Compliance is a central pillar for the UK’s business & professional services sector, and the scope is expanding to include not just traditional legal and financial obligations, but also environmental, social, and governance (ESG) factors.

Core compliance requirements include data protection under the UK GDPR(1), anti-money laundering (AML) obligations(2), and the Bribery Act 2010(3). Firms must also follow the Modern Slavery Act(4), requiring statements on efforts to prevent forced labour in supply chains-particularly relevant for large law, accounting, and consulting firms.

Environmental reporting is becoming more prevalent. Under the Streamlined Energy and Carbon Reporting (SECR) framework, UK companies that meet certain thresholds must disclose their energy use, carbon emissions, and energy efficiency actions in their annual reports(5).

Firms with over 500 employees that are listed or qualify as “large” under the Companies Act are expected to comply with Task Force on Climate-related Financial Disclosures (TCFD). This involves assessing and reporting on climate-related financial risks and governance-a complex but increasingly standard expectation among clients and investors(6).

Professional services firms working with regulated industries must also meet sector-specific requirements, such as those from the Financial Conduct Authority (FCA) for financial advisors and auditors, or the Solicitors Regulation Authority (SRA) for law firms(7).

For firms operating internationally, cross-border compliance becomes critical. For example, UK firms with EU clients may still fall under the scope of the EU’s General Data Protection Regulation and upcoming sustainability rules like CSRD(8).

Staying compliant is about more than avoiding penalties. Non-compliance risks reputational damage, client loss, and increased regulatory scrutiny. Many firms are investing in compliance technology, training, and specialist teams to manage this growing burden.

Proactive compliance is now a strategic advantage-it not only ensures legal adherence but builds trust with stakeholders and opens doors to new business opportunities.

Bibliography

1 Data protection (Accessed May 2025) https://www.gov.uk/data-protection

2 Money Laundering Advisory Notice: February 2025 ( Accessed May 205) https://www.gov.uk/government/publications/money-laundering-advisory-notice-high-risk-third-countries--2/money-laundering-advisory-notice-high-risk-third-countries

3 Bribery Act 2010 guidance (Accessed May 2025) https://www.gov.uk/government/publications/bribery-act-2010-guidance

4 Modern Slavery Act (Accessed May 2025) https://www.gov.uk/government/collections/modern-slavery-bill

5 Environmental reporting guidelines: including Streamlined Energy and Carbon Reporting requirements  (Accessed May 205) https://www.gov.uk/government/publications/environmental-reporting-guidelines-including-mandatory-greenhouse-gas-emissions-reporting-guidance

6 Task Force on Climate-related Financial Disclosure (TCFD) -aligned disclosure application guidance (Accessed May 2025) https://www.gov.uk/government/publications/tcfd-aligned-disclosure-application-guidance/task-force-on-climate-related-financial-disclosure-tcfd-aligned-disclosure-application-guidance

7 Sustainability disclosure and labelling regime (Accessed May 2025) https://www.fca.org.uk/firms/climate-change-and-sustainable-finance/sustainability-disclosure-and-labelling-regime

8 Corporate sustainability reporting (Accessed May 2025)  https://finance.ec.europa.eu/capital-markets-union-and-financial-markets/company-reporting-and-auditing/company-reporting/corporate-sustainability-reporting_en