In brief
The Law Society council has overwhelmingly rejected a Solicitors Regulation Authority (SRA) recommendation that the amount solicitors pay into the compensation fund this year be doubled. Solicitors will have to pay £150 into the fund after 85% of council members voted against the proposed £300 charge. The SRA wanted the increase to ensure it had a high level of reserve as a buffer to keep rates from yo-yoing as they have done in the past—particularly in uncertain economic times. Rates have previously increased by as much as 900% year on year. The £300 charge would have allowed the SRA to reach its target reserve fund figure of £27m over the next four years.
