The Legal Services Board (LSB) has published their decision on the Solicitors Regulation Authority’s (SRA) rule change application to bring the Solicitors Indemnity Fund (SIF) under the regulator’s direct managerial control.
Law Society of England and Wales President Lubna Shuja said:
We are pleased that the changes have been approved. This comes after significant campaigning from the Law Society on behalf of the profession to keep the fund open.
The decision will come as a huge relief to solicitors and their clients. It provides assurance that those rare negligence claims that may come to light long after the errors were made, will still benefit from the established SIF protections.
We are disappointed that the LSB has not required the SRA to implement a compulsory levy on the profession, which we believe would have been the best way to ensure the ongoing viability of the fund.
However, the SRA will monitor the claims against the residual funds from SIF. If they require additional funds, they will carry out a new consultation on the introduction of a levy.