COLP Insider – 22nd May 2020

In this blog, we look at how the SRA’s guidance to the Standards and Regulations is undermining the entire regulatory system, and making this whole compliance thing more difficult.

We are concerned that the regulator is making it up as they go along.

Without wanting to duplicate official guidance, we thought it might be helpful to give you a checklist of tasks and resources you will need to get on top of, before your return to the office.

Feel free to share this in the usual places.

LegalFutures has reported that the SRA could be about to take one step back from its decision to close the Solicitors Indemnity Fund in September, in light of COVID-19.The SIF, which covers claims made against closed firms after run-off cover has expired, has been an important safety net for clients and retiring solicitors.

As things stand, with the insurance market becoming increasingly difficult, there is little appetite from underwriters to step in with products to plug the gap. This would leave those exiting the profession – and their clients – perilously exposed.

The decision to close SIF without any alternative arrangements in place is nothing short of scandalous, and yet has received relatively little coverage in the legal press. There has always been something more important going on – be it Brexit, AML, Standards and Regulations, and now COVID-19.

And anyway, who is really that interested in the closure of a firm which has little relevance to current practitioners?

The Law Society has been putting pressure on the SRA to rethink their plans for some time, but has faced significant push back. Even if this ends up being a temporary reprieve, it is a welcome and necessary one.