SRA take action over Assigned Risks Pool
At its June 20 I 0 meeting, the SRA Board identified that further work should be undertaken to tighten the management of those firms in the Assigned Risks Pool (ARP), including those firms who were not paying premiums. One of the concerns expressed by both the profession and the insurers was that inadequate action was taken to manage firms within the ARP.
The strategy adopted by the SRA in July 2010 set out a programme to tighten the monitoring and supervision of firms in the ARP, improving incentives for firms to manage themselves out of the ARP, and taking steps to ensure that firms pay their premiums.
Levels of risk assessment for firms entering the scheme were set out, with high risk firms receiving a forensic inspection visit, medium risk firms receiving a visit from the SRA practice standards unit, and desk top monitoring for low risk firms. Further review and close monitoring during the currency of the ARP was also set out.
By October 2010, SRA Chief Operating Officer Mike Jeacock said ‘”In August we launched an enforcement strategy for firms in the ARP. All firms have received visits and advice, and action is beingtaken against those posing an unacceptable risk or failing to pay their premiums. Our strategy is proving a success – since August we have collected over £750,000 of outstanding premiums, 37 firms have closed and a further 10 are in the process o fclosing. We are monitoring these closely.”√جª¬ø
Jeremy has recently been instructed to represent 4 solicitors whose practice went into administration in 2010, in respect of allegations concerning the ARP and run off cover. He would be interested in hearing about any experiences of other solicitors who entered the ARP scheme in 2010.
Jeremy is instructed by Ian Coupland of BCP International Law Firm .
Originally posted 2011-11-18 00:00:00.
