Compl-i - August 2009
Hot Topics
Practising Certificate
Fees
After much debate the Law Society’s Council
voted at the end of last month to increase the practising
certificate fee by nearly a fifth to £1,180 for 2010. The
full contribution to the Compensation Fund will also increase from
£150 to £390. The Law Society has given a number of reasons
for this increase, including spending on the SRA’s IT project, a
fall in the number of practising certificate holders, and the costs
of setting up the Legal Services Board and the Office of Legal
Complaints introduced by the Legal Services Act.
The Law Society’s Chief Executive, Des Hudson
has stated that none of the fee increase is due to increased
spending by the Society who froze its budget for 2010 at the 2009
level.
To read Des Hudson’s comments on this issue, please click on this
link.
Claims Management Companies – Beware!
The SRA have warned that a growing number of
claims management companies are putting solicitors at risk of
breaching conduct rules by hiring call centres to cold call
potential clients. Firms are reminded that they should be
making suitable enquiries about an introducer’s marketing methods
and referring to Rule
7 and Rule
9 of the Solicitors’ Code of Conduct.
The Claims Management Regulator has placed the blame firmly on
solicitors for any malpractice by these companies. Ultimately
it is a matter of professional misconduct if the Code of Conduct is
not followed in respect of such referrals.
Guidance was provided in our February 2009 newsletter. Please
click on the link to view the appropriate section.
PII Renewals
The deadline for PII renewals is approaching
at a fast rate, and firms are being encouraged to start the process
as early as possible. Unlike in previous years discounts are
unlikely to be received by leaving it to the eve of the 1
October. Last year was evidence of this when those who
renewed late had a nasty stock when they found premiums went up and
in some cases firms found themselves in the punitive assigned risk
pool unable to secure insurance. This year is likely to be
similar especially for small firms with the current economic
climate and the growing number of negligence claims and mortgage
frauds.
A further warning has been given as insurers
are making it clear that they will give priority to their existing
customers. Firms will have to think long and hard before
turning down a quote from their existing insurers.
To help firms present themselves in the best
light to insurers, Weightmans’ Compl-i team are offering a
compliance “health check” at a much reduced cost. Click on
the link to find out more about how we can help.
For further guidance on the topic of PII renewals, please see the
Law Society’s Practice Note. Click on this link to access
it.