Special provisions for RELs

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You are reading current version in effect from 25 November 2019

Glossary terms

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

 

insured firm

means the authorised body which contracted with the insurer to provide the insurance

REL

means a European lawyer registered in the register of European lawyers

insured firm's practice

means:

  1. the legal practice carried on by the insured firm as at the commencement of the period of insurance; and
  2. the continuous legal practice preceding and succeeding the practice referred to in paragraph (i) (irrespective of changes in ownership of the practice)

 

MTC

means the minimum terms and conditions with which a policy of qualifying insurance is required by the SRA Indemnity Insurance Rules to comply, a copy of which is annexed as an annex 1 to those rules.

solicitor

means a person who has been admitted as a solicitor of the Senior Courts of England and Wales and whose name is on the roll, save that in the SRA Indemnity Insurance Rules and the MTC this includes a person who practises as a solicitor whether or not the person has in force a practising certificate, and also includes practice under home title of a former REL who has become a solicitor

 

SRA

means the Solicitors Regulation Authority

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

insurer

means:

  1. for the purposes of the SRA Financial Services (Conduct of Business) Rules 2001 a firm with permission to effect or carry out contracts of insurance (other than a bank); and
  2. for the purposes of the SRA Indemnity Insurance Rules and the MTC the underwriter(s) of the insurance

 

insured

means each person and entity named or described as a person to whom the insurance extends and includes, without limitation, those referred to in clause 1.3 in the MTC

practice

means the whole or such part of the private legal practice of an authorised body as is carried on from one or more offices in England and Wales

successor practice
  1. means a practice identified in this definition as 'B', where:
    1. 'A' is the practice to which B succeeds; and
    2. 'A's owner' is the owner of A immediately prior to transition; and
    3. 'B's owner' is the owner of B immediately following transition; and
    4. 'transition' means merger, acquisition, absorption or other transition which results in A no longer being carried on as a discrete legal practice.
  2. B is a successor practice to A where:
    1. B is or was held out, expressly or by implication, by B's owner as being the successor of A or as incorporating A, whether such holding out is contained in notepaper, business cards, form of electronic communications, publications, promotional material or otherwise, or is contained in any statement or declaration by B's owner to any regulatory or taxation     authority; and/or
    2. (where A's owner was a sole practitioner and the transition occurred on or before 31 August 2000) - the sole practitioner is a principal of B's owner; and/or
    3. (where A's owner was a sole practitioner and the transition occurred on or after 1 September 2000) - the sole practitioner is a principal or employee of B's owner; and/or
    4. (where A's owner was 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)) - that body is a principal of B's owner; and/or
    5. (where A's owner was a partnership) - the majority of the principals of A's owner have become principals of B's owner; and/or
    6. (where A's owner was a partnership and the majority of principals of A's owner did not become principals of the owner of another legal practice as a result of the transition) - one or more of the principals of A's owner have become principals of B's owner and:
      1. B is carried on under the same name as A or a name which substantially incorporates the name of A (or a substantial part of the name of A); and/or
      2. B is carried on from the same premises as A; and/or
      3. the owner of B acquired the goodwill and/or assets of A; and/or
      4. the owner of B assumed the liabilities of A; and/or
      5. the majority of staff employed by A's owner became employees of B's owner.
  3. notwithstanding the foregoing, B is not a successor practice to A under paragraph (b) (ii), (iii), (iv), (v) or (vi) if another practice is or was held out by the owner of that other practice as the successor of A or as incorporating A, provided that there is insurance complying with the MTC in relation to that other practice

 

 

Partial Home State Cover

has the meaning given in annex 2 to the SRA Indemnity Insurance Rules

participating insurer

means an authorised insurer which has entered into a participating insurer's agreement with the SRA which remains in force for the purposes of underwriting new business at the date on which the relevant contract of qualifying insurance is made