SRA 'calls for evidence' on PII issues
Regulator asks industry for 'relevant research' referring to published or private data
Further research needs to be carried out on professional indemnity insurance (PII) and the Compensation Fund, the Solicitors Regulation Authority (SRA) has announced. The regulator's Board has launched a 'call for evidence' to help inform its approach to this part of the industry.
The SRA said that it is interested in sourcing evidence from the industry that supports the ways in which regulation can reduce the risk of claims arising; the extent to which risk is shared between consumers and legal businesses; the impact of the PII minimum terms and conditions; how far insurance cover should be more closely aligned to the nature of the legal services provided; and the degree to which client protection arrangements are understood by consumers and are a driver of consumer behaviour.
Consultations on PII closed on 18 June. These included proposals aimed at improving client protection, and specifically; changes to PII arrangements and the introduction of eligibility criteria for making claims to the SRA's compensation fund.
Respondents were broadly supportive of the need for reform if not supportive of the specific proposals. Some respondents suggested that further information was needed before the proposals could be progressed.
The SRA's executive director of policy, Crispin Passmore (pictured), said: "We want to hear from firms, consumers, consumer bodies - as well as those who responded to the original consultations. We would particularly welcome contributions that draw upon relevant research, that refer to published or privately held data or provide examples from other jurisdictions or markets."
At its meeting on 2 July, the SRA Board agreed to the introduction of eligibility criteria for the Compensation Fund; the introduction of a new "Outcome" requiring firms to assess and purchase appropriate PII cover; and a reduction in the minimum requirement for cover to £500,000.
Contributions can be submitted via reform@sra.org.uk by 30 September 2014.
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