From SRA to FCA: What the move to a Single Supervisor means for law firms

The biggest structural shift in a decade

The government’s announcement that the Financial Conduct Authority (FCA) will become the Single Professional Services Supervisor (SPSS) marks the end of an era. For years, legal professionals have navigated compliance under the guidance of professional body supervisors like the SRA and CLC.

The move to consolidate supervision under the FCA removes the fragmented current system, replacing the 22 professional body supervisors with one central authority. For compliance leaders, this naturally brings a degree of uncertainty. You know your current supervisor’s expectations, their communication style, and their inspection triggers. The FCA represents a new, and for many, unfamiliar regime.

The golden rule: Compliance is compliance

The headline change is dramatic, but the practical reality is less volatile. As Harriet emphasised during the webinar, the core message from the regulator is reassurance: if you are compliant now, you will be compliant then.

Storyblok quote - if you are compliant now, you will be compliant then.

The reform changes who checks your homework, not the homework itself. The Money Laundering Regulations (MLRs) remain the law of the land. The fundamental requirements, e.g., due diligence and source of funds verification, are not changing. If your firm currently meets the standards set by the SRA or CLC, you are already meeting the standards the FCA will enforce.

What "data-driven" supervision looks like

While the rules remain the same, the style of supervision is likely to evolve. The FCA is known for a more data-driven, risk-based approach compared to the traditional models of some professional bodies.

For legal firms, this could mean a shift in how you report. We may see a move towards more granular data collection, where the supervisor relies less on cyclical visits and more on analysing datasets to spot outliers and emerging risks remotely.

This reinforces the need for robust, digital audit trails. In a data-driven regime, the ability to pull a report on your firm-wide compliance status instantly is far more valuable than a paper-based manual that sits on a shelf.

Timeline: What to watch in 2026

The consultation on the "duties, powers and accountability" of the new supervisor closed in December 2025. As we move through 2026, we expect to see the government’s response to this consultation, which will clarify exactly how the FCA’s powers will be structured.

For now, there is no immediate action required other than maintaining your current high standards.