Waugh & Co
4 Mill Green Business Estate, Mill Green Road, HAYWARDS HEATH , RH16 1XQ
Recognised body
057400

Decision - Agreement

Outcome: Regulatory settlement agreement

Outcome date: 20 January 2026

Published date: 23 January 2026

Firm details

No detail provided:

Outcome details

This outcome was reached by agreement.

Decision details

1. Agreed outcome

1.1 Waugh & Co (the Firm), a Recognised Body, agrees to the following outcome to the investigation of its conduct by the Solicitors Regulation Authority (SRA):

1. the firm is fined £15,568 under Rule 3.1 (b) of the SRA Regulatory and Disciplinary Procedure Rules (RDPRs)
2. to the publication of this agreement under Rule 9.2 of the RDPRs
3. the firm will pay the costs of the investigation of £600, under Rule 10.1 and schedule 1 of the RDPRs.

2. Summary of Facts

2.1 We carried out an investigation into the firm following a review by our AML Proactive Supervision team.    

2.2 Our investigation identified areas of concern in relation to the firm’s compliance with the Money Laundering, Terrorist Financing (Information on the Payer) Regulations 2017 (MLRs 2017), the SRA Principles [2019] and the SRA Code of Conduct for Firms [2019].

Client and Matter Risk Assessments (CMRA)

2.3 On five of six files reviewed during the course of a desk-based review, the firm failed to conduct client and matter risk assessments as required by Regulation 28(12)(a)(ii) and Regulation 28(13) of the MLRs 2017.  

3. Admissions

The firm admits, and the SRA accepts, that by failing to comply with the MLRs 2017, that it breached:

1. Paragraph 2.1(a) of the SRA Code of Conduct for Firms – Which requires you to have effective governance structures, arrangements, systems and controls in place that ensure:  a- you comply with all the SRA's regulatory arrangements, as well as with other regulatory and legislative requirements, which apply to you.   
2. Paragraph 3.1 of the SRA Code of Conduct for Firms – You keep up to date with and follow the law and regulation governing the way you work.  
3. Principle 2 of the SRA Principles 2019 – Which states you must act in a way that upholds public trust and confidence in the solicitors' profession and in legal services provided by authorised persons. 

4. Why a fine is an appropriate outcome

4.1 The SRA’s Enforcement Strategy sets out its approach to the use of its enforcement powers where there has been a failure to meet its standards or requirements.

4.2 When considering the appropriate sanctions and controls in this matter, the SRA has taken into account the admissions made by the firm and the following mitigation:

1. there is no evidence of harm to consumers, or third parties, and our view is that the risk of repetition is low.
2. the firm brought itself into compliance by training fee earners on CMRA completion and adopting a compliant CMRA template.
3. the firm has cooperated with the SRA’s AML Proactive Supervision and AML Investigations teams.

4.3 The SRA considers that a fine is the appropriate outcome because:

1. The conduct showed a disregard for statutory and regulatory obligations and had the potential to cause harm, by facilitating dubious transactions that could have led to money laundering (and/or terrorist financing). The AML control failings identified as part of this investigation are necessary requirements to help mitigate against these risks.
2. It was incumbent on the firm to meet the requirements set out in the MLRs 2017. The firm failed to do so. The public would expect a firm of solicitors to comply with its legal and regulatory obligations, to protect against these risks as a minimum. 
3. The agreed outcome is a proportionate outcome in the public interest because it creates a credible deterrent to others and the issuing of such a sanction signifies the risk to the public, and the legal sector, that arises when solicitors do not comply with anti-money laundering legislation and their professional regulatory rules. 

4.4 Rule 4.1 of the Regulatory and Disciplinary Procedure Rules states that a financial penalty may be appropriate to maintain professional standards and uphold public confidence in the solicitors' profession and in legal services provided by authorised persons. There is nothing within this Agreement which conflicts with Rule 4.1 of the Regulatory and Disciplinary Rules and on that basis, a financial penalty is appropriate.

5. Amount of the fine

5.1 The amount of the fine has been calculated in line with the SRA’s published guidance on its approach to setting an appropriate financial penalty (the Guidance).

5.2 Having regard to the Guidance, the SRA and the firm agree that the nature of the misconduct was more serious (score of three). This is because the firm should have taken more care to ensure it fully understood its obligations to complete CMRAs. The firm has failed to meet this requirement of the MLRs 2017 on five of the six files reviewed. Further, the CMRA document used by the firm was not compliant with regulation 28(12) and (13).

5.3 Further, the firm did have a CMRA procedure in place when all files were active, yet five files did not contain a CMRA. This shows that the completion of CMRA was not reinforced by the firm. Further, the training records show that training was not consistent or frequent prior to the files being opened. The firm should have been ensuring compliance with its obligation to complete CMRAs and ensuring fee earners were sufficiently trained. This is especially relevant given the high percentage of in-scope work carried out by the firm. These reasons demonstrate a pattern of misconduct.

5.4 The harm or risk of harm is assessed as being low (score of two). The firm bought themselves into compliance after the desk-based review, and their CMRA is now effective.

5.5 Further, the firm were asked to review a sample of 50 files to find how many of these were missing a CMRA. Each file had a completed CMRA and only six of these had completion issues. This demonstrates the issue is not widespread across the firm.

5.6 Additionally, all fee earners have now been trained to complete CMRAs. From the firm’s training records, a number of AML training sessions were conducted in 2025, some of which were prior to the desk-based review, further bolstering its AML compliance.

5.7 There is also no evidence that the lack of CMRAs caused serious issues, such as not identifying high-risk clients or not applying the correct level of customer due diligence on matters.

5.8 The nature and impact scores add up to five. This places the penalty in Band ‘B’ as directed by the guidance.

5.9 The SRA and the firm agree that a basic penalty at the higher end of the bracket to be appropriate.

5.10 Based on the evidence the firm has provided of its annual domestic turnover for the most recent tax year; this results in a basic penalty of £17,298.

5.11 The SRA considers that the basic penalty should be reduced to £15,568. This reduction reflects the mitigation set out in paragraph 5.2 above.

5.12 The firm does not appear to have made any financial gain or received any other benefit as a result of its conduct. Therefore, no adjustment is necessary, and the financial penalty is £15,568.

6. Publication

6.1 Rule 9.2 of the SRA Regulatory and Disciplinary Procedure Rules states that any decision under Rule 3.1 or 3.2, including a Financial Penalty, shall be published unless the particular circumstances outweigh the public interest in publication.

6.2 The SRA considers it appropriate that this agreement is published as there are no circumstances that outweigh the public interest in publication, and it is in the interest of transparency in the regulatory and disciplinary process.

7. Acting in a way which is inconsistent with this agreement

7.1 The firm agrees that it will not deny the admissions made in this agreement or act in any way which is inconsistent with it.

7.2 If the firm denies the admissions, or acts in a way which is inconsistent with this agreement, the conduct which is subject to this agreement may be considered further by the SRA. That may result in a disciplinary outcome or a referral to the Solicitors Disciplinary Tribunal on the original facts and allegations.

7.3 Acting in a way which is inconsistent with this agreement may also constitute a separate breach of principles 2 and 5 of the Principles and paragraph 3.2 of the Code of Conduct for Firms.

8. Costs

8.1 The firm agrees to pay the costs of the SRA's investigation in the sum of £600.