The Sole Practitioners Group, along with the Law Society, have condemned the SRA’s proposals for the future of post-six-year run-off cover (PSYROC) and the Solicitors Indemnity Fund.
The Solicitor’s Indemnity Fund (SIF) closure is a key issue that affects Sole Practitioners more than others. In 2020 when the SRA threatened to close the Solicitors Indemnity Fund without any ongoing protection for retired solicitors, the Sole Practitioners Group protested strongly, because many of its former members would lose protection and its existing members would face the lack of protection in the future.
It appears the SRA has reconsidered its position and produced statistics showing average pay-outs of £350,000 per year, on an average of 10 cases being approximately £35,000 each. However, without that cover this would mean 10 retired practitioners each year facing financial loss and personal stress of claims of £35,000 or more. It is for that reason that retired solicitors should continue to have protection and existing solicitors and new entrants to the profession should know that that protection will continue to cover them.
The available funds in SIF Ltd are said to be more than £20 million, the income of which should be sufficient to provide a continuing fund which if operated efficiently should only lead to very modest call upon the profession. It is difficult to reconcile how ongoing funding of £2.4 million per year is required to deal with an average yearly pay-out of £350,000 or even £500,000.
The current extension expires in October 2022 and if after the SRA’s latest consultation, which closes on 15th February 2022, suitable provision is not in place between the SRA and the Law Society by October 2022, then the group will again be making representations, and acting, to ensure that retired members continue to be protected.
This will also, of course affect those of the general public who will be unable to obtain recompense where required, should the circumstance be applicable.
We will keep this page up to date with the latest news on SIF.
Here is Viven Stern, a retired Sole Practitioner talking on SIF...
Useful Links
11 October 2021 - SIF saga latest: Solicitors 'should pay extra £10 a year' for retirement protection
23 November 2021 - The Law Society Gazette article - Society and sole practitioners condemn run-off cover proposals
14 February 2022 - SPG Response to the SRA’s Consultation on the closure of the Solicitors Indemnity Fund (SIF)
18 February 2022 - The Law Society Gazette article - Sole practitioners dispute need for annual levy to sustain SIF
24 June 2022 - SPG Annual Conference 2022 report on the closure of The Solicitors Indemnity Fund (SIF)
26 June 2022 - The Law Society Gazette article - SRA accused of selective accounting over indemnity fund plan
01 September 2022 - SPG response to SRA discussion paper