Affordability and strong protection will be key for new SRA-run indemnity scheme
The Solicitors Regulation Authority (SRA) has today announced that the Solicitors Indemnity Fund (SIF) will be replaced with its own indemnity arrangements from September 2023, in a move welcomed by the Law Society of England and Wales.
Law Society president I. Stephanie Boyce said: “We are pleased the SRA has decided to maintain consumer protection for post six year run off cover (PSYROC) with the same level of cover as the SIF via its own indemnity fund.
“This is likely to be a relief to the many members, and former members, who have been worried that the closure of SIF would mean the ending of PSYROC as a regulatory arrangement, when for most there was little prospect of finding alternative comparable protection on the open market.
“The SIF was scheduled for closure in 2021. However, following lobbying from the Law Society and other stakeholders, the SRA sought an extension to the fund, so that it would have time to seek views on how to sustainably maintain essential consumer protections and develop a new policy for the future.
“The Law Society called for the establishment of an indemnity scheme, ring-fenced for PSYROC claims and offering the same scope of protection currently provided by the SIF.
“While we await the details of the new scheme, we are pleased to see that the SRA Board appears to have given due consideration to the profession’s views on this important matter.
“Their decision means that consumers will continue to enjoy long-term protections when they employ a solicitor for legal advice.
“People go to solicitors for support and advice during significant events in their lives – the death or injury of a loved one, family breakdown, a house purchase or estate planning.
“They do so rightly confident that solicitors are highly qualified and regulated. Consumers trust their solicitor is adequately and appropriately insured, and that they will be compensated for any losses on the rare occasion something goes wrong.
“The Law Society is grateful to have had the opportunity to contribute our views on this issue, and we welcome the regulator’s collaborative approach.
“We look forward to working constructively with the SRA on the details of its new indemnity scheme and will be responding to the consultation when it is launched.
“We want to be certain that the new scheme will be affordable in the long-term, providing good value for money, and maintaining the strong protections that have benefited clients and solicitors alike under the SIF.”
Notes to editors
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