Responsibility

You are reading current version in effect from 25 November 2019
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You are reading current version in effect from 25 November 2019

Glossary terms

authorised body

means:

  1. a body that has been authorised by the SRA to practise as a licensed body or a recognised body; or
  2. a sole practitioner's practice that has been authorised by the SRA as a recognised sole practice
principal

means:

  1. where the authorised body is or was:
    1. a recognised sole practice - the sole practitioner;
    2. a partnership - each partner;
    3. a company with a share capital - each director of that company and any person who:
      1. is held out as a director; or
      2. beneficially owns the whole or any part of a share in the company; or
      3. is the ultimate beneficial owner of the whole or any part of a share in the company;
    4. a company without a share capital - each director of that company and any person who:
      1. is held out as a director; or
      2. is a member of the company; or
      3. is the ultimate owner of the whole or any part of a body corporate or other legal person which is a member of the company;
    5. an LLP - each member of that LLP, and any person who is the ultimate owner of the whole or any part of a body corporate or other legal person which is a member of the LLP;
  2. where a body corporate or other legal person is a partner in the authorised body, any person who is within paragraph (a)(iii) of this definition (including sub-paragraphs (A) and (C)), paragraph (a)(iv) of this definition (including sub-paragraphs (A) and (C)), or paragraph (a)(v) of this definition

 

policy

means:

  1. for the purposes of the SRA Financial Services (Conduct of Business) Rules 2001 the meaning given in the FCA Handbook; and
  2. for the purposes of the SRA Indemnity Insurance Rules and the MTC a contract of professional indemnity insurance made between one or more persons, each of which is a participating insurer, and an authorised body
qualifying insurance

means a policy that provides professional indemnity insurance cover in accordance with the MTC but only to the extent required by the MTC

extended policy period

means the period commencing at the end of the policy period and ending on the date which is the earlier to occur of:

  1. the date, if any, on which the firm obtains a policy of qualifying insurance incepting on and with effect from the day immediately following the expiration of the policy period;
  2. the date which is 30 days after the end of the policy period; or
  3. the date on which the insured firm's practice ceases

 

employee

means an individual who is:

  1. engaged under a contract of service by a person, firm or organisation or its wholly owned service company;
  2. engaged under a contract for services, made between a firm or organisation and:
    1. that individual;
    2. an employment agency; or
    3. a company which is not held out to the public as providing legal services and is wholly owned and directed by that individual, or

under which the person, firm or organisation has exclusive control over the individual's time for all or part of the individual's working week, save that:

  1. for the purposes of the SRA Financial Services (Scope) Rules, means an individual who is employed in connection with the firm's regulated financial services activities under a contract of service or under a contract for services such that he or she is held out as an employee or consultant of the firm
  2. for the purposes of the SRA Indemnity Insurance Rules and the MTC, means any person other than a principal:
    1. employed or otherwise engaged in the insured firm's practice (including under a contract for services) including, without limitation, as a solicitor, lawyer, trainee solicitor or trainee lawyer, consultant, associate, locum tenens, agent, appointed person, office or clerical staff member or otherwise;
    2. seconded to work in the insured firm's practice; or
    3. seconded by the insured firm to work elsewhere,

    but does not include any person who is engaged by the insured firm under a contract for services in respect of any work where that person is required, whether under the SRA Indemnity Insurance Rules or under the rules of any other professional body, to take out or to be insured under separate professional indemnity insurance in respect of that work

and the term "employer" is to be construed accordingly

private legal practice

means the provision of services in private practice as a solicitor or REL in an authorised body including, without limitation:

  1. providing such services in England, Wales or anywhere in the world in a recognised sole practice, a recognised body or a licensed body (in respect of an activity regulated by the SRA in accordance with the terms of the body's licence);
  2. the provision of such services as a secondee of the insured firm;
  3. any insured acting as a personal representative, trustee, attorney, notary, insolvency practitioner or in any other role in conjunction with a practice;
  4. the provision of such services by any employee; and
  5. the provision of such services pro bono;

but does not include:

  1. discharging the functions of any of the following offices or appointments:
    1. judicial office;
    2. Under Sheriffs;
    3. members and clerks of such tribunals, committees, panels and boards as the Council may from time to time designate but including those subject to the Tribunals and Inquiries Act 1992, the Competition Commission, Legal Services Commission Review Panels, Legal Aid Agency Review Panels and Parole Boards;
    4. Justices' Clerks; or
    5. Superintendent Registrars and Deputy Superintendent Registrars of Births, Marriages and Deaths and Registrars of Local Crematoria

 

cessation period

means the period commencing on the expiry of the extended policy period where, during the extended policy period the relevant authorised body has not ceased practice or obtained a policy of qualifying insurance incepting with effect on and from the day immediately following expiration of the policy period, and ending on the date which is the earlier to occur of:

  1. the date, if any, on which the authorised body obtains a policy of qualifying insurance incepting with effect on and from the day immediately following expiration of the policy period;
  2. the date which is 90 days after the commencement of the extended policy period; or
  3. the date on which the insured firm's practice ceases
existing instructions

means instructions to carry out legal activities as defined in section 12 of the LSA received by an authorised body from a client, which the body has accepted, on terms that have been agreed by the client, prior to the body becoming subject to cover under the cessation period