The Law Society has failed in a bid to block a High Court action against it for negligent misrepresentation, after a bogus solicitor got himself listed on the society’s Find a Solicitor website and stole money from a house purchaser.
The Legal Services Board has approved the introduction of restrictions that prevent large organisations from making claims on the Solicitors Compensation Fund. Claims will only be considered if they are made by individuals, small businesses, small charities or small trusts.
The Solicitors Regulation Authority needs to consider alternatives to intervening in failing law firms, the Law Society has said, while accepting the “emergency” need for the regulator to dip into the Compensation Fund to pay for the unexpectedly high cost of interventions this year.
“Pointless” consultation to set out SRA plan to pay soaring intervention costs from compensation fund
Solicitors Regulation Authority plans to consult on whether the cost of interventions in failing law firms should be borne by the Compensation Fund have been queried as pointless because there is no realistic alternative.
The “popular myth” that conveyancing is low value is not borne out by the evidence, the Solicitors Regulation Authority has found. But property work is continuing to cause the regulator problems, with stamp duty land tax schemes and ‘right to buy’ negligence litigation firmly on its radar.
Just three alternative business structure applicants made it through to the decision phase over the past six months, with 167 still going through the application process, new figures from the Solicitors Regulation Authority have shown.
Scrapping the ban on solicitors referring clients to tied financial advisers would “make them prey to every tied or multi-tied product salesperson in the land”, leading to massive claims on the compensation fund and negligence actions, the SRA has been warned.
The number of solicitors struck off in the year to March dropped by 43%, while the number of negligence claims against solicitors reaching the High Court has also fallen, a flurry of new figures have shown.
The cost of practising as a solicitor will rise well above inflation this year, mainly to ensure the Law Society has the funds to compensate the victims of fraud, but also to make up the cost of IT project overruns.
News in brief: Quindell targets CMC aggregation, “charitable referral fees”, solicitor ad wins TV award
Our regular round-up of news snippets features another acquisition by ABS-in-waiting Quindell Portfolio, a solicitor’s TV ad winning a Royal Television Society award, a firm donating referral fees to charity, and ABS compensation fund arrangements.