Update to Members on Solicitors Indemnity Fund (SIF)

ARTICLE

Update to Members on Solicitors Indemnity Fund (SIF)

As a result of a request by the Law Society, on 15 June 2021 the SRA announced that they had decided to extend the closure of SIF by a further year, to 30 September 2022. In addition, they made it clear that they now regarded post six year run-off cover (PSYROC) as a regulatory issue for them and that they would launch a public consultation on next steps including:

■ whether there is a regulatory place for PSYROC.

■ evidence of other comparable run off cover arrangements.

■ finding the right regulatory balance between consumer protection and issues of proportionality, affordability and the wider public interest,

■ the viability of possible options including looking at discretionary uses of the SIF surplus, including the possibility of a hardship fund.

Since this announcement the Law Society has been engaged in several meetings with retired members, various local and regional law society groups and city solicitor groups, in order to fully consult on the objectives and concerns of all sections of the membership and to explore the direction and hoped for outcome of the proposed consultation.

As a result of these meetings a detailed letter has been written by the Law Society to the SRA setting out the key themes and issues which emerged and pointing out the importance of dealing adequately and effectively with the issue of PSYROC, not only for the profession but also for the benefit of the consumer and to the confidence of the public in the profession.

The formal consultation is due to launch immediately after the October PII renewal. With a second more targeted consultation in early 2022, with detailed proposals forthcoming in late spring, with a view to implementation by late summer.

The results of the upcoming consultation are likely to influence the PSYROC debate for the foreseeable future. It is essential that all those that have an interest in PSYROC (which in my view should include every solicitor) should respond to the consultation. ■

Nicholas Gurney-Champion

Immediate past chair of the Law Society, Professional Indemnity Insurance (PII) Committee