The Solicitors Regulation Authority (SRA) has abandoned its plans to scrap its ‘one-one-size-fits-all’ minimum level of professional indemnity insurance cover.
Responding to a consultation on its proposals, the SRA conceded that the change was “unlikely to deliver benefits for the firms and clients in the foreseeable future”.
In March 2018, the SRA proposed reducing the minimum level of cover for firms from £2m (£3m for incorporated firms) to £500,000. Firms carrying out conveyancing would have a required minimum cover of £1 million.
Law Society president Simon Davis said the regulator should be “heartily commended for listening and taking account of the evidence presented to them and recognising that their proposed reforms would not deliver the hoped-for benefits”.