SRA discovers more firms without insurance as 117 face closure next week

Print This Post

18 December 2013

PII: SRA issues compliance plans

The Solicitors Regulation Authority (SRA) has found a further 17 firms that have still not secured professional indemnity insurance, taking the current total facing closure next week to 117.

The 17 failed to notify the SRA that they had entered the new extended policy period but were identified after the regulator cross-referenced various parts of its own data with that of insurers.

The SRA said disciplinary action over the failure to notify will be considered at a later stage, but its current focus is on ensuring orderly wind down where indemnity is not obtained.

The 117 have to find cover or properly close their practice by 29 December 2013.

Error, group does not exist! Check your syntax! (ID: 14)

The SRA has sent 108 compliance plans to firms, of which 94 have been signed and returned by managers. Disciplinary action will be considered for firms that delay in returning signed compliance plans, or firms that fail to give the required regular updates to the SRA of their position.

Mike Haley, SRA director of supervision, said: “Some firms are better than others when it comes to addressing all the issues associated with an orderly wind-down, for example ensuring archived files are stored properly. We continue to work with firms to remind them of their responsibilities and the approaching deadline for closure.

“All of these firms are aware that they should not be carrying out any work on behalf of clients beyond 29 December as they would be doing so without insurance, so all live client matters and client monies must be dealt with by that date.

“Firms that continue to practise after 29 December or fail to wind down in an orderly fashion will be subject to swift regulatory action. Exercising our powers of intervention may be considered where it is necessary and appropriate in the public interest.”

Tags: ,

Leave a comment

* Denotes required field

All comments will be moderated before posting. Please see our Terms and Conditions

Legal Futures Blog

The LSB’s proposals for legislative reform: let’s be clear

Caroline Wallace LSB

The publication of the Legal Services Board’s vision for legislative reform of legal services regulation on 12 September has generated a healthy level of interest and debate. This can, on the surface, seem a somewhat dry subject. However, it has an impact not just on existing regulated practitioners, but also on providers of legal services more generally, as well as everyone who uses or benefits from an effective legal sector. And, let’s face it, that’s all of us.

October 25th, 2016