Regulator publishes list of law firms without coverage

One regulatory body is showing some tough love to legal firms, publishing a list on its website of law firms that haven’t obtained professional indemnity coverage and should be closed down.

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One regulatory body is showing some tough love to legal firms, publishing a list on its website of law firms that haven’t obtained professional indemnity coverage and should be closed down.

The U.K.’s Solicitors Regulation Authority has published on its website a list of 136 law firms that did not obtain new professional indemnity coverage during the extended policy period (EPP) and should have closed down.

“The SRA has taken the decision on this occasion to publish the names in the interests of protecting consumers and third parties,” reads a statement from the SRA. “Publishing the names adds an extra layer to the protection already in place.”

In Ontario, individual lawyers and licensed paralegals are licensed by the Law Society of Upper Canada and are required to purchase professional indemnity insurance each year, as per the Law Society Act and Law Society By-Law 6 (Professional Liability Insurance). LAWPRO, the Lawyers' Professional Indemnity Company, administers the errors and omissions insurance program for lawyers.

“Failure to purchase the required insurance by the annual deadline, or failure to provide evidence of compliance for licensed paralegals, could result in administrative suspension,” says Susan Tonkin, communications advisor for The Law Society of Upper Canada. “A licensee who is suspended is not permitted to practise law and/or provide legal services.”

The U.K. regulator took unusual decision to publish a list in the “interests of protecting consumers and third parties.” (continued.)
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Names of lawyers and paralegals who are administratively suspended are published from time to time in the Ontario Reports, says Tonkin. The Law Society's online directory also denotes licensees who are suspended administratively.

The EPP was introduced for the first time this year to replace the assigned risks pool and gave firms an extended period of indemnity insurance for 90 days from the October 1 renewal deadline.

Firms that did not obtain new indemnity cover during the EPP by the final deadline of December 29 had to close their practice and are not insured to practise after that date.

“The majority of these firms have closed properly, dealing with client files and monies appropriately, and have fully co-operated with the SRA,” states the U.K. regulator. “There is no evidence that these firms practised without indemnity insurance.”

The regulator added that there are a small number of firms that failed to close properly and they are subject to “ongoing robust action.”

 

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