Regulator consults on indemnity scheme

A decade of uncertainty over protection for retired solicitors against negligence claims once their run-off cover expires took a step closer to resolution today with the opening of a Solicitors Regulation Authority consultation on the indemnity scheme.

The regulator says it is seeking feedback on the arrangements and rules of an SRA-run indemnity scheme to replace the current Solicitors Indemnity Fund (SIF) when it is wound up next year. 

In September a closed meeting of the SRA board decided that an SRA-run scheme would offer the most cost-effective and proportionate solution to providing protection for post six-year claims. The levels of protection provided by the SRA-run scheme will be the same as those provided through the SIF, it said.  

Anna Bradley, SRA board chair, said: 

“Appropriate protection for those using regulated law firms is essential, but we also need to make sure the approach is cost effective and proportionate. That is important for both consumers and law firms. We are setting out the details of the SRA-run indemnity scheme that we will be introducing and look forward to hearing everyone’s views on the arrangements and rules.” 

The consultation sets out why the SRA decided ongoing protection is needed and how it came to the decision that an SRA-run scheme was the most proportionate way forward. The paper invites views on the draft rules for the scheme, and commits to consulting separately on the structure of any levy that may be proposed in future to help fund the scheme.

Consultation on the rules and arrangements for the SRA-run scheme will run for 12 weeks until Tuesday 3 January 2023. During this period, the regulator will also engage directly with stakeholders including consumer and legal profession representative bodies.

Kindly shared by The Law Society Gazette

Main article photo courtesy of Pixabay