News release

Client protection discussion paper: still time to comment

There is still time to comment on the Solicitors Regulation Authority's discussion paper dealing with client financial protection issues.

Published in July, the paper deals with professional indemnity insurance, compensation arrangements and how they work together to strike the right balance between reducing unnecessary regulation and protecting clients' financial interests. It aims to kick-start informed debate around the two subjects, allowing the SRA to capture the views of all interested parties.

Feedback on the paper will be used alongside analysis of how the current arrangements are working to draw up formal proposals for consultation early next year. Those who want to comment have until 16 September to submit their responses.

Paul Philip, SRA Chief Executive, said: "PII and compensation arrangements play an important part in our regulatory model. We need to strike the right balance between freeing up law firms to grow and providing appropriate consumer protection.

"This discussion paper will feed a formal consultation aimed at moving us towards a more appropriate regulatory model in this area."

 Read the discussion paper

 

Note to editors

The paper looks at, among other things, how to ensure PII arrangements are proportionate and are not an unnecessary burden on firms and if there are changes that can be made to the minimum terms and conditions. There are questions too on defence costs, aggregate limits, general views on the insurance situation and the viability of current compensation arrangements.

The SRA is the independent regulator of solicitors and law firms in England and Wales, protecting consumers and supporting the rule of law and the administration of justice. The SRA does this by overseeing all education and training requirements necessary to practise as a solicitor, licensing individuals and firms to practise, setting the standards of the profession and regulating and enforcing compliance against these standards.

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