The Solicitors Regulation Authority (SRA) has launched a new consultation, "Protecting the users of legal services: balancing cost and access to legal services". One of its main focuses is making sure there is a minimum level of financial help available if a solicitor, or an individual working in a firm regulated by the SRA, is dishonest or incompetent.
The SRA are now 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; they want to know what you think of their proposals.
- Changes to the minimum level of professional indemnity insurance the SRA requires 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 the SRA’s 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.
The SRA realises this consultation deals with complex areas with no easy answers. Making sure the changes arrive at the right level and people remain properly protected will be a fine balance.
The SRA would very much welcome your feedback on the proposed changes. The proposals have also been informed by their analysis of the historical claims data that many insurers provided.
Please read the consultation proposals and tell the SRA what you think by Friday 15 June 2018.