Helen Coles had not even realised that Axiom Ince, the firm handling her late mother’s estate, had been shut down until she read it in the media.
Panic immediately set in as she realised the firm had sold her mother’s home just days before the SRA’s intervention. Despite repeated attempts to contact legacy solicitors and regulators, Coles and her four sisters, equal beneficiaries, have not received a penny from the £300,000 estate.
Coles, from Wiltshire, is one of a growing number of former clients of Axiom Ince going public with their experiences of collateral damage from the collapse and shutdown of the firm.
The legal profession is likely to have to fund any shortfall in the compensation fund after all claims from former clients of Axiom Ince have been lodged. The SRA estimated in late November that clients were owed £33m – but that figure is likely to have increased since.
And while some solicitors are furious about having to provide recompense for matters they had no part in, the clients they will be compensating are also bemused, frustrated and angry.
‘The whole thing has been very stressful for myself and my family and we have received no help or support and no information as to who we can turn to for advice’
Helen Coles, Axiom Ince client
In Coles’ case, her mother had instructed a firm in Swindon which was later subsumed by the Axiom Ince group. Her mother died in June 2022; and the first time the beneficiaries heard of Axiom DWFM (as it was then) was when letters arrived on the firm’s headed notepaper.
Her mother’s bungalow was put up for sale in June last year (Coles claims she found this out only when the property was listed online). The beneficiaries expressed concern that it was undervalued.
While discussions over the asking price continued, Axiom Ince fell into trouble. Three former directors were suspended in August by the SRA and it emerged that more than £60m was missing from the client account. The SRA did not heed calls to shut the firm down until early October. The bungalow was sold on 20 September.
Coles said the firm had no right to let the sale go through. She is also critical of the SRA for not intervening sooner. ‘We feel that it is unacceptable that the property was allowed to sell on 20 September and the money allowed to go into an account that was frozen,’ she said. ‘The whole thing has been very stressful for myself and my family and we have received no help or support and no information as to who we can turn to for advice.’
Coles is not alone. Around 20 former clients have formed a support group on Facebook, each recounting their tales of poor service or being left in the dark as Axiom Ince descended into meltdown.
One member said their parents had both died in 2022 but that the beneficiaries had received nothing. Another said their complaint relates to probate, but alleges they were told by the SRA that their compensation claim would not be dealt with until November as it was not a priority.
The regulator, which is subject to an ongoing review by oversight regulator the Legal Services Board, has hired more staff to deal with the Axiom Ince fallout. An SRA spokesperson stated that the organisation took ‘prompt action’ to protect the public by intervening into the practices of three directors. This removed the immediate possibility of suspected dishonesty causing ongoing harm to the public and the firm’s clients.
‘The missing money meant it was not possible for the firm to carry on operating over the long term,’ the spokesperson said. ‘It was our view that it was not in the interests of clients to close the whole firm down immediately, with all the resulting detriment to clients. This was because it was still able to deal with many clients’ matters or move some matters to other firms.
‘We have set out our approach to dealing with compensation fund claims linked to Axiom Ince. We will be dealing with all claims as quickly as possible. The most pressing claims on the compensation fund – such as domestic conveyancing – will be dealt with first.’
The spokesperson added that the SRA has been in contact with Coles to discuss her case.
The Axiom Ince affair has proved to be a headache for everyone in its orbit. Solicitors may be hit in the pocket, and SRA executives face searching questions. But the greatest cost to the profession may be in substantial damage to its reputation, all due to the experiences of clients of just one firm.
