The Solicitors Regulation Authority (SRA) has announced today that it will deal ‘robustly’ with firms that have still yet to reveal their insurance position. 117 firms were facing closure on 29 December after they failed to find insurers at the end of their extended policy period (EPP). However, due to the large amount of firms that failed to respond to the SRA, the exact number that survived is still unknown.There is now growing concern that firms could still be practising without any insurance cover, however the SRA has said it will make sure those firms do not carry out any further work on live matters. Mike Haley, SRA director of supervision, said: “Firms without insurance should not be practising, they should not be working on live matters and, above all, they should have informed us of their position. Those that continue to avoid disclosing their situation to us will be dealt with robustly.”
Firms that failed to find insurance cover in the allotted time would have been aware that they were unable to accept new instructions since 31 October, and that all existing matters should have been finalised or arranged to be transferred to other firms, with the client’s consent, by 29 December 2013. The SRA is currently considering whether firms that failed to secure insurance by 29 December should be named in the interests of clients.The contents of this article are intended for general information purposes only and shall not be deemed to be, or constitute legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article.Setfords Solicitors are a national full service law firm, with solicitors in Guildford and across the country.