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The SRA Handbook is no longer in effect. It was replaced by the SRA Standards and Regulations on 25 November 2019.

SRA Handbook

Responsibility

Back to version 21

Version 1 of the Handbook was published on 16/09/2011. For more information, please click 'History' Above

Rule 5: Responsibility

5.1

Each firm carrying on a practice during any indemnity period beginning on or after 1 October 2011, and any person who is a principal of such a firm, must ensure:

(a)

that the firm has in place and maintains qualifying insurance outside the ARP during any such indemnity period;

or, in the case of an eligible firm,

(b)

that the firm has applied to enter the ARP in accordance with the procedure set out in Rule 10;

in either case before the start of any relevant indemnity period or the start of practice whichever is later.

Commentary:

Note that the duty to ensure that qualifying insurance is in place rests not just on the firm as a whole, but also on every principal within that firm.

5.2

A run-off firm, and any person who was a principal of that run-off firm immediately prior to it becoming a run-off firm, must ensure that the run-off firm has applied to enter the ARP in accordance with the procedure set out in Rule 13.4(a). Making such an application does not absolve any firm or person from any breach of Rule 5.1.

Commentary:

A firm which has continued to practise without qualifying insurance immediately prior to closing down is required to apply for run-off cover through the ARP, but the firm and any principal of the firm may still face action for a breach of Rule 5.1 for practising without qualifying insurance.

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