A Solicitors Regulation Authority (SRA) discussion paper looks at striking the right balance in providing financial protections for the public, and the cost for firms and individual solicitors.
Getting the price point right for indemnity insurance protections will support new growth and innovation in the legal sector, enabling new firms and individuals to enter the market with new products and services at competitive prices.
The SRA is also looking at ensuring that its public compensation fund cover provides the right safety net for the public, particularly the most vulnerable and those in need. It wants to make sure that compensation arrangements remain fit for purpose in the changing legal market.
Paul Philip, SRA Chief Executive, said: “Professional Indemnity Insurance and compensation arrangements play an important part in our regulatory model. We need to strike the right balance between freeing up law firms to grow and providing appropriate consumer protection. This consultation is aimed at moving us towards a more appropriate regulatory model in this area”.
Interested parties have until 16 September to feed back to the SRA. Feedback resulting from the discussion paper will inform formal proposals for indemnity insurance and public compensation protection early next year.