Solicitors will not be asked to make additional contributions to the Compensation Fund to make up for losses due to the collapse of law firms Axiom Ince, Metamorph and Kingly, the Solicitors Regulation Authority (SRA) confirmed last week
However, this will be kept ‘under review in the light of any further interventions or other unforeseen events’.
Law Society chief executive Ian Jeffery said: ‘This decision will protect consumers and maintain public confidence in the fund.’
The SRA said it has a discretion to impose a £5m cap on claims to protect the fund but had decided not to do so as the loss to the consumer would be too great. Instead, it will protect the fund by prioritising claims to make sure the most pressing such as for domestic conveyancing are dealt with first.
