The Solicitors Regulation Authority (SRA) is examining two solicitor firms that were supposed to have closed at the end of December last year after not having a valid insurance policy.
Wigan-based law firm, Craig & Co Law Ltd and Active Solicitors & Co Ltd of Blakenhall, Wolverhampton are the only firms being investigated by the SRA out of a total 39 practicing firms that entered the extended policy period (EPP) in October last year.
Commenting on the investigation, Robert Loughlin, SRA Executive Director of Operations and Quality, said: "These two firms do not appear to have valid insurance and have not closed properly so we are investigating them in order to protect the public interest.
“While the majority of those that entered the EPP have worked with us closely and provided assurance about their circumstances, these two have not provided us with the information we require to be satisfied that client matters have been dealt with properly."
According to The Law Society, Active Solicitors & Co Ltd specialised in commercial litigation amongst other areas. The Society also claims on its site that Craig & Co Law Ltd traded in personal injury.
Initially, there were 49 firms that registered as entering EPP, however this fell to 39 following extra information gathered by the SRA.
Out of the 39 firms, most were in the process of either a closure, merger or acquisition. Also, a number also managed to gain insurance cover with in the extended period.
The regulator noted that those firms that renewed their policies on the 1st October, the extended policy period finishes on the 29th December. However, as insurance policy has variable lengths, not all firms have the same EPP.
The SRA has published its “market share” figures for firms which renewed on 1st October, which shows how much insurance cover has been written for solicitor firms. The SRA’s Professional indemnity insurance section can be viewed here.
Leave a comment