News release

SRA Compensation Fund pays out over £23 million

The SRA Compensation Fund paid out over £23.8 million in the year to 31 October 2014, latest figures reported to the SRA Board meeting today (Wednesday 9 September) reveal.

Grants are primarily paid from the Fund to compensate those who have lost out financially as a result of money not being accounted for, or in some cases misappropriated, by a solicitor or legal firm regulated by the SRA.

Compensation Fund payments are made against a broad range of legal service transactions including conveyancing, probate, immigration and personal injury.

Paul Philip, Chief Executive of the SRA, said: "The Compensation Fund is an integral part of our regulatory model. It provides a safety net, providing those facing hardship, and the most vulnerable, with real help and support when they need it the most."

During the12 months to 31 October 2014 the Fund received 1,701 claims with the average claim amount paid out in the year being £80,000.

 

Note to editors

Solicitors and firms regulated by the SRA contribute to the compensation fund.

Applications are considered from:

  • individuals;
  • sole traders, partnerships, body corporates, unincorporated associations or mutual associations with an annual turnover of less than £2 million (at the time of application);and
  • charities and trusts with an income or net asset value of less than £2 million, but in cases where there has been a failure to account, they will have to satisfy the SRA beneficiaries have suffered, or are likely to suffer, hardship if a grant is not made. In cases where charities and trusts have an income or net asset value of more than £2 million, and have suffered loss as a result of dishonesty or a failure to account, they will have to satisfy the SRA that its beneficiaries have suffered, or are likely to suffer, hardship if a grant is not made.

More information about application to the fund is available from: http://www.sra.org.uk/solicitors/handbook/compfund/content.page

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