A Kennedys partner has been dismissed from the firm following allegations relating to stolen client money.

City commercial partner Peter Lloyd-Cooper was suspended from the firm in May 2010 after financial irregularities were discovered surrounding client monies. He was expelled from the partnership later that month.

The Solicitors Regulation Authority (SRA) sent a letter to Kennedys in July this year clearing it of any responsibility, and the matter has now been referred to the police.

Kennedys has fully reimbursed the client, with the amount in question understood to be as much as £1m; however, the firm declined to comment on the amount of money or the client in question.

Kennedys senior partner Nick Thomas said: "I can confirm with regret that Peter Lloyd-Cooper, a former partner in the corporate and property finance team in London, was expelled from the partnership on 14 May 2010 following the discovery of irregularities in the use of client monies.

"The client was immediately reimbursed and the firm has been cooperating with the SRA and the police. The SRA has completed its report on Kennedys and concluded that they have no criticism of any individual but Mr Cooper. The report confirms that they have no criticisms of our systems and that no action will be taken against the firm."

The news comes after former Ince & Co partner Andrew Iyer was referred to the Solicitors Disciplinary Tribunal in May this year after an SRA investigation into alleged misconduct following a period of suspension for "irregular financial behavior".

Meanwhile, Hogan Lovells litigation partner Christopher Grierson was dismissed in May this year after wrongly claiming more than £1m in expenses.