Indemnity insurance (PII) is a necessity for legal firms, and we’ve had cause to speak about how failing to find such protection can lead to untimely closures before. Despite the SRA making some progress in this area, and more and more firms managing to avoid falling foul of the relevant non-compliance issues, this is a problem that endures, and in recent months a total of 12 firms have had to be closed for ‘failing to find indemnity insurance’. However, even this doesn’t tell the whole story.
Firms in Cessation Over PII
According to Legal Business, the SRA has seen 49 firms enter cessation as of early January, and all of these instances have come about due to a lack of PII renewal. Apparently, 12 have filed notice of closure and have all but wound down their operations, and even this isn’t representative of the whole picture, as 37 further firms have an ‘undetermined’ status. Compared to last year, the situation as a whole is exponentially better, as more than 130 firms were under threat of closure, but even taking into account this progress, there’s still a long way to go to eradicate the complaint.
The SRA Powers of Regulation
It’s fair to say that the SRA can often make life somewhat difficult for practitioners, even if this regulatory activity is entirely intended to create a compliant environment; which is in everyone’s best interests. However, despite this strict regime, most solicitors and legal firms wouldn’t want to undergo any alternative form of regulation, such as they might get from an accountancy regulator, and they are willing to stick with SRA methods. This view is expressed in The Law Gazette, and indeed the SRA has been strongly urged to hold onto its current powers in the area of insolvency.
Professional Legal Consultants
Clearly then, it’s the SRA criteria that you need to meet as a legal firm, and that can sometimes be difficult to do. Because of that, there’s often a need to call upon the assistance of professional legal consultants, and we provide just such a service here at Enderley Consulting. We can guide you to total SRA compliance, and also serve as Lexcel consultants too, allowing you to attain an accredited status that displays your high standards. If you’d like to ensure your compliance with all aspects of the SRA’s regulations today, contact us now by calling 01939 262502 and we’ll be happy to help.