The Solicitors Regulation Authority has launched a new consultation.
One of our main focuses is making sure there is a minimum level of financial help available if a solicitor, or an individual working in a firm we regulate, is dishonest or incompetent.
Now we are consulting on changes to make sure people get the right level of protection, and in turn potentially benefit from a more competitive marketplace and increased choice. We want to know what you think of our proposals.
These include:
- Changes to the minimum level of professional indemnity insurance we require so firms have more flexibility to choose the right level of insurance to suit their business and clients’ needs. For example:
- Reducing single claims limit from £2m to £500k (£1m for conveyancing when needed).
- Removing the need for cover for large commercial clients
- Redefining our Compensation Fund to make sure financial support is focussed on those most in need of help. For example:
- The maximum payment being reduced to £500k.
- A hardship tests for all claims.
We realise this consultation deals with complex areas with no easy answers. Making sure we arrive at the right level and people remain properly protected will be a fine balance.
I would very much welcome your feedback on the proposed changes. Our proposals have also been informed by our analysis of the historical claims data that many insurers provided.
Please read our consultation proposals and tell us what you think by Friday 15 June.
If you are interested in a speaker from the SRA attending a regional forum or meeting about this subject, you can make a request through our website here.
Yours
Crispin Passmore
Executive Director
Solicitors Regulation Authority
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