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Consumer protection high price to pay for increased competition, says Law Society

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Reducing consumer protection standards in legal services would hurt solicitors and clients alike, the Law Society has said in response to proposals to slash levels of mandatory professional indemnity insurance (PII) cover for solicitors.

On 23 March, the Solicitors Regulation Authority (SRA) issued a consultation, ’Protecting the users of legal services: balancing cost and access to legal services’ , which proposed reducing minimum indemnity cover from the current level of £2-3m, to between half a million and one million pounds. Access to the Solicitors Compensation Fund would also be restricted and maximum payments reduced from £2m to £500,000. The SRA has provided no evidence to show their proposals will result in lower costs for solicitors or their clients.

’These proposals to reduce client protection are utterly misguided,’ Law Society vice president Christina Blacklaws said.

The closing date for consultation responses is 15 June.


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