The Solicitors Regulation Authority (SRA) have announced that existing Solicitors Indemnity Fund arrangements, as operated by the Solicitors Indemnity Fund Limited (SIFL), will be replaced with their own indemnity arrangements from September 2023 (www.sra.org.uk/sra/news/press/board-replacement-sif/).
The decision to introduce SRA-run indemnity arrangements designed to maintain consumer protection for post six-year negligence as a regulatory arrangement – with the same level of cover as the SIF – follows an in-depth consideration by the SRA Board of the evidence and feedback from extensive consultation and engagement, research, expert advice and insight.
Anna Bradley, Chair of the SRA Board said:
‘We have been looking at how best to maintain consumer protection for negligence claims brought more than six years after a firm has closed in a cost-effective and proportionate way and have decided that an SRA-run indemnity scheme is the right way forward.
‘This approach will provide that important protection for those who need it, while giving us clear oversight of how the indemnity operates, enabling us to run the scheme efficiently and realise potential cost savings.’
The SRA will launch a public consultation, before the end of September, on the arrangements and rules for the SRA-run indemnity scheme.
The move has been broadly welcomed by the Law Society. 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.
‘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’.