£90 each
The Solicitors Regulation Authority (SRA) is proceeding with plans to increase the contributions solicitors must make to a special compensation fund by a hefty 200%.
The move means solicitors will now cough-up £90 each for 2024-25, up from a previous levy of £30. The contribution made by firms is also up from £660 to £2,220.
The compensation fund, which is controlled by the SRA, aims to support people who are owed money by a regulated law firm. Solicitors contribute to the fund through a levy added to their practising certificate fee.
Legal Cheek reported on the proposals in May, when the SRA stated that the increase was intended to rebuild the levy, which had been “significantly impacted” by a substantial rise in the number of interventions and claims over the past 18 months.
The hikes, set to take effect in November, were approved at an SRA board meeting last week but still require sign-off from the Legal Services Board.
The regulator has been under pressure to strengthen the compensation fund since it was forced to shutter Axiom Ince last year, following the disappearance of £64 million from the firm’s client account.
The investigation is ongoing, but the SRA revealed last November that former clients are seeking around £30 million in compensation, while the fund is estimated to be around £18 million.