The Board agreed that responsibility for investment policy for the Compensation Fund and Statutory Trust Accounts would be transferred from the Financial Protection Committee and, subject to discussion with the Finance and Resources Committee, delegated to that committee. Changes to the committees' terms of reference would be discussed at the 4 May meeting.
Enabling Programme
The Board noted the progress of detailed planning workshops to support the development of the business case for the Enabling Programme. This was progressing according to schedule and the business case is due to be completed by the end of April within budget.
The Board heard that, as part of the reform of the SRA's processes to improve effectiveness and efficiency, value for money reviews were being carried out on various areas including archives, Forensic Investigations, and the Practice Standards Unit.
The introduction of modern IT systems and capabilities appropriate for the SRA’s purposes were currently on target and on budget, with a demonstration model on schedule for mid-March.
Assigned Risks Pool (ARP)
Having considered feedback from the two consultations and a draft impact assessment, the Board voted in favour in principle of a recommendation to retain the Assigned Risks Pool in a modified form.
The Financial Protection Committee had concluded that closing the ARP was not viable because of strong opposition from stakeholders and the potentially detrimental consequences to certain sectors of the profession, in particular BME firms and to a lesser extent, older members of the profession.
The report highlighted that the ARP in its current form was not sustainable with notified claims to date amounting to some £33 million.
The approval is subject to finalisation of the assessment of the equality and diversity implications, and further research into insurers' lending practices. Final approval is needed on 4 May in order that the Solicitors' Indemnity Insurance Rules 2010 and the Qualifying Insurers Agreement 2010 could come into force from 1 October 2010.
Amongst other changes, the revised scheme would see no new firms being admitted to the ARP, and the two year time limit reduced to one.
Qualified Lawyers Transfer Scheme Regulations
The Board approved the Regulations for the new Qualified Lawyers Transfer Scheme for submission to the Services Board. If the LSB give the go-ahead, the new scheme, which will include English language, and written and practical tests, will be introduced in September 2010 with assessment tests available from January 2010.