The SRA had proposed reducing the mandatory minimum level of solicitors PII to £500,000, from its current figure of £2 million (£3 million for LLPs), as well as obliging legal practices to determine what the right level of cover for their firm is. These amendments were intended to come into effect before October 1st.
However, the LSB issued a warning notice and delayed the deadline for its decision until August 2015.
Commenting, Kevin Burke, representative for solicitors professional indemnity insurance experts Total Insurance, said:
"Solicitors, insurers and brokers alike breathed a collective sigh of relief upon learning of the LSB's decision.
"Although it is right for the SRA to look into solicitors PII regulations, its consultation was too short and the timing of its proposed changes threatened to create chaos in the sector.
"Now that it is clear that the proposed changes will not take place before October 1st - the date most solicitors professional indemnity cover policies will be renewed - the industry has more time to look at the implications of the SRA's proposals and develop evidence about their potential impact."
To find out more about Total Insurance, visit http://totalinsurance.uk.com.
Notes for editors
Total Insurance is based in Bradford.
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