The Solicitors Regulation Authority has insisted that a lower minimum limit for indemnity insurance would “attract a discount in premiums” for law firms as it sought to counter widespread criticism of its plans.
The Council of Mortgage Lenders (CML) has warned that cutting the minimum indemnity limit for law firms could force lenders into taking “fast and potentially drastic action”.
Small firms and sole practitioners could be removed from conveyancing panels if the Solicitors Regulation Authority goes ahead with its indemnity insurance reforms, the Council of Mortgage Lenders (CML) has warned.
A privately run portal that will centralise conveyancing panel member firms’ information on behalf of participating mortgage lenders, is gearing up for launch amid controversy fuelled by Law Society reservations about the scheme.
The possibility of clients buying ‘top-up’ cover to fill the gaps in compulsory professional indemnity insurance has been floated by the Legal Services Board as it set the scene for a significant shake-up of current financial protection arrangements.
Scottish conveyancers have voted against the introduction of separate representation for borrowers and lenders – having initially called for it. At an SGM of the Law Society of Scotland yesterday, 847 were against a rule change to the conflict of interest rules while 671 were in favour.
A war of words has broken out between the Law Society of Scotland and Council of Mortgage Lenders over the former’s decision to ban joint representation of borrower and lender, subject to formal rule changes later this year.
Our latest news round-up reports on big turnover and profit increases at Quindell, a High Court ruling on the absolute privilege of correspondence with a regulator, new equality rules for chambers and much more.
Licensed conveyancers unveil rival to CQS amid warning that lenders are becoming backdoor regulators
The body representing licensed conveyancers has launched a quality assurance scheme uniquely linked to their regulator in a bid to help detect mortgage fraud. The move by the Society of Licensed Conveyancers goes significantly further than the Law Society’s Conveyancing Quality Scheme.
The Law Society will next month begin sharing information about conveyancing solicitors with a lender as part of moves to discourage lenders from charging a compliance fee for firms that want to be on their panels. Meanwhile, standard mortgage instructions for solicitors acting just for lenders should be released in early 2012.