Business of Law Firms
Axiom Ince's troubles continue​

By Jake Rickman​

What do you need to know this week?

We return to the saga of beleaguered City firm Ince Gordon Dadds, which since its acquisition by Axiom DWFM is now known as Axiom Ince. When we last reported on Ince, it was when Axiom DWFM had acquired Ince in May, following Ince’s insolvency and having entered into administration.

Since then, according to The Lawyer, the firm’s CEO, Donald Brown, and managing partner, Jennette Newman, have since left. Newman has joined Clyde & Co, which has traditionally been considered a rival of Ince.

More troubling was the news that broke around the same time that the firm lost its two senior partners: the Solicitors Regulation Authority (SRA) suspended Axiom Ince’s new managing partner, Pragnesh Modhwadia, and two other partners, for failure to comply with SRA accounts rules.

These rules refer to strict obligations on solicitors and firms of solicitors to always keep client money separate and never to misappropriate client funds.

The Lawyer further reported that Modhwadia had allegedly “misappropriated ‘very significant sums of money’.”

One of the other partners that was suspended by the SRA, Shyam Mistry, has since filed a claim against the SRA and the law firm representing the SRA, Gordons LLP.

Shortly thereafter, on 22 August, The Lawyer reported that Ince’s owner, Axiom DWFM, stated that it is no longer accepting new client instructions and “may be unable to continue in its current format”. This suggests that the future of the firm is very much in question.

Why is this important for your interviews?

This story illustrates several important tenets to bear in mind as an aspiring solicitor:
  1. Ethics and professional conduct is a pervasive subject throughout our studies of law. However, this story indicates that the framework that governs the conduct of solicitors, including trainee solicitors, is neither abstract nor academic. You must act according to the 7 Core Principles and Code of Conduct.
  2. The SRA is an active regulator with teeth. Lest we forget, the SRA and its agents will take swift action, including suspension, prosecution, fines, and expulsion from the profession, if you breach the regulatory framework. Where the SRA intervenes, this is often an effective career-ender.
  3. Where there is smoke, there is often fire. The allegations and actions taken against Ince’s partners are in their preliminary stages. No conclusions can be drawn yet. However, if findings of misconduct are substantiated, it is hard to imagine how this misconduct has not contributed at least in part to the firm’s financial struggles.