Christopher Yiannakas; Nicholas George Kephalas; YVA Solicitors LLP

Findings — machine-extracted (anthropic-batch:claude-opus-4-8); verify against the decision

On an agreed outcome dealt with on the papers, the SDT found the Respondents had breached Rule 2.5 of the SRA Accounts Rules 2019 by retaining £12,800,000 of client funds in the firm's client account (following a commercial property sale) when there was no longer a proper reason to hold them, until distribution on 28 September 2022. The SRA withdrew the Rule 3.3 allegations and the £355,000 refinance allegations. The Tribunal considered the misconduct serious enough that a reprimand was insufficient, but that suspension or strike off was not justified. It imposed fines of £500 each on the First and Second Respondents and £2,500 on the firm (Level 1, lower seriousness), plus £35,000 costs. No dishonesty was alleged or found; breaches were inadvertent with no client loss.

Duties found breached:

• Full disclosure on ex parte applications
• Non-discriminatory acceptance and cab-rank
• No improper use of client money
• Firm governance, systems and compliance

Mitigating factors:

• No loss or harm caused to clients
• Breaches committed inadvertently; Respondents genuinely believed they were complying with the Accounts Rules
• No income generated as a result of the breaches
• Full cooperation with the SRA throughout
• Insight demonstrated and open, frank admissions made
• Extensive remedial measures implemented to prevent repetition, making likelihood of future misconduct low
• No previous disciplinary findings against the First and Second Respondents
• Clients instructed and knew of actions and received interest on funds held

⚠ figures not found verbatim in the source were dropped: ["unverified_fine_amount=3500"]