The long-term future of the Solicitors Indemnity Fund (SIF) will be discussed next week at the Solicitors Regulation Authority (SRA) Board, followed by a consultation if necessary
The SRA granted SIF a year’s reprieve until September 2023, earlier this month, subject to Legal Services Board approval. Solicitors moved from SIF to an open market model in 2000, but commercial insurers only cover claims brought against a solicitor or firm up to six years after retirement or closure, leaving retired solicitors exposed. SIF, a mutual fund with about £33m in its pot, plugs the gap by covering post six-year run-off claims.
The SRA has agreed to underwrite SIF’s potential liabilities over the next 12 months to a maximum of £6m. The funds would be recouped from the profession through an indemnity contribution in the shape of a flat rate of about £620 per firm, if the full £6m were used.
The SRA said, in a statement, it would ‘carry out detailed work on next steps for the SIF’.
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