- Reassurance following Mazur: The SRA was clear it will not pursue firms or individuals who inadvertently found themselves on the wrong side of the rules.
- AI firmly under the spotlight: Insurers are calling for clear AI policies, supervision and controls, and warning that banning AI altogether may actually increase risk.
- AML and the FCA – concern mixed with optimism: While uncertainty remains, firms were encouraged by the FCA’s more data‑led, outcomes‑focused approach to supervision.
- Cautious optimism overall: The profession welcomes the change in rhetoric, but confidence will depend on how these commitments translate into practice.
If you have any questions arising from this recording, or if you would like to discuss further, please contact Partners Nick Leale, or Corinne Staves.
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.”
