The Financial Conduct Authority will become the single anti-money laundering supervisor for law firms, accountancy practices and trust and company service providers. Government confirmed the decision in October 2025 and HM Treasury published its consultation response in June 2026. The government estimates that around 60,000 businesses and sole practitioners will come within the FCA's expanded remit.
The transfer needs legislation and has not started. That leaves firms a window to prepare, and the preparation that matters most is commercial as well as regulatory.
What is confirmed
- The FCA will act as Single Professional Services Supervisor for legal, accountancy and trust and company service providers.
- It replaces AML supervision by 22 professional body supervisors and part of HMRC's role.
- The Solicitors Regulation Authority and other bodies keep their conduct and professional regulation functions.
- The FCA will keep a public register of supervised firms.
- Existing protections for legal professional privilege will continue to apply.
- The change will be made through a Financial Services Bill and secondary legislation.
Until the transfer happens, your current supervisor remains in place. The SRA reported supervising 5,569 firms for AML compliance in its 2025 report.
What is still open
The commencement date, the fee model and the detail of the FCA's supervisory approach have yet to be settled. The FCA has said it will apply a proportionate, risk-based approach and will publish its planned timeline as legislation progresses.
Separately, the Money Laundering and Terrorist Financing (Amendment) Regulations 2026 came into force on 30 June 2026. They converted euro thresholds to sterling and added requirements around pooled client accounts, among other changes. Policies that still quote euros are out of date now, whoever supervises you.
Why this is a commercial question
Most firms will treat the transfer as a job for the compliance officer. Three commercial effects deserve the managing partner's attention.
A public register changes due diligence on you. Corporate clients, lenders and panel managers will be able to check your status in one place. Firms with a clean, well-presented record gain an advantage in tenders.
Onboarding becomes a competitive feature. Clients compare how long it takes to get started. A firm that verifies a client in a day wins work from one that takes a week.
Costs will be visible. Supervision is expected to be funded by fees on supervised firms. Efficient processes protect margin.
A poll of 204 legal professionals by VinciWorks and Compliance Office found 58% were concerned about the effect on legal professional privilege. Government has since confirmed that existing protections will continue. Clients may still ask, so have a clear answer ready.
A readiness plan in five steps
1. Find out where you really are. Commission an independent review of your firm-wide risk assessment, policies, training records and a sample of client files. The useful question is whether the framework would stand up to direct scrutiny today.
2. Fix the client journey, not just the policy. Map every step from enquiry to engagement letter. Remove duplicate requests, move to secure digital verification and set a target time to onboard.
3. Make ownership explicit. Name who owns the risk assessment, training, file reviews and regulator correspondence. Document it. Regulators and clients both look for clear accountability.
4. Align across service lines. Firms offering legal, tax and corporate services often run different processes in each team. A single supervisor is likely to notice the gaps.
5. Tell your clients. Add a short, plain explanation of your checks to your website and engagement pack. Explain why you ask, how data is protected and how long it takes.
Use it in business development
Regulated clients choose advisers who make them feel safe. Banks, funds, developers and public bodies all run supplier due diligence.
Prepare a one-page assurance summary: your supervisor, your governance, your training cycle and your onboarding standard. Include it in every tender. Few firms do, and procurement teams notice.
Referrers care as well. An accountant introducing a client to a law firm, or the reverse, is lending their reputation. Show them your process and you become the easy referral.
What not to do
- Do not wait for the commencement date. The underlying regulations already apply.
- Do not market yourself as "FCA regulated". Supervision for AML is not authorisation, and the transfer has not happened.
- Do not treat this as a document exercise. Supervisors test whether controls work in practice.
Specialist compliance work should come from a qualified adviser. The commercial design around it is where firms gain an edge.
FAQs
When will the FCA take over AML supervision of law firms? No date is set. The change requires primary and secondary legislation. Your current supervisor remains responsible until then.
Will the SRA still regulate solicitors? Yes. The SRA keeps conduct and professional regulation. Only AML and counter-terrorist financing supervision moves.
How many firms are affected? Government estimates around 60,000 businesses and sole practitioners across legal, accountancy and trust and company services.
Are estate agents moving to the FCA too? No. Estate agents, high value dealers and art market participants remain supervised by HMRC.
Sources
- FCA: anti-money laundering supervisory reform
- TLT: FCA AML supervision reform, what firms need to do now
- Lewis Silkin: AML/CTF supervision reform
- Solicitor News: FCA AML supervision, what changes for law firms
- ICAEW: changes to the Money Laundering Regulations now in effect
This article is commercial commentary, not legal or compliance advice. MaverXcentric is not a law firm, regulator or compliance provider.
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