The Law Society has advised firms not to delay preparations for renewal while uncertainties over the Solicitors’ Regulation Authority’s (SRA) plans on the minimum level of PII cover remain.
At the beginning of July, the SRA made a proposal to reduce the minimum level of PII cover to £500,000, which was subject to approval by the LSB.
The LSB announced on August 7 that it requires additional time before making a decision, due to the complexity of the issues, and now has until 12 October 2014 to make its decision.
The Law Society is currently seeking clarity as to the impact this will have on this years renewal period.
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?’’
PII help and guidance can be found on the Law Society’s website: www.lawsociety.org.uk/a-z/professional-indemnity-insurance/.
