Despite the SRA publishing a list of firms that have been closed,information from the SRA remains confusing as to which firms are regulated to practice and are open. The Law Society’s “Find a Solicitor” site also appears to have not been updated.
For example, Hacking Ashton LLP appears on the list of closed firms but a search of Hacking Ashton LLP on the “Find a Solicitor” site still shows a branch office of a valid firm (see website image below).
The SRA’s own website indicates that they are registered as an ABS in the register of ABS firms. This page gives no indication that the license has been revoked or that the firm is closed (see website image below).
Hacking Ashton actually closed in late October following a creditors meeting well before the 29th December deadline.
Similarly firms named on the list appear to have reopened and appear on the “Find a Solicitor” list with the same address but slightly different corporate names.
Other firms in the list have similar issues. So for example Hilliers HRW closed on the 9th December and for the SRA to not name them earlier as a firm that has failed to obtain insurance and has actually closed seems slightly odd. Why are they on this list given that they closed well before the 29th December?
How can practitioners rely on information from the SRA when different parts of their own website present conflicting information about the status of a firm?
The publication of the list of closed firms on Friday arose amid increasing calls and outrage from solicitors and conveyancers relying on undertakings from properly insured solicitor practices.
The SRA published a list of firms that had failed to obtain professional indemnity insurance and have been closed.
136 firms were named as failing to obtain insurance by the 1st October or within the Extended Policy Period up to the 29th December however a number of these firms closed in very public manner prior to the end of the year.
The lack of information from the SRA about which firms were in the Extended Policy Period had led to a perception that some firms were trading without insurance.
For the conveyancing market this could have meant that firms were relying on undertaking from solicitor conveyancers that were not insured to back the undertakings.
The SRA statement says: “There is no evidence that these firms practised without indemnity insurance.”
The very fact though that a firm could theoretically hold itself out as a solicitors practice and offer undertaking without insurance during the EPP was a major concern for many.
Surprisingly, despite publishing the list the SRA hasn’t checked other information it publishes about the firms.
Rob Hailstone of the Bold Group said, “Most people calling for firms to be named were concerned about dealing with them inadvertently and in doing so putting their clients or themselves at risk.
“If firms were being wound down and shut in an orderly and safe fashion then naming them might not have been necessary.
“What we now have is a list of 136 firms, some of them will have shut down in an orderly and safe fashion, some of them may have closed for other, less worrying reasons (retirement for example)) and some may have failed to close in an orderly and safe fashion.
“At this late date, some three weeks after the 29th December naming all of the firms seems a little pointless maybe? We simply needed to know, and still need to know, which firms we should be wary of.”
Jenny Owen of Lawyer Checker said: “Firms using Lawyer Checker can be reassured that within 20 minutes of this list being published we had noted within our system the change of status of many of these firms however many were already known to have closed with information being published elsewhere.
“Given the inaccuracy of the SRA websites firms must take the protection of client funds into their own hands and take all reasonable measures to avoid sending client funds to unregulated accounts.”
“Lawyer Checker has helped hundreds of firms complete additional due diligence on where they are sending their client funds to. More information can be found at www.lawyerchecker.co.uk”
This is view of the SRA website register of Alternative Business Structures taken at 9am Sunday 19th January.http://www.sra.org.uk/solicitors/firm-based-authorisation/abs-register/401183.page .
We would expect that by the time you read this article this page will have altered.
This is view of the Law Society’s Find a solicitor website taken at 9am Sunday 19th January. http://www.lawsociety.org.uk/find-a-solicitor/?view=lawfirmdetails&orgid=592418&searchType=L
We would expect that by the time you read this article this page will have altered.
Today’s Conveyancer is associated with Lawyer Checker Ltd.
