The Solicitors Regulation Authority (SRA) has intervened to shut down Liverpool-based conveyancing firm GW Legal citing concerns over “dishonesty” and regulatory breaches.
The intervention, effective Friday, 13 December, has left staff abruptly unemployed, with brokers and lenders scrambling to manage disrupted transactions mere days before Christmas.
A notice from the SRA website on Friday stated: “GW Law Limited. This firm is also known as GW LEGAL. Closed down by the SRA.”
A message from the SRA on X, formerly known as Twitter, added: “We’ve closed down the practice GW Law Limited – 636375 to protect clients’ interests. For information on retrieving your documents, papers or money visit our website for help.”
And another post on X from the SRA added: “We’ve closed down the practice of Christopher Williams – 119374 to protect clients’ interests. For information on retrieving your documents, papers or money visit our website for help.”
One of the reasons given by the SRA for pulling down the shutters on GW Legal was “dishonesty” by Williams, a director of the firm.
UP IN ARMS
Staff at the firm have been left angry and confused. For most the situation couldn’t come at a worse time with Christmas just seven working days away and left with no idea whether they will be paid this month.
WhatsApp messages in a group called ‘Corona Convey Group’ with 19 members – including several GW Legal staff – and seen by Property Soup, highlighted the level of frustration of all involved.
By 11:45 on Friday morning one person commented: “Nobody is answering the phone” “I don’t know what’s going on” (sic).
Another replied: “I am furious tbh… 19 years and no heads up just no job..what a complete disgrace”. (sic)
Adding later: “Can we expect any money for this month so far or is the last joke on us!!” (sic)
Even by midday on Friday most lenders and brokers are believed to have still been of the loop and in the dark, with others still only finding out as they read this now.
Some brokers who became aware of the dire situation late on Friday where up in arms wondering what to do with pipeline transactions and with communication not forthcoming from GW Legal took to contacting numerous lenders – and Property Soup.
GOLDSMITH WILLIAMS
Liverpool law firm GW Legal, which trades under GW Law, rebranded from Goldsmith Williams in 2017.
It was run by Christopher Williams – thought to have taken on the role of Compliance Officer for Legal Practice – who set up Goldsmith Williams with Eddie Goldsmith in July 1984.
They were joined by Senior Partner Simon Cottrell in 1986. Goldsmith left the business six and-half years ago in July 2018 after 35 years at the firm. He is now Co-Founder and Managing Director at YouConvey.
EQUITY RELEASE
As well as residential and specialist residential GW Legal has also been a major conveyancer in the equity release market for the past two decades and more so in recent times. It is also a member of the Equity Release Council.
That department was run by Richard Espley, a lawyer and Director of Equity Release at GW Legal. He is also a member of the legal forum for The Equity Release Council. He was a company director at GW Law between 6 January, 2023 and 27 February, 2023.
At least one equity release lender working with GW Legal spent late Friday afternoon dealing with panicking brokers worried how deals would progress.
Equity release customers are classed by The Financial Conduct Authority as being “customers with a higher risk of being in vulnerable circumstances”.
An FCA paper last year on ‘Action needed to ensure good outcomes for later life mortgage borrowers’ cited “customers with a higher risk of being in vulnerable circumstances”.
It added: “It is essential these consumers are fully informed and receive suitable advice that has taken account of their individual circumstances.”
VULNERABLE CUSTOMERS
It is unclear how many other equity release lenders that had dealings with GW Legal also started making arrangements once news of the SRA’s shutdown of GW Legal started to leak on Friday. They are most likely doing so today. What is clear is that many vulnerable customers will be approaching Christmas even more concerned about their finances than they had been before.
A spokesperson for The Equity Release Council told Property Soup: “We have been made aware of the action that the SRA has taken against GW Legal and will naturally be reviewing their membership of the Council.”
DEVASTATED
Richard Espley, Director of Equity Release at GW Legal, told Property Soup on Monday that he and the equity release team were “devastated”.
He added: “There had been no internal or external communication to us that this could occur. Many of us have been employed by the firm for over 20 years and to see all our are hard work and dedication ended like this is difficult to take. We are extremely sorry that clients will now be delayed at such an important time of year, but we can only be guided by what is reported by the SRA.
“It is important to state clearly that the intervention does not relate to the equity release team. As the lawyer responsible for equity release I can confirm that in the 16 years I have managed the team I have never had any contact with the SRA about any aspect of the services that my team has delivered or about any of the firm’s activities.
“I was appointed as a director in January 2023 but the appointment was made in error and removed one month later. To enable the swiftest possible resolution to the difficulties clients now face we would ask all introducers to please contact their clients and obtain signed consent for client files to be moved to another solicitor of their choice. Those consents can be sent to the intervening solicitors at Interventions@stephensons.co.uk.”
Simon Cottrell also responded to Property Soup on Monday. He said: “I’ve very, very sad after the events of Friday. I’ve worked with some of the staff over many years and they are a truly fantastic group of people who don’t remotely deserve their jobs and livelihoods to end this way.
“I had no knowledge at all that the SRA were going to take this step when they did. I was aware that the SRA has concerns as they contacted me and some members of staff over the past months. We gave them our full cooperation over what we knew but it would be wrong and inappropriate to say more as no doubt enquires are still ongoing at the SRA.
“I was never an employee or shareholder in the company. Although not yet showing at Companies House, I did in fact resign as a director a number of weeks ago so technically have nothing to do with the company at all anymore.
“All my thoughts are with staff and clients who no doubt will be massively inconvenienced by what has happened.”
OTHER LENDERS TOO
By late Friday afternoon other lenders that had dealings with GW Legal had yet to find out too.
GW Legal has been prolific in the specialist lending space and has worked with most core lenders including Precise Mortgages and was on its ‘Preferred Conveyancer Panel’ for joint representation alongside the likes of Blacks Solicitors LLP, Gordons Property Lawyers, JMW Solicitors and Switch – a trading mane of Shoosmiths LLP.
“All cases going through GW Legal in the Precise pipeline will be disrupted in some way.”
Precise Mortgages was contacted for comment.
As an SRA-regulated firm GW Legal will also have been on countless standard and other specialist lender panels and will now not only have to be removed from the likes of West Bromwich for Intermediaries and Leeds Building Society but also every other lender too.
Every single live GW Legal case will be impacted in some way and will likely cause misery to borrowers.
One major specialist lender, who requested anonymity, replied to Property Soup at 18:16 on Friday: “Wow. Thanks for sharing. I’ve sent on to panel management to check.”
PROTECT CLIENTS’ INTERESTS
Those checks will have led to the SRA website that reads: “We’ve closed down the practice GW Law Limited – 636375 to protect clients’ interests.”
Further investigation would reveal: “There is reason to suspect dishonesty on the part of Mr Williams as a manager of the firm, in connection with the firm’s business (paragraph 32(1)(d) of Schedule 2 to the Administration of Justice Act 1985 (as amended)).
“Mr Williams, as a manager of the firm, and the firm itself have failed to comply with the Principles (2019), the Accounts Rules (2019) and paragraphs of the Code of Conduct for Firms (2019) which are rules applicable to them both by virtue of section 9 of the Administration of Justice Act 1985 (as amended) (paragraph 32(1)(a) of Schedule 2 of that Act).”
INTERVENING AGENT
Sean Joyce of Stephensons Solicitors LLP, Wigan Investment Centre, has been appointed by the SRA as the intervening agent.
The Stephensons website explains about GW Legal’s closure: “The SRA have conducted an investigation into the firm and have decided to close down the practice. All interventions are done to protect the interests of the clients of the firm and the general public.
“The firm has been closed down by the SRA and has ceased trading with immediate effect, they will not be reopening.”
“The firm has been closed down by the SRA and has ceased trading with immediate effect, they will not be reopening.
“When a firm is closed down, the SRA appoints an Intervention Agent to assist with this process. Stephensons are appointed in this capacity.
“As Intervention Agent we attend the premises of an intervened firm on the day of the intervention along with representatives of the SRA and we remove the client files and paperwork from the firm’s offices. We also take electronic copies of all data held by the firm.
“Stephensons do not take over the practice of the intervened firm. Therefore, we do not automatically take over conduct of your case and do not take any responsibility for payment of any trading debts of the firm.”
NO LONGER AUTHORISED
And under the question, ‘Can I speak to my solicitor?’, it adds about GW Legal: “No, as the firm has ceased trading it is not possible for you to speak to your previous solicitor.
“Your previous firm of solicitors are no longer authorised to deliver legal services.
“Should you need further legal advice or representation in your case then you will need to instruct a new firm to take over your file. You can access a list of firms recommended by The Law Society on their website.”
And it goes on to say: “We appreciate that you have been left unrepresented and this causes some disruption. However, firms are usually unaware that an intervention is going to take place, and as such, are unable to pre-warn clients.”
AWARD WINNING
When Williams and Goldsmith set up the firm in 1986 domestic conveyancing was the focus at the firm’s first two offices; Goldsmith at Allerton Road, Liverpool and Williams across the Mersey in Prenton, Wirral, Merseyside.
During the years that passed Goldsmith Williams amalgamated into one office, latterly in Chapel Street Liverpool, and went on to become one of the mortgage market’s most prominent conveyancing firms and toasted by all throughout the first decades of the century.
Eddie Goldsmith became its public face and both he and the firm won numerous awards up until his exit in 2018.
PERSONAL INJURY
As well as equity release GW Legal also specialises in property, remortgage, wills and probate and personal injury.
But it’s this latter area that may have had a major impact on the firm.
East London company Litkraft specialised in attracting personal injury claimants from Eastern Europe and entered into an agreement to introduce clients to GWS from 2011.
The court heard they had an agreement to receive 17.5% of the fees for high-value personal injury cases it referred.
His Honour Judge Pearce, sitting as a High Court judge, was critical of the arguments put by GWS, which he described as akin to “wishful thinking”, including “a defence based on illegality which involves impugning their own conduct”.
APPROACHED FOR COMMENT
According to the SRA website Christopher Williams was ‘under closure’ as of Friday 13th, 2024. Simon Cottrell is still listed as an active solicitor. Richard Espley does not appear on the SRA website.
Williams has been approached for comment through numerous channels.
Eddie Goldsmith, Co-founder and Managing Director of YouConvey, told Property Soup: “I am incredibly proud of what Goldsmith Williams achieved when I was an active partner; and I still have many friends and acquaintances in the mortgage industry from my 30 plus years career.
“I was very sad to hear that GW Legal has been shut down and my thoughts go out to all the staff and customers for the distress that this has caused.”
“I was very sad to hear that GW Legal has been shut down and my thoughts go out to all the staff and customers for the distress that this has caused.
“I have had very little contact with the firm since I left years ago but I know that there were many hard-working staff still there from my time and I wish them success in finding new employment at this difficult time of year.”
GREAT AFFECTION
He adds: “It would not be appropriate to comment on the reasons why the Solicitors Regulation Authority decided to intervene – all I know is what is now public knowledge on the SRA website.
“I look back on my time working with the mortgage industry with great affection and just feel so sad to see what has become of the firm that I once knew.”
NO EVIDENCE
Despite the SRA’s action on Friday, it has not provided any evidence of wrongdoing by Christopher Williams.
There have been no accusations of wrongdoing against Simon Cottrell or Richard Espley, and there are also no claims of any wrongdoing by Arunthathy Vigneswaran, also an SRA regulated solicitor and former director of GW Law.
She was appointed to the firm on 22 October 2015 and resigned on 12 December, last week.
She is also listed on Companies House as operating travel agency activities under Oakburn Enterprises in Clapham, London. Attempts were also made to contact her.
DIFFICULT TO PROCESS
Peter Gwilliam, a headhunter in the mortgage sector and Director of Virtus Search, says: “Being made redundant through whatever circumstance and whatever time of year is difficult to process and move forward from and emotions naturally run high.
“Having people to talk to and unpack what’s happened is a key part of being able to move forwards with job searching so camaraderie and allyship is what your readers can immediately offer. For my part I will organise a group outplacement session on building a job search.”
LIABLE TO EMPLOYEES
But he adds: “Following a Solicitors Regulation Authority (SRA) intervention such as this, the former employer remains liable to employees for salaries, references, and issuing a P45 so let’s hope that GW can cover December payroll and provide at least the statutory minimum redundancy payment.
“Although in the circumstances the likelihood is that the business will go into administration potentially leaving employees to claim monies owed to them by the Company from the Redundancy Payments Service.
“That would add considerably more duress to an already difficult moment especially because the jobs market is pretty sedate in the property finance sector.”
James Smith, Director at Leeds-based Holden Smith Law, says: “This is very clearly a serious situation.
“A terrible time of year for staff to be uncertain about their employment. Holden smiths thoughts are with all those affected.”
