Affordability and strong protection will be key for new compensation scheme run by SRA

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The Solicitors Regulation Authority (SRA) today announced that the Solicitors Indemnity Fund (SIF) will be replaced by its own indemnity arrangements from September 2023, a move welcomed by the Law Society of England and Wales.

Law Society President I. Stephanie Boyce said, “We are delighted that the SRA has decided to maintain Consumer Protection for Six Year Coverage (PSYROC) with the same level of coverage as SIF through its own compensation fund.

“This should come as a relief to the many members and former members, who feared that the closure of SIF would mean the end of PSYROC as a regulatory arrangement, when for most there was little prospect of finding protection. comparable alternative on the open market.

“SIF was scheduled to close in 2021. However, following lobbying from the Law Society and other stakeholders, the SRA requested an extension of the fund, so that it would have time to gather views on how to sustain essential consumer protections and develop a new policy for the future.

“The Bar has called for the establishment of a compensation scheme, reserved for PSYROC claims and offering the same scope of protection currently provided by SIF.

“While we await details of the new scheme, we are pleased to see that the SRA Board appears to have given due consideration to the views of the profession on this important issue.

“Their decision means that consumers will continue to have long-term protections when they employ a lawyer for legal advice.

“People go to lawyers for help and advice during important life events – the death or injury of a loved one, family breakdown, buying a home or estate planning.

“They do so, rightly, in the belief that lawyers are highly qualified and regulated. Consumers trust that their attorney is adequately and appropriately insured and that they will be compensated for any losses in the rare event that something goes wrong.

“The Law Society is grateful for the opportunity to provide its perspective on this issue, and we welcome the regulator’s collaborative approach.

“We look forward to working constructively with the SRA on the details of its new compensation scheme and will respond to the consultation when it is launched.

“We want to be sure that the new regime will be affordable over the long term, provide good value for money and maintain the strong protections that clients and lawyers have enjoyed under SIF.”

Notes to Editors

Read the SRA’s announcement about its compensation plan

Read information from the SRA on the SIF

About the Law Society

The Law Society is the independent professional body working globally to support and represent lawyers, promoting the highest professional standards, the public interest and the rule of law.

Press office contact: Naomi Jeffreys | 020 8049 3928

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