Version 7 of the Handbook was published on 1 April 2013. For more information, please click "History" above.
A grant may be made to a defaulting practitioner who or which has suffered or is likely to suffer loss by reason of his, her or its liability to any client in consequence of some act or default of:
in the case of a defaulting solicitor, defaulting REL or defaulting RFL, any of his or her employees or any fellow manager;
in the case of a defaulting recognised body, any of its managers or employees or any fellow manager;
in the case of a defaulting licensed body, any of its managers or employees or any fellow manager, provided that such act or default arose in the course of performance of a regulated activity;
in circumstances where but for the liability of that defaulting practitioner a grant might have been made from the Fund to some other person.
No grant shall be made under rule 6.1 unless the SRA is satisfied that no other means of making good the loss is available and that the defaulting practitioner is fit and proper to receive a grant.
A grant under rule 6.1 shall normally be made by way of a loan and shall be repayable by the recipient at the time and upon such terms as shall be specified by the SRA.
In the case of a defaulting recognised body or a defaulting licensed body, such grant may be payable to one or more of the managers of the defaulting recognised body or defaulting licensed body. If a loan is made to more than one manager, they shall be jointly and severally liable for the repayment of the loan to the Society.