Make a grant out of the Compensation Fund, decision to
Principles of regulatory decision-making, approved by the SRA Board, provide a set of standards applicable to decisions. The principles are supported by guidelines.
The reasons given by a decision-maker will normally include specific criteria applicable to the decision. SRA policies relevant to decision-making are reflected in the criteria.
Criteria
The decision-maker, using their discretion, will take into account the following factors when reaching a decision.
The decision-maker must be satisfied that
- the applicant has suffered loss in consequence of the dishonesty of the regulated person (or their employees or managers), or
- the applicant has suffered loss and hardship in consequence of a failure to account for money which came into the hands of the regulated person (or employees or managers), including failure to complete work for which payment had been made; or
- the loss was suffered in the course of a transaction of a kind which is the usual business of the regulated person.
The decision-maker will seek to make a decision in a fair and consistent manner.
Example
The example below is illustrative and does not set any type of precedent. Each matter is considered on its own facts and merits.
A client instructs a firm in the purchase of his home and pays the purchase price, solicitor's fees and disbursements. The purchase is completed by the firm but a few days later the SRA intervenes into the firm, taking control of files and monies.
The client through his new solicitor makes a claim on the Compensation Fund for the stamp duty land tax and land registry fee which he has already paid to the firm. He also claims his new solicitor's fees for dealing with the extra work and making the claim. The solicitor sends the application form to us with the paperwork to show that the firm had received all the money to complete the conveyancing transaction.
As the firm had received the money but failed to pay the stamp duty land tax and land registry fee the SRA can pay this. We can also pay the new solicitor's fees for completing the work the first firm failed to do and for making the claim to us.