The Legal Services Boards (LSB) has decided to issue an extension of the initial period for considering the application put forward by the Solicitors Regulation Authority (SRA) to alter the SRA Indemnity Insurance Rules by reducing minimum cover to £500’000.
The SRA’s application was received by the LSB on the 15th of July with an initial 28 day period to assess the proposals. The LSB has since extended this period by changing it to a 90 day period — making the deadline to make a decision or issue a warning notice the 12th of October.
The SRA Executive Director for Policy, Crispin Passmore has stated: ‘If the LSB does not make a decision in time, or does not approve the rule changes, then the current rules remain in place for those policies that need to be renewed on 1 October. The ball is very much in the court of the LSB, and we will comment further when appropriate’
Neil Pointon from Howden Windsor also comments on the situation:
‘’What are we to make of the Legal Services Board’s decision to extend its deadline to 90 days to consider ratifying the SRA’s proposal to reduce the Minimum Terms and Conditions Limit to £500,000?
‘’If they took the full 90 days, then a decision to proceed could be arrived at on the 12th October, 12 days after most solicitors will have had to already renewed on the existing minimum limits for the coming year.
‘’Is this the start of the proposal being kicked into the long grass? Could the LSB leave us all waiting and still agree it at the last moment prior to 1st October? Perhaps the SRA will soon magnanimously withdraw the proposal?’’
To view the LSB notice click here http://www.legalservicesboard.org.uk/Projects/statutory_decision_making/pdf/20140806_Letter_CK_To_Paul_Phillip_Extension_Notice_PII.pdf
More information on the proposals of the SRA’s reform programme is available at http://www.sra.org.uk/reform/
