Controversial SRA plans are shelved
The Solicitors Regulation Authority (SRA) has pulled the plug on its proposed ban on unrated insurers.
Its proposal—consulted on earlier this year—would have required a minimum B-plus rating for insurers. However, it sparked fears that premiums could rise and thousands of firms could be left without professional indemnity insurance (PII).
An SRA spokesperson said concerns that certain consumers would be left unprotected had been overridden by the findings of an impact assessment that three insurers could end up unrated, leaving about 2,500 firms uninsured, while new protections due to be brought in by the Financial Conduct Authority before October would reduce the risks.
The decision is part of a wider package of SRA reforms to ease the regulatory burden on smaller firms, announced this week in a policy paper, Approach to Regulation and its Reform. They include reducing the minimum terms and conditions for PII, ending the requirement for annual accountants’ reports, and encouraging more multi-disciplinary ABSs.
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