On 23 March 2018, the Solicitors Regulation Authority (SRA) released its consultation ‘Protecting the users of legal services: balancing cost and access to legal services’. It has requested responses by 15 June 2018.
The SRA is proposing far-reaching changes to the minimum terms and conditions (MTCs) for solicitors’ professional indemnity insurance (PII). The consultation proposes that:
- the minimum level of compulsory cover required for each claim arising out of matters that are not related to conveyancing services will be reduced from the current level of £2m (or £3m, for relevant recognised or licensed bodies) to just £500,000
- but firms offering services related to conveyancing will have to purchase cover for conveyancing services, in which case the minimum level of cover will be set at £1m for each and every claim, (and any firm offering conveyancing services without this extra cover, will not be insured for that work).
This briefing provides members with an overview of the SRA consultation as an aid to understanding the key elements and to encourage them to share their insights and opinions on the proposals.