Skip to main content

Law Firms Fume at Being Identified as 'Uninsurable'

By
Late on Friday the Law Society Gazette published an article entitled ‘Mass Cull on the High Street as 136 firms closed’ It’s opening paragraph stated ‘The Solicitors Regulation Authority confirmed today that 136 firms were forced to close because they could not secure professional indemnity insurance’ 

The headline and wording has now been somewhat softened, possibly in attempt to appease some of those firms who are annoyed that the article implied that that the firms listed were forced to close down due to being unable to obtain insurance.  

Comments quickly sprung up accusing the article of being misleading. One commenter stated  ‘Grants was an organised closure with full run off agreed and paid and an organised closure. This had nothing to do with the SRA. I would say that this firm accepted the position and has organised a successful closure, not because of the inability to obtain insurance but because of legal aid cuts’ 

Grants on their own website state: ‘Please note: Our firm has been wrongly included in lists of practices that were not offered terms for Professional Indemnity Insurance, thus suggesting this as the reason for our closure.  This is abjectly not the case.  Grants Solicitors LLP were offered terms from our existing broker and one other, but Members chose to close the practice of their own volition.  We will be taking this up with the Solicitors Regulation Authority as they were well aware of the facts but disappointingly have failed to indicate this in their widespread communications.’ 

One of the commenters, Ian Keith Nelson said ‘I am furious. I notified the SRA last year that I was retiring and as a result I would not be renewing my licence to practice as a sole practitioner however my firm of Nelson Nichols still gets included in a list of firms that could not get SI cover. As usual, the SRA has decided that every firm that has closed has been forced to do so. Are solicitors  not allowed to retire without being accused of being incapable of running their business.’ 

It is probable that a good number of firms had either already made arrangements or ceased trading and entered into some form of Insolvency. The absence of interventions would also indicate that this is the case.


Labels:

Comments

Post a Comment

Popular posts from this blog

FCA AML Audit: Financial Regulator Takes Over Legal Oversight!

By
The UK government has dropped a regulatory bombshell that will fundamentally reshape your life, and yes, we are talking about the dreaded FCA AML audit. For years, you’ve been supervised by your legal peers, the SRA, but those days of relative comfort are drawing to a close. The big news? Responsibility for Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) supervision for the legal and accountancy sectors is being handed over to the Financial Conduct Authority (FCA. That's right, the same folks who put the fear of God into the big banks are now coming for your conveyancing files. Cue the dramatic music. What does the FCA take-over actually mean? Forget the gentle nudge; prepare for the financial services full-body search. An FCA AML audit is likely to look a lot more like a detailed financial inspection and a lot less like a polite chat with the SRA. Think maximum emphasison: Ironclad AML documentation (no more "it's in my head" polici...
Post a Comment
Read more

December 2025: The SRA’s AML Audit Crackdown Has Arrived

By
The Solicitors Regulation Authority (SRA) isn't sending Christmas cards this year. They're sending in the AML auditors. Despite the upcoming shift where the FCA will assume wider AML regulatory oversight, the Solicitors Regulation Authority (SRA) is turning up the heat one last time. Forget a gentle warning—welcome to the AML Blitz of December 2025 . Let’s cut to the chase. SRA Chief Executive Paul Philip is clearly done with excuses. His public message is unambiguous: "We are still finding fairly basic deficiencies in AML arrangements within firms." Translation for the Partners: You might effortlessly navigate a complex, multi-million-pound merger, but somehow, you still haven't nailed your fundamental firm-wide risk assessment. The era of the gentle wrist-slap is officially over. The SRA has made it clear that fines are "continually going up." AML Compliance is no longer a 'nice-to-have'—it’s an expensive, enforced reality...
Post a Comment
Read more

FCA AML Audit: Why Solicitors Time to Rethink AML Compliance

By
If you’re a partner or a compliance officer at a law firm, I want you to take a quick second and think about your last AML review. Was it a check the box exercise to keep the SRA happy? If the answer is yes, we need to have a serious chat. The regulatory landscape for solicitors is shifting fast . The Financial Conduct Authority (FCA) is stepping onto the field with a much more active role, and they play a much tougher game than we've seen in the past. Today, we’re breaking down why the FCA AML Audit is the new essential safeguard—and why "good enough" policies just won't cut it anymore. Why the "Old Way" of AML is Riskier Than Ever Historically, many of us approached AML compliance through a traditional SRA lens. But let’s be real: that approach is becoming a major liability. The FCA’s style is risk-based, evidence-focused, and—most importantly outcome-driven. They don’t just want to see your manual; they want to see your proof. ...
Post a Comment
Read more