The SRA Handbook is no longer in effect. It was replaced by the SRA Standards and Regulations on 25 November 2019.

SRA Handbook

Losses outside the remit of the Fund

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Version 2 of the Handbook was published on 23/12/2011. For more information, please click 'History' Above

Rule 7: Losses outside the remit of the Fund

7.1

For the avoidance of doubt, a grant will not be made in respect of the following:

(a)

Losses arising solely by reason of professional negligence by a defaulting practitioner, or the employee or manager of a defaulting practitioner.

(b)

Losses which are the personal debts of a defaulting practitioner and where the facts would not otherwise give rise to a claim on the Fund.

(c)

The loss results from, but does not form part of, any misappropriation of, or failure to account for, money or money's worth.

(d)

The loss results from the trading debts or liabilities of the defaulting practitioner.

(e)

The loss amounts to a claim for contractually agreed interest between the applicant and the defaulting practitioner.

(f)

The SRA was not notified of the applicant's loss in accordance with rule 10.

(g)

The loss occurred in relation to an overseas partnership which does not fall within rule 50.1(c) or 50.2(b) of the SRA Accounts Rules, unless:

(i)

the loss occurred as a result of a solicitor's dishonesty; or

(ii)

the loss occurred as a result of failure to account by a solicitor acting as a named trustee.

(h)

The application is by the Legal Services Commission for loss occasioned through making regular payments under the Commission's contracting schemes for civil and/or criminal work.

(i)

In the case of a defaulting licensed body, losses incurred other than in the course of performance of a regulated activity.