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SRA sharply increases compensation fund contributions amid intervention-led claims surge; practising fees unchanged; Axiom Ince fallout prompts reserve measures and review of contribution apportionment

Published on: 26 July 2024

Published by a Law360 reporter
Legal News
Article summary

The solicitors watchdog has confirmed, after consultation, that contributions from individual solicitors and the firms it oversees will rise for the first time in five years. For the year beginning 1 November 2024, individual payments into the compensation fund will be £90, up from £30 the previous year, while firms will contribute £2,220, up from £660. In a statement, SRA chief executive Paul Philip said the fund is vital to protecting the public and maintaining confidence in the profession. The regulator had consistently reduced payments to the fund over the last five years. However, an increase is now required due to an exceptional volume of recent claims following significant interventions, he said. The fund has consequently faced mounting strain as the SRA has needed to step in much more often and close down additional firms to safeguard the public in actions referred to as ‘interventions’...

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