Discontinuation of Solicitors Indemnity Fund could leave consumers high and dry
The Solicitors Regulation Authority (SRA) has today published its consultation on the continuation of post six-year run off cover (PSYROC) and the Solicitors Indemnity Fund (SIF).
Law Society of England and Wales president I. Stephanie Boyce said:
“The SRA has today outlined its intention to make the marketplace less safe for consumers by getting rid of PSYROC and SIF.
“Solicitors want consumers to be protected and one of the things on which the profession prides itself is that it offers a service from highly trained professionals who are adequately and appropriately insured for the rare occasions something goes wrong.
“The removal of PSYROC and SIF will have a huge impact on the consumers affected. The average successful claim is over £34,000, which is a large amount of money for most people. The consumers who will suffer will employ solicitors on a reasonable assumption that they would have comprehensive protection if something went wrong.
“The SRA is suggesting that this comprehensive protection is removed, but it is yet to demonstrate that the removal of PSYROC will have any material impact on the cost of legal services or lead to any improvement in the market for legal services.
“Solicitors strive to provide the best service – but they also want the best consumer protections. It is our belief that retaining SIF would be in the best interests of consumers and the profession alike.”
Kindly shared by The Law Society of England and Wales
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