The Solicitors Regulation Authority (SRA) has rejected a proposal by the Law Society to extend the additional run-off cover provided by the Solicitors Indemnity Fund (SIF) for a further 3 years until 2023.
Clients of firms that close without any successor practice to take on the burden of their indemnity insurance, have until September this year been protected by additional run-off period of three years beyond the compulsory six.
However, the SRA’s board decided last week that it would not be “prudent” to extend this additional run-off cover provided by SIF beyond the existing cut-off date of 30 September 2020.
A spokesman for the SRA said: “There are a range of factors to take into account. The regulatory position is already clear – we require run-off cover for only six years.
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