header-logo header-logo

04 October 2023
Issue: 8043 / Categories: Legal News , Profession , Insurance / reinsurance
printer mail-detail

Regulator takes on SIF

The Solicitors Regulation Authority (SRA) is now in charge of the Solicitors Indemnity Fund (SIF), following years of uncertainty over its future

Law Society President Lubna Shuja said: ‘This move followed extensive lobbying from the Law Society on behalf of solicitors and their clients, urging the SRA to work with us, the insurance industry and wider stakeholders to find a sustainable solution to the issue of run-off indemnity cover and long-term consumer protection.

‘This means clients can have confidence not only that their solicitor is adequately and appropriately insured while a firm remains open, but there are systems in place to make sure that they can still be compensated in the unlikely event that a claim is identified beyond the usual six-year term of solicitors’ mandatory run-off cover.’

SIF had originally been scheduled to close in 2020, but solicitors feared this could leave some retired solicitors exposed to risk.

Polo Commercial Insurance Services Limited have been appointed to handle SIF claims. SIF will cover losses relating to work done before 2000 when it provided indemnity to all solicitors’ firms.

Differences in opinion over the funding of SIF have been ironed out. The Law Society thought there should be a levy on the profession to maintain its assets. The SRA has said no to the levy but has committed to consulting on it should the need arise.

The SRA has also confirmed that in the event of a dispute arising, an independent body will be asked to appoint an arbitrator. If SIF is wound up, and the SRA has no further indemnification purpose for the residual funds, any remaining money will return to the Law Society, to be used for the benefit of the profession.

Paul Philip, SRA chief executive, said: ‘By running the scheme ourselves, we will provide assurance for all that there is ongoing protection for clients.’ 

MOVERS & SHAKERS

Jurit LLP—Caroline Williams

Jurit LLP—Caroline Williams

Private wealth and tax team welcomes cross-border specialist as consultant

Freeths—Michelle Kirkland Elias

Freeths—Michelle Kirkland Elias

International hospitality and leisure specialist joins corporate team as partner

Flint Bishop—Deborah Niven

Flint Bishop—Deborah Niven

Firm appoints head of intellectual property to drive northern growth

NEWS
Talk of a reserved ‘Welsh seat’ on the Supreme Court is misplaced. In NLJ this week, Professor Graham Zellick KC explains that the Constitutional Reform Act treats ‘England and Wales’ as one jurisdiction, with no statutory Welsh slot
The government’s plan to curb jury trials has sparked ‘jury furore’. Writing in NLJ this week, David Locke, partner at Hill Dickinson, says the rationale is ‘grossly inadequate’
A year after the $1.5bn Bybit heist, crypto fraud is booming—but so is recovery. Writing in NLJ this week, Neil Holloway, founder and CEO of M2 Recovery, warns that scams hit at least $14bn in 2025, fuelled by ‘pig butchering’ cons and AI deepfakes
After Woodcock confirmed no general duty to warn, debate turns to the criminal law. Writing in NLJ this week, Charles Davey of The Barrister Group urges revival of misprision or a modern equivalent
Family courts are tightening control of expert evidence. Writing in NLJ this week, Dr Chris Pamplin says there is ‘no automatic right’ to call experts; attendance must be ‘necessary in the interests of justice’ under FPR Pt 25
back-to-top-scroll