Professional Indemnity Insurance 2010 ? a brief guide
This year?s professional indemnity insurance renewal is likely to be one of the most difficult the profession has seen for some considerable time and many firms should already be making contingency arrangements in the event that they are not successful in placing their insurance business. This item looks at some of the issues.
Confidentiality and disclosure
Confidentiality and disclosure are dealt with in rule 4 of the Solicitors Code of Conduct 2007 (as amended) and the provisions there replace, although largely replicate, those that were previously to be found in Practice Rule 16E.
Solicitors’ Professional Indemnity Insurance
In order to be able to practice, all solicitors must now have professional indemnity insurance taken out in accordance with the Solicitors’ Indemnity Insurance Rules and this must meet the minimum terms and conditions. It may be provided by a qualifying insurer or via the assigned risks pool.
Practice Standards Unit Visits
A typical PSU visit will last two days and it will look at a firm?s compliance with the Solicitors’ Code of Conduct, the Solicitors’ Accounts Rules, the Financial Services Rules, money laundering regulations and other regulations and laws to which practices are subject, including, for example, discrimination legislation.
Conflict of Interests
The main provisions relating to conflict of interests are to be fund in rule 3 of the Solicitors Code of Conduct 2007 (as amended) and deal principally with the duty not to act and exceptions to the duty not to act.
Solicitors Accounts Rules
The Solicitors Accounts Rules contain the main provisions which regulate the manner in which a solicitor may hold client money and deal with the financial aspects of his or her practice.
Investigations
The main regulatory function of the SRA is that of drafting, promoting, monitoring, and enforcing the various regulations which affect solicitors. This inevitably involves monitoring solicitors and their firms for compliance with the various rules, investigating firms where concerns exist or complaints have been made and, where appropriate, taking disciplinary proceedings against the firms in question.
The Lawyers Defence Group is operated by Richard Nelson LLP, a Limited Liability Partnership regulated by the Solicitors Regulation Authority and whose partnership number is OC357136 and Murdochs Solicitors, who are also regulated by the Solicitors Regulation Authority, and whose SRA number is 52683.
Please note that all advice, guidance, representation and assistance, legal or otherwise, is provided either by those firms or by appropriate referral to other suitably qualified persons.
No advice, guidance, assistance, representation or other support is provided by or in the name of the Lawyers Defence Group.
For further details please refer to the terms and conditions for use of this web site and to the terms and conditions of the firms involved.
The professional rules governing our lawyers can be found at rules.sra.org.uk
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