The Solicitors Regulation Authority (SRA) has launched a consultation on the arrangements and rules for the SRA-run consumer protection scheme for post six-year negligence.
Lexis®Library update: The consultation comes as a result of the decision by the SRA's Board which found that an SRA-run indemnity scheme provided the most cost-effective and proportionate solution to providing appropriate consumer protection for those who have suffered financial loss due to a solicitor's negligence, the claim arose after six years and the closing firms had no successor in practice. The scheme is due to come into effect in September 2023 and will replace the Solicitors Indemnity Fund arrangements, although the levels of protection will remain the same. The consultation will close on 3 January 2023.
The consultation document can be found here.
Responses to the consultation should be submitted online.
The President of the Law Society, I. Stephanie Boyce, said: 'We will thoroughly examine the new proposals, but I can say now we are positive about the way in which the SRA’s position on PSYROC [post six year run-off cover] has evolved, and glad they now agree it is necessary to protect the long-term interests of consumers'.
Sources:
• Solicitors’ regulator takes first steps to running its own indemnity scheme to protect consumers
This content was first published by LNB News / Lexis®Library, a LexisNexis® company, on 7 October 2022 and is published with permission. Further information can be found at: www.lexisnexis.co.uk.
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