header-logo header-logo

Regulator takes on SIF

04 October 2023
Issue: 8043 / Categories: Legal News , Profession , Insurance / reinsurance
printer mail-detail
The Solicitors Regulation Authority (SRA) is now in charge of the Solicitors Indemnity Fund (SIF), following years of uncertainty over its future

Law Society President Lubna Shuja said: ‘This move followed extensive lobbying from the Law Society on behalf of solicitors and their clients, urging the SRA to work with us, the insurance industry and wider stakeholders to find a sustainable solution to the issue of run-off indemnity cover and long-term consumer protection.

‘This means clients can have confidence not only that their solicitor is adequately and appropriately insured while a firm remains open, but there are systems in place to make sure that they can still be compensated in the unlikely event that a claim is identified beyond the usual six-year term of solicitors’ mandatory run-off cover.’

SIF had originally been scheduled to close in 2020, but solicitors feared this could leave some retired solicitors exposed to risk.

Polo Commercial Insurance Services Limited have been appointed to handle SIF claims. SIF will cover losses relating to work done before 2000 when it provided indemnity to all solicitors’ firms.

Differences in opinion over the funding of SIF have been ironed out. The Law Society thought there should be a levy on the profession to maintain its assets. The SRA has said no to the levy but has committed to consulting on it should the need arise.

The SRA has also confirmed that in the event of a dispute arising, an independent body will be asked to appoint an arbitrator. If SIF is wound up, and the SRA has no further indemnification purpose for the residual funds, any remaining money will return to the Law Society, to be used for the benefit of the profession.

Paul Philip, SRA chief executive, said: ‘By running the scheme ourselves, we will provide assurance for all that there is ongoing protection for clients.’ 

MOVERS & SHAKERS

Freeths—Ruth Clare

Freeths—Ruth Clare

National real estate team bolstered by partner hire in Manchester

Farrer & Co—Claire Gordon

Farrer & Co—Claire Gordon

Partner appointed head of family team

mfg Solicitors—Neil Harrison

mfg Solicitors—Neil Harrison

Firm strengthens agriculture and rural affairs team with partner return

NEWS
Conveyancing lawyers have enjoyed a rapid win after campaigning against UK Finance’s decision to charge for access to the Mortgage Lenders’ Handbook
The Crown Prosecution Service (CPS) has launched a recruitment drive for talented early career and more senior barristers and solicitors
Regulators differed in the clarity and consistency of their post-Mazur advice and guidance, according to an interim report by the Legal Services Board (LSB)
Peter Kandler’s honorary KC marks long-overdue recognition of a man who helped prise open a closed legal world. In NLJ this week, Roger Smith, columnist and former director of JUSTICE, traces how Kandler founded the UK’s first law centre in 1970, challenging a profession that was largely seen as 'fixers for the rich and apologists for criminals'
The dangers of uncritical artificial intelligence (AI) use in legal practice are no longer hypothetical. In this week's NLJ, Dr Charanjit Singh of Holborn Chambers examines cases where lawyers relied on ‘hallucinated’ citations — entirely fictitious authorities generated by AI tools
back-to-top-scroll